ajustment budget 2014 / 2015

EKURHULENI METROPOLITAN MUNICIPALITY COUNCIL MEETING

2015.01.29

ITEM A-F (12-2015)

SDBIP, CAPITAL AND OPERATING ADJUSTMENTS BUDGET FOR 2014/2015 PURPOSE To recommend adjustments to be made to the 2014/2015 SDBIP, Capital and Operating Budgets of Council. STRATEGIC OBJECTIVE Promoting good governance WARDS AFFECTED All wards IDP LINKAGE Good Governance. EXECUTIVE SUMMARY Section 28 of the Municipal Finance Management Act deals with adjustments budgets. In terms of the Act, an adjustments budget is intended to do the following:

Sub-Section 2 a) Must adjust the revenue and expenditure estimates downwards if there is

material under-collection of revenue during the current year b) May appropriate additional revenues that have become available over and

above those anticipated in the annual budget, but only to revise or accelerate spending programmes already budgeted for

c) May, within a prescribed framework, authorise unforeseeable and unavoidable expenditure recommended by the mayor of the municipality

d) May authorise the utilisation of projected savings in one vote towards spending under another vote

e) May authorise the spending of funds that were unspent at the end of the past financial year where the under-spending could not reasonably have been foreseen at the time to include projected roll-overs when the annual budget for the current year was approved by the council

f) May correct any errors in the annual budget; and g) May provide for any other expenditure within a prescribed framework

Cognisance should also be taken of the requirements as set out in Chapter 4 of the Municipal Budget and Reporting Regulations, which addresses the following principles:

Section 21: Formats of adjustment budget Section 22: Funding of adjustment budget Section 23: Timeframes for tabling of adjustment budget Section 24: Submission of tabled adjustment budget Section 25: Approval of adjustment budget


2015.01.29

ITEM A-F (12-2015)

Section 26: Publication of approved adjustment budget Section 27: Submission of approved adjustment budget The following Annexures are provided:

Adjustments of the Capital Budget (Annexure A)

Adjustments of the Operating Budget (Annexure B)

Adjustment of the SDBIP (Annexure C)

Amended NT schedules (Annexure D) (To be tabled) DISCUSSION All departments submitted their respective requests for adjustments of the Capital and Operating budget and the SDBIP to the Finance Department and Strategy and Corporate Planning Department. The various requests were considered by the IDP, Budget, Assets and Liability Committee (IBALCO) and subsequently presented to the Budget Steering Committee. The Budget Steering Committee held numerous meetings between the 04th December 2014 and 19 January 2015 to analyse and scrutinise proposed adjustments and to finalise the adjustments. In terms of the report on the key deadlines of the budget process for the coming financial year, as approved in August 2014 by Council, the adjustment budget have to be considered and approved by Council in January 2015. Legislative also prescribed that the adjustment budget has to be approved by not later than the end of February of each financial year. ADJUSTMENTS TO THE CAPITAL BUDGET The actual expenditure as at 31 December 2014 is R 788, 242, 915 against the August 2014 Adjusted Budget of R 3, 963, 168, 528. This represents a spending level of 19.89% which is significantly lower when compared with the same period in 2013/14 which was 33.59%. The spending pattern is still not at the ideal levels considering that the expenditure projections until 31 December 2014 was 41.11%. It is concerning that the year to date expenditure for this financial year in terms of percentages and monetary value has decreased as compared to the same period in the previous financial years. In addition to the above poor performance, it is also a concern that the current year’s budget is almost R1bn more than last financial year’s budget. The proposed adjustments to the capital budget resulted in a reduction of R 136,218,906 of the Budget adjusted in August 2014.

The proposed adjustments budget is a combination of:

Re-allocations of funds between projects based on final bids amounts being known,


2015.01.29

ITEM A-F (12-2015)

Projects that were not sufficiently planned for and Budgets being re-scheduled over the MTREF period in line with the activity

based project plans.(Roll overs) Refinanced projects

The total project list with detailed motivations (per project) for all of the recommended adjustments is attached as Annexure A. This list excludes all the projects where refinancing between sources is proposed. The Re-financed projects are discussed later in this report. The proposed capital adjustment per department are summarised as per the table below:


2015.01.29

ITEM A-F (12-2015)

DEPARTMENTAL SUMMARIES FOR CAPEX ADJUSTMENT

Department Original Budget

Adjusted Budget 2014/15 (as at 31

Dec 2014)

Exp incl. commitments (as at 31 Dec

2014)

% Spent

Amount to be Reduced (Reductions)

(-)

Additional amount

requested (Additions)

(+)

Net Adjustments

Budget after Adjustment

Chief Operating Officer 130,000 130,000 80,584 61.99% - - - 130,000

City Manager 270,000 270,000 119,509 44.26% - - - 270,000

City Planning 4,150,000 4,150,000 601,703 14.50% - - - 4,150,000

Communication and Brand Management 290,000 290,000 239,665 82.64% - - - 290,000

Corporate Legal Services 4,932,600 4,932,600 1,326,815 26.90% - - - 4,932,600

*** Council General 10,000,000 10,000,000 3,085,000 30.85% (10,000,000) - (10,000,000) -

*** Customer Relations Management 43,700,000 53,621,616 24,388,398 45.48% (10,000,000) 21,200,000

11,200,000 64,821,616

Disaster & Emergency Management Services 104,619,920 105,119,920 52,809,947 50.24% (12,500,000) 12,500,000 - 105,119,920

Economic Development 59,300,000 59,300,000 11,397,761 19.22% (8,000,000) 6,200,000 (1,800,000) 57,500,000

EMPD 130,330,000 136,246,066 102,326,941 75.10% (4,000,000) 12,700,000 8,700,000 144,946,066

Energy 578,150,000 578,150,000 171,032,115 29.58% (121,000,000) 87,500,000 (33,500,000) 544,650,000

Environmental Resources Management 11,295,000 11,495,000 5,629,283 48.97% (2,500,000) 500,000

(2,000,000) 9,495,000

EPMO 9,180,000 9,180,000 168,903 1.84% (6,000,000) - (6,000,000) 3,180,000

Executive Office 2,663,000 2,663,000 494,945 18.59% - - - 2,663,000


2015.01.29

ITEM A-F (12-2015)

Department Original Budget

Adjusted Budget 2014/15 (as at 31

Dec 2014)

Exp incl. commitments (as at 31 Dec

2014)

% Spent


(-)

Additional amount


(+)

Net Adjustments


Finance 20,351,000 20,351,000 8,720,745 42.85% - - - 20,351,000

Fleet Management 10,435,000 30,181,262 2,461,920 8.16% (15,384,406) 5,235,000 (10,149,406) 20,031,856

Health & Social Development 96,600,000 96,600,000 39,811,538 41.21% (7,150,000) 7,150,000 - 96,600,000

Human Resources Management & Development 850,000 850,000 249,723 29.38% - - - 850,000

*** Human Settlements 329,992,435 411,848,780 107,516,252 26.11% (124,300,000) 41,200,000 (83,100,000) 328,748,780

*** ICT 176,938,000 176,938,000 23,310,047 13.17% - 43,500,000 43,500,000 220,438,000

Internal Audit 606,400 606,400 472,115 77.86% - - - 606,400

Legislature 4,300,000 4,300,000 1,617,701 37.62% - - - 4,300,000

Real Estate 265,605,000 269,451,314 64,456,597 23.92% (1,800,000) 7,645,000 5,845,000 275,296,314

Risk Management 290,000 290,000 24,820 8.56% - - - 290,000

Roads and Stormwater 608,100,000 608,100,000 54,644,776 8.99% (189,391,000) 189,391,000 - 608,100,000

SRAC 122,250,000 124,626,084 42,424,607 34.04% (8,810,000) 2,410,000 (6,400,000) 118,226,084

Strategy & Corporate Planning 310,000 310,000 12,422 4.01% - - - 310,000

Transport 607,093,244 651,595,721 189,219,450 29.04% (56,300,000) 21,935,500 (34,364,500) 617,231,221

Waste Management 126,916,800 128,745,308 49,928,058 38.78% (39,030,000) 11,580,000 (27,450,000) 101,295,308

Water & Sanitation 460,517,455 462,826,457 175,733,154 37.97% (79,359,627) 88,659,627 9,300,000 472,126,457

Grand Total 3,790,165,854 3,963,168,528 1,134,305,493 28.62% (695,525,033) 559,306,127 (136,218,906) 3,826,949,622

*** Council General – Transfer of R10m to the implementing department which is ICT (ERP Phase 1)


2015.01.29

ITEM A-F (12-2015)

*** Customer Relations Management – Included is the reduction is an amount of R10m being transferred to ICT. (Unified Command Centre) *** Human Settlements – Included in the reductions is an amount of R54,3m being transfer to the Operating Budget for the project implementation by EDC (Social Housing Units) *** ICT – Included in the additions is an amount of R20m being transferred from CRM and Council General. (Unified Command Centre and ERP Phase 1) Per Sources of Finance:

2014/15 PROPOSED CAPITAL BUDGET ADJUSTMENTS Refinancing

Sources of

Finance

Original Budget

Adjusted Budget

2014/15 (as at December

2014)

Expenditure Year to Date (as at 31 Dec

2014)


(-)

Additional amount


(+)

Net Adjustments


Refinancing between

HSDG and USDG

Refinancing

between USDG and Municipal

Bonds

Refinancing between

Revenue and USDG


Developer's contributions

5,500,000 5,500,000 1,413,225

(1,000,000) -

(1,000,000) 4,500,000 4,500,000

HSDG

75,000,000 156,856,345 71,327,304 - - - 156,856,345 (152,030,000) 4,826,345

INEP

61,000,000 61,000,000 33,921,312 - - - 61,000,000 61,000,000

Municipal Bonds

1,234,110,000 1,269,202,713 252,133,745 (269,439,406)

212,269,000 (57,170,406) 1,212,032,307 50,000,000 1,262,032,307

Other National Grants

290,000,000 331,288,248 100,389,827

(50,000,000)

26,435,500

(23,564,500) 307,723,748 307,723,748

Other Provincial Grants

1,700,000 1,700,000 -

(700,000) -

(700,000) 1,000,000 1,000,000

Revenue

552,874,720 553,074,720 385,281,834

(13,035,000)

96,015,000 82,980,000 636,054,720 (114,900,632) 521,154,088

USDG

1,569,981,134 1,584,546,502 289,838,248 (361,350,627)

224,586,627 (136,764,000) 1,447,782,502 152,030,000 (50,000,000) 114,900,632 1,664,713,134

Grand Total

3,790,165,8

54

3,963,168,528 1,134,305,493

(695,525,033)

559,306,127 (136,218,906)

3,826,949,622 - - -

3,826,949,622


2015.01.29

ITEM A-F (12-2015)

****An amount of R114,9m in respect of the Water Loss Eradication Programme will be refinanced from the Revenue to USDG. ****In line with USDG framework, an amount of R50m in respect of Brownfield Acquisition is being re-financed from USDG to Municipal Bonds ****An amount of R152m in respect of HSDG is been refinanced to USDG. Of that, an amount of R77m relates to the 2013/14 unspent funds not

approved for retention. This amount has since been repaid to Provincial Treasury. R75m relates to 2014/15 HSDG which is being refinanced to USDG as a result of the HSDG budget that is not gazetted by the Provincial Treasury, there is no certainty that the allocation will be received in this financial year.

Projects being Re-financed An amount of R180, 586,282 in respect of USDG grant remained unspent as at 30 June 2014 (2013/14). The allocation for 2014/15 amounts to R1,804, 532, 000 which brings the total to R 1,985, 130 282 of which R 320,417,148 is allocated on the Operating Budget. The total allocation on capex must thus be R 1,664,713,134. The proposed capital adjustments will result in the USDG budget totalling R 1,447,782,502 which requires that some projects amounting to R 216,930,632 must be refinanced to enable the total USDG budget to be allocated. The 2014/15 HSDG allocation has not been gazetted and will therefore not be received, hence it is necessary to re-finance the projects funded from HSDG.

Department Original Source

of finance New Source of finance after the

proposed adjustment Project Name Refinancing

Comments

Human Settlements HSDG USDG

Germiston Fire Station Social Housing Project-Buildings 20,000,000

Refinanced to USDG as a result of the HSDG budget that is not gazetted by the province, there is no certainty that the allocation to this project will be received in this financial year


Delville Social Housing Project-construction of buildings 15,000,000



Human Settlements, Pre Planning Fees 40,000,000


Human Settlements HSDG USDG Driefontein 85-IR 77,030,000

2013/14 unspent grant not approved for retention. Must be re-financed to USDG

Water & Sanitation Revenue USDG

Water Loss Eradication Programme 114,900,632

Real Estate USDG Municipal Bonds Brownfield Property Acquisition (50,000,000) Refinanced from USDG to Municipal bonds to be in line with the USDG Framework

216,930,632


2015.01.29

ITEM A-F (12-2015)

ADJUSTMENTS OF THE OPERATING BUDGET

Annexure B of the report contains the detailed motivations for adjustment of the Operating Budget. The following table is a summary of the Operating Budget requests per department:

The total amount of requests amounted to R444, 9m. Each department has to identify reductions within their budget allocation to accommodate the additional requests. A total of R71, 9m was identified by departments, leaving a balanced amount of R373m to be funded. FUNDING OF THE ADDITIONAL REQUESTS According to the Section 71 Report for December 2014, the Sanitation Income Budget is

reflecting the following results:


2015.01.29

ITEM A-F (12-2015)

YTD Budget YTD Actuals % Variance

Sanitation Income 610,524,049 645,996,099 5.81%

Departmental Usage 13,910,662 6,188,193 -55.51%

Less: Income

foregone

134,952,498 131,741,118 -2.38%

Sub-total: NET

SANITATION SALES

489,482,213 520,443,174 6.33%

During the compilation of the budget for 2014/15 the income from the levying basic

service charges was incorrectly calculated. The basic service charges is reflecting the

following results:

R

Income Budgeted for Basic Service Charges 11,840,000

Actual Income until December 2014 42,034,907

Projected Income for the Full Financial Year 85,038,379

Amount the Projected Income exceeding the Budget 73,198,379

According to the Section 71 Report for December 2014, the Interest Received on

Investments is reflecting the results:

R

Income Budgeted for Interest Earned 220,042,500

Actual Income until December 2014 182,220,217

Projected Income for the Full Financial Year 281,998,177

Amount the Projected Income exceeding the Budget 61,955,677

Decrease in the Expenditure Budget:

a. The amount required to borrow (municipal bond or external loan) for the funding of

the Capital Budget is R1.269 billion. During the compilation of the budget provision is

made for the interest payable at 10.15% p.a. for a period of 6 months. It is only

anticipated that Council will obtain the capital funds in April/May 2015. The interest

provided can therefore be reduced R42.9m.


2015.01.29

ITEM A-F (12-2015)

b. According the Section 71 Report for Quarter 1 (ending September 2014) the

following results on the salary budget were realized :

FINANCIAL PERIOD FULL YEAR

Budget

Budget: 1st

Quarter of

2014/15

Actuals: 1st

Quarter of

2014/15

% Variance:

1st Quarter of

2014/15

METRO R R R %

EXPENDITURE

Employee Related Costs -

Salaries & Allowances

4,625,960,930 1,146,706,896

1,034,735,187 -9.76%


Overtime 361,678,180 90,215,019 116,577,337 29.22%


Social Contributions

1,168,164,414 292,049,570 259,695,682 -11.08%

Subtotal 6,155,803,524 1,528,971,484 1,411,008,206 7.72%

The savings on Salaries is actual savings realized in the first quarter. It does not

affect the filling of vacancies in the period after the first quarter. The total amount

saved on salaries in the first quarter amounts to R117,963,279.

c. According the Section 71 Report for Quarter 1 (ending September 2014) the

following results on the general expenditure were realized :

FINANCIAL PERIOD FULL YEAR

Budget

Budget: 1st

Quarter of

2014/15

Actuals: 1st

Quarter of

2014/15

% Variance:

1st Quarter of

2014/15

METRO EXPENDITURE R R R %

GENERAL EXPENSES 1,568,674,206 280,330,458 203,362,258 -27.46%

The actual expenditure was R76,968,200 less than the planned expenditure. Based on the

principles of Quarterly Budgets this amount was saved in the first quarter and therefore

could be utilized as savings for the Adjustment Budget. A detail list of amounts per vote is

available and the amounts per department are as follows:


2015.01.29

ITEM A-F (12-2015)

IMPACT OF THE OPERATING ADJUSTMENT BUDGET ON THE CURRENT APPROVED BUDGET OF COUNCIL The impact of the adjustments as contained in the report on the approved budget is reflected in the following summary of Council’s budget.


2015.01.29

ITEM A-F (12-2015)

Category Description

Original Budget

2014/15

Budget After

Virements to Date

2014/15

Proposed

Adjustment

Budget

After

Adjustment

Budget

101 Total Property Rates (4,701,134,508) (4,701,134,508) - (4,701,134,508)

102 Total Interest Earned Outstanding Accounts (108,988,649) (108,988,649) - (108,988,649)

105 Total User Charges: Electricity (518,618,785) (518,618,785) - (518,618,785)

106 Total User Charges: Refuse Removal (1,231,349,159) (1,260,028,554) - (1,260,028,554)

107 Total User Charges: Sanitation (1,265,216,140) (1,276,700,140) (73,198,379) (1,338,414,519)

108 Total User Charges: Water (3,225,161,207) (3,225,161,207) - (3,225,161,207)

109 Total User Charges: Market (19,472,811) (19,472,811) - (19,472,811)

110 Total User Charges: Minor Services (58,859,942) (58,859,942) - (58,859,942)

115 Total Fuel Levy (1,469,674,000) (1,469,674,000) - (1,469,674,000)

117 Total Rental From Produced Assets (65,730,354) (65,730,354) - (65,730,354)

118 Total Rental From Non-Produced Assets (215,000) (215,000) - (215,000)

122 Total Interest Earned; Investments (220,042,500) (220,042,500) (61,955,677) (281,998,177)

125 Total Interest Earned: Outstanding Debtors (219,921,038) (219,921,038) - (219,921,038)

133 Total Fines (253,115,614) (253,115,614) - (253,115,614)

135 Total Licenses And Permits (45,416,893) (45,416,893) - (45,416,893)

137 Total Agency Services (258,556,762) (258,556,762) - (258,556,762)

139 Total Operating Grants (2,683,115,344) (2,759,179,314) (53,786,382) (2,812,965,696)

140 Total Capital Grants (2,003,181,134) (2,136,064,750) 92,301,523 (2,043,763,227)

142 Total Other Income (64,850,150) (64,850,150) (1,730,461) (66,580,611)

145 Total Profit On Sale Of Assets (5,000,000) (5,000,000) - (5,000,000)

155 Total Income Foregone 1,302,618,747 1,302,618,747 - 1,302,618,747

Grand Total TOTAL INCOME (28,313,881,896) (28,563,946,284) (98,369,376) (28,650,831,660)


2015.01.29

ITEM A-F (12-2015)

ADJUSTMENT OF THE SDBIP PROPOSED ADJUSTMENT OF THE SDBIP During the planning for 2014/15 SDBIP, the Metro went through a process of rationalising the SDBIP in order to reflect the most important results the Metro wants to achieve. The Metro wide SDBIP was reduced from 427 to 103 results/indicators (results based management). As part of this process there was emphasis on also improving the technical craft of the indicators to ensure SMARTNESS. These amendments were discussed in detail in planned sessions with all the Departments

and Entities on the Metro in the last 2 weeks of November 2014.

The proposed SDBIP adjustment has been discussed with both Internal Audit and the

Auditor-General.

Details on the changes are reflected in Annexure C of the report.

Category Description

Original Budget

2014/15

Budget After

Virements to Date

2014/15

Proposed

Adjustment

Budget

After

Adjustment

Budget

201 Total Employee Costs - Salaries 5,182,860,593 5,181,920,593 (116,370,441) 5,065,550,152

202 Total Employee Costs - Social Contribution 1,168,164,414 1,168,164,414 (10,192,838) 1,157,971,576

203 Total Internal Labour Costed To Capital (179,042,764) (179,042,764) 20,000,000 (159,042,764)

204 Total Internal Labour Costed To Operations (725,194,591) (725,395,384) - (725,395,384)

206 Total Renumeration Of Councillors 101,918,572 101,918,572 - 101,918,572

210 Total Bad Debt Provision 1,230,204,146 1,230,204,146 - 1,230,204,146

215 Total Collection Costs 178,237,901 178,149,901 - 178,149,901

220 Total Depreciation 2,044,296,457 2,044,296,457 - 2,044,296,457

222 Total Amortisation Of Intangible Assets 7,166,250 7,166,250 - 7,166,250

225 Total Repairs And Maintenance 1,630,018,935 1,639,001,523 126,662,252 1,754,179,775

226 Total Repairs And Maintenance: Internal Costs 725,194,591 725,395,384 - 725,395,384

230 Total Interest: External Loans 706,964,374 705,736,374 (35,916,000) 670,458,374

240 Total Bulk Purchases 10,290,877,077 10,290,867,077 86,135,220 10,377,002,297

245 Total Contracted Services 902,139,256 901,388,856 (4,639,398) 896,749,458

250 Total Grants And Subsidies 1,048,821,207 1,047,321,207 2,623,600 1,049,944,807

255 Total General Expenditure 1,564,001,248 1,571,972,467 68,582,122 1,639,916,589

256 Total Operational Grants 369,783,866 445,847,836 53,786,382 499,634,218

260 Total Loss On Sale Of Assets 25,000,000 25,000,000 - 25,000,000

285 Total Internal Charges 543,048,402 571,727,797 - 571,727,797

Grand Total TOTAL EXPENDITURE 26,814,459,934 26,931,640,706 190,670,899 27,110,827,605

350 Total Transfers To Cash-Backed Reserves 113,000,000 113,000,000 - 113,000,000

355 Total Offset Depreciation (619,642,452) (619,642,452) - (619,642,452)

360 Total Capital Grants 2,003,181,134 2,136,064,750 (92,301,523) 2,043,763,227

Grand Total TOTAL APPROPRIATIONS 1,496,538,682 1,629,422,298 (92,301,523) 1,537,120,775

TOTAL TOTAL OPERATING BUDGET (2,883,280) (2,883,280) - (2,883,280)


2015.01.29

ITEM A-F (12-2015)

RECOMMENDATION 1. That the report on the Adjustments Budget for the 2014/15 financial year

BE NOTED.

2. That the 2014/15 Budget BE ADJUSTED as allowed for in the MFMA Municipal Budget and Reporting Regulations as per the following tables as contained in Annexure D (NT schedules) of the report (TO BE TABLED): a. Table B1 – Adjustments Budget Summary b. Table B2 – Adjustments Budget Financial Performance Standard

Classification c. Table B3 - Adjustments Budget Financial Performance Revenue and

Expenditure by Municipal Vote d. Table B4 - Adjustments Budget Financial Performance Revenue and

Expenditure e. Table B5 – Adjustments Capital Budget by Vote and Funding f. Table B6 – Adjustments Budget Financial Position g. Table B7 – Adjustments Budget Cash Flow h. Table B8 – Cash Backed Reserves and Accumulated Surplus Reconciliation i. Table B9 – Asset Management j. Table B10 – Basic Service Delivery Measurement

3. That it BE NOTED that the revised budget as reflected in the B-tables referred to in 2

above, is a combination of adjustments processed under delegated authority during the year, the adjustment budget changes as approved by Council in August 2014 (roll-overs) and the adjustment budget requests contained in this report.

4. That the 2014/15 Capital Budget as reflected in Annexure A attached to the report

BE ADJUSTED downward with an amount of R 136,218,906 as allowed for in the MFMA Municipal Budget and Reporting Regulations.

5. That an amount of R 266,930,632 BE RE-FINANCED between the Revenue,

Municipal Bonds and USDG to allow the full allocation of the USDG budget. 6. That the changes of Council’s SDBIP for 2014/15 BE AMENDED as set out in

Annexure C attached to the report.

ANNEXURE A

Department Project Name

Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15

Detailed Motivation as to why the adjustments are necessary

Council General ERP Phase 1

Municipal

Bonds 10,000,000 10,000,000 3,085,000 (10,000,000) - (10,000,000) -

Project moved to ICT Department as the budget will be utilised

during the 2014/15 FY. This is in addition to the budget which is put

forward for the next 3 years.

Customer Relations

Management

CCA Brownfields Upgrades

(Benoni, Boksburg,

Brakpan, Germiston,

Kempton Park & Springs

CCC)

Municipal

Bonds 5,850,000 6,510,000 1,449,891 4,000,000 4,000,000 10,510,000

Kempton Park has been moved out to 2014/15 to accommodate the

planning processes of the project. The additional amount is required

to fund the springs under quoted tender to complete the project

within the current financial year. The Springs project experienced

numerous problems due to contractor non-performance. However,

measures have been put in place to monitor the progress and

ensure that the contractor deliver on the contract. The fact is that

the contract is under-priced given the size of the site and that

Electrical and Mechanical allowances in the tender document were

very low compared to the market values. This significantly increased

the cost on the project, because selected sub-contractors had to be

appointed through a tender process. The Bid document also did not

make allowance for structural/civil engineering services, which were

necessary and critical on this project because of the age of the

Springs Civic Centre building. The additional funds requested are to

cover the shortfall on the items that the BOQ did not adequately

provide for.

Customer Relations

Management Daveyton Building Upgrade

Municipal

Bonds 7,000,000 7,122,214 3,477,470 - 3,000,000 3,000,000 10,122,214

Daveyton Project had approved a reduced scope due to funding

constraints. Funding is required to fund the full scope and additional

expenses incurred. SCM would have to amend the appointment

letter to accommodate the full scope in line with the bid. A further

report on the scope creep will have to be approved by the

accounting officer through his committees.

Customer Relations

Management Nigel Building Upgrade Revenue 1,100,000 4,100,000 2,556,473 - 6,000,000 6,000,000 10,100,000

The Nigel Customer Care Centre (CCC) building upgrade also

incurred additional costs because of poor soil conditions, and that

when an excavation was done; two (2) storm water pipes were

discovered running underneath the main building, which were not

showing on the site plan. These technical problems had to be

resolved by conducting an extensive Geo-tech study to determine

how the foundation should be constructed and strengthened. The

revised final expenditure is R 17,143,011.90, including VAT and

contingency and professional fees. Nigel and Tembisa 2 require

council approval on the extensive cost and duration variation to

enable the current contractor to complete the project within the

current financial period.

2014/15 PROPOSED CAPITAL BUDGET ADJUSTMENTS

Page 1 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Customer Relations

Management

Tembisa 2/ Winnie Mandela

New Building

Municipal

Bonds 10,000,000 10,000,000 6,646,710 - 8,000,000 8,000,000 18,000,000

The Tembisa 2/Winnie Mandela new Customer Care Centre

building incurred additional costs because of dolomite on the

construction site. The Geo-Technical study revealed that the whole

floor area contained dolomite rocks underneath, which had to be

exposed to check the severity of the problem. The solution applied

was to blast the tips of the rocks, because many of them were inter-

locked to each other underneath; and removing them was going to

create a sink hole. The total project value was estimated to reach

27 000 000.00. However, the final expenditure projection from the

Quantity Surveyor (QS) is R 33, 378, 546.43, excluding professional

fees. Nigel and Tembisa 2 require council approval on the extensive

cost and duration variation to enable the current contractor to

complete the project within the current financial period.

Customer Relations

Management Unified Command Centre

Municipal

Bonds 10,000,000 17,019,402 7,275,022 (10,000,000) - (10,000,000) 7,019,402

R10m of the UCC budget is to be transferred to ICT as a result of a

decision by the City Manager. The rollover from 2013/14 of

R7,019,402 is to remain with CRM.

Customer Relations

Management Vosloorus Building Upgrade

Municipal

Bonds 400,000 2,520,000 2,346,336 - 200,000 200,000 2,720,000

The project is scheduled to be completed at the end of November

2014, and the additional funding is required to cover cost relating to

variation orders, which were necessary for the successful

completion of the project.

Disaster &

Emergency

Management

Services

Const Fire Station/House

Germiston Central USDG 20,000,000 7,381,309 2,727,335 7,700,000 7,700,000 15,081,309

There was a delay in awarding the bid for construction due to the fact that

the highest scoring bidder's price was far below the market price (16%).

The BEC advised the department to engage the contractor in order to

determine whether they will be able to deliver the required project for the

tendered amount. After lengthy engagements; the bidder agreed and

eventually withdrawn his bid. This process delayed the finalization of the

appointment of the contractor. The second highest bidder was appointed

and the site hand-over took place on 2 September 2014 and only

commenced work in October 2014. The department budgeted a total of

R20m in the 2014/15 Fin Year. The delay in the appointment of the

contractor posed a risk of under spending on USDG. The risk had to be

mitigated early enough. At the same time; the Duduza Fire Station where

the original contractor was dismissed due to poor performance and poor

workmanship at beginning of the 2nd half of 2013/14, required additional

funds in order to avoid the stop – start situation during the construction of

the Fire Station. Additional funds were informed by an assessment report of

the Consulting team after the appointment of the replacement contractor

who had higher rates than the previous one. The reallocation of funds to

Duduza Fire Station from Germiston Fire Station was done through an

expedited item (R12, 62m) during October 2014. At the time of this

reallocation; the cash-flow projection for Germiston Fire Station project was

not yet available from the contractor. Towards the end of October, the

projections were made available to the value of R15,08m in 2014/15. This

meant that an additional R7.7m is required to augment the remaining

budget of R 7,38m in the current financial year. The project will still be

completed in early 2016/17 as a result of the delay with the appointment.

Page 2 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Disaster &

Emergency

Management

Services


Thokoza USDG 13,000,000 13,000,000 - (12,500,000) - (12,500,000) 500,000

Thokoza area is highly dolomitic and the Geo-Tech and dolomite

investigation took longer than anticipated originally. When the

investigation was finalized; the outcome thereof required that the

designs be re-done to comply with the recent SANS 1936 in order

to secure the building platform. This process delayed the finalization

of the designs thereby requiring a budget adjustment and therefore

moving the completion of the Project to 2016/17 instead of 2015/16.

The Geo-Informatics Division of City Planning was driving the

process of investigation. As part of mitigation; City Planning

Department also deployed a service provider to assist DEMS

Department with the bulk earthworks in order to secure the building

platform, since the project is in a highly dolomitic area. Therefore

the earth works is already taking place on operating budget to

ensure that once the contractor is appointed; he/she starts

immediately with foundations. These complications with designs on

dolomitic site delayed completion of plans and subsequent

procurement of the building contractor. The contractor is

anticipated to be appointed by April/May 2015. R 12 500 000m

provided for 2014/2015 needs to be provided for in 2015/16. The

estimated project cost is R36 000 000. The remaining amount is

requested in 2016/17. The Project is not abandoned but moved by

one year and continuing as per IDP.

Disaster &

Emergency

Management

Services


Zonkezizwe USDG - - - - 736,000 736,000 736,000

The project was completed in June 2014 at the end of the 2013/14.

As per contract; the contractor has 90 working days to submit the

"Final Account". The final account of the contractor was submitted

during the Q1 of 2014/15 and an outstanding payment to the

contractor to the value of R 735 540.35 is due to the contractor for

work done, whilst no provision was made in the 2014/15 for this

project as this final account was not yet available at the end of

2013/14. The submission beyond 2013/14 was due to sub-

contractors that did not submit their payment certificates in time

relying on the 90 days period as per conditions of contract. An

additional amount of almost R 736 000 is required to pay contractor.

This amount will not constitute over expenditure on the Project as

the amount of R 880 000 was reallocated from this project to

refurbishment projects towards the end of 2013/14 to mitigate the

risk of under expenditure on USDG budget which is a rule to avoid.

Disaster &

Emergency

Management

Services ICT Equipment (EMS) Revenue 600,000 600,000 459,332 - 1,000,000 1,000,000 1,600,000

ICT Department has advised the Department that the operating

system used can not be supported on the majority of the current

desktops in Emergency services, and that they should be replaced

urgently. In addition the copier/printers at the Corporate Office and

training centre is continuously failing and needs to be replaced

urgently.

Page 3 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Disaster &

Emergency

Management

Services

Refurb of All Metro Fire

Stations/House

Municipal

Bonds 2,000,000 2,000,000 642,855 - 3,064,000 3,064,000 5,064,000

1. The original approved R2m for Refurbishment of Fire Stations is

currently allocated and used for the following projects :

a) Completion of the Mezzanine floor at Bedfordview Fire Station -

R 540 000

b) Replacement of roof at Boksburg Fire Station - R 360 000

c) Paving and Carports at Boksburg Fire Station - R 900 000

d) Professional Fees for the Consultants - R 200 000

Contractors are already appointed and commenced the work. R3,

064, 000 Requested for Re-allocation to Refurbishment of Fire

Stations will be used for the following projects: a) Replace Machine

Bay Doors at Benoni and Commercia for R 1 200 000, b) Refurbish

swimming pools at Rynveld, Bedfordview and Edenvale for R 500

000, c) Fencing at the following Fire Stations (R600,000):

Wadeville – 345m palisade fence plus 2 gates, Bedfordview – 100m

palisade fence, Boksburg – Leon Ferreira – 300m palisade fence

and 80m clearview at offices, Nigel – 30m of pre-fabricated fence,

Zonkizizwe FS – extend height of boundary wall by 600mm, d)

Refurbishment of kitchens at 10 Fire station houses for R 764 000

Economic

Development Ekurhuleni Industrial Parks

Municipal

Bonds 2,000,000 2,000,000 - (2,000,000) - (2,000,000) -

The Division Consulted with the Department of Trade and Industry

to establish their role and support in the municipalities

implementation of their Industrial development programmes

including the Special Economic Zones. The division is relinquishing

the R2million allocation as the anticipated support from the DTi is

expected to cover the preparatory work needed for the

implementation of the Ekurhuleni Own Industrial Park and related

projects. The Division may however in future require funding from

Council especially when the project reaches implementation phase.

Economic

Development Tourism Route Infrastructure

Municipal

Bonds 1,000,000 1,000,000 512,861 - 200,000 200,000 1,200,000

The funds are required to continue in the development of routes as

per the National Tourism sector strategy.

Economic

Development

Township Economies

Development USDG 10,000,000 10,000,000 149,100 (6,000,000) - (6,000,000) 4,000,000

Identification of council owned shops that were to be refurbished

was delayed due to legitimacy of leaseholds, the Provincial DED is

at the point of transferring some shops to people. Due to this

process the Department needed to ensure that the identified shops

are not in contention. The department is forced to implement the

Council Owned Refurbishment project in the next year to allow

space to deal with all the challenges. Therefore out of the R10m

funds budgeted for this project, R4m will be used for planning for

2015/16, 2016/17 and 2017/18 financial years

Economic

Development Township Industrial Parks USDG 6,000,000 6,000,000 569,214 - 6,000,000 6,000,000 12,000,000

The consultants appointed conducted an assessment of the

Refurbishment of Duduza Resource Centre project. The Bills of

Quantities and plans indicated that the project was under budgeted,

and that it would require R12m to complete all the works, hence the

Department is requesting additional R6m to complete the project.

Page 4 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



EMPD

Const Precinct Stations

Tokoza

Municipal

Bonds 12,500,000 12,500,000 1,366,566 (4,000,000) - (4,000,000) 8,500,000

Contractor was delayed during construction as actual founding

conditions on this dolomitic site was different than planned and

platform had to be altered to suit new on site conditions. Caused a

delay of ±6 weeks - extension of time to follow. Contractor has

completed bulk earthworks, raft foundation and brickwork up to top

of window level.

Contractor approximately 2 months behind initial programme. Cash

flow consequently delayed - Payment of R 832 746 and R1 010 160

processed end Sept 2014 and during October 2014 respectively.

Due to the delays in the project, it will not be completed in this FY

and the funds will not be fully utilised and the intention is to

complete the project in the new FY.

EMPD

Const Precinct Stations

Zonkezizwe USDG - 4,285,066 3,438,390 - 5,000,000 5,000,000 9,285,066

Initial contract has been delayed due to reasons beyond contractors

control.

Additional costs due to :

a) The generic design of the initial consultant had to be altered to

suit the site specifics and additional costs incurred on dolomitic

conditions (Foundation and site wet services),

b) revised "Green Building" design and

c) extension of time.

Contract was extended to complete during April 2014. Contractor

did not perform and contract expired end June 2014. Busy

finalizing contractual documentation to complete the project.

First Payment certificate in 2014/15 FY to be submitted end October

2014.

Building enclosed, roof installed and most windows and doors

installed, suspended ceilings and light fittings 80% installed. 60%

painted inside. Busy with final finishing and site work. Anticipated

completion March 2015. Invoices to the value of R 3.5 mil have

been received and submitted yesterday for payment - they were

submitted on 3 November but due to an error on the invoice, they

were returned for resubmission. This precinct is in the final stages

of construction and the additional funds are required for the

completion thereof. This Precinct is directly related to service

delivery and the Departmental SDBIP will not be achieved if the

project is not completed.

EMPD

Refurbishment All EMPD

facilities

Municipal

Bonds 2,040,000 2,040,000 1,357,342 - 1,000,000 1,000,000 3,040,000

Addition funds required for the urgent refurbishment of Brakpan

Precinct. This Precinct is in need of urgent refurbishment in order

to render service to the community. The present facilities are not

conducive for the rendering of efficient services to the community.

Page 5 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



EMPD

Refurbishment Boksburg

Pound office Revenue - - - - 1,000,000 1,000,000 1,000,000

Additional funds are required for the tarring / paving of the premises

to prevent fires and damage to impounded vehicles. The current

pound premises is a grassed area and due to the number of

vehicles in the pound, the grass is difficult to cut and maintain. In

winter the grass becomes dry and is prone to fires, with the

consequences being that of major destruction to impounded

vehicles, resulting in claims against Council.

EMPD

Refurbishment Logistics

section

Municipal

Bonds 2,000,000 2,000,000 - - 1,000,000 1,000,000 3,000,000

Additional funds are required for the erection of carports for the

safekeeping of the pool busses and mini busses in EMPD. It is the

intention of the EMPD to pool the busses and mini busses in EMPD

in order to ensure that the vehicles are utilised correctly and

efficiently and are not misused. We have a constant need for these

vehicles and they are not always available at short notice.

Therefore the EMPD intends to store the vehicles at the EMPD

Logistics Section in Kempton Park and have them work on a book

in - book out system. In order to protect the vehicles from the

elements (hail etc.) they need to be under cover and at present

there is space of the vehicles, but no protection. By pooling the

vehicles in once place and having control over their utilisation - this

will ensure that the vehicles are available when needed and utilised

in the best possible manner to ensure service delivery.

EMPD

Specialized Equipment

(EMPD) Revenue 4,000,000 4,000,000 2,638,686 - 2,500,000 2,500,000 6,500,000

Additional funds are required for the purchase of dash mounted

radios for all EMPD vehicles for the transmission of data from the

control room to the officer in the vehicle. The dash mounted radios

will directly enhance service delivery as better policing services can

be rendered, through better communication - this will also assist in

fighting crime and thus reducing the crime rate.

EMPD

Specialized Vehicles

(EMPD) Revenue 1,500,000 1,500,000 1,441,971 - 2,000,000 2,000,000 3,500,000

Single cab LDV's must be purchased for By-Law and Cable Theft

law enforcement - transportation of impounded good and evidence.

These vehicles can only be purchased from the Specialised

Vehicles vote number and EMPD requires these vehicles in order to

enforce Council By-Laws and combat cable theft, thus meeting the

SDBIP targets in terms of service delivery, by-law enforcement and

reducing cable theft.

Page 6 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



EMPD

Establishment of Equestrian

Unit

Municipal

Bonds - 130,000 - - 200,000 200,000 330,000

These funds are required for the purchase of horses for the

replacement of old horses which need to be retired. The horses

would have originally been bought from the Specialised Equipment

vote number, but we were told by Finance (Lovedalia) that we have

to purchase the horses from the Establishment of Equestrian Unit

vote number, and that we could not use the Specialised Equipment

vote number. The Specialised Equipment vote number has been

utilised for the purchase of firearms (R 2.7 million) and the balance

will be utilised for the purchase of speed equipment on the tender

that was approved at BAC last week. It is important to replace 3 of

the horses as these horses are unable to perform duty due to there

age and medical condition - if the horses are not replaced this will

seriously impact service delivery in terms of the serviced rendered

by the Equestrian Unit - they need horses to perform their functions.

Energy Corporate Electrification USDG 100,000,000 100,000,000 828,912 - 20,000,000 20,000,000 120,000,000

The department is inundated with petitions from communities in

townships that currently do not have electricity requesting the

provision of basic services. EMM is currently only having 82%

access to electricity which is amongst the worst of the eight Metros.

The is a need to increase the pace of providing electricity to

qualifying communities. The funding will be utilised in the areas of

Palm Ridge, Eden Park, Esselen Park, Chief Albert Luthuli, John

Dube, Villa Liza and Kwa-Thema.

Energy Corporate Energy efficiency

Other

National

Grants 10,000,000 10,000,000 9,622,003 - 7,500,000 7,500,000 17,500,000

Additional allocation as per the Division of Revenue Act

adjustments published in December 2014

Energy Corporate Lighting

Municipal

Bonds 6,000,000 6,000,000 2,021,879 - 2,000,000 2,000,000 8,000,000


townships that are requesting the provision of streetlights and

highmast lights. The is a need to increase the pace of providing

lighting to qualifying communities.

Energy

Corporate Network

enhancement

Municipal

Bonds 3,000,000 3,000,000 - - 10,000,000 10,000,000 13,000,000

The department has experienced a recent spike in network

performance challenges with outages that affected areas like

Sunward Park, Freeway Park, Brakpan, etc. This resulted in

outages that left customers without electricity supply for extended

periods. The funding will be utilised in the areas of Kwa-Thema,

Langaville, Tsakane, Duduza, Daveyton, Etwatwa, Tembisa,

Katlehong, Vosloorus, Tokoza.

Energy

Corporate Revenue

enhancement

Municipal

Bonds 25,000,000 25,000,000 11,126,414 - 20,000,000 20,000,000 45,000,000

The department has identified an urgent need to increase revenue

protection and enhancement in the form of rolling out of protective

structures and prepaid meters metering. This will improve the

electricity revenue loss of EMM.

Page 7 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Energy Corporate Substations USDG 160,000,000 160,000,000 29,021,400 (80,000,000) - (80,000,000) 80,000,000

The department has experienced challenges with appointment of

contractors for (1) Edenvale Substation where the bidder could not

produce the required Performance Guarantees and as a result had

to be non-awarded (2) Mayfield Stations where the bidder wanted to

negotiate his tendered amount. The department would like to re-

prioritized the savings for the construction of substation and

allocated the funding towards the increased rollout of electrification

to subsidised housing, the installation of new streetlights and

highmast lighting, and increasing revenue enhancement projects.

Energy Corporate vehicles Revenue 15,000,000 15,000,000 13,235,770 - 15,000,000 15,000,000 30,000,000

The department has requested more electrician positions as part of

critical vacancies who requires additional vehicles to operate.

Energy

External Infrastructure

Development Glen Gory

Municipal

Bonds 41,000,000 41,000,000 - (41,000,000) - (41,000,000) -

The budget for the provision of bulk infrastructure for the Glen Gory

development is dependent on the timelines of the private Developer

and he has indicated that he will only require council funding portion

towards the end of the mid-term budget cycle (possibly 2017/18

financial year). The budget will also be centralised to one vote

number for the developer to provide bulk services for Roads &

Storm water, Electricity, and Water & Sanitation.

Energy Renewable Energy Projects

Municipal

Bonds 20,000,000 20,000,000 17,994,000 - 13,000,000 13,000,000 33,000,000


informal settlement requesting the provision of basic services. The

is a need to increase the level of providing PV Systems to the

qualifying communities.

Environmental

Resources

Management

Development and Upgrading

Community Environmental

Education Centres: Esselen

Park USDG 500,000 500,000 - (500,000) - (500,000) -

The area to build the facility falls within an environmental sensitive

area hence not suitable to build infrastructure of this nature as this

will trigger an EIA authorization and therefore impossible to

implement in this financial year

Environmental

Resources

Management

Payneville Ext 3

rehabilitation USDG 2,000,000 2,000,000 - (2,000,000) - (2,000,000) -

The area identified is currently occupied and requires Human

Settlements to relocate residence before rehabilitation commences

Environmental

Resources

Management

Upgrading of Ambient Air

Quality Monitoring Stations Revenue 4,000,000 4,000,000 4,000,000 - 500,000 500,000 4,500,000

The equipment's are sourced from an international supplier and this

has an impact on price increased due to inflation and exchange

rate. The department will have a shortfall of R 490 100 based on

the placed order.

EPMO Project Management System Revenue 9,000,000 9,000,000 - (6,000,000) - (6,000,000) 3,000,000

There was a misunderstanding between EPMO and Finance when

the R9million for the PM software was approved in that it was

assumed the R9million would be spent in one FY. The purpose of

this proposed adjustment is to split it over 2 financial years.

Fleet Management

Fuel Management and Fleet

Management System

Municipal

Bonds - 19,746,262 - (10,149,406) (10,149,406) 9,596,856

Given the fact that no Tender has been awarded at this stage, the

department has reviewed the project plan and identified that a

portion of the project works will inevitably have to be executed in

2015/2016 financial year. For this reason, department requires an

amount R10, 149,406 to be moved to next financial year.

Page 8 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Fleet Management Specialized Equipment Revenue - - - 5,235,000 5,235,000 5,235,000

The funds are requested in order to effect EMM decision to acquire

Home Based Bulk Fuelling Tanks that are currently owned by Sasol.

Sasol SA is the fuel supplier who initially supplied fuel across EMM

and installed fuel storage and dispensing facilities at no cost to

EMM as part of the agreement. Due to change in strategy, in

2012/2013 EMM went out on open Tender for the supply of fuel and

appointed a new service provider - Wassa Gasses PTY LTD. The

new tender obligated the new supplier to acquire the fuel facilities

from Sasol as part of Tender conditions. However, given that the

Tender was only awarded for 12 months instead of the 3 year

period advertised the supplier could not satisfy this condition on the

grounds of insufficient income streams that will be generated from

the contract. Following several discussions with the supplier, a

decision was subsequently made by EMM to acquire the facilities

using its own resources. This decision supports the plan to roll out

electronic fuel monitoring technology which needs to be installed in

the current fuel facilities. It would have been risky to invest millions

of rands (+/-R20m) on equipment that is not owned by EMM. The

amount required purchase Sasol equipment is estimated at R2,5m.

The balance (R2,735m) of the new provision will be utilized to fund

the equipment needs identified during the Needs & Options

Assessment

Fleet Management Mechanical Workshop Revenue 7,735,000 6,535,000 174,640 (5,235,000) (5,235,000) 1,300,000

This provision includes an amount (+/-R5,5m) that was provided for

as part of the 3 year multiyear budget to be utilized to fund the

development of a new fleet building (i.e. Warehousing & Auction

Facility). The department recently undertook an assessment of

needs and options and identified an existing site that could be

utilized for the same purpose which implied the development of a

new facility was no longer required. This approach has now realised

savings that could be utilized to fund Specialised Equipment needs.

The balance will be utilized for the upgrading and refurbishment of

workshops as identified during the needs assessment.

Page 9 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Health & Social

Development Bonaero Park Clinic

Municipal

Bonds 2,000,000 1,700,000 - (500,000) - (500,000) 1,200,000

Initial provision was to cover consulting fees for planning phase.

Consultant now appointed and costing for planning phase will not

exceed R1 000 000. the saving will not impact on the final delivery

of the project. The Bonaero Park Clinic does not comply to the

requirements of a modern clinic. Accommodation needs were given

through to Real Estate to design additions to the existing clinic.

Real Estate came up with 4 possible options to extend the facility.

At that stage funds were requested on the 2014/15 Capex to

appoint consultants to conclude on the feasibility of the proposals,

the final design and the preparation of bid documentation.

Consultants were appointed via the Real Estate as-and-when

Contract for Consultants. Preliminary reports highlighted certain

constraints with the initial draft proposals. It has now become clear

that the consultants will not be able to conclude on work stages 1 to

4. Only work stages 1 and 2 are expected to be completed in this

financial year. For this reason the saving is proposed.

Health & Social

Development

Early Chilhood Development

Centre

Municipal

Bonds 2,000,000 2,000,000 - (1,150,000) - (1,150,000) 850,000

At the completion of the 2014/15 budget it was envisaged to initiate

2 Early Childhood Development Centres in the year. R1, 0m was

provided for each project for the appointment of consultants to

conclude on the pre-planning of the projects. The contract for the

appointment of the consultants was advertised on 21 November

2014. A compulsory project meeting is scheduled for 2 December

2014. It is envisaged that the evaluation of the project will be

delayed as the Tender Office is experiencing serious backlogs with

the finalization of the commodity based evaluation reports. This will

result in less work that can be executed by the consultants. The

scope of work of the consultants also calls for the successful bidder

to take full responsibility for the standard construction

documentation that will be dependent on rates offered by the

successful bidder. It is clear that a number of uncertainties will

influence the final expenditure.

Health & Social

Development

Ext & Upgrade Motsamai

Clinic USDG 11,500,000 12,500,000 6,956,352 - 900,000 900,000 13,400,000

A contractor is on site and the project is supposed to conclude in

the 2014/15 financial year. Insufficient funds are available that

resulted from contingencies that were experienced on site e.g.

• Hard rock that was encountered at excavation stage

• Errors on the unit of measure in the Bills of Quantities

• Insufficient provision for ventilation system in the bills of quantities

• Expiry of consultant contract and subsequent appointments of new

consultants through Real Estate as –and –when Contract for

Consultants

Page 10 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Health & Social

Development

Extension & Upgrade

Esangweni Clinic USDG 7,000,000 6,000,000 280,609 (1,000,000) - (1,000,000) 5,000,000

Due to the delay in the award of the 2 contracts (Esangweni and

Selope Thema) , the projected cash flow were reduced. The awards

based are on the ‘”Commodity Based Approach” a new concept and

delays are experienced. The 2 tenders closed on 3 September

2014 and is valid for 120 days. As per the departmental experience

in the past, it was envisaged to have an appointment made within

90 days of tender closing. That would have left the department with

7 months remaining in the 2014/15 financial year with an estimated

expenditure of R1,0m per project per month. To date the evaluation

of the 2 bids have not been concluded hence the request to re-

allocate some funds to projects where it is needed most.

Health & Social

Development

Extension & upgrade Selope

Thema Clinic USDG 7,000,000 6,000,000 147,976 (1,000,000) - (1,000,000) 5,000,000

Due to the delay in the award of the 2 contracts (Esangweni and

Selope Thema) , the projected cash flow were reduced. The awards

based are on the ‘”Commodity Based Approach” a new concept and

delays are experienced. The 2 tenders closed on 3 September

2014 and is valid for 120 days. As per the departmental experience

in the past, it was envisaged to have an appointment made within

90 days of tender closing. That would have left the department with

7 months remaining in the 2014/15 financial year with an estimated

expenditure of R1,0m per project per month. To date the evaluation

of the 2 bids have not been concluded hence the request to re-

allocate some funds to projects where it is needed most.

Health & Social

Development

New TSIETSI Clinic

Phomolong South USDG 2,000,000 1,000,000 469,667 (500,000) - (500,000) 500,000

On all 3 projects (Tsietsi, Crystal Park and Khumalo) funds were

provided for 2014/15 to finalise the planning of the projects and to

get tenders out for the construction of the new facilities. All

consultants have already submitted the bid documentation to the

Planning Review Committee (PRC) in the Real Estate Department

and are currently working on the review of the documentation. The

consultant tenders were awarded at a higher than expected

discount rate that resulted in the projected savings on the 3

projects. This saving will not impact negatively on the final delivery

of the project if the contractors are appointed with effect 1 July

2015.

Health & Social

Development New Crystal Park Clinic

Municipal

Bonds 1,500,000 1,500,000 469,661 (1,000,000) - (1,000,000) 500,000











2015.

Page 11 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Health & Social

Development New Dukatole Clinic USDG 7,000,000 7,000,000 - (1,500,000) - (1,500,000) 5,500,000

A saving is projected based on the delay experienced with the

award. The evaluation report was referred back for the department

to meet with the highest point scoring bidder who came in at about

R3,0m less than the projected and average value of the received

bids. The department as well as the Real Estate Department and

consultants were concerned with this low offer. The bidder has

however confirmed in writing that he would be able to conclude the

project successfully with the offered price. The cash flow was then

adjusted accordingly. Pre-site handover was done on the 22

November 2014. The contractor was given 14 days to submit the

contractual documentation (guarantee, insurance, work

compensation documentation). The site handover is expected to be

done in the first week of December 2014.

Health & Social

Development New Khumalo Clinic USDG 2,000,000 1,000,000 - (500,000) - (500,000) 500,000











2015.

Health & Social

Development PALM RIDGE Clinic USDG 4,000,000 6,200,000 4,232,438 - 1,400,000 1,400,000 7,600,000

Contractors are currently on site and it is expected in terms of the

contract that the construction will be completed in the 2014/15

financial year. Due to a calculation error in the department,

insufficient funds were approved in the 2014/15 financial year to

conclude the projects. The department was provided with revised

final contract value budgets and the requested funds are required to

conclude the projects. Should the department not be in a position to

conclude the payment of the contractors it could result in legal

action with financial implications.

Health & Social

Development Training Unit for Nurses

Municipal

Bonds 3,000,000 3,000,000 200,247 - 2,850,000 2,850,000 5,850,000

After consultation with both SA Nursing Council and Ann Latsky

College additional requirements were made in order to obtain

accreditation for this facility. It is imperative to conclude the project

in the 2014/15 financial year to offer Council the opportunity to

implement the first intake of Primary Health Care students in 2015.

This will release a lot of stress in operational Primary Health Care

facilities as the students will be deployed to existing Ekurhuleni

facilities instead of facilities throughout Gauteng.

Health & Social

Development VILLA LIZA Clinic USDG 12,000,000 11,050,000 5,102,330 - 2,000,000 2,000,000 13,050,000

The contractual completion date is July 2015. The contractor fell

behind schedule and there was a concern that the project will be

delayed. Good recovery work was however experienced and the

projected cash flow was re-adjusted accordingly.

Page 12 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Human Settlements

Acquisition of Land for New

Human Settlements USDG 7,000,000 7,000,000 - - 9,200,000 9,200,000 16,200,000

The valuation of the property was finalised on 29 September 2014

by the Real Estate Department. The value of the property is

estimated at R16 000 000.00 which was in principle accepted by the

seller which is Transnet. The additional allocation is being

requested to address the difference and the valuation

Human Settlements

Acquisition of Land for New

Human Settlements USDG - - 32,000,000 32,000,000 32,000,000

An amount of R32m was provided as a guarantee for the purchase

of the Modderbee land and subsequently paid out to effect the

transfer, the amount was erroneously omitted in the USDG roll-over

request. This amount is now requested as an additional allocation.

Human Settlements

Delville Social Housing

Project-Services and

Amenities USDG 9,150,000 9,150,000 - (9,150,000) - (9,150,000) -

This amount was earmarked to be transferred to EDC however EDC

is not ready to implement in the current financial year.

Human Settlements

Germiston Fire Station

Social Housing Project-

Services and Amenities USDG 13,150,000 13,150,000 - (13,150,000) - (13,150,000) -



Human Settlements

Germiston Urban Renewal

(Civic Precinct) USDG 32,000,000 32,000,000 - (32,000,000) - (32,000,000) -



Human Settlements


(Cultural Precinct) USDG 10,000,000 10,000,000 - (10,000,000) - (10,000,000) -

The funding is to be utilised for project implementation by SRAC for

the Germiston Theatre

Human Settlements


(Fire Station) USDG 10,000,000 10,000,000 - (10,000,000) - (10,000,000) -

The funding is to be utilised for project implementation by DEMS for

construction of the Germiston Fire Station

Human Settlements

Tembisa Urban Renewal

Framework Projects

Other

National

Grants 50,000,000 50,000,000 176,600 (50,000,000) (50,000,000) -

As per the Division of Revenue Act adjustments published on 31

December 2014, the total allocation has been taken away as a

result of non-performance

ICT ERP Phase 1

Municipal

Bonds - - - - 10,000,000 10,000,000 10,000,000

Project moved to ICT Department as the budget will be utilised

during the 2014/15 FY. This is in addition to the budget which is put

forward for the next 3 years.

ICT

Security for ICT

Infrastructure

Municipal

Bonds 10,000,000 10,000,000 3,754,400 - 20,000,000 20,000,000 30,000,000

ICT has several Security related audit findings. As a department we

have created a security strategy and framework that aims to

prioritise three specific areas namely database security, exchange

and link and lastly Active Directory. The additional amount is to

cater for this specific scope in order to address the audit findings

ICT Unified Command Centre

Municipal

Bonds - - - 13,500,000 13,500,000 13,500,000

The building is currently occupied by employees who refuse to

move out of it. An instruction from the HOD: CRM was ignored. The

matter is currently handled by Labour. This challenge has caused

delays to the implementation of this project and has resulted in

additional penalty costs of R3,500,000. This is a building

renovation project. The affected departments DEMS, the Springs

Despatch Centre and the Alberton CCTV Monitoring Centre. R10m

of the UCC budget is to be transferred to ICT as a result of a

decision by the City Manager. The rollover from 2013/14 of

R7,019,402 is to remain with CRM.

Page 13 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Real Estate

Construct Metro Parks

Depots

Municipal

Bonds 2,000,000 2,000,000 496,693 - 1,300,000 1,300,000 3,300,000

OHS requirement to provide female staff ablutions. Tender in place

to provide Pre-fabricated units.

Real Estate

Densification of Council

Buildings

Municipal

Bonds 56,000,000 56,000,000 4,940,538 (16,000,000) - (16,000,000) 40,000,000

Delays with Procurement Process resulted in late appointment of

Consultants, hence projects will not require total funds.

Real Estate

Develop/Upgrade

Community Parks USDG 5,600,000 5,600,000 1,718,080 - 4,600,000 4,600,000 10,200,000

Shortfall to complete about 20 community parks as indicated in IDP.

Install playgrounds equipment, parks furniture, trees and paving of

pathways.

Real Estate

Develop/Upgrade Regional

Parks

Municipal

Bonds 8,100,000 8,100,000 284,761 - 720,000 720,000 8,820,000 Paving of parking area in Germiston Lake.

Real Estate

Development of Town

Entrances

Municipal

Bonds 1,000,000 1,000,000 50,000 - 1,025,000 1,025,000 2,025,000

Shortfall to complete Palm Ridge town entrance as requested by

Council. As and When Tender in place for landscape upgrades.

Real Estate

Office furniture for densified

buildings Revenue 2,000,000 2,000,000 66,600 (1,800,000) - (1,800,000) 200,000 Tender for Office Furniture not finalised yet.

Roads and

Stormwater

Aerotropolis: Rhodesfield

road network

Municipal

Bonds 9,000,000 9,000,000 - (3,000,000) - (3,000,000) 6,000,000

Avaliable budget to go towards reconstruction of Gladiator Road.

Land transactions delayed due to expropriation of land for grade

seperated intersection at Ventura/Pta Road intersection. IRPTN

route to be finalised before matter can be finalised.

Roads and

Stormwater

Construct Daveyton

CBD/N12 Interchange USDG 8,000,000 8,000,000 - (8,000,000) - (8,000,000) -

The project is under planning and will be funded under OPEX for

planning purpose

Roads and

Stormwater Construction of K86

Municipal

Bonds 6,500,000 6,500,000 - (6,500,000) - (6,500,000) -

Road proclamation and property acquisition to be finalised. The

project will be funded under OPEX.

Roads and

Stormwater

Contribution Township

Development

Developer'

s 1,000,000 1,000,000 - (1,000,000) - (1,000,000) -

No requests for road upgrading under any private developments to

date

Roads and

Stormwater De-silting Elsburg dam

Municipal

Bonds - - - - 100,000 100,000 100,000

The Bid document to call for bids from Consultants is ready to serve at

BSC. An appointment can still be made this Financial Year and funds can

still be spent

Roads and

Stormwater Doubling Barry Marais Rd

Municipal

Bonds 1,500,000 1,500,000 - (1,500,000) - (1,500,000) - The project is under planning and it will be funded under OPEX

Roads and

Stormwater

Elandsfontein, SW

Implementation (North)

Municipal

Bonds 500,000 500,000 - - 1,000,000 1,000,000 1,500,000

The funding will be required to complete the work in Elandsfontein.

Available funding insufficient to complete the project.

Roads and

Stormwater

Esangweni Pedestrian

facilities/bridge USDG 500,000 500,000 - (500,000) - (500,000) -

Saving: Project to be implemented as part of the IRPTN

construction

Roads and

Stormwater

Extension of Albertina Sisulu

Expressway

Municipal

Bonds 4,000,000 4,000,000 - (4,000,000) - (4,000,000) -

The project is under planning and will be funded unde OPEX for

planning purpose

Roads and

Stormwater



Municipal

Bonds 18,300,000 18,300,000 - (18,300,000) - (18,300,000) - The developer has undertaken to install services at his own costs.

Roads and

Stormwater

Gladiator Stormwater

System Implement

Municipal

Bonds 500,000 500,000 - (500,000) - (500,000) -


planning purpose

Page 14 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Roads and

Stormwater K136 & Rd 1894 Link Road USDG 3,000,000 3,000,000 - - 10,000,000 10,000,000 13,000,000

Design completed. Contractor and Consultant appointed. Project

ready for implementation.EIA in place.

Roads and

Stormwater Kaal Spruit rehabilitation USDG 4,000,000 4,000,000 - (4,000,000) - (4,000,000) -


planning purpose

Roads and

Stormwater

Katlehong & Thokoza,

Lining of Canal between

Katlehong and Thokoza USDG 1,550,000 991,000 - (991,000) - (991,000) -

Project completed previous financial year, there is no need for

budget in this finacial year

Roads and

Stormwater Monument Road

Municipal

Bonds 2,500,000 2,500,000 - (2,500,000) - (2,500,000) -


planning purpose

Roads and

Stormwater Paving & Sidewalks: East USDG 3,000,000 3,000,000 1,162,719 - 1,600,000 1,600,000 4,600,000 Additional funding required to eradicate backlog

Roads and

Stormwater

Quinine Rd Stormwater

System

Municipal

Bonds 4,000,000 4,000,000 770,720 (2,200,000) - (2,200,000) 1,800,000

Only Veld street to be implemented this finanacial year. Delay on

the the projects as work on Quinine is done on phases. The culverts

are constructed under the existing road surface.

Roads and

Stormwater Rehabilitate Dam Spillways

Municipal

Bonds 3,000,000 3,000,000 - (3,000,000) - (3,000,000) -


planning purpose

Roads and

Stormwater

Rehabilitate Roads in

Eastern Region

Municipal

Bonds 39,000,000 39,000,000 6,078,745 (34,000,000) - (34,000,000) 5,000,000

Delayed due to legal matter. New tenders to be prepared to appoint

new contractors by July 2015.

Roads and

Stormwater

Rehabilitation of Roads

(North) USDG 42,000,000 42,000,000 - (37,000,000) - (37,000,000) 5,000,000



Roads and

Stormwater

Rehabilitation of roads:

South USDG 42,000,000 42,000,000 2,659,113 (37,000,000) - (37,000,000) 5,000,000



Roads and

Stormwater Roads East (AS and When)

Municipal

Bonds 26,000,000 26,000,000 1,156,905 - 52,000,000 52,000,000 78,000,000

Request is base on readiness to implement the projects. Contractor,

consultant and designs in place.

Roads and

Stormwater

Roads: Low Cost Housing:

East USDG 41,000,000 41,000,000 25,412,081 - 10,900,000 10,900,000 51,900,000

Contractor and consultant in place. Designs in place. Projects ready

for implementation.

Roads and

Stormwater

Stormwater improvements

(Minor) (North)

Municipal

Bonds 3,500,000 3,500,000 - - 1,400,000 1,400,000 4,900,000

Additional funding is required for additional stormwater projects

identified. Savings to be utilised for these identified projects

Roads and

Stormwater

Stormwater Upgrading

Thintwa USDG 2,500,000 2,500,000 - (2,500,000) - (2,500,000) -

The project is under planning and it will be funded under OPEX with

the EIA still to be approved

Roads and

Stormwater SW in Vosloorus USDG 2,300,000 2,300,000 1,798,118 - 600,000 600,000 2,900,000

Additional funding is required for additional stormwater projects

identified.

Roads and

Stormwater Tembisa Depot Upgrading

Municipal

Bonds 8,000,000 8,000,000 60,135 (5,000,000) - (5,000,000) 3,000,000 Delay experienced in the appointment of a service provider.

Roads and

Stormwater

Tembisa Natural

Watercourses upgrading USDG 2,000,000 2,000,000 - (2,000,000) - (2,000,000) - The project is under planning and it will be funded under OPEX.

Roads and

Stormwater

Tertiary Rds South Dept

Construction

Municipal

Bonds 4,000,000 4,000,000 - (4,000,000) - (4,000,000) - No departmental construction is currently performed.

Roads and

Stormwater Tertiary Roads (South)

Municipal

Bonds 16,000,000 16,000,000 1,505,848 - 11,000,000 11,000,000 27,000,000 Huge backlog in roads to be constructed within southern area

Page 15 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Roads and

Stormwater Tertiary Roads in Katlehong USDG 6,000,000 6,000,000 37,729 - 35,991,000 35,991,000 41,991,000 Funds required to reduce huge backlog.

Roads and

Stormwater

Tertiary Roads in Vosloorus-

Phase 3 USDG 3,600,000 3,600,000 - - 14,000,000 14,000,000 17,600,000 Huge backlog in roads to be constructed within ward 95

Roads and

Stormwater Tertiary Roads: North USDG 30,000,000 30,000,000 2,040,632 - 26,000,000 26,000,000 56,000,000 Funds required to reduce huge backlog.

Roads and

Stormwater Traffic Calming (North)

Municipal

Bonds 800,000 800,000 - - 200,000 200,000 1,000,000

The requests for speed calming measures exceeds the available

funding. Additional funding is required to deal with the backlog.

Roads and

Stormwater

Traffic Signals Upgrading

(North)

Municipal

Bonds 3,000,000 3,000,000 601,336 - 1,000,000 1,000,000 4,000,000 Funding needed for LED's.

Roads and

Stormwater

Trichardts Rd from North

Rand to Impala Park

Municipal

Bonds 3,000,000 3,000,000 - (3,000,000) - (3,000,000) -


planning purpose

Roads and

Stormwater

Tunney Rds: Brollo &

Brickfields rds

Municipal

Bonds 3,000,000 3,000,000 - (3,000,000) - (3,000,000) -


planning purpose

Roads and

Stormwater

Upgrade Joe Mzamane Road

Kwa- Thema USDG 4,000,000 4,000,000 - (3,900,000) - (3,900,000) 100,000

The project is under planning and will be funded under OPEX for planning

purpose

Roads and

Stormwater

Upgrading of Agric Holding

Roads (North) Municipal

Bonds 3,000,000 3,000,000 - - 3,000,000 3,000,000 6,000,000 Huge backlog. Additional funding required.

Roads and

Stormwater Upgrading of Michelle street

Municipal

Bonds - - - - 4,600,000 4,600,000 4,600,000

Erven are ready to be purchased in preparation of this project and

funds should be provided for the purpose.

Roads and

Stormwater Vehicles Revenue 11,000,000 11,000,000 3,587,098 - 7,000,000 7,000,000 18,000,000

About 4 Million was spent on fitting Cranes on vehicles that were

bought in the previous financial year. There is a need to procure

new vehicles for Depots (e.g Trucks etc)

Roads and

Stormwater Witfield SW System

Municipal

Bonds 3,000,000 3,000,000 - (2,000,000) - (2,000,000) 1,000,000


planning purpose

Roads and

Stormwater

Replacement of Railway

Sidings (Nigel)

Municipal

Bonds - - - 9,000,000 9,000,000 9,000,000 Siding was stolen. Needs to be replaced.

SRAC

Construction & Development

of Duduza Reconciliation

Park

Municipal

Bonds 8,500,000 8,500,000 6,872,739 - 1,410,000 1,410,000 9,910,000

Unforeseen low water table was encountered resulting in additional

excavations and backfilling with rock. Contract amount to be

exceeded. Escalation was also not fully catered for during original

budgeting.

SRAC

Construction of a new

swimming pool in Eden Park

Municipal

Bonds 4,000,000 4,000,000 - (1,410,000) - (1,410,000) 2,590,000

Delay in procurement procedure due to termination of consultant

appointment. New consultant to continue and complete plan

submission process.

SRAC

Construction of New Library:

Tsakane USDG 10,300,000 10,300,000 632,074 (2,000,000) - (2,000,000) 8,300,000

Request for roll over. Contract terminated in October 2014 due to

non-performance. Have to re-evaluate tender. New contractor only

to be on site in January 2015

SRAC

Construction:New Library:

Brakpan

Municipal

Bonds 12,850,000 12,850,000 1,331,235 - 1,000,000 1,000,000 13,850,000

Due to slow start by contractor in 2013/14 he underperformed in

2013/14/is caused shortfall of funding in 2014/15 and 2015/16

Page 16 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



SRAC Germiston Theatre USDG 20,000,000 20,000,000 4,712,610 (2,000,000) - (2,000,000) 18,000,000

Request for roll over. Due to re-design contractor only came on site

1st October 2014. With committed R5m from Human Settlements

R25m expenditure will not be possible before June 2015.

SRAC

Libraries Specialised

Equipment(SRAC GRANT)

Other

Provincial

Grants 700,000 700,000 - (700,000) - (700,000) -

LIS- Provincial Government requested EMM to adapt the original

Business plan to include the Visually Impaired software (books)

R700 000 as Resources as it could not be a standalone item and

part of CAPEX. The City Manager signed the adjusted Business

plan and this amount must be provided on Opex.

SRAC

Rehabilitation of Thami

Mnyele Cultural Park

Municipal

Bonds 2,800,000 2,800,000 - (1,000,000) - (1,000,000) 1,800,000 Final cost estimate of first phase less than originally anticipated

SRAC

Upgrade: Construction of

Memorial Sites USDG 3,500,000 3,500,000 1,069,606 (1,700,000) - (1,700,000) 1,800,000 Roll over requested for phase two of Indaba Tree

Transport Bluegumview Taxi Rank USDG 18,000,000 18,000,000 - (8,000,000) - (8,000,000) 10,000,000

There were delays in appointing the contractor for construction of

the project. The tender closed in September and to date the

evaluation has not been concluded. This is beyond the

Department's control. It is expected that the contractor will be

appointed at the end of quarter leaving only six months for

construction which is not practical. Therefore the project will be

completed in the first quarter of 2015/16 financial year. (advertised

on 12 Sept, closed 15 Oct).

Transport

Construction of Intermodal

facilities: Upgrading

Germiston Station Taxi Rank USDG 30,000,000 30,000,000 - (30,000,000) - (30,000,000) -

This project’s biggest challenge is that PRASA could not indicate

whether they have appointed a service provider by end of August

2014 to achieve stage 4 (development of detailed designs) target.

The original plan was to have a Consultant appointed by end

August 2014 and for designs to be completed by end September

2014.Based on these delays, it is safe to say that the above target

will not be achieved. The HoD has escalated the matter to the

Group CEO of PRASA and requested that the project be officially

handed over and EMM to implement, the matter was also escalated

to MMC who has written a letter to the CEO of PRASA. We will

have to re-allocate these funds during the budget adjustment

period.

Transport

Establish MVRA/DLTC

Katlehong

Municipal

Bonds 21,800,000 21,800,000 - (6,800,000) - (6,800,000) 15,000,000

There are delays in appointing the contractor for construction of the

project. It is expected that the contractor will be appointed in the

end of quarter 2 leaving only 5 months to spend R21.8m which is

not practical. Therefore it is necessary to shift funds to 2015/16.

The project will still be completed in the 2015/16 financial year.

(Advert closed 21 Aug. currently the documents are still at tender

office.)

Page 17 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Transport

Integrated Rapid Public

Transport Network(IRPTN)

Other

National

Grants 230,000,000 271,288,248 90,591,224 - 18,935,500 18,935,500 290,223,748

In addition to the R41mil PTIG rollover approved by DoT a further

R8,9Mil of the operationalised savings from 2013/14 was also

approved for roll-over. It is requested that this R8,9mil be allocated

to the PTIG Capex vote. An estimated underspending of R10mil of

2014/15 PTIG operationalised funds (Vote 1330722566030) is

anticipated due to the lower than anticipated Industry Transition

costs as a result of the uncertainty of appointment of the Industry

Technical advisors. It is therefore requested that R10m be

reallocated from Vote 1330722566030 to this vote.

Transport

New Vosloorus Hospital Taxi

Rank USDG 15,000,000 15,000,000 10,483,679 3,000,000 3,000,000 18,000,000

Contractors were appointed in 2013/14 financial year and the total

project cost is known, therefore the adjustments are further funds

required due to increased project cost, as a result of unforeseen

earthworks, rubble removal. As at end October 2014 a total of

R8,2mil was spent.

Transport Palm Ridge Taxi Rank USDG 15,000,000 14,850,000 4,040,161 (6,500,000) - (6,500,000) 8,350,000

Contractors were appointed in 2013/14 financial year and the total

project cost is known, therefore the adjustments are savings which

will not be utilised.

Transport

Phuthaditjaba Taxi Rank

(Tokoza) USDG 15,000,000 15,000,000 - (5,000,000) - (5,000,000) 10,000,000

There were delays in appointing the contractor for construction of

the project. It is expected that the contractor will be appointed at the

end of quarter leaving only six months for construction which is not

practical. Therefore the project will be completed in the first quarter

of 2015/16 financial year. (advertised on 12 Sept, closed 15 Oct,

department is awaiting the commencement of the evaluation

process by the Bid Committee).

Waste

Management Cell development - Platkop USDG 10,000,000 10,000,000 - (6,000,000) - (6,000,000) 4,000,000

A budget of R8million was allocated to this project during the last

financial year where some of the scope was covered by the budget

which resulted in savings for the current budget. The project will be

completed within the reduced amount.

Waste

Management

Cell Development -

Rietfontein

Municipal

Bonds - - - - 6,500,000 6,500,000 6,500,000

Unbundling of facilities vote number. Additional funding needed to

complete the project because of unexpected sludge found during

construction which needed to be pumped out and extra work

needed because of recommended modified design (Recommended

in April 2014) by the Department of Water Affairs resulting in

additional work needed to complete the project. Contractor on Site.

Waste

Management

Storwater and Leachate

Management System at

Weitevreden Landfill Site Revenue - - 5,080,000 5,080,000 5,080,000

Unbundling of the Facilities Vote. Vote unbundled to comply with

MFMA. Work originally finance under upgrading of Facilities Vote.

Page 18 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Waste

Management

Develop Simmer & Jack

Waste site USDG 15,000,000 15,000,000 - (14,400,000) - (14,400,000) 600,000

During the implementation of the project , GDARD advised EMM to

conduct public participation and modelling process prior to

commencement. On taking the report to BEC for the variation in the

scope of work, it became apparent that the service provider had

changed it's company name and directorship which, according to

legal opinion was in contravention of SCM prescripts. In rectifying

the contravention, it became apparent that the Department would

not spend the entire allocated budget for the construction phase.

The regularization process led to the delay in the approval of the

additional scope of the project.

Waste

Management

Facilities, Upgrade and

construction of facilities

Municipal

Bonds 15,000,000 15,000,000 3,523,394 (11,580,000) - (11,580,000) 3,420,000

Vote unbundled to comply with MFMA. (R6, 500, 000 plus R5, 080,

000 for Rietfontein and Weltevreden Landfill were originally

financed under Facilities Vote.) Work originally finance under

upgrading of Facilities Vote. The two cell development projects of

Rietfontein and Weltevreden which has Contractors on site have

been transferred to their own vote in line with MFMA Requirements.

Waste

Management

Rehabilitation of the closed

Brakpan landfill site

Municipal

Bonds 5,000,000 5,000,000 - (5,000,000) - (5,000,000) -

A meeting with DWA to approve the designs could only take place

in November 2014, thus delaying the implementation of the project

by a year.

Waste

Management

Upgrading of public

offolading areas/recycling

facilities

Municipal

Bonds 3,000,000 3,000,000 403,052 (2,050,000) - (2,050,000) 950,000 Work will be completed within the proposed budgeted amount.

Water & Sanitation

Alberton: Install new OF

Huntersfield

Municipal

Bonds 2,000,000 2,000,000 - (1,700,000) - (1,700,000) 300,000

EIA process is still underway due to the specialist studies that were

required to complete the environmental management plan for the

Record of Decision(ROD) to be granted.

Water & Sanitation

Buiding New and Upgrade

Depot Buildings

Municipal

Bonds 6,000,000 6,000,000 2,333,356 (500,000) - (500,000) 5,500,000

The budget was intended to complete the construction of Kempton

Park and Tembisa depots and provide design fees for 1) Germiston

Depot 2) Nigel 3) and Voosloorus depots. Savings of R500 000 are

anticipated on the construction side of the budget.

Water & Sanitation

Edenvale: Illiondale Outfall

sewer

Municipal

Bonds 10,000,000 10,000,000 - (9,800,000) - (9,800,000) 200,000

The tendered sum(R 25m) was higher than the available budget

(R10m). The department had hoped to co-fund the project

through the Upgrade of Sewer networks vote which was rejected by

the BAC .The tender cannot be awarded until such time that

additional multi-year budget is provided to the project. Therefore the

tender will be re-advertised when the sufficient budget has been

provided in 2015/16 financial year. Additional budget in this financial

year will not be spent. The available budget will therefore not be

spent. It is hoped that when the multi-year budget is made available

in the draft budget in February, the contractor will be appointed by

end of May and only R200 000 will be spent in 2014/15 financial

year.

Water & Sanitation

Etwatwa Ext 35 Essential

Services USDG 500,000 500,000 - - 400,000 400,000 900,000

Additional contingency approved for geo-technical studies. The

consultants need to monitor groundwater abstraction as per the

CSIR requirements for approval of construction in dolomitic

environment until the end of June 2015.

Page 19 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Water & Sanitation



Municipal

Bonds 45,600,000 45,600,000 - (45,600,000) - (45,600,000) - The developer has undertaken to install services at his own costs.

Water & Sanitation

Germiston: Elimination of

Klippoortjie s pump s

Municipal

Bonds 500,000 500,000 - - 5,000,000 5,000,000 5,500,000

This is to fund additional contingencies for unforeseen items that

BAC has approved subject to availability of funds. There was under-

estimation of bulk earthwork quantities by the consultant and

unforeseen ingress of water into the dug trenches hence a variation

of R4,847,573.01 (VAT Exclusive) in order

Water & Sanitation ICT Equipment Revenue 800,000 973,000 493,606 - 100,000 100,000 1,073,000

New staff and independent contractors have been employed. There

is shortage of ICT equipment as a result.

Water & Sanitation

Nigel: Upgrade/Eliminate

Rockville pumpst USDG 4,500,000 4,500,000 1,027,247 (1,872,000) - (1,872,000) 2,628,000

There was an over estimation of quantities resulting in savings of

R1,872,000.The project is complete and commissioned. The total

project was R7,378,391.32

Water & Sanitation

Pomona: Bulk supply

Albertina Sisulu Corridor

Municipal

Bonds 25,500,000 25,500,000 7,433,167 (7,500,000) - (7,500,000) 18,000,000

The project is at construction stage for Phase 1. There were delays

caused by the WUL at the beginning. We have lost 3 months of

production since July 2014. Currently appointed contract is

R38,302,177.19 Phase 1 with contractor appointed. Phase 2 has a

value of R96,697,822.81 informed by the Design Report estimates.

Scope includes 20Ml reservoir and bulk supply lines. Phase ready

for tender.

Water & Sanitation

Pomona: New Eastern OF

sewer

Municipal

Bonds 34,200,000 34,200,000 8,115,390 (4,200,000) - (4,200,000) 30,000,000

The project is at construction stage. Current awarded contract value

of R38 million and Phase 2 R100m still to be awarded and ready for

tender. Phase 1 was delayed by two months due to lack of co-

operation by the land owners who refused to provide access to their

properties when requested by the contractor.

Water & Sanitation Reservoir Construction USDG 4,600,000 4,600,000 1,275,778 - 1,100,000 1,100,000 5,700,000

Additional budget is required for the design of various reservoirs

that include 1. Etwatwa 35Ml -R63M 2) Persida 7.5Ml - R30M 3)

Northmead 5.5Ml - R15M 4) Nigel Water 1.5Ml -R15M 5) Fairleads

(Rynfield) 12Ml - R24M 6) Zulu Xhosa 15Ml - R30M 7) Russel Road

Reservoir 20Ml - R40M 8) Kempton Park Reservoir 20Ml - R40M.

The water storage capacity of the Metro is less than 24 hours which

is below the recommended norm of 48 hours.

Water & Sanitation Specialized Equipment Revenue 500,000 420,000 - - 1,400,000 1,400,000 1,820,000 Acquisition of 200 special handheld devices

Water & Sanitation

Springs: Modder East

Outfall Sewer USDG 5,000,000 5,000,000 - (2,000,000) - (2,000,000) 3,000,000

Phase 1 completed. Funds on the project is for the appointment of

consultants. The R 4 500 000 with which the project is reduced is

to be added in 2015/16 financial year when a contractor will be

appointed

Water & Sanitation

Tembisa: New water

pressure tower USDG 4,000,000 4,000,000 - (4,000,000) - (4,000,000) -

The funds are identified as a saving cause this project is being

provided for under Reservoir construction vote no 1326206111252

Page 20 of 21


Source of

Finance

2014/2015

Original Budget

2014/15

2014/15 Budget

(as at 31 Dec 2014)

Exp incl.

commitments (as

at 31 Dec 2014)

Amount to be

Reduced

(Reductions) (-)

Additional

amount requested

(Additions) (+)

Net Adjustment

Total Budget after

Adjustments

2014/15



Water & Sanitation

Upgrade Outfall Sewers in

Vosloorus C/F USDG 1,500,000 1,500,000 - (1,200,000) - (1,200,000) 300,000

Project is estimated at R18.5 million. Appointed contractor declined

the appointment last FY and as a result funds could not be utilised

and insufficient budget had been provided for in 2014/15 hoping

some work was going to happen in 2013/14 FY. Therefore the

tender will be re-advertised when the sufficient budget has been

provided in 2015/16 financial year. Additional budget in this financial

year will not be spent. The available budget will therefore not be

fully spent. It is hoped that when the multi-year budget is made

available in the draft budget in February, the contractor will be

appointed by end of May and only R300 000 will be spent in

2014/15 financial year.

Water & Sanitation

Upgrade Water Network C/F

Etwatwa X19 USDG 1,000,000 1,000,000 12,373 (987,627) (987,627) 12,373 Budgeted for under vote 1326206111252 - Reservoir construction

Water & Sanitation Upgrade Water Networks USDG 15,000,000 15,000,000 13,417,710 - 31,459,627 31,459,627 46,459,627

Progress on the sites is going at a much faster rate than

anticipated. Contractors have been appointed for 'As and When'.

Russel Road 1) Russel Road Bulk Supply - R50M 2) Northmead

Bulk Supply - R30M 3) Brakpan Water Upgrade - R18M 4)

Germiston CDB - R40M 5) Zinco - R3M 6) Nigel Water Upgrade -

R20M 7) Isakelo - R1M 8)Stuart Bulk - R15M

Water & Sanitation

Water Loss Eradication

Programme Revenue 150,000,000 150,000,000 100,426,030 - 40,000,000 40,000,000 190,000,000

This is a ten year multi-year program. In this financial year, project

progress is moving faster than expected. Additional funding is

required for Pipeline and Valve Assessment and Replacement of

Mid-block Pipelines(R20m) and R20 million for Meter related

projects

Water & Sanitation Water Services Vehicles Revenue 2,100,000 2,100,000 1,947,090 - 9,200,000 9,200,000 11,300,000 Acquisition of 5 water tankers and 5 rapid response vehicles

1,939,525,000 2,001,411,501 466,525,222 (711,525,033) 559,306,127 (152,218,906) 1,849,192,595

Page 21 of 21

ANNEXURE B

DETAILED OPERATING BUDGET REQUESTS AND MOTIVATIONS

CRM

Additional Amount Requested1701202555025 AWARENESS CAMPAIGNS

CRM is experiencing increased responsibility in terms of recent events such as

the Mini-Imbizos to address service delivery issues and the like will increase

drastically.

CRM is also taking over all public participation/consultation activities and needs

to provide tents, microphones, transport, posters, catering, etc. 4,000,000

CRM Additional Amount Requested Total 4,000,000

CRM Reductions IdentifiedNo Reductions Identified -

CRM Reductions Identified Total -

CRM Total 4,000,000

Economic Development Additional Amount Requested1621102555570 MASTERPLANS

The budget is earmarked for services rendered for the development of the

Aerotropolis masterplan. The budget shortfall is as per system errors and

misalignments on allocations for the absorptions 3,090,639

Economic Development Additional Amount Requested1621402555075

COMMUNITY DEVELOPMENT

PROJECTS

The budget is required for the City's contribution on existing and new incubation

programmes already committed through the SEDA partnership agreement. This

request is merely a re-allocation of the budget to be reflected on the correct

budget vote. 4,400,000

Economic Development Additional Amount Requested1621652556400 SPECIAL EVENTS

The vote number was earmarked for the Aerotropolis Investment Conference

2014 scheduled for last quarter of the year and due to shortage of budget, the

funds were committed to other approved events taking place in the 1st quarter

that are designed to increase economic growth.2,000,000


COMMUNITY DEVELOPMENT

PROJECTS

Community Bursaries - The Ekurhuleni Metropolitan Municipality acknowledges

the fact that it is operating in an environment whereby the majority of the human

resources/citizens are underdeveloped. Council also acknowledges the fact that

in order to sustain economic development, its communities must be developed

to contribute significantly to the economy. The Municipality has committed itself

to address the shortage of skills by implementing the human resource

development programmes to the community 10,000,000


CONSULTANT FEES -

GENERAL

►EPWP Turn-around strategy. The project is about improving strategic and

operational planning of EPWP projects in order to up-scale job creation and

improve reporting.

►Review of Ekurhuleni Skills Development Strategy and Establishment of

Ekurhuleni Skills Development Forum. The review will also be talking to current

research work conducted indicative of the critical needs for skills development in

the region in order to support the various City's flagships and development.

►Establishment of Job Creation PMU, Ekurhuleni is faced with challenges of

high unemployment. The City seeks to establish a Job Creation Programme

Management Unit that will structure and implement job creation programmes.

3,000,000

DEPART MENT VOTE NUMBER VOTE DESCRIPTIONMOTIVATION (Must be comprehensive and sufficient for decision-making

purposes)

ADJUSTMENT

BUDGET

AMOUNTS



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

Economic Development Additional Amount Requested1621752556400 SPECIAL EVENTS

►Job Summit & Career Expo is an annual event and budget was not

allocated for 2014/15. The Job Summit & Career Expo 2015 will include build

up events in the six

►Executive Mayor's Academic Excellence Awards - this has been regarded as

an annual event where the Executive Mayor of Ekurhuleni acknowledged

educational excellence amongst the young pupils of EMM. This recognition can

also be regarded as a motivating factor for learners as those that have excelled

in their studies and are deserving, are provided with study bursaries in the

various academic streams. These awards are also in support of the City's Skills

development initiatives. of Ekurhuleni as well as extensive marketing activities.2,900,000

Economic Development Additional Amount Requested1621762555025 AWARENESS CAMPAIGNS

As per the recommendations of the Ekurhuleni Aerotropolis Strategic roadmap

informing the 30 year's Aerotropolis Masterplan, as well as embedded in the 5yr

Interim Plan, an awareness plan needs to be initiated to the masses. To this

end, an activation of this plan needs to be implemented.5,000,000

Economic Development Additional Amount Requested Total 30,390,639

Economic Development Reductions Identified1621102556575 TRAINING - CLAIMABLE (8,000,000)

Economic Development Reductions Identified1621752010125

SALARIES: CONTRACT

WORKERS (5,900,000)

Economic Development Reductions Identified Total (13,900,000)

Economic Development

Total 16,490,639

DEMS Additional Amount Requested1433102252600 CERT PROGRAMME

The Council has implemented a community Emergency Response Team

(CERT) Program in the informal settlements for 600 members. This is an EPWP

Program which was funded by Economic Development Department up to

December 2014. The Economic Development Department does not have

sufficient funds to sustain the program from January until June 2015 and DEMS

Department has to budget for the continuation of the program for the balance of

2014/2015 Financial Year and going onwards. The program is one of the

indicators for the next five years of the DEMS IDP/SDBIP. Over and above that

it is one of the projects which must be achieved in the set 180 days. the CERT

members have already been enrolled for the past 18 months.

9,000,000

DEMS Additional Amount Requested1433102555025 AWARENESS CAMPAIGNS

Launch the Pre-Winter Awarness Campaign. In terms of the DEMS IDP/SDBIP

indicator there must be a reduction in the number of fires in informal

settlements. This is to be achieved through awareness campaigns. Winter time

causes an increase in fire incidents, and the Department has to launch a

dedicated campaign to educate the communities in order to prevent loss of lives

and property due to unsafe behavior with fuel, unsafe heating and cooking

pratices. The program is also part of the set 180 days. 2,000,000

DEMS Additional Amount Requested Total 11,000,000

DEMS Reductions Identified



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

DEMS Reductions Identified Total -

DEMS Total 11,000,000

EMPD Additional Amount Requested1435102556575 TRAINING - CLAIMABLE Various training and development interventions for the Peace Corps

2,500,000

EMPD Additional Amount Requested1436102554950 ANIMAL CARE Additional funds are required for horse and dog food, vet costs, Stable and

kennel hygiene, farrier services for the horses, etc. 1,000,000

EMPD Additional Amount Requested1436102555950

MATERIALS: UNIFORM &

PROTECT CLOTHING Purchase of uniform and protective clothing for the Peace Corps

700,000

EMPD Additional Amount Requested Total 4,200,000

EMPD Reductions Identified1436102010125

SALARIES: CONTRACT

WORKERS (2,700,000)

EMPD Reductions Identified1436102556525 POSTAGE (1,500,000)

EMPD Reductions Identified Total (4,200,000)

EMPD Total -

Legislature Additional Amount Requested1070102556650

TRAVEL & ACC:

CONFERENCE & MEETINGS 500,000

Legislature Additional Amount Requested1070102556700

TRAVELLING &

ACCOMMODATION:

OVERSEAS TRAVELLING 2,500,000

Legislature Additional Amount Requested Total 3,000,000

Legislature Reductions IdentifiedNo Reductions Identified -

Legislature Reductions Identified Total -

Legislature Total 3,000,000

Executive Office Additional Amount Requested1010102555960

MAYORAL DISCRETIONARY

ALLOCATIONS

The rate of unemployment and economic burdens result in communities

requesting financial assistance for burials, transport, education ,social

,recreational talent development related matters 2,000,000

Executive Office Additional Amount Requested1010102556700

TRAVELLING &

ACCOMMODATION:

OVERSEAS TRAVELLING

Funds are required for the Travel and Accommodation Vote number

1010102556700 for various international trips planned. The increase in the

number of commitments in the first 6 months is now resulted therein that

additional funds are required for the planned projects in the remainder of the

year. 3,000,000

Executive Office Additional Amount Requested Total 5,000,000

Executive Office Reductions IdentifiedNo Reductions Identified -

Executive Office Reductions Identified Total -

Executive Office Total 5,000,000

The legislature requests that funds be allocated for both the International and Domestic

travel votes as funds have been depleted in the said travel votes. It should be noted that

when travel for the legislature is undertaken, the composition for the delegations is

always large as it is multi-party composed and represents a particular section 79

committee.It should also be taken into consideration that the legislature component is

fairly new, created as a result of the separation of powers model approved by Council in

August 2011 and functions primarily through its different 18 section 79 committees

composed of approximately + 22 members each. The financial implications for funding

committees delegations whenever travel must be undertaken will unavoidably be high

in view of the travel costs for both international and/or local travel.



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

Finance Additional Amount Requested1526202303950 INTEREST FOR PROVISIONS

Interest for Germiston Municipal Retirement Fund provision - year-end

transactions. This is a compulsory provision that has to be made in the Annual

Financial Statement 5,000,000

Finance Additional Amount Requested1528402556525 POSTAGE

The actual costs for postage in 2013/14 amounted to R21.2m. The provision in

2014/15 is only R18.9m. It is anticipated that the current budget will not be

sufficient for the full financial year. 4,024,683

Finance Additional Amount Requested Total 9,024,683

Finance Reductions Identified1528102454250

CONTRACTS: METER

READING (4,024,683)

Finance Reductions Identified Total (4,024,683)

Finance Total 5,000,000

EPMO Additional Amount Requested1205602555100

CONSULTANT FEES -

GENERAL

Provision was made in 2014/15 for the appointment of a service provider to

assist with the project management of capital budget projects. The cost of the

project will be fully charged to the various capital projects. The full project

estimate is R48m over a period of 2 years. The request is to reduce the budget

of R48m in the current year and spread it over hte 2 year - period in line with the

duration of the project. The fact that it is charged out to Capital has therefore no

impact on the budget, other than correcting the budgeted amount.(20,000,000)

EPMO Additional Amount Requested1205602030400

INTERNAL LABOUR COSTED

TO CAPITAL

Provision was made in 2014/15 for the appointment of a service provider to

assist with the project management of capital budget projects. The cost of the

project will be fully charged to the various capital projects. The full project

estimate is R48m over a period of 2 years. The request is to reduce the budget

of R48m in the current year and spread it over hte 2 year - period in line with the

duration of the project. The fact that it is charged out to Capital has therefore no

impact on the budget, other than correcting the budgeted amount.20,000,000

EPMO Additional Amount Requested Total -

EPMO Reductions IdentifiedNot applicable

EPMO Reductions Identified Total -

EPMO Total -

Health Additional Amount Requested1422102555725

MATERIALS: GENERAL

CONSUMABLE

An amount of R1.5m was allocated to one vote (1422102555725) during the

adjustment budget of 2013/14 but was omitted during the compilation of the

14/15 budget. This amount includes funds for operational needs of new and

extended clinics and varies from maintenance of buildings, laundry,

consumables, printing & stationery. 1,500,000


MATERIALS: MEDICATION &

MEDICAL

An amount of R8m was allocated to Medical & Medication (6510252555900) of

the Pharmaceutical Unit during the adjustment budget of 2013/14. This amount

was however omitted during the compilation of the 14/15 budget. These funds

are necessary for the procurement of medicines for the Pharmaceutical Unit5,000,000


MATERIALS: PRINTING &

STATIONERY

The Department is experiencing an increase in litigation and it is essential that

the records of patients be kept in an improved manner to minimise the risk to

Council. 1,000,000



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

Health Additional Amount Requested1423102556275 RODENT CONTROL

The Health and Social Development Department has with effect from 1 April

2014 to 30 June 2014 appointed four hundred and thirty five (435) Volunteers to

serve as Rodent Control Ambassadors. The department has been allocated

budget of nine million rand (R9 000 000.00) for the period 2014/2015. With the

appointment of the rodent control ambassadors the budget allocations requires

that aspects such as Clean and Green Road Show must be excluded since the

stipend to be paid to the ambassadors takes a greater part of the budget. It

must be noted that even the funds allocated for the stipends can only be for a

period of nine months. In order to cater for the duration of the financial year,

additional funds are required.3,235,000

Health Additional Amount Requested Total 10,735,000

Health Reductions Identified1428101425750 SUNDRY INCOME

The Health department claims funds from Province regarding overtime. An

amount of R730 461 has already been received and another R1 000 000 is

expected for the rest of 14/15. This amount should be regarded as a sundry

income based on the fact that it is not published in the DORA. (1,730,461)

Health Reductions Identified Total (1,730,461)

Health Total 9,004,539

Human Settlements Additional Amount Requested2805602251900

MINOR MAINTENANCE

BUILDINGS

The general day to day maintenance vote is almost depleted due to a high

number of jobs that had to be done, some also brought over from the previous

financial year because of a lack of funds and CPO not managing to capture the

orders prior to year end. To guarantee an acceptable level of maintenance for

the remainder of the year , the projected shortfall must be addressed now.1,000,000

Human Settlements Additional Amount Requested6805402555400

LAND INVASION

MANAGEMENT

One additional provision of counter and invasion patrol to monitor at

Ramaphosa, Tokoyo sewage, Joe Slovo, SPCA site, Blue Sky Prison and

Boksburg CBD together with whistle blowers to monitor Alberton Station and

Angelo Informal Settlement. 1,149,661

Human Settlements Additional Amount Requested Total 2,149,661

Human Settlements Reductions Identified1450452555025 AWARENESS CAMPAIGNS (1,600,000)

Human Settlements Reductions Identified6805402555175 DISASTER MANAGEMENT (549,661)

Human Settlements Reductions Identified Total (2,149,661)

Human Settlements

Total -

Internal Audit Additional Amount Requested1230502555100

CONSULTANT FEES -

GENERAL

Performance Audit is expected to audit the Departmental SDBIP and the

Turnaround Strategy reports. With the current capacity we will not be able to

cover that additional scope. 1,200,000

Internal Audit Additional Amount Requested Total 1,200,000

Internal Audit Reductions IdentifiedNo Reductions Identified -

Internal Audit Reductions Identified Total -

Internal Audit Total 1,200,000



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

Real Estate (Metro Parks) Additional Amount Requested1441262454425

ENVIRO CONTRACTS: GRASS

CUTTING

►Grass Cutting Contractors funding. Annual amount of funding is always way

below requirements. Will not have any more funding after February 1015. Will

need additional funding to cut grass in March, April & May 2015

► Due to the CPI increases, on the tender, the department feels, there will be a

short fall within the current budget issued, for the grass cutting of Kempton

Parks: main routes, industrial and recreational areas

►Insufficient funds, about R557 000 already committed for cutting until

February 20151,031,659

Real Estate (Metro Parks)Additional Amount Requested Total 1,031,659

Real Estate (Metro Parks) Reductions IdentifiedNo Reductions Identified -

Real Estate (Metro Parks)Reductions Identified Total -

Real Estate (Metro

Parks) Total 1,031,659

Risk Management Additional Amount Requested1205902555875 SOFTWARE DEVELOPMENT

The Department aims to procure the financial disclosure system to improve

corporate governance in the municipality. This will assist in addressing some

audit queries relating to conflict of interest and non-compliance to supply chain

prescripts. 1,500,000

Risk Management Additional Amount Requested Total 1,500,000

Risk Management Reductions IdentifiedNo Reductions Identified -

Risk Management Reductions Identified Total -

Risk Management Total 1,500,000

Roads and Stormwater Additional Amount Requested2308262252925

R&M: ROADS: STORMWATER -

CONTRACTORS

With the hire of plant bid in place the backlog with respect to blocked

stormwater systems and blocked kerb inlets can now be addressed. Additional

funding is required to deal with this backlog 1,500,000


R&M: ROADS: GRAVEL -

CONTRACTORS Additional funding is required for the grading and re-gravelling of existing gravel

roads in especially the informal settlement areas in Brakpan. 800,000



CONTRACTORS






CONTRACTORS



funding is required to deal with this backlog 800,000



CONTRACTORS






purposes)

ADJUSTMENT

BUDGET

AMOUNTS


R&M: ELEC: TRAFFIC LIGHTS -

CONTRACTORS

The first two months indicate that the average requirement is R 800 000 per

month. The past expenditure suggest the same. The available funding is

therefore insufficient for this activity. Please note the additional money allocated

to this function last year came from vote number 4308 262 252 410 (an

additional R 3.0 million). The number of traffic signal poles being run over is

alarmingly high. 3,220,000



CONTRACTORS



funding is required to deal with this backlog 800,000


R&M: ROADS: GRAVEL -

CONTRACTORS Additional funding is required for the grading and re-gravelling of existing gravel

roads in especially the Tembisa areas and informal settlements. 800,000



CONTRACTORS





R&M: ELEC: TRAFFIC LIGHTS -

CONTRACTORS

The first two months indicate that the average requirement is R 850 000 per

month. The past expenditure suggest the same. The available funding is

therefore insufficient for this activity. The number of traffic signal poles being run

over and sawn off to steel copper cables is alarmingly high.2,500,000


R&M: ROADS: SIGNS -

CONTRACTORS

Compliancy with legislation require additional funding. The provision was

insufficient to deal with the replacement of non compliant signs as well as

damaged signs. 1,000,000



CONTRACTORS





R&M: ROADS: SIGNS -

CONTRACTORS



damaged signs. 900,000


R&M: ROADS: SIGNS -

CONTRACTORS



damaged signs. 900,000

Roads and Stormwater Additional Amount Requested Total 17,720,000

Roads and Stormwater Reductions Identified2308152253025

R&M: ROADS: TAR -

CONTRACTORS (5,600,000)


R&M: ROADS: TAR -



R&M: ROADS: TAR -


Roads and Stormwater Reductions Identified Total (17,720,000)

Roads and Stormwater

Total -

SRAC Additional Amount Requested1443162556400 SPECIAL EVENTS Funds are required to host arts festivals and various other events in the Sports,

Recreation Arts and Culture Department. 15,000,000

SRAC Additional Amount Requested Total 15,000,000



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

SRAC Reductions IdentifiedNo Reductions Identified -

SRAC Reductions Identified Total -

SRAC Total 15,000,000

Waste Management Additional Amount Requested1324102556150

REFUSE BINS BAGS AND

CONTAINERS

Budgeted amount is not enough to implement the 180 days plan a and the

approved turnaround plan. 433376 bins as per turn around report to council to

distribute to the rest. Of EMM residents. 95,000,000

Waste Management Additional Amount Requested1324302303950 INTEREST FOR PROVISIONS Interest for Landfill site rehab provision - year-end transactions

2,000,000


ENVIRO CONTRACTS: SOLID

WASTE

We have started disposing @ F G Site Last week , From Past experience we

anticipate that this Depot will dispose a Maximum volume of 9, 500 tonnes per

month , In order to ensure that there are adequate funding for the rest of the

financial year , kindly ensure that we have the following amount available 9,500x

9 months =85,500 tonnes @R150 ,00 per tonne = R12,825, 000.00.1,900,000


ENVIRO CONTRACTS: SOLID

WASTE

Monthly expenditure on this contracts amounts to R3,364,378 x 12 months plus

7% escalation (including removal and emptying of bulk containers in Daveyton

and Etwatwa) 7,572,536


ENVIRO CONTRACTS: MINI

DUMPING SITES

Budget was cut during the budget process. Monthly expenditure on this

contracts amounts to R622,709 x 12 months plus 7% escalation (Maintenance

of management of 5 mini disposal sites) 1,132,910


ENVIRO CONTRACTS:

REFUSE REMOVAL Budget was cut during the budget process

4,500,000

Waste Management Additional Amount Requested Total 112,105,446

Waste Management Reductions Identified1324102507330

REFUSE REMOVAL:

INFORMAL SETTLEMENTS (11,376,400)


ENVIRO CONTRACTS:

REFUSE REMOVAL (1,963,051)


ENVIRO CONTRACTS:

ILLEGAL DUMPING (1,490,659)


ENVIRO CONTRACTS:

REFUSE REMOVAL (766,367)


ENVIRO CONTRACTS:



ENVIRO CONTRACTS:



ENVIRO CONTRACTS:

CLEANING OF STREETS (3,365,861)


ENVIRO CONTRACTS:



ENVIRO CONTRACTS:



ENVIRO CONTRACTS:




purposes)

ADJUSTMENT

BUDGET

AMOUNTS

Waste Management Reductions Identified Total (28,128,220)

Waste Management

Total 83,977,226

Water and Sanitation Additional Amount Requested2206222253120 5,078,000









Water and Sanitation Additional Amount Requested2206152253240

R&M: SANITATION: PUMPSTATION-

CONTRACTORS 30,000,000


R&M: SANITATION: PUMPSTATION-

CONTRACTORS 13,785,252










The number of water leaks has increase per emis report due to ageing water network,

specially old corroded steel pipes and asbortos cement pipe, none attendance these

leak will cause high level of water losses and pollution to portable water may result into

waterborne deceases

R&M: WATER: NETWORK -

CONTRACTOR

Most pump stations are overloaded, and require high levels of emergency maintenance

, vandalism and illegal discharge of industrial waste cause high levels of failures and

pollution of rivers and streams.

R&M: SANITATION:

NETWORK/BLOCKAGE - CONTRAC

The number of sewer blockages has increase per emis report due to tree roots,

vandalism, and ageing collapsing concrete pipes. Analysis of the budget for repairs and

maintenance in general has shown an marginal increase in the budget allocation since

2011/12. Should the 2011/12 budget be used as baseline figure and an inflationary

figure be added to the baseline year budget it is clear that the 2012/13 and 2013/14

budget compared to the actual expenditure showed a shortfall of between RM 50 to

RM 75. This had the resultant effect of a shortage of funds under the repairs and

maintenance votes. To prevent this occurring in the current financial year an

adjustment is needed. It needs to be noted that CAPEX projects create new assets on

an annual basis and needs be maintained to prolong the life expectancy of the these

new capital assets. This will impact on the repairs and maintenance budget of this

department.



purposes)

ADJUSTMENT

BUDGET

AMOUNTS


The number of water leaks has increase per emis report due to ageing water network,

specially old corroded steel pipes and asbortos cement pipe, none attendance these

leak will cause high lelvel of water losses and pollution to portable water may result into

waterborne deceases 2,700,000


Water and Sanitation Additional Amount Requested1326602404050 PURCHASE OF WATER

An analysis of purchases and consumption of bulk water for the first three months into

the financial year (July 2014 to September) was done, following the methodology:

•First methodology - Based on number of days of consumption from Rand Water and

Johannesburg Water, total kiloliters in days for the past three months spread over

scheduled reading days is 371,596,905kl.This is multiplied by the average rate of both

suppliers which is R6.00320180. This totals to an amount of R2,230,771,209. With this

methodology , an adjustment in budget of R77,390,743.00 is required or proposed.

•Second methodology - Purchases of the three months, July 2014 to September

2014,i.e R571,252,136.00 is divided by three and multiplied by twelve to annualize it.

This amounts to a total of R2,285,008,547.00. With this application, there is difference

of R131,628,082.00 which is therefore proposed for adjusting the budget. Based on the

two different methods; the estimated budget adjustment is between R77,390,743.00

and R131,628,082.00. It is therefore proposed that, for a level comfort, an adjustment

of the budget by R131,628,082.00 be effected.

86,135,220

Water and Sanitation Additional Amount Requested2206152506460 TANKERING OF WATER

Water tankering to informal settlements have increased inline with the increase in the

number of informal settlements and high number of mines closing butting stress on

water supply. Water tankering provide minimum levels of service to basic access of

water to communities during major service failures and emergency shutdowns. 7,000,000

Water and Sanitation Additional Amount Requested6206152506460 TANKERING OF WATER

Water tankering to informal settlements have increased inline with the increase in the

number of informal settlements and high number of mines closing butting stress on

water supply. Water tankering provide minimum levels of service to basic access of

water to communities during major service failures and emergency shutdowns. 7,000,000

Water and Sanitation Additional Amount Requested Total 216,797,472

Water and Sanitation Reductions IdentifiedNo Reductions Identified -

Water and Sanitation Reductions Identified Total -

Water and Sanitation

Total 216,797,472

Grand Total 373,001,535

Total Additional Requests 444,854,560

Total Savings Identified (71,853,025)

Net Additional Funds Required to Fund 373,001,535

R&M: WATER: PREVENTATIVE

MAINTENANCE



purposes)

ADJUSTMENT

BUDGET

AMOUNTS

PROPOSED FUNDING OF THE ADDITIONAL FUNDS REQUIRED:

Increase in Sanitation Sales (73,198,379)

Increase in Interest Earned (61,955,678)

Decrease in Interest on External Loans (42,916,000)

General Expenditure Budgeted but not utilised in 1st Quarter(76,968,200)

Salaries not spent in 1st Quarter (117,963,279)

(373,001,535)

ANNEXURE C

Responsible Department

Planning Statements Indicators 2014/2015

Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4

Reason for Amendment Indicator Definition Planned Target

Planned Target

Planned Target

Planned Target

NATIONAL OUTCOME: SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE

THEMATIC AREA: 1. SUSTAINABLE URBAN INTEGRATION

ULTIMATE OUTCOME: 1.1. EMM Gauteng City Regional Integration

INTERMEDIATE OUTCOME: 1.1.1 Regionally integrated Ekurhuleni Aerotropolis redevelopment


Finalization of Aerotropolis Master Plan

1. Aerotropolis Master Plan approved by target date

15-Jun 0 0 0 15-Jun Not Amended

An approved Aerotropolis Master Plan refers to the final draft of the 30 years Master Plan which outlines priorities for development having been approved by the Mayoral Committee and Council The Master plan is to provide a road map for 30 years for reconfiguring the spatial environment; setting up institutional arrangements, developing a financial model and prioritizing the sequencing of economic clusters for development and prioritizing of critical infrastructure.

INTERMEDIATE OUTCOME: 1.1.1 Regional accessible public transport network development

Transport and Licensing

Increased provision of a public transport system that cuts across the Gauteng Region.

2. Number of new bus routes established between Ekurhuleni and other Metros in Gauteng

Amended 2

Original: 1 0 0 0

Amended

2 Original:

1

Amended Target: The original target was a typo error. The target was supposed to be 2 new routes between EMM and Joburg and or Tshwane.

Two new bus routes originating from Ekurhuleni to either Johannesburg and or Tshwane. The origin and destinations hall be determined based on the demand from the commuters.


Increased provision of infrastructure for public transport.

3. Number of new Public Transport Facilities constructed

2 0 0 0 2 Not Amended

100% completion of the PT Facilities in New Vosloorus, Palm Ridge, Bluegum View and Phuthaditshaba.

4. KM of phase 1 IRPTN BRT routes constructed.

5kms 0 0 2.5 kms 2.5 kms Not Amended The total kms of dedicated BRT lanes completed between Tembisa and Vosloorus.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

BBC Improve operating efficiencies of the buses

5. Bus operational efficiency rating

32,096 8024 8,425 8,024 7,623 Not amended

The total amount of revenue generated from cash paying commuters, sales of bus coupons and smart cards, and also the Government subsidy calculated as a proportion of the budgeted revenue.

INTERMEDIATE OUTCOME: 1.1.2 Regional broadband infrastructure networks development

ICT Increased availability of customer facing applications

6. % availability of enabled customer facing applications

96% 96% 96% 96% 96% Not Amended

Amount of time that service is available (number of days the application is available per quarter divided by 90days Absolute indicator (Library System, Prepaid System, Call Centre Systems, Cash drawer System, Esiyakhokha). Applications that are used by the Ekurhuleni Citizens.

ICT Increased broadband (fibre) coverage within the metro

7. Number of Wi-Fi hotspots deployed

75 15 20 20 20 Not Amended

A hotspot is a site that offers Internet access over a wireless local area network through the use of a router connected to a link to an Internet service provider. Hotspots typically use Wi-Fi technology.Deployed means Wi-Fi nodes procured and installed on Ekurhuleni Network.

ICT

Increased responsiveness to the prioritized ICT solutions

8. Number of solutions signed off by line managers


Number of solutions required by Departments. Solutions are as per prioritized profile approved by the ICT Steering Committee based on the Departmental Requirements Management Portfolio.

NATIONAL OUTCOME: SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF HOUSEHOLD LIFE

THEMATIC AREA: 1. SUSTAINABLE URBAN INTEGRATION

ULTIMATE OUTCOME: 1.2. Sustainable Settlements and Infrastructure

INTERMEDIATE OUTCOME:1.2.1 Invest in on-grid long term infrastructure



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

SRAC Increased access to SRAC facilities in line with approved minimum norms and standards.

9. Number of new functional library facilities

2 0 0 0 2 Not Amended Measuring the practical completion of new Library, facilities

SRAC 10 Number of new functional Arts, Culture and Heritage facilities

3 0 0 0 3 Not Amended Measuring the practical completion of new Arts, Culture and Heritage facilities

City Planning

Increased rehabilitation of land affected by geotechnical hazards

11. % of land affected by geotechnical hazards rehabilitated

80% 80% 80% 80% 80% Not Amended

Geo Technical hazards are sinkholes and shallow undermining that are natural holes resulting from subsidence of the original state/level of the slope and landscape. Total number of hectares of dolomitic land (52% of EMM) Total number of dolomitic land rehabilitated (restore to natural state)

Human Settlements

Increased provision of interim basic services meeting the required standards for households living in informal settlements

12. Amended: Number of informal settlements provided with interim basic services Original: Number of informal settlements provided with compliant interim basic services

119 60 80 119 119

Amended Indicator The indicator is amended to improve its smartness and to enable positive reporting.

The unit of measure is required compliance by the relevant service departments on the service standards in the provision of minimum basic services in terms of the informal settlements management Plan and council’s standards.

City Planning

Increased investment of the municipal capital budget in geographic priority areas

13. % of municipal capital budget invested in geographic priority areas

60% 0% 0% 0% 60% Not Amended

The indicator measures the capital budget invested in geographic priority areas as defined in the Capital Investment Framework. Denominator – total Ekurhuleni wide annual capital budget



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

expenditure Numerator – annual capital budget expenditure in the geographic priority areas. (Invested refers to the Rand-value of the capital budget of Ekurhuleni spent in the Geographic Priority Areas expressed as a percentage of the total Ekurhuleni capital budget)

Human Settlements

Increased roll out of housing units constructed in precincts in support of integrated human settlement and transport orientated development

14. Number of subsidized housing units built.

1100 0 200 400 500 Not Amended

The unit of measure and a unit of analysis is a subsidized housing unit built.The indicator is calculated through a physical count and is an absolute target for the quarter.

Human Settlements

Increased procurement of well-located land in support of integrated human settlements and transport orientated development,

15. Hectares of land acquired (number)


The unit of measure and analysis is hectares and or number or erven per Surveyor General plan The indicator is calculated based on the Surveyor General and the Title deed of the acquired land. The target is absolute for the quarter

Human Settlements

Increased number of households living in informal settlements provided with secure tenure and basic services

16. Number of informal settlements upgraded to formal townships


The unit of measure and analysis is done by determining the number of stands per approved layout plan and or proclaimed township. The indicator is calculated based on the Township approval by the relevant authority, or delegated official, Surveyor General for the respective erven absolute for the quarter

Real Estate Improved utilization of burial space

17. Amended: Retained burial capacity and lifespan of cemeteries in years Original: Lifespan of cemeteries in years

11 11 11 11 11

Amended indicator The indicator is amended to reflect the actual measured outcome, which is the cemeteries' burial capacity per year

The unit of measure is the number of years EMM is to sustain by the currently available burial space



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Real Estate Increased provision of leisure facilities

18. Amended: Number of leisure facilities managed Original: Number of leisure facilities developed

5 0 0 0 5

Amended indicator The indicator is expanded to reflect other forms of leisure facilities development, which is not limited to new facilities only.

The indicator includes the no of facilities refurbished, developed and rehabilitated

DEMS

Increased access to Disaster and Emergency Management Services

Amended 19. Number of functional Disaster & Emergency Management facilities Original Number of disaster & emergency management services facilities

1 0 0 0 1

Amended Indicator To ensure clearer and smarter indicator

Number of Disaster & Emergency Management Services facilities established

ERWAT Improve the effluent quality compliance

20 Amended: Overall % Compliance to Water Quality standards as per Water Use Authorizations Original: % compliance with wastewater treatment works license conditions and/or exemptions standards

Amended 81.5%

Original:

78%

78% 77%

Amended: 84%

Original:

76%

Amended: 86%

Original:

79%

Amended indicator and targets Q3 and Q4 have been adjusted upwards. Measures that have been put in place puts the organisation in a favourable condition to achieve more.

The indicator is expressed as a percentage. It is calculated by dividing the number of determinants complying to the Water Use Authorization with the total number of determinants analyse for the specific period. The numerator is the total number of parameters complying, expressed as an average. The denominator is the total number of parameters analyses, also expressed as an average. The value is absolute for the quarter



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Roads and Storm water

Improved condition of roads

21. KM of paved roads meeting minimum standards

418 65 125 142 86

Removed The indicator is removed because the signage (see definition for what the indicator included) is inflating the target. The indicator must measure only roads surfaced and not signage. This is replaced by the indicator below that is only focussed on paved/surfaced roads.

KM of new Tertiary Roads, constructed from existing gravel roads to tar roads plus kms of new strategic roads, constructed from existing gravel roads to tar roads (council or developers) plus kms of existing roads rehabilitated or resurfaced plus equivalent km’s of roads provided with compliant road signs (8 signs per kilometre = one kilometre).


Improved condition of roads

KM of roads paved/surfaced 190 N/A N/A 65 125

New Indicator. A similar type indicator was part of the original SDBIP. However during the verification sessions (conducted by Strategy Department to verify reported performance) it became apparent that it also included signage that tended to inflate the achieved performance. Signage is not unimportant but surfacing of the roads is more important. This indicator is therefore made up exclusively of roads surfaced. No roads paved was recorded in the first and second quarter.

KM of new Tertiary Roads, constructed from existing gravel roads to tar roads plus kms of new strategic roads constructed from existing gravel roads to tar roads (council or developers) plus kms of existing roads rehabilitated or resurfaced.


Flooding and damage to infrastructure risks reduced

22. Number of systems added to the existing stormwater network

45 systems 15 6 6 18 Not Amended

Number of additional systems (pipelines and channels) added to the existing stormwater network, PLUS number of attenuation dams added to the network. A system in this regard is a complete interlinked system. Can be a number of KI’s, pipes, manholes as long as it is linked.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Waste Management Services

Increased compliance of landfill sites

23. Number of landfill sites compliant with permit conditions


A compliant landfill refers to a site that meets the requirements of the permit conditions as set out by the permitting authority i.e. the Department of Environmental Affairs and Gauteng Department of Agriculture and Rural Development Landfill site means any site or premise used for the accumulation of waste with the purpose of disposing in sanitary manner. This facilities are operated in line with the permit or license conditions granted by the Provincial and National Environmental Authority, therefore increased compliance with permit conditions refers to adherence to the stipulated the level of compliance per site.


Increased compliance to the national and provincial Waste management norms and standards

Number of 240l bins rolled out

44000 0 0 0 44000

New Indicator This is a process indicator becomes of strategic importance because of huge backlog of bins in Ekurhuleni (only north/or south areas that have some bins) and also it’s a significant cost driver in the Department (20% of the Capex Budget).

240ℓ refers to an approved refuse receptacle used for residential and business waste storage. A consolidated register/list will be provided as evidence.


Improved strategic Road network

24. KM of newly constructed strategic roads

1 0 0 0 1

Removed This indicator is removed as it could be a duplication if retained. The 1 strategic road has been incorporated into the indicator of KM of roads paved. Indicator is not removed because of poor performance.

A strategic road is road within a road network that primarily fulfils a mobility function in the network as opposed to the accessibility function.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target


25. Number of intersections on strategic roads upgraded

6 0 1 3 6

Removed This indicator is removed as it could be a duplication if retained. The 1 strategic road has been incorporated into the indicator of KM of roads paved. The indicator is not removed because of poor performance.

Number of intersections with upgrades to the surface e.g. widening, traffic-circles, road marking

Water and Sanitation Services

Increased access to sanitation in EMM

26. Number of additional households in formal dwellings provided with sewer connections

1138 100 340 360 338 Not Amended

The indicator tracks additional household in formal dwellings given access to a sewer connection Total system input volume minus billed authorised consumption minus consumption in Informal settlements (bulk metered and extrapolated) and RDP houses (bulk metered and extrapolated) divided by the total system input volume.


Increased access to sanitation in EMM

27. Number of additional households in formal dwellings provided with water connections

1138 100 340 360 338 Not Amended

The indicator tracks additional household in formal dwellings given access to a water connectionThe provision of household connection access to RDP households previously not having individual type of service


Decentralization of Licensing Services to Townships

28. Number of Licensing Hubs in previously disadvantaged areas constructed


The indicator measure completion of licensing hub constructed A licensing hub center that a driving license testing, a motor vehicle registration capability as well as road worthiness testing service

Health and Social Development

Increased access to primary health care services

29. Number of functional newly constructed health care facilities

3 0 0 0 3 Not Amended Newly constructed facilities functional and providing Primary Health Care services to clients.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Energy

Increased implementation of energy efficient measures

30. Number of solar high mast lights installed

12 0 2 4 6

REMOVED This was a pilot project to test the viability of solar high mast lights. The project was conducted in the Marikana Informal Settlement. 10 Solar high mast lights were installed in 2013/2014. During an inspection in October 2014 it was found that the installations were stolen. The department wishes to stop this project while investigating other alternative solutions to the theft problem. However, this solution may be implemented in future financial years.

High mast lighting is a tall pole, generally approximately 30 metres in height, with lighting attached to the top pointing towards the ground. These ones uses solar.

Energy

Increased provision of public lighting (street lights and high mast lights)

31. No of PV Solar Lighting Units installed in Informal Settlements

7000 1750 1750 1750 1750 Not Amended These are portable solar units that provide energy for four (4) globes and a cell phone charger

Energy


32. Number of high mast lights installed

80 Amended Original

72

0 18 Amended

26 Original 18

36

The project for solar high masts was

stopped (see indicator 30 above). The

funds for this project is now

transferred to the conventional high

mast project and street lights. Eight

additional conventional high masts

shall be purchased. Thus the target for

the third quarter is increased from 18

to 26 by 8 masts.

High mast lighting is a tall pole, generally approximately 30 meters in height, with lighting attached to the top pointing towards the ground.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Energy


33. Number of street lights installed

Amended 1000

Original 570 0 95

Amended 405

Original 95

Amended 500

Original 380

Amended targets The project for solar high masts was

stopped (see indicator 30 above).

Some of the funds for this project is

now transferred to the street light

project to fund 430 additional street

lights. Thus the target for streetlights

in the third quarter is increased from

95 to 405 by 310. The fourth quarter

target is also increased from 380 to

500 by 120.

A street light is a raised source of light on the edge of a road, which is turned on/off at a pre-determined time. Modern lamps may also have light sensitive photocells to turn them on at dusk and off at dawn or automatically activate in dark weather.

Energy

Increased electrification of subsidized developments

34. Number of subsidized households electrified

5000 0 500 1500 3000 Not Amended

This indicator is in respect of low income earners housing (RDP) which are electrified in conjunction with Human Settlements department.

Energy

Increased provision of reliable and sustainable electricity supply to all customers

35. % downtime of network availability

0,8% 0,8% 0,8% 0,8% 0,8% Not Amended

This part of NRS 048-6 addresses the impact on medium voltage (MV) customers’ supply interruptions, caused by events on the medium voltage (MV), high voltage (HV) and extra high voltage (EHV) systems. This is the industry norm. A percentage below the norm indicates improvement

City Planning Increased efficiency with respect to the application process

36. % of town planning applications approved in accordance with the departmental business process flow chart

92% 91.25% 91.50% 91.75% 92.00% Not Amended

Approval of Town Planning applications in accordance with departmental business process flow chart as guided in Townships Ordinance no. 15 of 1986. Denominator – total number of applications received Numerator – total number of town planning applications approved in accordance with departmental business process flow chart



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

NATIONAL OUTCOME: DECENT EMPLOYMENT THROUGH INCLUSIVE GROWTH

THEMATIC AREA: 2. JOB CREATING ECONOMIC GROWTH

ULTIMATE OUTCOME: 2.3. New Value Chains Development

INTERMEDIATE OUTCOME: 2.3.2 Integrated SMME development and urban development


Increased sustainability of enterprises developed

37.Number of enterprises participating in the EMM’s business incubation program

100 25 25 25 25 Not Amended

The indicator measures the enterprises that benefit from the mentorship, business linkages as well as access to financial and other business support services for sustainability

NATIONAL OUTCOME: PROTECT AND ENHANCE OUR ENVIRONMENTAL ASSETS AND NATURAL RESOURCES

THEMATIC AREA: 3. ENVIRONMENTAL WELLBEING

ULTIMATE OUTCOME: 3.1 Sustainable Natural Resources Use

INTERMEDIATE OUTCOME: 3.1.2 Deployment of renewable energy regimes

ERM

Decreased vulnerability of EMM to the effects of climate change

38. Amended: Number of departments in EMM with a Climate Change Response Plan approved Original: Number of departments in EMM with developed Climate Change Response Plan

6 1 1 2 2

Amended Indicator: Improved indicator to represent outcome instead of output.

Department based Climate Change response plans aimed at decreasing EMM vulnerability including climate proofing initiatives to reduce risks associated with climate change are developed and approved. Progress with implementation can be monitored even though implementation actions are not under control of the department

ERM

Increased environmental awareness in community of EMM

39. Amended: Number of beneficiaries reached through an environmental capacity building programme Original: Number of beneficiaries with improved awareness levels after participating in a campaign.

10,000 2,500 2,500 2,500 2,500

Amended to indicator: The previous indicator had two variables i.e. beneficiaries reached and increased level of awareness. This created a problem as by implication it would mean two surveys (before and after) have to be conducted to measure increased levels. It becomes impossible to achieve this because the nature of intervention is sporadic and identifying the same attendees

The new indicator measures the number of beneficiaries reached through environmental education awareness and other capacity building initiatives and engagements within the EMM communities.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

becomes difficult.

INTERMEDIATE OUTCOME: 3.1.2 Deployment of renewable energy regimes

Energy

Increased generation of renewable energy, from alternative /renewable sources

40.Amended: Installed capacity of alternative/renewable power Original: Number of megawatts of energy generated from renewable sources

500 kW 0 0 0 500kW

Amended indicator: The intention of the indicator was to track the installed capacity and not the energy generated. The incorrect word "energy" was used instead of "power".

The indicator tracks the installed capacity at Simmer and Jack Landfill site.


Reduce energy dependency

41. Amended: Number of energy-saving interventions implemented Original: Number of signal heads replaced with LED heads

Amended: 406

Original:

403

20 100

Amended: 154

Original 152

Amended: 132

Original:

131

Amended indicator and target

Intervention is the replacement of a signal head with a LED head or a route that has being coordinated (synchronized)

INTERMEDIATE OUTCOME: 3.1.4 Promote re-use of waste


Increased waste minimization

42. % of recyclable waste reclaimed

3% 0.75% 0.75% 0.75% 0.75% Not Amended

Recyclable refers to paper, steel, plastic, construction and demolition products through any activity to prevent or reduce the volume and/or environmental impact of waste that is generated, treated, stored or disposed of through mechanisms such as re-using, recycling and processing waste for re-use calculated as follows: (Total Waste Reclaimed/Total Waste Disposed) x 100

INTERMEDIATE OUTCOME:3.2.1 Conserving existing ecosystem and biodiversity



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Real Estate

Amended: Increased management of designated Conservation Areas Original: Increased development of Conservation Areas

43. Amended: Number of conservation areas managed Original: Number of conservation areas developed

1 0 0 0 1

Amended Indicator: The planning statement "Increased development of Conservation Areas" is deemed misleading as these areas are in fact naturally occurring bio-diverse ecosystems and not man-made.

The indicator includes the number of areas protected and rehabilitated. Therefore managed include protected and rehabilitated.

ULTIMATE OUTCOME: 3.3 Improved Environmental Governance

INTERMEDIATE OUTCOME: 3.3.2 Develop, implement and enforce by-laws of carbon reduction

ERM Increased compliance with environmental legislation

44. Number of EMM departments with an improved Environmental Compliance Index Score (Internal)

12 12 12 12 12

Removed to correct error in planning. The department originally sought to assess only 6 but 12 was erroneously included. A replacement indicator with correct annual and quarterly targets is included.

Internal: A number of departments are audited against defined criteria The number of criteria that each department complies with is recorded to give a score per department. As a department complies with more criteria over time, the score of that department increases. The quarterly target indicates the number of departments that are identified for an increased score.


44. Number of EMM departments with an improved Environmental Compliance Index Score

6

NA

(1)

NA

(1)

2 2

Amendment of the targets. The target for the indicator are amended to reflect the correct targets. The target for 2 years (12) was erroneously included as a 1 year target. Note that a quarterly achievement of 1 in the first quarter and 1 in the second quarter was verified and recorded. This was done against an incorrect quarterly target.

Internal: A number of departments are audited against defined criteria The number of criteria that each department complies with is recorded to give a score per department. As a department complies with more criteria over time, the score of that department increases. The quarterly target indicates the number of departments that are identified for an increased score.


45. Number of listed activity industries with an improved Environmental Compliance Index Score (External)


External: A number of licensed industries are audited against defined criteria. The number of criteria that each industry complies with is recorded to give a score per



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

industry. As an industry complies with more criteria over time, the score of that industry increases. The quarterly target indicates the number of industries that are identified for an increased score.

NATIONAL OUTCOME: AN INCLUSIVE AND RESPONSIVE SOCIAL PROTECTION SYSTEM

THEMATIC AREA: 4. SOCIAL EMPOWERMENT

ULTIMATE OUTCOME: 4.1 Social care supply chains management

INTERMEDIATE OUTCOME:4.1.1 Integrate social care policy and family development


Increased capacity in Early Childhood Development service delivery.

46. Number of ECD practitioners trained in accredited ECD training programme


ECD practitioners graduating from an ECD training programme conducted by relevant accredited external service provider.

INTERMEDIATE OUTCOME: 4.2.4 Integrated family and early childhood development

SRAC

Increased participation of children aged 3-6 in accredited early childhood development programmes.

47. Number of children aged 3-6 years participating in accredited ECD programme.

11760 1860 2160 4460 3280 Not Amended

Measuring number of ECD programmes supporting physical and cognitive development of children aged 3-6: Indigenous music instrument program, art development program, Art as Healing, museum exhibition and educational tours, spelling bee, toy library, kiddies Olympics as well as learn to swim program.

INTERMEDIATE OUTCOME: 4.1.2 Implement life cycle management


Reduced vertical transmission of HIV from Mother to Child

48. % of babies tested HIV-positive (PCR) at six (6) weeks

<2.15% <2.15% <2.15% <2.15% <2.15% Not Amended

Babies tested PCR HIV-positive six (6) weeks after birth as the proportion of babies born to HIV-positive mothers PCR tested for HIV at 6 weeks after birth.


Improved Tuberculosis Treatment Outcomes

49. % of New Smear Positive (+) Tuberculosis Patients Cured

>85% >85% >85% >85% >85%

Not Amended

Number of new Sputum Smear Positive Pulmonary Tuberculosis patients who are proved to be cured using smear microscopy at the end of their treatment as a proportion of new Sputum Smear Positive Pulmonary Tuberculosis



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

patients started on treatment. Denominator: is those on TB treatment Numerator: Those cured from that population


Increased access to Antiretroviral Therapy initiations

50. Number of eligible patients initiated on Antiretroviral Therapy

Amended: 36 500

Original: 33

000

8,300 8,300

Amended 10 025

Original:

8300

Amended: 9875

Original:

8300

Amended Target: The National Department of Health has made pronouncements on Policy Changes for Antiretroviral Therapy Initiations, where CD4 Counts of 500 who were not eligible for ART as from January 2015 these clients would be eligible for ART. There are also proposed changes on the Eradication of Mother to Child HIV Transmission where Pregnant Mothers irrespective of CD4 Count would be enrolled on ART Life-Long.

Number of eligible HIV-positive patients initiated on Antiretroviral Therapy during the reporting period.

ULTIMATE OUTCOME: 4.2 Capabilities Development

INTERMEDIATE OUTCOME:4.2.1 Increase investment in economic and social skills

SRAC

Increased capacitation of youth and adults across the development continuum

51. Amended: Number of beneficiaries participating in accredited capacity building programmes Original: Number of youth participating in accredited capacity building programmes

150 64 0 36 50

Amended Indicator The capacity Building programmes are targeting all age groups not only youth as result the indicator needs to be amended.

Measuring number of beneficiaries participating in accredited capacity building programmes offered and implemented in respect of technical skills. Indicator not cumulative due to the continuous nature of the training which is over a lengthy period ranging from 10 to 12 month period

SRAC Increased participation of learners in SRAC School programmes

52. Number of SRAC school programs implemented


Measuring the number of children focused programmes done in collaboration with the department of education. The programmes include sport and recreation, libraries and information services as well as arts and culture. The programmes include teaching children basic music instruments



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

through Elementary Classic Music programmes. Strongest Link reading promotion, Debates (Chris Hani and OR Tambo months) 3. Football and Netball as well as the 7 other priority sporting as determined by the province.

INTERMEDIATE OUTCOME: 4.2.2 Promote multiple livelihood approaches


Increased number of Job opportunities created

53. Number of job opportunities created

20000 2500 5000

Amended 0

Original 5000

Amended12500

Original 7500

The KPI has been amended to allow for cumulative reporting as jobs are of a cumulative nature.

A job opportunity refers to any paid work created for an individual for any period of time.


Increased visitation by tourists to Ekurhuleni

54 Amended: Number of business tourists visiting Ekurhuleni.Original - % of business tourists visiting Ekurhuleni

Amended: 32612

Original:

10%

2% (6522)

2%

(6522)

Amended:

6522

Original: 2%

Amended: 13 049

Original

4%

Amended indicator and targets The KPI is amended from percentage to the number of business tourist visiting EMM to record the exact number. The KPI is also amended in terms reporting from quarterly to yearly as data is coordinated with Tourism partners and to ensure accurate figures are provided.

The indicator is tracking the total count of both domestic and international visitors who come to Ekurhuleni for business purposes in partnership with Tourism stakeholders. Out of the provincial business tourism inflows of 1, 905, 251 in the previous financial which comprised 18% of the regional inflows in the 2013/2014 financial year, 326 120 was the actual realized. The Ekurhuleni business tourism target will be increased by a 10% cumulative target for the next five years, where the target will be incremented by 3 587 for the 2015/2016 financial year.

ULTIMATE OUTCOME: 4.3 Responsive and Active Citizenry

INTERMEDIATE OUTCOME:4.3.1 Integrate service delivery and citizen responsibility

EMPD Reduction of fatal road accidents

Amended Reduction in road fatalities Original Fatality road accidents reduced

Amended: Not more than 341 Original: Not more than 192

0 0 0

Amended: Not more than 341

Original: Not more than 192

Amended indicator and targets In-line with the National mandate, the Department has to be able to measure the reduction of road accident fatalities in relation to the national requirement. The reduction, therefore becomes a percentage of the previous

This target in this indicator is based on the baseline of the previous financial year. A death resulting from injuries sustained in a road traffic accident including those of a pedestrian, pedal cyclist, motorcycle rider,



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

year's baseline. The baseline figure used was as at the end of the 3rd quarter, the final figure for 2013/14 performance is 341 as amended

occupants of three-wheeled motor vehicle, occupant of pick-up truck or van, occupant of heavy transport vehicles, and bus occupant.

EMPD Increased EMPD By-Law enforcement

56. Number of by – law violations recorded.

Amended: 3000

Original:

1000

0 0 0

Amended: 3000

Original:

1000

Amended targets As a result of increased complaints of by law violations, the department is planning to intensify the enforcement for the remainder of the financial year

By-law exists to ensure that certain kinds of anti-social behavior are prohibited and punished

EMPD Increased arrest of criminals

57. Number of criminals arrested

Amended: 1400

Original:

1200

300 300

Amended: 400

Original: 300

Amended: 400

Original:

300

Amended targets From a comprehensive crime trends analysis, the Department realizes that an increase in arrests has become critical in curbing the crime onslaught.

A criminal is defined as a person who has committed a crime.

DEMS

Increased implementation of Ambulance Service Norms and Standards.

58. Number of Operational Ambulances on 24/7

60 60 60 60 60 Not Amended The number of Ambulances that are scheduled to operate throughout each shift, 365 days of the year.

DEMS

59. Amended: % reduction of Emergency Medical calls not serviced. Original: % of Emergency Medical calls not serviced.

1% 1% 1% 1% 1%

Amended indicator To ensure the indicator is useful and relevant to the core business of the department

The indicator measures the reduction in the number of emergency medical calls where ambulances did not respond and reached the incident, treat and/or transported the patient/s.

DEMS Increased efficiency of response to Fire Incidents.

60. % compliance with the prescribed South African National Standard 10090 (speed of response)

82% 82% 82% 82% 82% Not Amended

Out of 100% of all Fire calls received and responded to during the financial year, the response times to 82% of these calls must comply with the response times prescribed in the national standard.

DEMS Reduced fire incidents in informal settlements against baseline

61. Amended: Reduction of Fire incidents reported in informal settlements Number of Fire incidents reported in informal settlements

45 N/A 0 0 45

Amended indicator To ensure the indicator is useful and relevant to the core business of the department

The number of fires reported in informal settlements for the year in review should be 45 less than that of the preceding year.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target


Increased provision of waste management services in line with the Waste management norms and standards

62.Number of households in in formal areas with weekly kerb-side waste removal services

706,668 706,668 706,668 706,668 706,668 Not Amended

Formal households refer to a developed residential property where individual erven were approved in terms of Town planning legislation with weekly kerbside waste collection. Kerb side waste collection refers to municipal refuse collection from a 240ℓ bin or plastic bags on a designated day of the week.

Increased provision of waste management services in line with the Waste management norms and standards

63. Number of additional households (RDP) with access to refuse removal

55,575 55,575 55,575 55,575 55,575 Not Amended

Low cost housing built in line with the Reconstruction and Development Policy, 1994 with weekly kerb side waste collection viewed mostly as indigent households for equitable share allocation by National Treasury.


Increased provision of waste management services to informal settlements

64. Number of informal settlements with access to refuse removal

119 119 119 119 119 Not Amended

An area where no sub division of individual erven has taken place in terms of Town planning legislation with weekly waste collection from a communal area or comprehensive waste collection through the plastic waste collection system.

Health and Social

Development

Increased rate of rodent infestation-free

settlements

65. % of inspected premises that are rodent-free after

intervention.

Amended: 73%

Original:

96.5%

96.50% 96.50%

Amended: 45%

Original:

96.5%

Amended: 45%

Original:

96.5%

Amended Target The department has reviewed the approach in terms of rodent control programme coverage for areas in the EMM regions. Intense focus will be targeted to heavily infested areas and this has a potential delay the turning around the rodent infestation challenge in a short space of time. There is also a challenge with appointed contractor for grass cutting and rubble removal who cannot deliver and has also acknowledged in writing to that effect. The non-removal of the rubble has an impact on proliferation of rodents. The process is being

The indicator measures the extent to which interventions undertaken to reduce rodent infestation in communities are working by reference to the increase in premises that are freed from infestation after the implementation of targeted interventions Number of inspected premises with no active signs of rodents after intervention as a proportion of premises inspected for rodent infestation after intervention during the reporting period. Active signs of infestation include fresh droppings; rodent burrows



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

addressed thorough the tender office and may take long and this will negatively impact on the planned target and therefore achievement. The other challenge is around roll out the 240L bins to replace the damaged 85L bins which are the source of habitation and feeding of the rodents. There is also a challenge with mail delivery of notices which have to be delivered in a legislated process as a result of Post Office strike. Hence this is also posing a challenge. Hence the motivation to reduce target.

without spider web; presence of rats; gnawing marks; runways, smell of rats urine.

This is based on the totals for the four quarters which is

NUMERATOR=931 (Sum total number of inspected premises with no active signs of rodents after intervention) over

DENOMINATOR = 1282 (Sum total number premises inspected that are infested prior to intervention).


Increased registration of new indigents.

66. Number of newly registered indigent households

15,000 3,750 3,750 3,750 3 750 Not Amended

Households deemed indigent as per the EMM’s Indigent Support Policy identified and registered to access free municipal basic services. Identification and registration of indigent household to access free municipal basic services as provided by the National Government. The basic services include free basic water, free refuse collection, free basic electricity and free basic sanitation.

CRM Uniform Customer Service throughout the City

67. Number of contact points providing uniform customer services

Original 25

Amended

10

2 2 3 3

Amended Annual Target The annual target of 25 has been adjusted to 10, for it to be in line with the quarterly targets of the department which add up to 10. The annual target of 25 was therefore erroneously included instead of 10.

Count of physical contact points that log in all customer queries, enquiries and requests into the Customer Relations Management System (currently the eMIS is the approved system)

NATIONAL OUTCOME: RESPONSIVE, ACCOUNTABLE, EFFECTIVE AND EFFICIENT DEVELOPMENTAL LOCAL GOVERNMENT SYSTEM

THEMATIC AREA: 5. EFFECTIVE COOPERATIVE GOVERANCE



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

ULTIMATE OUTCOME: 5.1 Building a Capable Local City State

INTERMEDIATE OUTCOME:5.1.2 Modernize and capacitate the institution

Strategy and corporate Planning

Amended: Improved implementation of Monitoring & Evaluation Original: Increased implementation of an integrated and coordinated approach to planning and performance monitoring in order to achieve the prioritized GDS interventions

68. Amended: Number of evaluations conducted Amended: Number of evaluations conducted s supporting the SDBIP evaluated

2 0 1 0 1

Amended Result Statement The department adjusted the phrasing of the indicator to make it identify clearly that the focus is on evaluations conducted on targeted programmes not primarily on programmes evaluated. This also makes it more SMART, focused and understandable.

Programmes and sub programmes as per the approved GDS and detailed in the SDBIP for 2014/2015

Strategy and corporate Planning

Improved business intelligence to inform service delivery decision making

69. Amended: % Metro-wide service delivery satisfaction rate recorded Original: Metro-wide service delivery satisfaction rate recorded

67% 0 0 0 67%

Amended Indicator The department reviewed the planning statement and the indicator to ensure that there is a better focus on the deliverables tracked and the results thereof. This is part of the SMART review process.

Survey to asses customer (household and business) perceptions on EMM service delivery

Fleet Increased efficient utilization of the vehicle fleet

70. Number of vehicles fitted with a utilization tracking device

280 70 70 70 70 Not Amended

Number of vehicles (4100) fitted with Electronic fuel management system to monitor daily fuel consumption per vehicle and provide a secondary source of kilometer travelled to calculate the cost per kilometer (cpk) for all vehicles fitted with the technology.

Fleet Reduction in fuel operating costs

71. Number of vehicles monitored for fuel consumption

Amended

122

Original 244

61 61

Amended 0

Original 61

Amended0

Original 61

Amendment to Targets The rollover budget of R19.7m from the previous financial year was approved in September 2014. The E-Fuel System will be procured in the third quarter of 2014/15 financial year. The bid evaluation committee approved the e-fuel procurement item on 11 December 2014 and will be

Number of vehicles fitted with a tracking devise that will provide information on location and recovery, kilometer usage per month, driver identification, driver behaviors (speeding, harsh braking and acceleration), fines routing.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

tabled in BAC on 15 December 2014. We anticipate the contract will be finalized in the third quarter of the current financial year and therefore it will be difficult to achieve the original annual target.

Risk

Improved level of corporate governance and compliance through efficient and effective standards, practices and systems.

72. Amended: Number of risk profiles completed Original: Number of departmental risk profiles completed

Amended:

30

Original: 27

7 7

Amended: 8

Original: 7

Amended: 8

Original: 6

Amended indicator and target 1) Alignment of departmental SDBIP and Metro-Wide Target 2) This indicator needs to incorporate both departmental and entity risk assessments

This indicator measures the number of risk profiles completed. Risk profiles contain critical information on the risks inherent to the department, perceived level of effectiveness of controls and mitigation of risks.

Risk

Improved level of corporate governance and compliance through efficient and effective standards, practices and systems.

73. Amended: Level of EMM compliance maturity recorded Original: EMM institutional compliance maturity level

Level 2 Level 2 Level 2

Amended: 0

Original: Level 2

Level 2

Amended indicator and target 1) The Audit and Risk Committees have advised that an external provider is utilized for all maturity assessment to improve objectivity and reliance. 2) This activity will thus be undertaken once a year in the fourth quarter to assess the implementation of compliance programme for the year.

Institutional compliance maturity measures the advancement of the institutional culture implementing and observing processes, systems and principles of ethics, integrity and compliance with applicable laws, regulations and policies.

Risk

Amended: Improved effectiveness of risk financing and transfer Original: Increased effectiveness of risk financing and transfer

74. Amended: Number of insurance audits undertaken Original: Number of risk transfer and financing mechanisms reviewed

2 0 0

Amended: 1

Original: 0

1

Amended indicator and target 1) The indicator is being changed to provide specificity on the nature of activities that are involved. 2) The target is amended to accommodate the urgent need to provide for more reviews and audits into the insurance portfolio of the municipality.

This indicators measures the number of audits undertaken to review the adequacy and effectiveness of the municipal insurance portfolio and cover.

HRMD

Reduced vacancies in line with the identified critical posts on the new organizational structure

75. % of critical prioritized posts filled

40% 0 0 0 40% Not Amended

Positions that are filled that will assist departments in meeting the mandate of EMM Numerator – number of positions filled



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Denominator – number of critical prioritized posts signed off by CM

HRMD

Increased institutionalization of the Performance Management System

76. % of executive managers performance managed

100% 0 100% Not Amended

Denominator – total number of executive managers with, signed performance agreements Numerator – number of executive managers with completed bi-annual assessment.

Legislature A functional Legislature

77. Amended: % of referred items resolved by Council Original: % of referred Items approved by Council

100% 100% 100% 100% 100%

Amended Indicator The only amendment made is on the indicator in which the word approved is replaced by resolved. The reason for the amendment is that 'approved' is beyond the administration's control in as far as Council decision making is concerned, hence the word resolved is used. Furthermore, the latter is what was initially intended during the planning process.

The indicator seeks to track the approval of items referred to Council. The target relates to the seamless flow of matters referred to Council by the Programming Committee. The target is absolute through-out the quarters and outer years. The target relates to the seamless flow of matters referred to Council by the Programming Committee. This is to be achieved by measuring the percentage of decisions taken by Council against the number of matters referred and/or before it. The target is absolute through-out the quarters and outer year

78. Number of functional Section 79 Committees

18 18 18 18 18 Not Amended

The indicator is based on the total number of Section 79 Committees of Council. The target is absolute throughout the Quarters and outer years. Functionality in this case means that all the eighteen committees convene as per the Council-approved Calendar, deliberate on matters referred to them and report to Council.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

79. Number of functional ward committees

101 101 101 101 101 Not Amended

The target is absolute over the quarters and outer years and is based on the number of ward committees in EMM that are functioning optimally. Functionality in this instance means that all Ward Committees meet as scheduled, deliberate and report to Council on relevant community issues in their respective areas.

EMPD Improved competency of police officers (academy)

80. Number of police officers who successfully completed specialized training programmes

Amended: 500

Original 200

0 0 0

Amended:500

Original

200

Amended Target Due to the nature of the skills and knowledge required by Metro Police Officers, the EMPD has to ensure that its uniformed members continually receive training and development. Due to the increase in the staff complement and the different policing trends, the Department has to ensure that a larger number of its uniformed personnel are equipped facilitate the drive to a more professional police force, and more effective policing to the citizens of Ekurhuleni.

A specialized programme is a programme that improves the competencies of police personnel. Completion means all the requirements of the specialized training programme have been satisfied. Advanced or specialized training members of the EMPD acquiring detailed and specific knowledge or training.

Corporate Legal Services

Reduced legal threats against EMM

81. % functionality of the Office of the Municipal Ombudsman

60% 15% 30% 45% 60%

REMOVE To correct the misalignment between the KPI and what is intended to be achieved. The municipal courts are not yet functional therefore it is impossible to measure its functionality.

Receiving (40%); Recording (15%); Investigating (20%) and, Reporting (25%) on complaints lodged with the Office of the Ombudsman


Resolved resident complaints

Framework for Establishment of the Municipal Ombudsman approved by target date

15-Jun N/A N/A N/A 15-Jun

New Indicator This indicator is included to replace the one above. Several processes must first unfold (such as the framework, the by-laws etc.) before the functionality of the municipal courts can be measured. The indicator is therefore not amended because there is non-performance on the part of the Department.

The indicator tracks the progress made to operationalize the Ombudsman’s Office against set targets in the reporting period



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target


Amended: Improved enforcement of by-laws Original Resolved resident Complaints/disputes

82. % disputes resolved 100% 20% 50% 70% 100%

REMOVE To indicator is removed in order to improve the technical craft and the SMARTNESS of the indicator. In the craft it’s not clear what the indicator is tracking and how it will be measured. A replacement indicator is provided below. The indicator is not being removed owing to poor performance.

Education and compliance in respect of by-laws and, revenue generation through: • Enforcement of by-laws (40%); • Service of infringement notices (20%), and Prosecutions pertaining to By-laws to judgment & execution (40%)


Improved enforcement of by-laws

Number of Municipal Courts piloted.

4 N/A N/A 0 4

New Indicator Indicator is included in order to track the piloting of municipal courts.

The indicator tracks the number of Municipal Courts piloted during the year under review.


Improved regulatory compliance

83. % of by-law contravention / cases finalized

100% 20% 50% 70% 100%

REMOVE To ensure that the target set is measurable. It is not possible to calculate the percentage of regulatory compliance with precision given the voluminous legislation applicable to the EMM Sector, it is crucial to ensure that the targets set are measurable.

Finalisation of the cases of bi-law contravention refers to cases resolved through issuing of court orders with instructions to the transgressor


Improved regulatory enforcement by EMM

% of by-law contravention cases filed with the Courts for finalization

100% N/A N/A 100% 100%

New Indicator The indicator is included to measure processes that the department has control over. The indicator is not amended owing to poor performance.

The indicator tracks the effectiveness with which matters submitted to the Legal department are speedily referred to Court for finalization.

Internal audit Enhanced internal audit processes and systems

84. % of planned internal audit reviews completed

90% 90% 90% 90% 90% Not Amended

Indicator tracks the extent to which the approved internal audit plan has been executed. Numerator: Number of completed Internal Audit reports. Denominator: Number of planned audit reviews according to the approved Internal Audit plan.

Internal audit Improved forensic audit processes

85. % of forensic investigations completed

60% 60% 60% 60% 60% Not Amended

Numerator: Number of forensic reports for the year to date. Denominator: Number of cases carried over plus new cases reported for the year to date.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

EPMO Improved project management capabilities of EMM

86. Project Management maturity level


The indicator measures the maturity of project management best practices within the Metro. Up scaling is traced through the rating scale of 1-5 where 5 signifies the most efficient project management environment (methodologies and practices) and 1 denotes the least efficient project management environment (methodologies and practices).

EPMO

Improved performance on capital expenditure against the budget for capital projects

87. % capex spend against the budget for capital projects

95% 20% 45%

Amended: 60%

Original:

70%

95%

Amended Target: Cumulative The performance of the 16 EMM departments with a major focus on capital projects during Quarter 1 has been far below set capex targets and this trend is expected to repeat itself in Quarter 2 with the interventions being rolled out to address the root causes for this underperformance expected to gradually start bearing fruit in Quarter 3 and gather speed in Quarter 4.

Measuring improvement capital expenditure year on year from 95% to ultimately achieving 98% by 2018/19

Communications and Marketing

Institutionalized clear single Brand Identify

Number of Brand Promotion interventions Implemented

6 N/A N/A 3 3

New Result, Indicator and targets Single City Identity is a strategic and overarching institution wide output, therefore it has to be elevated to EMM wide SDBIP indicator. Original targets were stated as number of reports and revised targets speaks to the actual number of activities implemented.

The indicator is about tracking the brand promotion interventions implemented during the reporting period in pursuit of a clear single brand identity. This refers to the broader categories of brand promotion strategies which are, installation of physical signage at all relevant points, roadshows, and brand building campaigns such as advertisements and publications.

ULTIMATE OUTCOME: : 5.3 Establish Long Term Fiscal Strength

INTERMEDIATE OUTCOME: 5.3.1 Galvanize state and private sector investment


Increased public investment and large scale private investments through the proposals

88. R-value of investments committed

R6.5bn 0 0 0 R6.5bn Not Amended

Rand value of investment refers to a total of all projects’ investment values given by investors / developers for all projects facilitated within the reporting



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

submitted period”. The indicator only refers to new Investment that may be in the form of green field, brown field or an expansion facilitated by among other activities: assisting new and existing investors with Council and other regulatory processes needed before an investment can be undertaken, site identification, applications for council bulk services, applications for incentives and or finance, etc.

Real Estate

Improved management of property portfolio – Strategic Land Parcels

89. No of land parcels released

10 0 0 5 5

Amended Indicator - The indicator "land parcels released' is deemed vague and is expanded to reflect the actual measured outcome, which is the release of land packages by means of a development agreement.

Indicator means number of land parcels packaged and released for implementation through development agreements The unit of measure and analysis of performance is the absolute number of properties released through lease or sale. The target is only realizable in Q3 and Q4.

INTERMEDIATE OUTCOME: :5.3.2 Strengthen tax base and income streams


Decrease in Non-Revenue Water

90. % of Non-Revenue Water (NRW)

37.60% 39% 38.50% 38% 37.60% Not Amended

Total system input volume minus billed authorized consumption minus consumption in Informal settlements (bulk metered and extrapolated) and RDP houses (bulk metered and extrapolated) divided by the total system input volume.


Increased metering of unmetered stands

91. Number of unmetered stands provided with meters

10,000 500 4000

Amended: 7500

Original 3000

Amended: 10000

Original 2500

Targets Amended to be Cumulative Targets amended to ensure that there is no underreporting of achievements. Currently the quarterly reporting is not accurate because of delays in uploading data. This query was previously raised by the auditor General.

Number of metered stands. Meters that do not give a reading and has to be replaced is also included in this indicator.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

Finance Optimization of Collections

92. % of Billed Amounts Collected NB: Quarterly Targets are for the said quarter only and is not a cumulative target

93.60% 89.00% 92.80% 93.50% 93.60% Not Amended

The actual cash payments received per month compared to the total amount billed to customers. It also takes into consideration adjustments of billing. Formula used is the rand amount of cash collected divided by the rand amount billed by the income section.


Increases Revenue generated by SFPM

93. Amended: Revenue generated in SFPM Original: % increase in SFPM Revenue generated

Amended R23 142 813.65

Original

10%

Amended

R4 628 562.6

Original

2%

Amended

R4 628 562.6

Original

2%

Amended: R4 628 562.6

Original: 2%

Amended: R9 257 125.2

Original:

4%

Amended indicator and target The KPI is amended from percentage to the value of Rands because the Value of Rands are the actual reflection of performance according to financial statement of the Market (SFPM)

Sales Turnover of Fresh Produce at Springs Fresh Produce Market

BBC Improve sustainability of the Service

94. Amended: Total Revenue Generated from core business activities Original - Total Revenue Generated

R25,955,067 R6,748,31

7 R5,710,11

5 R6,748,317 R6,748,317

Amended Indicator

The revised indicator specifically talks

about revenue generated from actual

service rendered. This wouldn’t include

interests and any grant received.

The total amount of revenue generated from core business activities

Real Estate Revenue enhancement through the property portfolio

95. Amended: % increase in revenue generated through management of property transactions Original: % revenue generated through management of property transactions

5% 1.25% 1.25% 1.25% 1.25%

Amended Indicator - The indicator is adjusted to include % increase in revenue to emphasize increase in revenue per annum as the measured outcome.

The numerator for Quarter is the increase for the Quarter and the denominator is 25% of the previous year’s revenue. Numerator for year is the increase for that year and the denominator is the previous year’s total revenue

EDC Increased access to social housing units

96. Number of new housing units for the social housing target market constructed.

250 units 0 0 0 250 units Not Amended

Absolute number of newly constructed housing units to provide additional rental housing opportunities for the social housing target market.



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target

EDC Increased financial sustainability

97. Revenue collected as a % of amount billed (R30,2m) for the year excluding arrears

95% 95% 90%

Amended 92.75%

Original 97.50%

Amended92.75%

Original 97.50%

Amended Targets The targets has been reduced as it does not take into account arrears and aligned to EMM collection target rate.

Cash collected (numerator) over amounts invoiced (denominator) which excludes amounts that have been written-off; and amounts owed by tenants that no longer in the EDC units. The target is an average of results achieved for the FY (all four quarters)

Energy Improved energy balance by reduction of non-technical losses

98. % reduction of unaccounted for electricity

Amended 11.25%

Original: 11.50%

11.25% 11.25%

Amended 11.25%

Original: 11.50%

Amended 11.25%

Original: 11.50%

Amended Target Due to inconsistencies between the IDP and SDBIP, the target was amended to reflect the IDP target

It is the reconciliation of energy in kilowatt-hour units bought from Eskom and City Power (and possible future power producers), with kilowatt-hour units sold to Ekurhuleni Metropolitan Municipality customers averaged over a rolling 12 months. The indicator is dependent on meter read data for credit meters which is two months old. However, the year - end report is based on end June figures

Finance

Improved Cost Effectiveness (Expenditure Efficiency)

99. % savings of operating costs

10% 2.50% 2.50% 2.50% 2.50% Not Amended

The indicator measures how much savings have been achieved on the Operational Budget, this will be determined by comparing actual budget against actual expenditure, and this will however exclude repairs and maintenance.

Finance Clean and Effective Administration achieved

100. Audit Opinion from the Auditor General

Clean Audit 0 Clean Audit

0 0 Not Amended Audit Opinion from the Auditor General

Finance Improved procurement management

% of tenders completed within the valid period (120 days from date of close of advert)

80% n/a n/a 60% 80%

New indicator and targets. This indicator is requested to be elevated to the Metro Wide SDBIP during the Adjustment Budget process.

The indicator seeks to measure the % of tenders that have been completed during the validity period of 120 days from the date of close of advert, resulting in either an award or non-award.

ULTIMATE OUTCOME: 5.4 Strategic Acquisition and Management of Assets and Operations

INTERMEDIATE OUTCOMES: 5.4.2 Strategic acquisition and management of key assets



Annual Target

Quarter 1

Quarter 2

Quarter 3 Quarter 4


Planned Target

Planned Target

Planned Target


Improved management of key assets

101. KM of road network maintained

Amended: 835

Original:

390

48 127

Amended: 316

Original: 148

Amended: 344

Original: 67

Amended Target

The target of output "Km equivalence

of road signs" maintained which was

taken off the indicator "Km of roads

paved" and was placed in this

indicator. This increased the annual

target considerably.

Completion Certificates signed by the Contractor, Engineer and Client as well as Job cards of Departmental maintenance signed by Depot Manager


Improved management of key assets

102. Number of stormwater systems maintained

Amended: 3552

Original:

2302

575 575

Amended: 1200 Original: 575

Amended: 1202

Original:

575

Amended Target The bulk of the maintenance programme is carried out by EMM staff, with the procurement of the patching contractor the maintenance work to be done will increase significantly.

Completion Certificates signed by the Contractor, Engineer and Client as well as Job cards of Departmental maintenance signed by Depot Manager.


Maintain Blue drop status on drinking water quality management

103. Blue Drop score (min 95%)

>95% >95% >95% >95% >95% Not Amended

Water and Sanitation Services Maintain Blue drop status on drinking water quality management Blue Drop score (min 95%) >95% 98.95% >95% >95% >95% >95% >95% Blue Drop certification and quarterly chemical, biological water quality results which should be greater >95% Blue Certificate and quarterly water quality results obtainable from the Revenue Division

ANNEXURE D

EKU Ekurhuleni Metro - Table B1 Adjustments Budget Summary -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

1 2 3 4 5 6 7 8

R thousands A A1 B C D E F G H

Financial Performance

Property rates 4,134,710 – – – – – – – 4,134,710 4,471,090 4,809,483

Serv ice charges 16,890,353 – – – – – 102,831 102,831 16,993,185 18,214,790 19,644,807

Inv estment rev enue 220,043 – – – – – 61,956 61,956 281,998 246,448 276,021

Transfers recognised - operational 2,683,115 – – – – – 129,850 129,850 2,812,966 2,774,667 3,018,558

Other ow n rev enue 2,382,480 – – – – – 1,730 1,730 2,384,210 2,513,673 2,664,734

Total Revenue (excluding capital transfers

and contributions)

26,310,701 – – – – – 296,368 296,368 26,607,068 28,220,667 30,413,603

Employ ee costs 5,446,788 – – – – – (107,704) (107,704) 5,339,084 5,871,614 6,262,784

Remuneration of councillors 101,919 – – – – – – – 101,919 108,441 115,382

Depreciation & asset impairment 1,431,820 – – – – – – – 1,431,820 1,689,304 1,951,916

Finance charges 706,964 – – – – – (36,506) (36,506) 670,458 742,313 794,274

Materials and bulk purchases 12,646,091 – – – – – 210,487 210,487 12,856,577 13,472,571 14,428,656

Transfers and grants 1,048,821 – – – – – 1,124 1,124 1,049,945 1,115,380 1,186,323

Other ex penditure 4,812,414 – – – – – 228,967 228,967 5,041,382 5,033,759 5,332,631

Total Expenditure 26,194,817 – – – – – 296,368 296,368 26,491,184 28,033,382 30,071,966

Surplus/(Deficit) 115,884 – – – – – – – 115,884 187,285 341,637

Transfers recognised - capital 2,003,181 – – – – – 40,582 40,582 2,043,763 2,208,898 2,259,197

Contributions recognised - capital & contributed assets(113,000) – – – – – – – (113,000) (183,000) (335,000)

Surplus/(Deficit) after capital transfers &

contributions

2,006,065 – – – – – 40,582 40,582 2,046,647 2,213,183 2,265,834

Share of surplus/ (deficit) of associate – – – – – – – – – – –

Surplus/ (Deficit) for the year 2,006,065 – – – – – 40,582 40,582 2,046,647 2,213,183 2,265,834

Capital expenditure & funds sources

Capital expenditure 3,790,366 – – – – – 20,584 20,584 3,810,950 4,248,101 4,252,042

Transfers recognised - capital 2,003,181 – – – – – 90,582 90,582 2,093,763 2,208,898 2,259,197

Public contributions & donations – – – – – – – – – – –

Borrow ing 1,234,110 – – – – – (38,078) (38,078) 1,196,032 1,493,190 1,340,863

Internally generated funds 553,075 – – – – – (31,921) (31,921) 521,154 546,014 651,982

Total sources of capital funds 3,790,366 – – – – – 20,584 20,584 3,810,950 4,248,101 4,252,042

Financial position

Total current assets 7,712,353 – – – – – 19,998 19,998 7,732,351 8,870,666 9,950,561

Total non current assets 50,738,936 – – – – – 20,584 20,584 50,759,519 51,768,765 53,176,412

Total current liabilities 4,858,802 – – – – – – – 4,858,802 5,323,368 5,818,134

Total non current liabilities 8,878,151 – – – – – – – 8,878,151 10,039,469 11,017,924

Community wealth/Equity 44,714,335 – – – – – 40,582 40,582 44,754,917 45,276,594 46,290,914

Cash flows

Net cash from (used) operating 3,615,986 – – – – – 40,582 40,582 3,656,568 3,943,897 4,180,522

Net cash from (used) inv esting (3,949,177) – – – – – (20,584) (20,584) (3,969,761) (4,405,356) (4,404,732)

Net cash from (used) financing 918,698 – – – – – – – 918,698 1,247,775 1,107,107

Cash/cash equivalents at the year end 4,341,321 – – – – – 19,998 19,998 4,361,320 5,147,636 6,030,533

Cash backing/surplus reconciliation

Cash and inv estments av ailable 5,122,903 – – – – – 19,998 19,998 5,142,902 6,066,475 7,102,063

Application of cash and inv estments 3,403,254 – – – – – (1,281) (1,281) 3,401,973 3,868,354 4,617,876

Balance - surplus (shortfall) 1,719,650 – – – – – 21,279 21,279 1,740,929 2,198,121 2,484,187

Asset Management

Asset register summary (WDV) 49,879,657 – – – – – 20,584 20,584 49,900,241 50,750,305 52,003,056


Renew al of Ex isting Assets 1,646,797 – – – – – (114,337) (114,337) 1,532,460 1,920,592 1,838,642

Repairs and Maintenance 2,355,214 – – – – – 124,362 124,362 2,479,575 2,513,910 2,672,807

Free services

Cost of Free Basic Serv ices prov ided 600,287 – – – – – – – 600,287 – –

Rev enue cost of free serv ices prov ided 2,331,940 – – – – – – – 2,331,940 – –

Households below minimum service level

Water: 20 – – – – – – – 20 – –

Sanitation/sew erage: – – – – – – – – – – –

Energy : 23 – – – – – – – 23 – –

Refuse: 182 – – – – – – – 182 – –

Budget Year 2014/15

Description

EKU Ekurhuleni Metro - Table B2 Adjustments Budget Financial Performance (standard classification) -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

5 6 7 8 9 10 11 12

R thousands 1, 4 A A1 B C D E F G H

Revenue - Standard

Governance and administration 6,576,402 – – – – – 26,685 26,685 6,603,088 7,058,805 7,542,954

Ex ecutiv e and council 22 – – – – – – – 22 26 29

Budget and treasury office 6,465,156 – – – – – 61,956 61,956 6,527,112 6,921,042 7,411,334

Corporate serv ices 111,224 – – – – – (35,270) (35,270) 75,954 137,737 131,591

Community and public safety 983,289 – – – – – 134,847 134,847 1,118,136 1,143,768 1,148,967

Community and social serv ices 42,149 – – – – – 1,289 1,289 43,437 48,817 52,018

Sport and recreation 42,869 – – – – – (3,706) (3,706) 39,163 37,830 40,561

Public safety 292,976 – – – – – 7,352 7,352 300,328 306,122 300,154

Housing 415,752 – – – – – 128,314 128,314 544,066 526,728 522,555

Health 189,545 – – – – – 1,598 1,598 191,143 224,271 233,679

Economic and environmental services 1,265,444 – – – – – 5,759 5,759 1,271,203 1,262,499 1,331,643

Planning and dev elopment 116,424 – – – – – 1,773 1,773 118,198 83,695 64,357

Road transport 1,144,904 – – – – – 5,924 5,924 1,150,828 1,176,679 1,265,151

Env ironmental protection 4,116 – – – – – (1,938) (1,938) 2,178 2,125 2,135

Trading services 19,348,218 – – – – – 169,659 169,659 19,517,877 20,751,371 22,281,274

Electricity 12,506,942 – – – – – (51,547) (51,547) 12,455,396 13,454,074 14,431,190

Water 4,214,781 – – – – – 139,728 139,728 4,354,508 4,498,700 4,793,156

Waste w ater management 995,311 – – – – – 73,198 73,198 1,068,510 1,069,961 1,150,211

Waste management 1,631,184 – – – – – 8,279 8,279 1,639,464 1,728,637 1,906,716

Other 27,528 – – – – – – – 27,528 30,122 32,962

Total Revenue - Standard 2 28,200,882 – – – – – 336,950 336,950 28,537,832 30,246,565 32,337,800

Expenditure - Standard

Governance and administration 3,427,577 – – – – – (124,472) (124,472) 3,303,105 3,658,356 3,884,135

Ex ecutiv e and council 559,679 – – – – – 6,054 6,054 565,733 584,338 610,472

Budget and treasury office 1,827,688 – – – – – (108,454) (108,454) 1,719,234 1,965,619 2,093,444

Corporate serv ices 1,040,211 – – – – – (22,073) (22,073) 1,018,138 1,108,398 1,180,219

Community and public safety 4,259,845 – – – – – 120,560 120,560 4,380,405 4,520,991 4,798,509

Community and social serv ices 294,709 – – – – – 77 77 294,785 316,734 336,267

Sport and recreation 844,803 – – – – – 3,692 3,692 848,495 897,803 953,950

Public safety 1,506,308 – – – – – (13,951) (13,951) 1,492,357 1,600,033 1,699,987

Housing 479,975 – – – – – 127,528 127,528 607,503 502,974 530,173

Health 1,134,051 – – – – – 3,214 3,214 1,137,264 1,203,447 1,278,132


Planning and dev elopment 382,284 – – – – – 37,808 37,808 420,092 360,886 377,174

Road transport 1,540,296 – – – – – (19,299) (19,299) 1,520,997 1,724,740 1,907,611

Env ironmental protection 75,599 – – – – – (1,733) (1,733) 73,866 80,578 85,825

Trading services 16,490,716 – – – – – 283,862 283,862 16,774,577 17,668,396 18,998,279

Electricity 11,073,209 – – – – – (27,443) (27,443) 11,045,766 11,767,449 12,579,138

Water 3,491,915 – – – – – 206,322 206,322 3,698,237 3,830,648 4,198,169

Waste w ater management 534,398 – – – – – (1,014) (1,014) 533,384 581,564 632,964

Waste management 1,391,193 – – – – – 105,997 105,997 1,497,190 1,488,735 1,588,007

Other 18,501 – – – – – (359) (359) 18,142 19,437 20,433

Total Expenditure - Standard 3 26,194,817 – – – – – 296,368 296,368 26,491,185 28,033,383 30,071,966


Standard Description Ref

Budget Year 2014/15

EKU Ekurhuleni Metro - Table B3 Adjustments Budget Financial Performance (revenue and expenditure by municipal vote) -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

[Insert departmental structure etc] 3 4 5 6 7 8 9 10


Revenue by Vote 1

Vote 1 - Ex ecutiv e and Council 22 – – – – – – – 22 26 29

Vote 2 - Finance and Corporate Serv ices 6,608,352 – – – – – 27,003 27,003 6,635,355 7,092,706 7,578,970

Vote 3 - Energy 12,506,942 – – – – – (51,547) (51,547) 12,455,396 13,454,074 14,431,190

Vote 4 - Water and Sanitation 5,210,092 – – – – – 212,926 212,926 5,423,018 5,568,661 5,943,367

Vote 5 - Waste Management 1,631,184 – – – – – 8,279 8,279 1,639,464 1,728,637 1,906,716

Vote 6 - Human Settlements 415,752 – – – – – 128,314 128,314 544,066 526,728 522,555

Vote 7 - City Planning 80,802 – – – – – 1,773 1,773 82,576 44,695 49,357

Vote 8 - Economic Dev elopment 63,150 – – – – – – – 63,150 69,122 47,962

Vote 9 - Disaster and Emergency Management Serv ices 200,701 – – – – – (3,564) (3,564) 197,137 204,149 187,472

Vote 10 - Sports, Recreation, Arts & Culture (SRAC) 53,161 – – – – – (2,735) (2,735) 50,426 52,846 56,669

Vote 11 - Health and Social Dev elopment 183,064 – – – – – 1,598 1,598 184,662 217,434 226,466

Vote 12 - Env ironmental Resource Management 4,000 – – – – – (1,938) (1,938) 2,062 2,000 2,000

Vote 13 - Ekurhuleni Metropolitan Police Department (EMPD) 98,756 – – – – – 10,916 10,916 109,672 108,809 119,895

Vote 14 - Transport Planning & Prov isioning 846,854 – – – – – 3,724 3,724 850,578 965,455 1,032,406

Vote 15 - Roads and Stormw ater 298,050 – – – – – 2,200 2,200 300,250 211,224 232,745

Total Revenue by Vote 2 28,200,882 – – – – – 336,950 336,950 28,537,832 30,246,565 32,337,800

Expenditure by Vote 1

Vote 1 - Ex ecutiv e and Council 287,064 – – – – – 3,607 3,607 290,671 302,668 319,220

Vote 2 - Finance and Corporate Serv ices 3,174,182 – – – – – (135,820) (135,820) 3,038,362 3,390,924 3,601,816

Vote 3 - Energy 11,148,783 – – – – – (27,443) (27,443) 11,121,340 11,849,069 12,667,288

Vote 4 - Water and Sanitation 4,006,522 – – – – – 206,167 206,167 4,212,688 4,391,538 4,809,506

Vote 5 - Waste Management 1,391,193 – – – – – 105,997 105,997 1,497,190 1,488,735 1,588,007

Vote 6 - Human Settlements 479,975 – – – – – 127,528 127,528 607,503 502,974 530,173

Vote 7 - City Planning 237,299 – – – – – 6,275 6,275 243,575 218,167 230,049

Vote 8 - Economic Dev elopment 138,593 – – – – – 33,673 33,673 172,267 136,251 140,579

Vote 9 - Disaster and Emergency Management Serv ices 706,782 – – – – – 10,481 10,481 717,263 750,724 797,398

Vote 10 - Sports, Recreation, Arts & Culture (SRAC) 597,076 – – – – – 8,854 8,854 605,930 638,795 678,963

Vote 11 - Health and Social Dev elopment 796,228 – – – – – 1,725 1,725 797,953 844,040 895,751


Vote 13 - Ekurhuleni Metropolitan Police Department (EMPD) 1,058,454 – – – – – (22,943) (22,943) 1,035,511 1,123,563 1,193,061

Vote 14 - Transport Planning & Prov isioning 326,549 – – – – – (14,910) (14,910) 311,639 353,416 372,240

Vote 15 - Roads and Stormw ater 1,233,639 – – – – – (5,248) (5,248) 1,228,390 1,392,109 1,557,119

Total Expenditure by Vote 2 26,194,817 – – – – – 296,368 296,368 26,491,185 28,033,383 30,071,966

Surplus/ (Deficit) for the year 2 2,006,064 – – – – – 40,582 40,582 2,046,647 2,213,182 2,265,834

Vote Description

Ref

Budget Year 2014/15

EKU Ekurhuleni Metro - Table B4 Adjustments Budget Financial Performance (revenue and expenditure) -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10

R thousands 1 A A1 B C D E F G H

Revenue By Source

Property rates 2 4,025,721 – – – – – – – 4,025,721 4,351,203 4,677,607

Property rates - penalties & collection charges 108,989 – – 108,989 119,888 131,876

Serv ice charges - electricity rev enue 2 11,717,499 – – – – – 953 953 11,718,453 12,585,402 13,517,601

Serv ice charges - w ater rev enue 2 2,867,861 – – – – – – – 2,867,861 3,152,814 3,466,115

Serv ice charges - sanitation rev enue 2 995,311 – – – – – 73,198 73,198 1,068,510 1,069,961 1,150,211

Serv ice charges - refuse rev enue 2 1,231,349 – – – – – 28,679 28,679 1,260,029 1,323,096 1,421,805

Serv ice charges - other 78,333 – – 78,333 83,517 89,075

Rental of facilities and equipment 65,945 – – 65,945 71,220 76,916

Interest earned - ex ternal inv estments 220,043 61,956 61,956 281,998 246,448 276,021

Interest earned - outstanding debtors 219,921 – – 219,921 239,714 261,288

Div idends receiv ed – – – – – –

Fines 253,116 – – 253,116 278,427 306,270

Licences and permits 45,417 – – 45,417 49,959 54,954

Agency serv ices 258,557 – – 258,557 279,241 301,581

Transfers recognised - operating 2,683,115 129,850 129,850 2,812,966 2,774,667 3,018,558

Other rev enue 2 1,534,524 – – – – – 1,730 1,730 1,536,255 1,590,112 1,658,724

Gains on disposal of PPE 5,000 – – 5,000 5,000 5,000

Total Revenue (excluding capital transfers and

contributions)

26,310,701 – – – – – 296,368 296,368 26,607,068 28,220,667 30,413,603

Expenditure By Type

Employ ee related costs 5,446,788 – – – – – (107,704) (107,704) 5,339,084 5,871,614 6,262,784

Remuneration of councillors 101,919 – – 101,919 108,441 115,382

Debt impairment 1,230,204 – – 1,230,204 1,426,146 1,559,221


Finance charges 706,964 (36,506) (36,506) 670,458 742,313 794,274

Bulk purchases 10,290,877 – – – – – 86,125 86,125 10,377,002 10,958,661 11,755,849

Other materials 2,355,214 124,362 124,362 2,479,575 2,513,910 2,672,807

Contracted serv ices 902,139 – – – – – (5,390) (5,390) 896,749 974,310 1,052,255

Transfers and grants 1,048,821 1,124 1,124 1,049,945 1,115,380 1,186,323

Other ex penditure 2,655,071 – – – – – 234,357 234,357 2,889,428 2,608,303 2,696,154

Loss on disposal of PPE 25,000 – – 25,000 25,000 25,000

Total Expenditure 26,194,817 – – – – – 296,368 296,368 26,491,184 28,033,382 30,071,966

Surplus/(Deficit) 115,884 – – – – – – – 115,884 187,285 341,637

Transfers recognised - capital 2,003,181 40,582 40,582 2,043,763 2,208,898 2,259,197

Contributions – – – –

Contributed assets (113,000) – – (113,000) (183,000) (335,000)

Surplus/(Deficit) before taxation 2,006,065 – – – – – 40,582 40,582 2,046,647 2,213,183 2,265,834

Tax ation – –

Surplus/(Deficit) after taxation 2,006,065 – – – – – 40,582 40,582 2,046,647 2,213,183 2,265,834

Attributable to minorities – –

Surplus/(Deficit) attributable to municipality 2,006,065 – – – – – 40,582 40,582 2,046,647 2,213,183 2,265,834

Share of surplus/ (deficit) of associate – –


Budget Year 2014/15

RefDescription

EKU Ekurhuleni Metro - Table B5 Adjustments Capital Expenditure Budget by vote and funding -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

5 6 7 8 9 10 11 12


Capital expenditure - Vote

Multi-year expenditure to be adjusted 2

Vote 1 - Ex ecutiv e and Council – – – – – – – – – – –

Vote 2 - Finance and Corporate Serv ices 436,405 – – – – – 43,719 43,719 480,124 576,036 516,274

Vote 3 - Energy 557,000 – – – – – (48,500) (48,500) 508,500 614,000 674,000

Vote 4 - Water and Sanitation 451,917 – – – – – 909 909 452,826 380,250 463,000

Vote 5 - Waste Management 72,500 – – – – – (25,621) (25,621) 46,879 117,000 141,500

Vote 6 - Human Settlements 329,012 – – – – – (78,274) (78,274) 250,739 437,239 430,097

Vote 7 - City Planning – – – – – – – – – – –

Vote 8 - Economic Dev elopment 55,200 – – – – – (2,000) (2,000) 53,200 64,000 35,000

Vote 9 - Disaster and Emergency Management Serv ices 59,000 – – – – – (400) (400) 58,600 70,200 67,000


Vote 11 - Health and Social Dev elopment 80,900 – – – – – (100) (100) 80,800 145,950 161,600



Vote 14 - Transport Planning & Prov isioning 559,641 – – – – – 10,138 10,138 569,779 691,448 683,600

Vote 15 - Roads and Stormw ater 593,900 – – – – – (7,000) (7,000) 586,900 637,500 573,200

Capital multi-year expenditure sub-total 3 3,332,666 – – – – – (101,537) (101,537) 3,231,129 3,859,573 3,885,271

Single-year expenditure to be adjusted 2

Vote 1 - Ex ecutiv e and Council 7,233 – – – – – – – 7,233 10,743 14,280

Vote 2 - Finance and Corporate Serv ices 107,213 – – – – – 8,191 8,191 115,404 94,034 92,496

Vote 3 - Energy 21,150 – – – – – 15,000 15,000 36,150 21,760 22,700

Vote 4 - Water and Sanitation 8,600 – – – – – 10,700 10,700 19,300 8,550 7,600

Vote 5 - Waste Management 54,417 – – – – – – – 54,417 39,800 52,500

Vote 6 - Human Settlements 980 – – – – – 77,030 77,030 78,010 1,080 1,180

Vote 7 - City Planning 4,150 – – – – – – – 4,150 4,400 4,800

Vote 8 - Economic Dev elopment 4,100 – – – – – 200 200 4,300 1,260 1,230

Vote 9 - Disaster and Emergency Management Serv ices 45,620 – – – – – 900 900 46,520 49,880 44,950


Vote 11 - Health and Social Dev elopment 15,700 – – – – – 100 100 15,800 10,000 8,500

Vote 12 - Env ironmental Resource Management 1,495 – – – – – (500) (500) 995 1,125 1,535


Vote 14 - Transport Planning & Prov isioning 47,452 – – – – – – – 47,452 48,300 9,800

Vote 15 - Roads and Stormw ater 14,200 – – – – – 7,000 7,000 21,200 23,200 23,600

Capital single-year expenditure sub-total 457,700 – – – – – 122,121 122,121 579,821 388,527 366,771

Total Capital Expenditure - Vote 3,790,366 – – – – – 20,584 20,584 3,810,950 4,248,101 4,252,042

Capital Expenditure - Standard

Governance and administration 475,026 – – – – – 40,418 40,418 515,444 552,688 477,250

Ex ecutiv e and council 27,143 (16,000) (16,000) 11,143 111,673 115,390

Budget and treasury office 265,162 12,918 12,918 278,081 258,721 154,186

Corporate serv ices 182,721 43,500 43,500 226,221 182,295 207,674

Community and public safety 859,617 – – – – – 21,340 21,340 880,957 1,034,320 1,069,427

Community and social serv ices 151,475 9,518 9,518 160,993 171,036 174,800

Sport and recreation 46,600 (2,051) (2,051) 44,549 58,000 78,000

Public safety 234,950 15,116 15,116 250,066 211,015 215,250

Housing 329,992 (1,244) (1,244) 328,749 438,319 431,277

Health 96,600 – – 96,600 155,950 170,100


Planning and dev elopment 47,700 (1,800) (1,800) 45,900 53,560 19,930

Road transport 1,215,193 10,138 10,138 1,225,331 1,400,448 1,290,200

Env ironmental protection 11,495 (2,000) (2,000) 9,495 9,625 12,835

Trading services 1,165,584 – – – – – (47,512) (47,512) 1,118,072 1,181,360 1,361,300

Electricity 578,150 (33,500) (33,500) 544,650 635,760 696,700

Water 333,300 25,148 25,148 358,448 316,550 399,600

Waste w ater management 127,217 (13,539) (13,539) 113,679 72,250 71,000

Waste management 126,917 (25,621) (25,621) 101,295 156,800 194,000

Other 15,750 – – 15,750 16,100 21,100

Total Capital Expenditure - Standard 3 3,790,366 – – – – – 20,584 20,584 3,810,950 4,248,101 4,252,042

Funded by:

National Gov ernment 1,920,981 127,456 127,456 2,048,437 2,120,898 2,206,197

Prov incial Gov ernment 76,700 (35,874) (35,874) 40,826 83,000 45,000

District Municipality – –

Other transfers and grants 5,500 (1,000) (1,000) 4,500 5,000 8,000

Total Capital transfers recognised 4 2,003,181 – – – – – 90,582 90,582 2,093,763 2,208,898 2,259,197

Public contributions & donations – –

Borrowing 1,234,110 (38,078) (38,078) 1,196,032 1,493,190 1,340,863

Internally generated funds 553,075 (31,921) (31,921) 521,154 546,014 651,982

Total Capital Funding 3,790,366 – – – – – 20,584 20,584 3,810,950 4,248,101 4,252,042

Description Ref

Budget Year 2014/15

EKU Ekurhuleni Metro - Table B6 Adjustments Budget Financial Position -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


ASSETS

Current assets

Cash 4,341,321 – 19,998 19,998 4,361,320 5,127,637 6,010,535

Call inv estment deposits 1 22,771 – – – – – – – 22,771 22,771 22,771

Consumer debtors 1 2,674,035 – – – – – – – 2,674,035 2,998,162 3,145,335

Other debtors 486,351 – 486,351 520,882 556,823

Current portion of long-term receiv ables – –

Inv entory 187,875 – 187,875 201,213 215,097

Total current assets 7,712,353 – – – – – 19,998 19,998 7,732,351 8,870,666 9,950,561

Non current assets

Long-term receiv ables 2,477 – 2,477 2,477 2,477

Inv estments 758,811 – 758,811 916,067 1,068,757

Inv estment property 161,144 – 161,144 164,309 167,937

Inv estment in Associate 0 – 0 0 0

Property , plant and equipment 1 49,605,254 – – – – – 20,584 20,584 49,625,837 50,470,512 51,717,084

Agricultural – –

Biological – –

Intangible 113,260 – 113,260 115,484 118,035

Other non-current assets 97,990 – 97,990 99,915 102,121

Total non current assets 50,738,936 – – – – – 20,584 20,584 50,759,519 51,768,765 53,176,412

TOTAL ASSETS 58,451,289 – – – – – 40,582 40,582 58,491,871 60,639,431 63,126,973

LIABILITIES

Current liabilities

Bank ov erdraft – –

Borrow ing 222,087 – – – – – – – 222,087 287,087 349,587

Consumer deposits 631,860 – 631,860 676,722 723,416

Trade and other pay ables 3,703,075 – – – – – – – 3,703,075 4,036,351 4,399,623

Prov isions 301,781 – 301,781 323,207 345,509

Total current liabilities 4,858,802 – – – – – – – 4,858,802 5,323,368 5,818,134

Non current liabilities

Borrow ing 1 6,252,384 – – – – – – – 6,252,384 7,269,337 8,069,750

Prov isions 1 2,625,767 – – – – – – – 2,625,767 2,770,132 2,948,174

Total non current liabilities 8,878,151 – – – – – – – 8,878,151 10,039,469 11,017,924

TOTAL LIABILITIES 13,736,953 – – – – – – – 13,736,953 15,362,836 16,836,059

NET ASSETS 2 44,714,335 – – – – – 40,582 40,582 44,754,917 45,276,594 46,290,914

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 43,668,149 – – – – – 40,582 40,582 43,708,731 44,047,408 44,726,728

Reserv es 1,046,186 – – – – – – – 1,046,186 1,229,186 1,564,186

TOTAL COMMUNITY WEALTH/EQUITY 44,714,335 – – – – – 40,582 40,582 44,754,917 45,276,594 46,290,914

Budget Year 2014/15

Description Ref

EKU Ekurhuleni Metro - Table B7 Adjustments Budget Cash Flows -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Ratepay ers and other 21,272,093 104,562 104,562 21,376,654 22,188,916 23,727,862

Gov ernment - operating 1 2,683,115 129,850 129,850 2,812,966 2,774,667 3,018,558

Gov ernment - capital 1 2,003,181 40,582 40,582 2,043,763 2,208,898 2,259,197

Interest 439,964 61,956 61,956 501,919 486,162 537,309

Div idends – –

Payments

Suppliers and employ ees (21,026,331) (331,750) (331,750) (21,358,081) (21,851,052) (23,379,307)

Finance charges (706,964) 36,506 36,506 (670,458) (742,313) (794,274)

Transfers and Grants 1 (1,049,071) (1,124) (1,124) (1,050,195) (1,121,380) (1,188,823)

NET CASH FROM/(USED) OPERATING ACTIVITIES 3,615,986 – – – – – 40,582 40,582 3,656,568 3,943,897 4,180,522

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE – –

Decrease (Increase) in non-current debtors – –

Decrease (increase) other non-current receiv ables – –

Decrease (increase) in non-current inv estments (158,811) – (158,811) (157,256) (152,690)

Payments

Capital assets (3,790,366) – (20,584) (20,584) (3,810,950) (4,248,101) (4,252,042)

NET CASH FROM/(USED) INVESTING ACTIVITIES (3,949,177) – – – – – (20,584) (20,584) (3,969,761) (4,405,356) (4,404,732)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – –

Borrow ing long term/refinancing 1,100,000 – 1,100,000 1,490,000 1,410,000

Increase (decrease) in consumer deposits 40,784 – 40,784 44,862 46,694

Payments

Repay ment of borrow ing (222,087) – (222,087) (287,087) (349,587)

NET CASH FROM/(USED) FINANCING ACTIVITIES 918,698 – – – – – – – 918,698 1,247,775 1,107,107

NET INCREASE/ (DECREASE) IN CASH HELD 585,507 – – – – – 19,998 19,998 605,505 786,316 882,897

Cash/cash equiv alents at the y ear begin: 2 3,755,814 – – 3,755,814 4,361,320 5,147,636

Cash/cash equiv alents at the y ear end: 2 4,341,321 – – – – – 19,998 19,998 4,361,320 5,147,636 6,030,533

Description Ref

Budget Year 2014/15

EKU Ekurhuleni Metro - Table B8 Cash backed reserves/accumulated surplus reconciliation -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


Cash and investments available

Cash/cash equiv alents at the y ear end 1 4,341,321 – – – – – 19,998 19,998 4,361,320 5,147,636 6,030,533

Other current inv estments > 90 day s 22,771 – – – – – – – 22,771 2,773 2,773

Non current assets - Inv estments 1 758,811 – – – – – – – 758,811 916,067 1,068,757

Cash and investments available: 5,122,903 – – – – – 19,998 19,998 5,142,902 6,066,475 7,102,063

Applications of cash and investments

Unspent conditional transfers – – – – – – – – – – –

Unspent borrow ing – –

Statutory requirements – –

Other w orking capital requirements 2 828,143 – (1,281) (1,281) 826,862 934,937 1,157,645

Other prov isions 913,399 – 913,399 948,021 991,226

Long term inv estments committed 615,526 – – – 615,526 756,210 904,819

Reserv es to be backed by cash/inv estments 1,046,186 – (0) (0) 1,046,186 1,229,186 1,564,186

Total Application of cash and investments: 3,403,254 – – – – – (1,281) (1,281) 3,401,973 3,868,354 4,617,876

Surplus(shortfall) 1,719,650 – – – – – 21,279 21,279 1,740,929 2,198,121 2,484,187

RefDescription

Budget Year 2014/15

EKU Ekurhuleni Metro - Table B9 Asset Management -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

7 8 9 10 11 12 13 14


CAPITAL EXPENDITURE

Total New Assets to be adjusted 1 2,143,569 – – – – – 134,921 134,921 2,278,490 2,327,509 2,413,400

Infrastructure - Road transport 748,851 – – – – – 139,024 139,024 887,875 896,498 956,500

Infrastructure - Electricity 454,850 – – – – – (58,500) (58,500) 396,350 503,500 551,000

Infrastructure - Water 302,600 – – – – – 17,372 17,372 319,972 266,000 357,000

Infrastructure - Sanitation 79,017 – – – – – (5,400) (5,400) 73,617 39,000 30,000

Infrastructure - Other 106,200 – – – – – (18,300) (18,300) 87,900 49,000 15,000

Infrastructure 1,691,519 – – – – – 74,196 74,196 1,765,714 1,753,998 1,909,500

Community 103,050 – – – – – (10,083) (10,083) 92,967 124,161 136,500

Heritage assets – – – – – – – – – – –

Inv estment properties 196,800 – – – – – 90,756 90,756 287,556 228,500 239,000

Other assets 6 152,200 – – – – – (19,948) (19,948) 132,252 220,850 128,400

Agricultural Assets – – – – – – – – – – –

Biological assets – – – – – – – – – – –

Intangibles – – – – – – – – – – –

Total Renewal of Existing Assets to be adjusted 2 1,646,797 – – – – – (114,337) (114,337) 1,532,460 1,920,592 1,838,642

Infrastructure - Road transport 286,450 – – – – – (85,800) (85,800) 200,650 330,050 246,700

Infrastructure - Electricity 102,150 – – – – – 10,000 10,000 112,150 110,500 123,000

Infrastructure - Water 22,100 – – – – – (2,924) (2,924) 19,176 42,000 35,000



Infrastructure 756,430 – – – – – (111,965) (111,965) 644,465 961,800 927,363

Community 168,000 – – – – – 16,520 16,520 184,520 220,800 199,300

Heritage assets – – – – – – – – – – –

Inv estment properties 82,000 – – – – – (82,000) (82,000) – 130,739 109,883

Other assets 6 640,367 – – – – – 63,107 63,107 703,474 607,254 602,095


Biological assets – – – – – – – – –

Intangibles – – – – – – – – – – –

Total Capital Expenditure to be adjusted 4

Infrastructure - Road transport 1,035,301 – – – – – 53,224 53,224 1,088,525 1,226,548 1,203,200

Infrastructure - Electricity 557,000 – – – – – (48,500) (48,500) 508,500 614,000 674,000




Infrastructure 2,447,949 – – – – – (37,769) (37,769) 2,410,179 2,715,797 2,836,863

Community 271,050 – – – – – 6,437 6,437 277,487 344,961 335,800

Heritage assets – – – – – – – – – – –

Inv estment properties 278,800 – – – – – 8,756 8,756 287,556 359,239 348,883

Other assets 792,567 – – – – – 43,159 43,159 835,727 828,104 730,495


Biological assets – – – – – – – – – – –

Intangibles – – – – – – – – – – –

TOTAL CAPITAL EXPENDITURE to be adjusted 2 3,790,366 – – – – – 20,584 20,584 3,810,950 4,248,101 4,252,042

ASSET REGISTER SUMMARY - PPE (WDV) 5

Infrastructure - Road transport 18,950,778 10,138 10,138 18,960,916 19,323,009 19,749,712

Infrastructure - Electricity 15,084,070 (33,500) (33,500) 15,050,570 15,380,352 15,719,991

Infrastructure - Water 3,525,020 25,148 25,148 3,550,167 3,544,258 3,873,629

Infrastructure - Sanitation 3,522,146 (13,539) (13,539) 3,508,607 3,591,328 3,670,634

Infrastructure - Other 771,200 – 771,200 752,282 768,894

Infrastructure 41,853,213 – – – – – (11,753) (11,753) 41,841,460 42,591,230 43,782,860

Community 4,092,067 (4,282) (4,282) 4,087,785 4,154,335 4,214,859

Heritage assets 97,990 – 97,990 99,915 102,121

Inv estment properties 161,144 – 161,144 164,309 167,937

Other assets 3,561,983 36,618 36,618 3,598,601 3,625,032 3,617,244

Intangibles 113,260 – 113,260

Agricultural Assets –

Biological assets – – – 115,484 118,035

TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 5 49,879,657 – – – – – 20,584 20,584 49,900,241 50,750,305 52,003,056

EXPENDITURE OTHER ITEMS


Repairs and Maintenance by asset class 3 2,355,214 – – – – – 124,362 124,362 2,479,575 2,513,910 2,672,807

Infrastructure - Road transport 477,973 – – – – – (487) (487) 477,486 520,193 566,277

Infrastructure - Electricity 795,636 – – – – – 974 974 796,610 840,016 888,010


Infrastructure - Sanitation 83,103 – – – – – 88,362 88,362 171,465 89,470 96,349

Infrastructure - Other 68,007 – – – – – – – 68,007 71,679 75,550

Infrastructure 1,768,203 – – – – – 117,079 117,079 1,885,282 1,892,069 2,013,988

Community 85,528 – – – – – 12,648 12,648 98,176 90,187 95,101

Heritage assets 229,015 – – – – – (6,120) (6,120) 222,895 242,171 256,099

Inv estment properties 26,638 – – – – – – – 26,638 28,607 30,721

Other assets 6 245,830 – – – – – 755 755 246,584 260,876 276,898

TOTAL EXPENDITURE OTHER ITEMS to be adjusted 3,787,034 – – – – – 124,362 124,362 3,911,395 4,203,214 4,624,723

% of capital exp on renewal of assets 43.4% 0.0% 40.2% 45.2% 43.2%

Renewal of existing assets as % of deprecn 115.0% 0.0% 107.0% 113.7% 94.2%

R&M as a % of PPE 4.7% 0.0% 5.0% 5.0% 5.1%

Renewal and R&M as a % of PPE 8.0% 0.0% 8.0% 8.7% 8.7%

Budget Year 2014/15

Description Ref

EKU Ekurhuleni Metro - Table B10 Basic service delivery measurement -

Budget Year

+1 2015/16

Budget Year

+2 2016/17

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or Prov.

Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

7 8 9 10 11 12 13 14

A A1 B C D E F G H

Household service targets 1

Water:

Piped w ater inside dw elling 494881.56 – 495

Piped w ater inside y ard (but not in dw elling) 0 – –

Using public tap (at least min.serv ice lev el) 2 162414 – 162

Other w ater supply (at least min.serv ice lev el) 2000 – 2

Minimum Service Level and Above sub-total 659 – – – – – – – 659 – –

Using public tap (< min.serv ice lev el) 3 20000 – 20

Other w ater supply (< min.serv ice lev el) 3,4 – –

No w ater supply – –

Below Minimum Servic Level sub-total 20 – – – – – – – 20 – –

Total number of households 5 679 – – – – – – – 679 – –

Sanitation/sewerage:

Flush toilet (connected to sew erage) 491685.1756 – 491,685

Flush toilet (w ith septic tank) 1208 – 1,208

Chemical toilet 100000 – 100,000

Pit toilet (v entilated) 62414 – 62,414

Other toilet prov isions (> min.serv ice lev el) 0 – –

Minimum Service Level and Above sub-total 655,307 – – – – – – – 655,307 – –

Bucket toilet 0 – –

Other toilet prov isions (< min.serv ice lev el) 0 – –

No toilet prov isions 0 – –

Below Minimum Servic Level sub-total – – – – – – – – – – –

Total number of households 5 655,307 – – – – – – – 655,307 – –

Energy:

Electricity (at least min. serv ice lev el) 181300 – 181,300

Electricity - prepaid (> min.serv ice lev el) 360000 – 360,000

Minimum Service Level and Above sub-total 541,300 – – – – – – – 541,300 – –

Electricity (< min.serv ice lev el) – –

Electricity - prepaid (< min. serv ice lev el) – –

Other energy sources 23000 – 23,000

Below Minimum Servic Level sub-total 23,000 – – – – – – – 23,000 – –

Total number of households 5 564,300 – – – – – – – 564,300 – –

Refuse:

Remov ed at least once a w eek (min.serv ice) 959190 – 959,190

Minimum Serv ice Lev el and Abov e sub-total 959,190 – – – – – – – 959,190 – –

Remov ed less frequently than once a w eek – –

Using communal refuse dump 181672.616 – 181,673

Using ow n refuse dump – –

Other rubbish disposal – –

No rubbish disposal – –

Below Minimum Servic Level sub-total 181,673 – – – – – – – 181,673 – –

Total number of households 5 1,140,863 – – – – – – – 1,140,863 – –

Households receiving Free Basic Service 15

Water (6 kilolitres per household per month) 679295.56 – 679,296

Sanitation (free minimum lev el serv ice) 655307.1756 – 655,307

Electricity /other energy (50kw h per household per month) 270000 – 270,000

Refuse (remov ed at least once a w eek) 42040 – 42,040

Cost of Free Basic Services provided (R'000) 16

Water (6 kilolitres per household per month) 362,728 – 362,728

Sanitation (free sanitation serv ice) 155,058 – 155,058

Electricity /other energy (50kw h per household per month) 39,501 – 39,501

Refuse (remov ed once a w eek) 43,000 – 43,000

Total cost of FBS provided (minimum social package) 600,287 – – – – – – – 600,287 – –

Highest level of free service provided

Property rates (R'000 v alue threshold) 150000 – 150,000

Water (kilolitres per household per month) 9 – 9

Sanitation (kilolitres per household per month) 9 – 9

Sanitation (Rand per household per month) 74.43 – 74

Electricity (kw per household per month) 100 – 100

Refuse (av erage litres per w eek) 240 – 240

Revenue cost of free services provided (R'000) 17

Property rates (R15 000 threshold rebate) 618,670 – 618,670

Property rates (other ex emptions, reductions and rebates) 148,410 – 148,410

Water 774,400 – 774,400

Sanitation 301,696 – 301,696

Electricity /other energy 261,137 – 261,137

Refuse 199,717 – 199,717

Municipal Housing - rental rebates – – –

Housing - top structure subsidies 6 – – –

Other 27,910 – 27,910

Total revenue cost of free services provided (total social package)2,331,940 – – – – – – – 2,331,940 – –

Description Ref

Budget Year 2014/15

ajustment budget 2014 / 2015

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