dcci 2013-2014 budget presenttaion
TRANSCRIPT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
1/114
eThekwini MUNICIPALITY
BUDGET PRESENTATIONDCCI
Cities that have a close relationship /
partnership with business are winning cities
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
2/114
INTRODUCTION
Draft budget presented to DCCI on 20 March 2013
Regional hearings and Big Mama workshop held
Varying issues raised depending on the area some areas concerned
about verge cutting and potholes whilst other areas are concerned
about housing and basic services
Crime and unemployment were also raised
Informal traders
Need to ensure that the social, economic and rehabilitative balance
is in place
Need to focus on ensuring that all have access to basic services and
maximising job creation opportunities
Empty pockets teaches you a million things in life. But full pockets spoils you in a millionways
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
3/114
CONTEXT &
CHALLENGES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
4/114
Good liquidity average cash holdings of R5 billion equating to about96 days cash on hand
Highest collection rates in the country for the past two financial years(2010/2011 and 2011/2012). In current financial year 2012/2013 thecollection rate is 103.5% year to date up from 97.5% in 2011/2012
Highest spend on Maintenance and Repairs in the country 11%
Biggest capital budget in the country R5.432 billion
Unqualified audit report
Excellent credit rating best in municipal sector
However, Municipality not cash rich just prudently and wellmanaged
Excellent political support in implementing policies
FINANCIAL POSITION
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
5/114
Strict compliance with supply chain management policy, VFM &
benchmarking given key focus Sustainability of housing provision from current financing
sources
Infrastructure and service delivery backlogs
Bulk purchase costs:- Eskom 8% average increase
- Umgeni Water 8% increase
Minimal level of growth major costs to unblock development
return on investments
Impact of bringing Durban Transport back under the Citys
control
Unaccounted for water and theft of electricity
THE CHALLENGES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
6/114
DEVELOPERS
Want to pay minimal amount for bulk services
Providing infrastructure without an informed spatialdevelopment framework
Not prepared to guarantee an uptake
Only 0.1% of total revenue derived from developmentcharges
Not sustainable need development levy
Serviced industrial land business must come up withthe business plan and demonstrate reasonable return on
investment and take-up
No enterprise can exist for itself alone. It ministers to some great need, it performs some
great service, not for itself, but for others.. or failing therein, it ceases to be profitable andceases to exist. Calvin Coolidge
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
7/114
ECONOMIC DEVELOPMENT REBATE
Rating Policy targeted relief on big developments being
considered
Developments that fall within the Development node approved
by Council may receive a rebate as approved by Council on
application and will be limited to :
- For a period of three years from date of development planapproved, for investments with a property market value,
between R150 million to R300 million;
- For a period of five years from the date the development plan
is approved, for investments with a property market value,between R300 million to R1 billion, post development; and
- The rebates above will be deferred to the next financial year
and will be apportioned in accordance with the completion and
transfer of units within the development in terms of the ratespolicy.
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
8/114
SDF STRATEGIC INVESTMENT AREAS
Port of Durban logistics infrastructure
Illovo freight route, automotive supply park Back of Port economic, manufacturing & trading hub
Dube Tradeport promotion of international trade - discussed
later in more detail
Cato Ridge industrial expansion and dry port
South Durban Basin regenerating the industrial base
creating cleaner, greener industries, improving QOL and
stimulating new development
Inner City iTRUMP - regeneration
The first rule of any technology used in a business is
that automation applied to an efficient operation will
magnify the efficiency. The second is that automation
applied to an inefficient operation will magnify theinefficiency. Bill Gates
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
9/114
USE OF PUBLIC TRANSPORT
How do we ensure maximum use?
IRTPN success dependent on densification and effectivenodes being created
Cannot sustain individuals traveling to work in own vehicles
need a credible and reliable public transport system
Never feel bad if people remember
you only at the time of their need. Feel
privileged that they think of you like a
candle in the darkness of their life
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
10/114
The system consists, inter-alia :
Roads
Road works
Bridges
Interchanges
Intersections Associated buildings
Terminal Stations
Transfer Stations
Depots
Information and Communication
Technology (ICT)
Fare and revenue collection systems
Control Centre
IRPTN Infrastructure
In business, Ive discovered that my
purpose is to do my best to my utmost
ability every day. Thats my standard. I
learned early in my life that I had high
standards. Donald Trump
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
11/114
b e i n s p i r e d , b e m o v e d
C O R R I D O R P H A S I N G
2011/10/2411
C1
C9
C3
C6
C6
C7
C7
C5
Umhlanga
CBD
Umlazi
Mpumalanga
Pinetown
Chatsworth
Rossburgh
Tongaat
Hillcrest
Warwick
Bridge City
Airport
Prospecton
Merebank
C8
C8
C4
C2
Phase 1
Phase 2
Phase 3
Phase 4
Phase 0: Durban Transport
Phase 1: C1, C2, C3, C9
Phase 2: C2, C5, C7
Phase 3: C4, C8
Phase 4: C6
Employment
Residential
Mixed
Park and Ride
Transfer Station
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
12/114
UNEMPLOYMENT 2011 census
% EMPLOYED 79.6%
% UNEMPLOYED 20.4%
% FORMAL
EMPLOYMENT
76%
% INFORMAL
EMPLOYMENT
24%
This is based on the official, narrow definition of unemployment
How are we going to turn this around?
Job creation must be our priority
Every formal business, SMME, budding entrepreneur needs to be
nurtured
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
13/114
BUSINESS: FORMAL VS INFORMAL
Need to focus on assisting and facilitating
Retention, attraction and growth of business - must be a key
priority Creating zones for informal traders with good footfalls
Reduce litter
NO. OF FORMAL
BUSINESSES
21 148
NO. OF INFORMAL
BUSINESSES
9 200
10% of conflicts is due to difference in opinion and 90% is due to wrong tone of voice
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
14/114
HOUSING
NUMBER
FORMAL HOUSING 524 582
INFORMAL HOUSING
(including rural)
421 328
At a rate of 10 000 houses per annum it will take 43 years to meetthis backlog
This is subject to there being no further migration and growth
What is the reality?
How do we deal with the expectation and frustration?
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
15/114
SERVICES BACKLOG
SERVICE NO. OF
HOUSEHOLDSHAVE SERVICE
NO. OF
HOUSEHOLDSWITHOUT
SERVICE
ELECTRICITY 651 682 294 228
WATER 872 629 73 281
REFUSE 945 910 0
SANITATION 721 374 224 536
This is being fast tracked with the interim services programme and a
major dent in the backlog will be made over the next 5 years
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
16/114
ACHIEVEMENTS TO DATE
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
17/114
Refuse Removal
Formal households 945 910
100% coverage
Street Cleaning Service
All major roads are cleaned and litter picked
Mechanical sweeping of all freeways and highways
Develop and market solid waste products to commerce & industry
Generated Income : R 190 million
Waste Management Partnerships
Co-Ops 12 (Handling of SKIPS)
Community-based Contractors (SMMEs) 375 (R243m)
Employment created through contractors in excess of 3,800 peopleemployed
CLEANSING & SOLID WASTE
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
18/114
WATER
Pipelines 11500 km.
945 910 Customers
860 Mld of water purchased/purified
474 Storage facilities.
44 Pump Stations.
5 Water Treatment Works.
215 000 households have access via water
dispensers/standpipes/ablution blocks
1 287 Plant and Vehicle Fleet
2 968 Staff Complement
18
Life is an echo. What you send out
comes back. What you so you reap. What
you give you get. What you see in others
exists in you. Remember, life is an echo. It
always gets back to you.
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
19/114
SANITATION
7 697 km WastewaterPipes.
31 Wastewater Treatment
Works
300 Pump Stations. 362 Ablution Blocks.
80 000 UDs installed
560 000 kl/d effluent flows
into the Works
300 Plant and Vehicle Fleet
In the business world, everyone is paid in two coins: cash and experience. Take the
experience first; the cash will come later. Harold Geneen
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
20/114
ENGINEERING
6 252 km of surfaced roads
1 456 km of gravel roads
164 811 stormwater manholes & inlets
4 571 km of river systems 210 km of culverts & canals
3 494 km of pipework
30 stormwater detention ponds
16 major estuaries
20
When something bad happens you have three choices. You can either let it define you. Let it
destroy you. Or you can let it strengthen you.
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
21/114
ELECTRICITY
Residential connections 655 338
Business connections 44 702
Total connections 700 040
No. of FBE beneficiaries 82 546
No of Street Lights 184 950
No. of reticulation faults 283 097
21
Warren Buffet on earning: Never depend
on a single income. Make investments to
create a second source
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
22/114
SAFETY AND SECURITY
Number of Metro Police Stations 14
Satellite Police Stations 11
Number of metro police staff - 2615
New Emergency Control Centre (Disaster Management, CCTV, VOC,
JOC,)
30 additional guards for the beachfront
Warren Buffet on savings: Do not save what is left after spending, but spend what is left
after saving.
SCM IMPROVEMENTS
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
23/114
SCM IMPROVEMENTS ISO 9001 accreditation - quality management system
BPI2 (Business and Process Improvement Initiatives):
- centralised contract register
- procurement scheduling
- contract tracking
- supplier address book consolidation
- invoice scanning and logging
SCM Policy review
E-Procurement Quotes Management System (QMS)
Letters of award
Improved internal controls reduce fraud and corruption
SCM SPEND ANALYSIS
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
24/114
SCM SPEND ANALYSIS
LocationNumber of
awards
Local 1004
Provincial 70
National 116
International 2
Local
84%
Provincial
6%
National10%
International
0%
% of awards per Location
2011/2012 Financial Year
SCM spend is local 84% spend on local businesses
Will unpack remaining 16% for local businesses to identify
opportunities and gear up to tender for same
AUSTERITY MEASURES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
25/114
AUSTERITY MEASURES
All budgets were cut to 7% or less. Overtime and Consultants costs have been drastically reduced.
Utilisation of vehicles to be stringently monitored via the
vehicle tracking system. Only essential trips to be made.
All officials to continue to travel in economy class and all travel
must be approved by the CMs office.
No overnight stays for team building.
Bench-marking of prices to be introduced through the Quote
Management System.
To be successful, you have to have your heart in your business, and your business in your
heart. Thomas Watson, Sr.
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
26/114
AUSTERITY MEASURES Productivity assessment and bench-marking of costs to be
undertaken by Management Services.
Security costs to be reviewed.
Alarm systems to be installed at low risk sites replacing security
guards.
Zero tolerance with regard to theft of electricity and water and
non-payment of accounts.
Electricity and Water losses to be actively managed.
Warren Buffet on investment: Do not put all eggs in one basket.
INTEGRATED MANAGEMENT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
27/114
INTEGRATED MANAGEMENT
An integrated approach regarding maintenance and service in an
area
Priority zones commenced with strategic nodes - successful need
to extend to other areas of beachfront and CBD
ABMs being rolled out to further support this 13/14
War rooms in each ward
Dedicated officials to co-ordinate each area
I have found no greater satisfaction than achieving success
through honest dealing and strict adherence to the view that, for
you to gain, those you deal with should gain as well. Alan
Greenspan
iTRUMP
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
28/114
iTRUMP
Eradication of bad / dilapidated buildings
Better buildings programme Clean up operations
Operational projects
Look at a stone cutter
hammering away at his rock,
perhaps a hundred times without
as much as a crack showing in
it. Yet at the hundred-and-firstblow it will split in two, and I
know it was not the last blow that
did it, but all that had gone
before. ~ Jacob A. Riis
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
29/114
THE 2013/2014 BUDGET
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
30/114
BROAD BUDGETING PRINCIPLES
AND GUIDELINES
BROAD PRINCIPLES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
31/114
BROAD PRINCIPLES
Budget to contribute to achieving strategic objectives of the IDP.
Sustainable, Affordable , Realistic and Balanced
Major Tariffs - cost reflective, realistic and affordable tariffs
Income/Revenue driven budgets affordability ie if funds do not materialise
review expenditure
Realistic and achievable collection rates
Project planning at least 6 months prior to commencement of financial
year to achieve 100% CAPEX spend
Loans to be sustainable and affordable and utilised for capital projects only
Need to ensure rates base growth to ensure sustainability of free basic services
Balancing capital expenditure for social, economic, rehabilitation and support
(including fleet and IT)
GUIDELINES FOR BUDGETING
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
32/114
GUIDELINES FOR BUDGETING
CONSUMER PRICE INDEX Current
DEBT SERVICE COSTS
GROWTH IN RATES BASE (NEW DEV.)
SALARY INCREASE
DEBT COLLECTION RATE - BUDGET
DEPRECIATION BASED ON USEFUL LIVES OF ASSET
5.6%
< 10%
1% pa
6.85%
95%
The new source of power is not money in the hands
of a few, but information in the hands of many.
John Naisbitt
TOTAL BUDGET
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
33/114
TOTAL BUDGET
2013/14 2012/13
Total Budget - Operating R 28 389.1m R 26 183.5m
Capital R 5 432.1m R 5 285.2m
R 33 821.2m R 31 468.7m
Lets be honest. Theres not a business anywhere that is without problems. Business is
complicated and imperfect. Every business everywhere is staffed with imperfect human beings
and exists by providing a product or service to other imperfect human beings. Bob Parsons
TARIFF INCREASES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
34/114
TARIFF INCREASES
Need to be cost reflective
Impact of cross subsidisation
Elasticity
Affordability
CPI related
THE GOOD NEWS: Electricity tariff reduced from 8% by
a further 2% for business to 6% and 3.9% for indigent
and general residential to 4.9%
We use Pencil when we were small but now we use pens Do you know why?? Bcoz mistakes
in Childhood can be erased. But not now
COMPARATIVE TARIFF INCREASES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
35/114
COMPARATIVE TARIFF INCREASES2013/14 2012/13 2011/12 2010/11 2009/10 2008/09
Electricity 8% 11% 19.8% 25% 30% 27.25%
Water:
Domestic
Business
9.5%
12.5%
12.5%
15.5%
7.5%
12.5%
9.5%
12.5%
9.9%
12%
9.9%
Refuse
Removal
6.9% 7% 6.5% 7.5% NEW
Sanitation 6.9% 6.5% 6.5% NEW
Rates:
Residential
Business
6.9% 6.5% 6.5% 7.9% 5.6%
11.9%
9.9%
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
36/114
COMPARISON OF HOUSEHOLD BILLS - NATIONAL TREASURY
Measure Johannesburg Cape Town eThekwini Ekurhuleni Tshwane
Nelson
Mandela Bay Buffalo City Mangaung
AVERAGE HOUSEHOLD BILLS
Property rates 162.58 151.55 289.43 173.47 330.06 176.73 298.84 82.34
Electricity: Basic levy 322.39 0.00 0 0 0 0 0 0
Electricity: Consumption 448.1 590.3 520.09 453.72 574.36 504.84 464.50 574.45
Water: Basic levy 0 0 0 0 0 23.66 0 0
Water: Consumption 201.34 205.44 265.02 176.8 232.24 186.46 257.82 248.37
Sanitation 98.7 147.98 55.85 85.28 117.67 133.09 173.68 71.76
Refuse removal 96.78 85.21 49.01 82.77 42.37 61.04 40.00 122.15
Other 0 0 0 0 0 0 0.00 28.06
Total Monthly Bill 1329.89 1180.48 1179.4 972.04 1296.7 1085.82 1234.84 1127.13
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
37/114
OPERATING BUDGET
TOTAL OPERATING BUDGET
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
38/114
DETAILS
ESTIMATE
2013/14
R'000
APPROX
2012/13
R'000
ESTIMATE
2012/13
R'000
EST - EST
VARIANCE %
SALARIES AND ALLOWANCES 7,035,897 6,103,231 6,350,359 10.80
GENERAL EXPENSES 20,554,540 18,961,539 19,558,843 5.09
REPAIRS AND MAINTENANCE 2,906,845 2,602,380 2,489,702 16.75
CONTRIBUTIONS 3,960,723 3,542,993 3,356,241 18.01
TOTAL EXPENDITURE 34,458,004 31,210,143 31,755,144 8.51
RECOVERIES & CHARGE OUTS (2,611,616) (2,252,055) (2,220,072) 17.64
NET EXPENDITURE 31,846,388 28,958,088 29,535,072 7.83
INCOME (31,846,388) (28,958,088) (29,535,072) 7.83
SURPLUS/DEFICIT (0) (0) (0)
TOTAL OPERATING BUDGET
MAJOR EXPENDITURE ITEMS
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
39/114
MAJOR EXPENDITURE ITEMS2013/2014
ESTIMATES
2013/14
%
R000 R000 R000 R000 R000
4,540,518 4,822,931 6,487,630 6,350,359
5,495,517 6,666,970 7,839,667
2,193,111 1,793,026 1,804,496 2,489,702
1,428,598 1,455,464 1,777,563
687,345 855,249 1,152,295
SUB TOTAL 12,825,621 14,227,417 17,269,809 19,609,586 21,175,723 83.8
DETAILS ACTUAL
2009/2010
ACTUAL
2010/2011
ACTUAL
2011/2012
2012/2013
ESTIMATE
SALARIES AND
ALLOWANCES
1,799,457 7.1
7,035,897 27.8
BULK PURCHASES 4,531,944 8,380,735 33.2
INTEREST ON
LOANS 480,942 1,052,789 4.2
OFTOTAL
OPEX
REPAIRS AND
MAINTENANCE 2,906,845 11.5
DEPRECIATION 1,079,106
CONSOLIDATED BUDGET: Rate & General
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
40/114
40
CONSOLIDATED BUDGET: Rate & General
DETAILS
ESTIMATE
2013/14R'000
APPROX
2012/13R'000
ESTIMATE
2012/13R'000
EST - EST
VARIANCE %
SALARIES AND ALLOWANCES 5,467,750 4,807,710 4,978,490 9.83
GENERAL EXPENSES 8,841,671 8,151,620 8,099,408 9.16REPAIRS AND MAINTENANCE 1,233,196 1,309,901 1,234,158 -0.08
CONTRIBUTIONS 2,622,980 2,239,614 2,262,699 15.92
TOTAL EXPENDITURE 18,165,597 16,508,845 16,574,756 9.60
RECOVERIES (927,789) (870,365) (871,611) 6.45
CHARGE OUTS (895,215) (629,141) (651,125) 37.49
NET EXPENDITURE 16,342,592 15,009,339 15,052,020 8.57
INCOME (16,342,592) (15,009,339) (15,052,020) 8.57
RATE AND GENERAL (CONTD)
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
41/114
41
Total Rates and General Budget increased by R1.3bn (8.57%) to R16.3bn
The Rates and General budget per cluster as follows :
Office of the City Manager
Budget increased by R76.8m(6.2%) to R 1.2bn
Treasury
Budget increased by R6.2m(0.2%) to R3.5bn
Community and Emergency Services Budget increased by R189.7m(7.9%) to R2.6bn
Corporate Human Resources
Budget increased by R31.5m(10.8%) to R402.4m.
Sustainable Development and Planning
Budget increased by R50.4m(6.8%) to R793.3m .
Human Settlements and Infrastructure
Budget increased by R885.7m(13.7%) to R7.3bn
Governance
Budget increased by R50m(13.4%) to R424.4m
RATE AND GENERAL (CONTD)
RATE AND GENERAL (CONTD)
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
42/114
42
SALARIES & ALLOWANCES
Increase of 9.83% due to national negotiated salary increase of 6.85% as
well as provision being made for conversion of temporary staff to
permanent , filling of vacancies and annual notch increments.
GENRAL EXPENSES
Some of the major items contributing to the increase are fuel costs,
electricity costs, water costs and inflationary increases on other itemsREPAIRS & MAINTENANCE
Decreased by 0.08% mainly due a decrease of R21.6m in the priority zone
areas as much of the planned work was done in the current year
INCOME
Income increased mainly as a result of the rates increase of 6.9% a, increasesin the minor tariffs and fees and increases in grant income which is offset by
decrease in Equitable Share of R 30.1m and Fuel Levy of R4.2m
RATE AND GENERAL (CONTD)
Definition of a birthday: The only day in your life your mother smiled when you cried.
WATER SERVICES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
43/114
WATER SERVICES
DETAILS
2013/2014
ESTIMATE
R000
2012/2013
APPROX
R000
2012/2013
ESTIMATE
R000
EST-EST VARIANCE
%SALARIES &
ALLOWANCES 577,217 457,226 477,651 20,8
GEN EXPENSES 3,374,619 3,109,696 3,566,810 -5.4
REPAIRS &
MAINTENANCE 498,133 473,847 432,562 15,2
CONTRIBUTIONS 286,118 277,936 264,846 8.0
TOTAL EXPENDITURE 4,736,087 4,318,705 4,741,869 -0.1
RECOVERIES &CHARGE OUT
-430,784-134,603
-406,993-119,865
-385,293-117,795
11,814,3
NET EXPENDITURE 4,170,700 3,791,847 4,238,781 -1,6
INCOME -4,170,700 -3,791,847 -4,238,781 -1,6
DEPARTMENT TOTAL 0 0 0 43
WATER SERVICES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
44/114
44
WATER SERVICES
(Major variances and major additional items and highlights)
Expenditure decreased by R68,1m from R4,24bn to R4,17bn
Bulk Water Purchasesbudget increased by R116,8m from R1.3billion to R1,5billion
(8% tariff increase by Umgeni Water and 34,5% Water Loss)
Repairs & Maintenance-budget increased by R65,6m from R432,6m to R498,1m(increased repairs to Infrastructure with expanded area of supply)
Salaries & Allowances-budget increased by R99,6m from R477,6m to R577,2m
(6,95% salary increase, conversion of temporary to permanent staff and provision fortop level restructure).
Electricity Costsbudget increased by R6,2m from R49,1m to R55,3m
(Includes 8% tariff increase for Eskom charges)
Income Foregone budget decreased by R320,8m from R902,8m to R582,0m so as toaccurately reflect the cost of free basic services . Equivalent decease made in Income as
well Contributions to Capital (USDG Grant) budget increased by R11.7 from R235,0 to
R246.7m
Its through curiosity and looking at opportunities in new
ways that weve always mapped our path at Dell. Theres
always an opportunity to make a difference. Michael Dell
WATER SERVICES delivery
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
45/114
WATER SERVICES delivery
8600 new connections provided for
Reduce water loss (from 35,5% to 34,5%) through zonal meters,
combating illegal connections.
Increasing capacity - Western Aqueduct R 244m and Northern
Aqueduct R190m
Capital budget R2.5bn over 3 years
Targeted tariff increase: Domestic - 9,5%
Business -12,5%
Belief in the possibility of change and renewal is perhaps one of the
defining characteristics of politics and religion. Nelson Mandela
SANITATION SERVICES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
46/114
SANITATION SERVICES
DETAILS
2013/2014
ESTIMATE
R000
2012/2013
APPROX
R000
2012/2013
ESTIMATE
R000
EST-EST VARIANCE
%SALARIES &
ALLOWANCES 305,294 260,072 261,528 16.73
GEN EXPENSES 811,573 762,419 785,518 3.30
REPAIRS &
MAINTENANCE 269,275 259,474 254,834 5.67
CONTRIBUTIONS 510,145 488,555 160,970 216.92
TOTAL EXPENDITURE 1,896,287 1,770,520 1,462,850 29.63
RECOVERIES &CHARGE OUT -149,113 -139,534 -139,534 6.87
NET EXPENDITURE 1,747,174 1,630,986 1,323,316 32.03
INCOME -1,747,174 -1,661,876 -1,323,316 32.03
DEPARTMENT TOTAL 0 -30,890 0 46
SANITATION SERVICES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
47/114
SANITATION SERVICES
(Major variances and major additional items and highlights)
SANITATION
Expenditure increased by R423,9m from R1.3bn to R1,7bn
Temporary Staff budget increased by R14,7m from R3,5m to R18,2m(increased no. of caretakers for ablutions)
Consumables budget increased by R4,3m from R8,8m to R 13,1m (increasednumber of ablution facilities)
Water - budget increased by R12,2m from R17,4m to R29,6m (increasedablution facilities)
Contributions to Capital (USDG Grant) budget increased by R357,3m fromR222,7m to R 580,0m
Provision for 5 year VIP pit latrine clearance (R46.5m)
47
The most serious mistakes are not being made as a result of wrong answers. The truly
dangerous thing is asking the wrong question. Peter Drucker
SANITATION delivery
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
48/114
SANITATION delivery
Expand waste water treatment at Northern , KwaMashu and Toti
Works Desludging of 35 000 VIP pit latrines
250 additional ablution facilities for informal settlements per year
Capital Budget R2,2bn over a three year period
Expanding services to rural areas , informal settlements and transit
camps
Zero based tariffs for households with property values less than or
equal to R 250 000
Cash hand outs might sustain you for a few
months, at the end of which your problems
remain. Nelson Mandela
SANITATION
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
49/114
SANITATION
DETAILS
2013/2014
ESTIMATE
R000
2012/2013
APPROX
R000
2012/2013
ESTIMATE
R000
EST-EST
VARIANCE
%SALARIES &
ALLOWANCES 305,294 260,072 261,528 17
GEN EXPENSES 811,573 762,419 785,518 3
REPAIRS &
MAINTENANCE 269,275 259,474 254,834 6
CONTRIBUTIONS 510,145 519,445 160,970 217
TOTAL EXPENDITURE 1,896,287 1,801,410 1,462,850 30
RECOVERIES &CHARGE OUT -149,113 -139,533 -139,534 7
NET EXPENDITURE 1,747,174 1,661,877 1,323,316 32
INCOME -1,747,174 -1,661,877 -1,323,316 32
DEPARTMENT TOTAL 0 0 0 49
CLEANSING & SOLID WASTE
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
50/114
CLEANSING & SOLID WASTE(Major variances and major additional items and highlights)
MAJOR ADDITIONAL ITEMS
Expenditure increased by R258.4m from R1.27bn to R1.53bn
Electron Road transfer station at a cost of R120m will be operational inSeptember 2013 due to the partial closure of Bisasar Road Landfill. Provision ofadditional staff and operating costs of R7.9m
Contributions to Capital (USDG Grant) budget increased by R127.3m to R136.0m
Increased Community Based Contractors (R3,0m) to service expanded and new
areas
50
I wasnt satisfied just to earn a good living. I was looking to
make a statement. Donald Trump
CLEANSING AND SOLID WASTE deli er
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
51/114
CLEANSING AND SOLID WASTE delivery
Extend refuse removal to 100% coverage
Gradual closure of the Bisasar Road Landfill site and the
commissioning of the Electron Road Transfer Station by September
2013.
Expand recycling (cans, glass) and waste minimisation projects.
Proposed tariff increase of 6,9%
3 year capital budget of R288m
Zero based tariffs for households with property values less than or
equal to R 250 000
A child asked God: If everything is already written in
our destiny, then why pray? God smiled and said: May
be in a few places I have written As u wish.
ELECTRICITY SERVICES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
52/114
ELECTRICITY SERVICES
DETAILS
2013/2014
ESTIMATE
R000
2012/2013
APPROX
R000
2012/2013
ESTIMATE
R000
EST-EST VARIANCE
%SALARIES &
ALLOWANCES 943,056 798,219 849,886 11
GEN EXPENSES 8,222,588 7,582,056 7,778,779 6
REPAIRS &
MAINTENANCE 809,977 743,600 748,646 8
CONTRIBUTIONS 1,047,462 1,016,560 825,027 27
TOTAL EXPENDITURE 11,023,083 10,140,435 10,202,338 8
RECOVERIES &
CHARGE OUT -223,224 -225,691 -194,247 15
NET EXPENDITURE 10,799,859 9,914,744 10,008,091 8
INCOME -10,799,859 -9,914,744 -10,008,091 8
DEPARTMENT TOTAL 0 0 0 0
ELECTRICITY SERVICES
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
53/114
ELECTRICITY SERVICESSALARIES & ALLOWANCES
Besides the salary increase of 6.85%, provision has been made to fill 498 vacant posts. There
is a dire shortage of critical staff.GEN EXPENSES
The primary reason for the increase is the bulk purchase of electricity from Eskom which has
increased by 8% for 2013/2014 this is partially offset by a reduction in consumption.
REPAIRS & MAINTENANCE
As a result of increases in the number of faults due to the ageing infrastructure,
maintenance expenditure on the electrical network has increased. Theft and vandalism are
also major contributors.
CONTRIBUTIONS
The increase is due to contributions to the Capital Replacement Reserve resulting from the
restatement of the Contingency provision for a decrease in Consumption previously
reflected as a debit against Sales. RECOVERIES
Recoveries have increased due to an increase in the no. of technical staff being employed
who contribute to the increased hours that are now being recovered.
INCOME
Income has increased as a result of the electricity sales tariff increase of 8%. This is
necessary to balance the Electricity budget.
ELECTRICITY SERVICES delivery
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
54/114
ELECTRICITY SERVICES delivery Proposed tariff increase 8% - is being reviewed
ESKOM increase of 8% - to be reduced
Final tariff increase depends on NERSAs approval
Electricity loss in distribution at 5.8% - lowest in the country and below
International norms
Theft of Electricity and Electricity infrastructure continues to be a challenge
Free Basic Electricity allocation for poor residents is 65 KwH for those
consuming less than 150KwH
Maintenance budget increase from R748.6 to R809.7m
No of Electricity customers 700 040
10 000 new customers each year on average Capital budget of 1.97 bn over the next 3 years.
Statistics suggest that when customers complain, business
owners and managers ought to get excited about it. The
complaining customer represents a huge opportunity for more
business. Zig Ziglar
CCTV - CAMERAS
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
55/114
CCTV CAMERAS262 Existing Sites
Proposed new sites from 2013/14 to 2015/16 Financial Years.
Umbogintwini
Galleria and Arbor Town King Shaka International Airport and Dube Trade Port.
National Route Interchange [N2/N3]
Mpumalanga / Cato Ridge is being considered.
Links into the Kingspark Rugby Stadium VOC
Interface with the SANRAL camera network.
Chatsworth Shopping and Sports precinct.
National Key Points
SABC
Reserve Bank
Major Electricity Substations
Umgeni Heights Reservoir
Proposed 3 year Budget
2013/14: R34.2m
2014/15: R34.8m
2015/16: R23.9m
Business is a game, played for fantastic stakes,
and you're in competition with experts. If you
want to win, you have to learn to be a master of
the game.
Sidney Sheldon, Master of the Game
ETHEKWINI TRANSPORT AUTHORITY
http://www.goodreads.com/author/show/9068.Sidney_Sheldonhttp://www.goodreads.com/work/quotes/1686217http://www.goodreads.com/work/quotes/1686217http://www.goodreads.com/author/show/9068.Sidney_Sheldonhttp://en.wikipedia.org/wiki/File:Moses_Mabhida_Durban_Stadium.jpg -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
56/114
ETHEKWINI TRANSPORT AUTHORITY
Expenditure increased by R220,9m to R1,1 bn.
PUBLIC TRANSPORT
Expenditure increased by R253,1m to R473,7m
People Mover budget increased by R3,5m to R30,0m
Durban Transport Bus Service (Subsidy) budget increased by R10,8m
toR152,8m Transport for the Disabledbudget increased by R 3,6m to R10,0m
INTEGRATED RAPID PUBLIC TRANSPORT NETWORK (IRPTN)
New department responsible for planning and implementation of Rapid PublicTransport projects.
IRPTN Planning R50,9m
Consultants fees for development and management of IRPTN projectsR6,0m
Brand Advertising R5,0m
ETHEKWINI TRANSPORT AUTHORITY
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
57/114
ETHEKWINI TRANSPORT AUTHORITY(CONT)
ROAD SYSTEM MANAGEMENT
Expenditure increased by R0,822m to R83,18m
Traffic lines and signsbudget increased by R0,388m to R8,1m
Traffic signals budget increased by R0,473 to R8,3m
Maintenance of traffic signals ,road markings, traffic signage, traffic areas
and related control systems.
57
The organizational architecture is really that a
centipede walks on hundred legs and one ortwo dont count. So if I lose one or two legs,
the process will go on, the organization will go
on, the growth will go on. - Mukesh Ambani
http://www.woopidoo.com/business_quotes/authors/mukesh-ambani-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/mukesh-ambani-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/mukesh-ambani-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/mukesh-ambani-quotes.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
58/114
58
SECTORS
JOB CREATION AND SKILLS DEVELOPMENT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
59/114
JOB CREATION AND SKILLS DEVELOPMENT
Use of approximately 600 plumbing contractors on a rotational basis toundertake water related services
370 caretakers employed at Ablution Facilities with a further 250 to beemployed within the next 6 months as further Ablution Facilities arecompleted
Use of 372 Community Based Contractors utilising about 3770 people forRefuse Removal services
20 trainee engineers employed under the mentorship programme
EPWP Grant (R47.4m), Maximum payable is R100 per day of which R50 issubsidised by National Treasury
Zibambele Poverty Alleviation (R75m) 6600 jobs created.
Work place Skills Plan(WSP)
600 Community Based Contractors utilised in the roll out of rural waterand sanitation projects
In the past a leader was a boss. Todays leaders must be partners with their people.. they no
longer can lead solely based on positional power. - Ken Blanchard
ECONOMIC DEVELOPMENT
http://www.woopidoo.com/business_quotes/authors/ken-blanchard-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/ken-blanchard-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/ken-blanchard-quotes.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
60/114
ECONOMIC DEVELOPMENT
Investment in Economic Infrastructure
In Former Townships Umlazi, INK, Clermont/Kwa-Dabeka, Mpumalanga
Town Centres (Pinetown / Isipingo / Tongaat, etc.)
Tourism Nodes and Corridors (eg.Central Beachfront, Umgababa, etc.)
Industrial Areas (eg. Cornubia)
Provision of High Quality Economic Intelligence / Research
Finalisation of Key Economic Strategies and Plans (eg. Economic Development andJob Creation Plan, Industrial Strategy and Plan, Industrial Land Strategy)
Sector Support Programmes - Promoting Job Creation and Job Retention
Focused Investment Promotion and Facilitation Targeting Key Sectors in Local, plusForeign Business. (Additional capacity in place for 2013/14)
Best Practice City Commission (R3.1m)
Durban Film Office Programmes:-
Durban Film Mart (International Co-production Development Programme forIndustry Professionals R1.8m budget)
Development Programme (Intermediate and Entry Level Producers R1mbudget)
ECONOMIC DEVELOPMENT(contd)
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
61/114
ECONOMIC DEVELOPMENT(contd) Economic Development Programmes (R24m)
Best Practice City Commission ( R3.1m)
Durban Film Office Programme ( R4.6m)
Town Centre Renewals Capital (R79m)
Tourism Nodes - Capital (R10.5m)
Furniture IncubatorCapital (R5.5m)
Kings Park Sport & Recreational Precinct Management in support of
Infrastructure upgrades and promotion of sport Tourism/ Events.
Capital budget - R6 million.
Central Beachfront precinct management (including beachfront
leases) in support of infrastructure upgrades and promotion of keytourism asset. Operating budgetR16.2 million.
Town Centre Renewals Prioritised Attention
Industrial Renewal Commencement of Programme
TOURISM
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
62/114
TOURISM Durban is the domestic tourism capital: 1.7m visitors p.a.
Citys visitor industry under stress due to declining visitors and
reducing spends
Three cities international marketing campaign flighting highlights of
the citys urban centre on National Geographic and Discovery
Channels (R 20m over 3 years)
Increased visible policing and additional CCTV cameras
Continued focus on mega-eventing: national and international events
Additional investments in tourism infrastructure upgrades &
modernise attractions (beachfront, valley of a thousand hills etc) tomaintain competitive tourism edge
The political tradition of ancient thought, filtered in Italy by Machiavelli, says one thing
clearly: every prince needs allies, and the bigger the responsibility, the more allies he needs. -
Silvio Berlusconi
TOURISM
http://www.woopidoo.com/business_quotes/authors/silvio-berlusconi-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/silvio-berlusconi-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/silvio-berlusconi-quotes.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
63/114
TOURISM
THREE CITIES GLOBAL MARKETING STRATEGY (R14.1m)
Viewership of 363 million in 160 countries in 60 languages. In April 2013 National
Geographic will launch a 30 minute documentary on Durban. This will be
broadcasted more than 4 times across all its channels.
TOURISM INDABA ( R17.4m)
Africas largest travel & tourism trade show. Attracts 2000 Exhibitors and 12500
Delegates .Socio economic impact in excess of R250 million and creates about
1500 jobs.
TRADE SHOWS (R1.2m)
CONVENTION SUPPORT (R2.5m)
MARKETING AND PUBLICITY FOR TOP GEAR (R3m)
TOURISM ENTERPRISE DEVELOPMENT / COMMUNITY TOURISM ORGANSATIONS( CTOs) - (R1.5m)- providing opportunities for Local Communities in tourism
ventures
No South African should rest and wallow in the joy of freedom. Nelson Mandela
BUSINESS SUPPORT TRAINING AND DEVELOPMENT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
64/114
BUSINESS SUPPORT TRAINING AND DEVELOPMENT
SMMES/CO-OPTS
SECTOR DEVELOPMENT PROGRAMES
Arts & Crafts (R0.6m)Manufacturing (R0.5m)Business to Business Linkages (R1m)
Construction Incubator (R1.6m)
Incubation Program/ Co-operative Development ( R1.7m)
Fashion Development Programme (R3.1m)
Strategic Workshops / BBBEE ( R0.6m)
Strategic Sector Empowerment Workshops
Women empowerment (R1.1m)
Tourism marketing awareness (R 1.6m)
At the end of the day government is about teamwork and
partnership and we will be proving that by working together.
Julia Gillard
BUSINESS SUPPORT TRAINING AND DEVELOPMENT
http://www.woopidoo.com/business_quotes/authors/julia-gillard/index.htmhttp://www.woopidoo.com/business_quotes/authors/julia-gillard/index.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
65/114
SMMES/CO-OPTS (contd)
Support to Agencies providing assistance to small and medium
businesses
ie. Seda eThekwini (R3.5m) and Tradepoint (R1.2m)
Informal Economy and Retail Markets( R 1.5m)
Skilling of SMMEs in management, production and services
Access to international markets
Durban Business Fair (R8m) -
Create platforms for interactions and networking amongst
businesses through SMME fairs.
Freedom cannot be achieved unless women have
been emancipated from all forms of oppression.
Nelson Mandela
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
66/114
CAPITAL BUDGET 2013-14 MTREF
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
67/114
27 %
30 %
40 %
1 % 2 %
Capital budget split for 2015/16 - MSFM Model-
Social Economic Rehab
Environment Admin
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
68/114
DRAFT CAPITAL BUDGET
DRAFT CAPITAL BUDGET -2013/14 TO 2015/16
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
69/114
R'000 % R'000 % R'000 %
Total Capital Budget 5,432.2 5,767.1 6,441.9
Funded as follows:
Grant Funding 3,355.5 61.8 3,830.0 66.4 4,341.4 67.4Internal Funding 1,076.7 19.8 937.1 16.2 1,100.5 17.1
Borrowings 1,000.0 18.4 1,000.0 17.3 1,000.0 15.5
5,432.2 5,767.1 6,441.9
Details 2013/2014 2015/20162014/2015
I felt fear more times than I can remember, but I hid it
behind a mask of boldness. Nelson Mandela
CAPITAL FUNDING more detail
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
70/114
CAPITAL FUNDING more detailBUDGET
2013/14
BUDGET
2014/15
BUDGET
2015/16
R '000 R '000 R '000
GRANTS 3,355,508 3,830,013 4,341,357
CONDITIONAL 3,298,308 3,709,313 4,213,057
Public Transport and Infrastructure
Systems Grant 707,366 884,751 937,287
Neighborhood Development Grant 3,555 70,000 75,000
Urban Settlements Development
Grant 1,580,999 1,800,075 1,863,667
Department of Housing 639,306 577,587 941,500
Integrated National Electrification
Grant 35,000 35,000 40,000
Integrated City Development Grant 9,539
National Treasury Fuel Levy 322,543 341,900 355,603
OTHER 57,200 120,700 128,300
PROVINCIAL SUBSIDY 44,000 119,700 122,000
Lotto Museum 13,200 1,000 6,300.00BORROWINGS 2013/14 1,000,000 1,000,000 1,000,000
Additional Borrowings/ Internal 1,076,638 937,061 1,100,523
TOTAL 5,432,146 5,767,074 6,441,880
PROJECTED LOANS OUTSTANDING -
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
71/114
Loans O/S
2011/06/30
R000
New Loan
2011/12
R000
Net
Repayment
2011/12
R000
Loans O/S
2012/06/30
R000
New Loan
2012/13
R000
Net
Repaym
ent
2012/13
R000
Loans O/S
2012/13
R000
%
Electricity 1,999,342 200,000 42,427 2,156,914 187,500 142,782 2,201,632 20.7
Water 3,924,632 150,000 121,826 3,952,806 187,500 242,390 3,897,916 36.6
Sanitation 732,134 14,364 717,770 45,448 672,322 6.3
Solid Waste 69,612 1,296 68,316 4,808 63,508 0.6
Roads
1,953,948 320,000 113,463 2,160,485 185,000 158,468 2,187,017 20.6
ETA
Infrastructure
HSS
1,430,786 330,000 138,074 1,622,716 190,000 192,885 1,619,831
Note
15.2
SSS
SDCETreasury
Governance
OCM
TOTAL 10,110,454 1,000,000 431,450 10,679,006 750,000 786,781 10,642,226 100
Note: Included in the 15.2% is infrastructure costs relating to Halls, Libraries etc which with take the
total loans allocated to infrastructure to 90% (Loans only fund Capital Expenditure)
30 JUNE 2013
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
72/114
HIGH LEVEL SUMMARY
DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARY
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
73/114
Total Budget2013/14
Total Budget
2014/15
Total Budget
2015/16
HUMAN SETTLEMENTS &
INFRASTRUCTURE 4,753,608 4,865,577 5,504,138
Housing 789,306 707,587 1,327,400
Engineering 729,805 727,785 721,641
Water 744,430 841,400 806,100
Electricity 568,798 642,352 653,774
Sanitation 770,400 700,750 677,400
Solid Waste 82,800 85,635 90,773
ETA 1,068,069 1,160,068 1,227,050
% of total budget 88% 85% 85%
DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARYTotal Budget Total Budget Total Budget
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
74/114
Total Budget
2013/14
Total Budget
2014/15
Total Budget
2015/16
HEALTH & SOCIAL SERVICES 135,410 273,189 270,900
Establishment of parks & gardens 4,685 13,437 9,900
Sport fields 10,020 11,994 16,937
Community halls 2,163 2,332 2,471
Cemeteries 450 3,457 3,630
Libraries 59,589 179,640 185,900
Recreation facilities 14,592 33,832 35,861
Museums & art galleries 13,650 3,497 6,300
Clinics 30,262 25,000 9,900
SOCIAL & SECURITY SERVICES 81,521 93,878 91,790
Fire & Emergency Services 35,072 51,938 60,072
Emergency Control & Disaster
Management 34,200 34,857 23,850
Metro Police 2,277 7,083 7,868
Security Management 9,972 0 0
DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARYT t l B d t T t l B d t T t l B d t
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
75/114
Total Budget
2013/14
Total Budget
2014/15
Total Budget
2015/16
SUSTAINABLE DEVELOPMENT
& CITY ENTERPRISES 160,156 204,740 247,100
Economic Development ' 105,188 154,300 181,000
Business Support 1,152 1,170 4,200
D'Moss 3,587 3,150 3,600
Markets 4,230 3,420 19,800
Strategic Projects 45,999 42,700 38,500TREASURY 110,580 144,750 115,932
GOVERNANCE 13,500 23,680 14,310
CORPORATE HUMAN
RESOURCE 10,170 2,250 810
OFFICE OF THE CITYMANAGER 167,200 159,010 196,900
Information Technology 97,200 89,010 99,900
Strategic Projects 70,000 70,000 97,000
TOTAL 5,432,146 5,767,074 6,441,880
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
76/114
MAJOR PROJECTS
MAJOR CAPITAL PROJECTS MTREF
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
77/114
BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16
Rm Rm Rm
Treasury
Fleet Replacement & Maintenance- R & G 29 41 47
RMS 40 52 0
Libraries
New Central Library 34 112 122
Solid Waste Projects 83 86 91
Roads
Road Rehabilitation and reconstruction 323 372 385
Port Expansion & Freight 90 108 0
N2 Interchange 43 22 0
Bellair Road Upgrade Phase 2 30 40 40
Northern Areas Road Upgrades 23 23 81
Economic development Projects - Various 105 205 247
Strategic Projects 70 70 70
MAJOR CAPITAL PROJECTS MTREF
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
78/114
BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16
Rm Rm Rm
Water
Water Flagship Project - Western Aqueduct 244.000 300.000 380.000
Mini Hydro Power Stations 25.000 10.000 5.000
Waterloss 35.000 65.000 50.000
Relays & Extension 40.000 25.000 25.000
Northern Aqueduct 190.000 100.000 90.000
Water - Plant and Equipment 27.900 22.500 27.000
Electricity
Durban South S/S 25.000 0.000 0.000Control Centre Buildings 27.000 27.000 9.000
Sapref 33.800 11.000 0.000
Jameson Park S/S 20.000 37.000 0.000
MVLV Replacement Reticulation 35.000 30.000 10.000
Klaarwater S/S 42.000 22.000 0.000
Himalayas / Austerville Link 25.000 33.000 0.000
Umgeni / Klaarwater OHTL 32.000 7.000 0.000
Prepayment Connection Costs 35.000 30.000 30.000
MVLV New Supply - Sundry 45.000 45.000 45.000
Housing Infrastructure Development
Cornubia Ph 2 44.000 80.000 0.000
Etafuleni Ph2 20.000 10.000 20.400
Ntuzuma D Ph 2 & 3 48.306 0.000 0.000
Etafuleni Phase 1 60.000 0.000 0.000
MAJOR CAPITAL PROJECTS 2013/14
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
79/114
BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16
Rm Rm Rm
Information Technology
Major System Enhancement 22 14 0
Ethekwini Transport Authority
PTIS Blocksum 679 896 887
Bayhead Edwin Swales Link 255 183 153
Stormwater
Storm Damage 50 0 0
Sanitation
New Airport - Infrastructure 27 60 62
Water Reuse 49 10 0
Expansion of Phoenix WTW 80 75 40
Ablution Blocks - In Situ Upgrade 233 240 230SWWTW Digester Online 32 42 50
Tongaat Central WTW Expansion 50 40 10
Informal Settlements W & S plus 42 10 20
Kwa Mashua WWTW 50 10 10
Block Sum 36 7 7
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
80/114
MAJOR DEVELOPMENTS
DCT BERTH DEEPENING 1 2 Port:Short term expansion
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
81/114
Key Economic Infrastructure
MAYDON WHARF CT
BAYHEAD
EXPANSION
CONTAINER EXPANSION SEQUENCE
DCT AND PIER 1 : 3.6m TEU : 2013
PIER 1 CT PHASE 2 : +0.7m TEU : 2015
DCT DEEPENING : -1.0m TEU: 2014/15-
2017/18
MAYDON WHARF CT : +0.6m TEU :
2017
AIRPORT SITE : +9.6m TEU : 2019 TO2037
3
Short-term expansion
New dig-out basin in
Bayhead
Durban-Gauteng
Freight Corridor
Phase 1 to
4
Container
Terminals
Liquid
Bulk
Terminal
Vehicle
Terminal
Dig-Out Port
DIG OUT PORT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
82/114
Old airport site secured by Transnet unlocking multibillionrand plans
Development of site is a mega engineering project, couldemploy +/- 20 000 workers directly (cost over R 100bn over25 years)
Development of terminal with 16 container berths, 5automotive berths and 4 liquid berths
Construction to be done in collaboration with the privatesector
First phase to complete in 2019 at a cost of R 50 billion
One of the largest port projects undertaken by Transnet
National Ports Authority
I don't want to be just a voice on the phone. I have to get to know these guys face-to-face
and develop a sincere relationship. That way, if we run into problems in a deal, it doesn't get
adversarial. We trust each other and have the confidence we can work things out. -
Wayne Huizenga
DIG OUT PORT
http://www.woopidoo.com/business_quotes/authors/wayne-huizenga/index.htmhttp://www.woopidoo.com/business_quotes/authors/wayne-huizenga/index.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
83/114
National government set aside R 21.3bn on Durban portinfrastructure over seven years
Once operational it would employ 12 000 people directly and another16 000 indirectly.
Catalyst for economic development in south Durban
Boost to the local economy and increase in national and international
trade with many spin-offs Enhances competitive edge over other provinces
This will cement Durbans place as the major container hub in Africaby doubling the capacity of current berths
Could propel the city to take over as economic hub of the country
I really want people to know that Ive worked hard, very hard, to get to where I am today
this didnt just happen overnight. I started in business over 25 years ago and have found a way
to build on what Ive learned through every partnership and opportunity. - Magic Johnson
SMME F i
http://www.woopidoo.com/business_quotes/authors/magic-johnson/index.htmhttp://www.woopidoo.com/business_quotes/authors/magic-johnson/index.htmhttp://www.woopidoo.com/business_quotes/authors/magic-johnson/index.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
84/114
Enterprise Development
84
SMME Fair
Other SMMEProgrammes:
1. Women Empowerment
2. Construction
3. Support to Enterprises
4. Business Linkages5. Sister Relationships
6. Finance Strategy
7. Partnerships with
Financial Institutions
8. Financial Education
1. Bridge City
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
85/114
Key Projects
5. Umlazi-KwaMnyanda Node
4. PRASA Upgrade &
Commercial Development
at StationsUmlazi-KwaMashu
Pinetown-Umgeni
3. Dube Trade Port:Development of
AgriZone
2. Cornubia
g y
CORNUBIA
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
86/114
Multi billion rand mixed use and mixed development project
Largest sustainable integrated human settlement project in the
province and one of the biggest in the country Home of the next major industrial area in the north
Total estimated investment of R 24 billion in buildings andinfrastructure
Provision of 20 000 housing opportunities as well as employmentand economic opportunities
Envisage to create about 48 000 permanent and 15 000 constructionjobs over a 15 year period
We intend to conduct our business in a way that not only meets but exceeds the expectations
of our customers, business partners, shareholders, and creditors, as well as the communities in
which we operate and society at large. - Akira Mori
http://www.woopidoo.com/business_quotes/authors/akira-mori/index.htmhttp://www.woopidoo.com/business_quotes/authors/akira-mori/index.htmhttp://www.woopidoo.com/business_quotes/authors/akira-mori/index.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
87/114
BENEFITS - SUMMARY
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
88/114
DESPITE FEW SOCIAL COSTS, NET EFFECT IS POSITIVE;
BULK INFRASTRUCTURE INVESTMENT OF R5.13 BILLION WILL UNLOCK -
INTERNAL SERVICES OF R3Bn
LAND AND BUILDING INVESTMENT OF R17.5Bn
IN EXCESS OF R200 MILLION IN ANNUAL MUNICIPAL RATES GENERATION FROM THE
PARTNERSHIP ALONE;
VAT PAYMENTS OF R1.5Bn
ANNUAL TAXES OF R1.5Bn THOUSANDS OF FAMILIES WILL BE LIVING IN AN EXTREMELY WELL-LOCATED AREA IN NEW
LOW-INCOME HOMES;
OPPORTUNITY TO LINK IMPOVERISHED AREAS TO MORE UPMARKET & AFFLUENT ONES;
INCREASED ACCESS TO NEW URBAN OPPORTUNITIES;
HUGE JOB CREATION OPPORTUNITIES:
387 000 CONSTRUCTIONS JOBS
42 830 PERMANENT JOBS
FACILITATE THE SERVICE PROVISION FOR THE REMAINDER OF THE CATCHMENT
FACILITATE THE UNLOCKING OF CORNUBIA NORTH AND ACTIVITY CORRIDOR TO THE AIRPORT
88
DUBE TRADEPORT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
89/114
Unique airport city north of Durban
Currently 2 040ha in extent, with 60 year developments master plan:
expansion to 20 000ha
Proximity to ports gives edge as a transport and logistics hub
Proposals for dedicated light railway network to link Dube TradePortwith north coast and Durbans CBD
Road and rail links along the coast to the ports will make it easier toswitch cargo between different modes of transport
What lies behind us and what lies before us are
tiny matters compared to what lies within
us. ~Henry S. Haskins, Meditations in Wall
Street, 1940
DUBE TRADEPORT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
90/114
Important initiative in the economic integration through aDurban-Free State-Gauteng logistics and industrial corridor
Dube city part of a bigger strategic vision to create a world-class aerotropolis over the next 20 years
Will incorporate office, hospitality, entertainment and retailexperiences
A successful person is one who can lay a
firm foundation with the bricks that others
throw at him or her. ~ David Brinkley
Integrated Freight & Logistics
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
91/114
g g gStrategic Framework & Action Plan
Aim of the project
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
92/114
Aim of the project
Build on freight plans already developed byeThekwini Municipality, Transnet & DubeTradeport;
Develop a set of interventions that will essentiallyaddress freight & logistics infrastructure &operations within the municipal area;
Minimize logistics costs; &
Enhance the cities industrial competitiveness bytaking advantage of freight & logisticsinfrastructure & operators located in the
municipal area.
Plans objectives
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
93/114
Plans objectives
Data analysis
& literature review
Stakeholder
engagement
Data collection
International best
practice
Status Quo
Analysis
Reduce logistics
costs
Increase logistics
efficiency
Reduce negative
trucking impact
Increase competitive
advantage
Strategic
Framework
Infrastructure
Operations
Regulations
Communication &
networking
Action Plan
Stakeholder Engagement
Dedicated Freight Route
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
94/114
Dedicated Freight Route
94
Port of Durban
Pinetown
Cato Ridge
DURBANCENTRALLIBRARY
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
95/114
Building is 15000sqm
Development Manager Appointment justgone through Bid Adjudication
Construction complete in 2016/17
Budget R 496 M (excl Vat)
Project is being funded by: Carnegie Corporation of New York
eThekwini Municipality Provincial Department of Arts & Culture
The project has significant legacy impacts
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
96/114
The project has significant legacy impacts
The Central Library will help to build a strong urban core,
help attract and retain people,
build and sustain an educated workforce,
demonstrate eThekwinis commitment to leveraging past
and future public investment,
position the urban core as a competitive and liveable
location, and contribute to overall economic growth.
These are key objectives of the eThekwini Municipalitys
Economic Development Strategy.
Sectors alignedwith New Growth
Path focus areas
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
97/114
Sectors97
Clusters
Materials Recovery
Durban Automotive
Chemicals
Metals & Tooling
Clothing & Textiles
Furniture
Maritime & Logistics
Arts & Crafts
Fashion
Durban Film Office
I C T
at ocus a eas
N h
Spatial DevelopmentPlans:
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
98/114
Planning
Secondary CBDs:Isipingo
Others are: Pinetown,
Verulam & Tongaat
Northern
Urban Development
Corridor (NUDC)
Priority Nodes:KwaMashu Town Centre
Others are:
Umlazi-Malukazi
Bridge City
INK
Mpumulanga Town
CentreClermont-KwaDabeka
BEACHFRONT DEVELOPMENT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
99/114
OBJECTIVES
Integrate the 7 km CentralBeachfront
Providing amenity for adiverse range of beachusers.
Greening Creating a Safe
environment
Promoting a healthy
lifestyle
Ifyou can run the company a bit more
collaboratively, you get a better result, because you
have more bandwidth and checking and balancing
going on. - Larry Page
BEACHFRONT DEVELOPMENT
http://www.woopidoo.com/business_quotes/authors/larry-page-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/larry-page-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/larry-page-quotes.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
100/114
Redevelopment in two mainphases
Phase 1 Ushaka through toCountry Club Beach
Realignment of promenade
New nodes
Dune rehabilitation 257 Trading stalls developed
Successfully completed before the2010 FIFA World Cup
Since I'm fortunate enough to be neither hesitant nor
indecisive, I've always made a point of consulting my
partners and associates whenever a major decision has
to be made. This is not to say that I have always been
right! - Guy de Rothschild
BEACHFRONT DEVELOPMENT
http://www.woopidoo.com/business_quotes/authors/guy-de-rothschild/index.htmhttp://www.woopidoo.com/business_quotes/authors/guy-de-rothschild/index.htmhttp://www.woopidoo.com/business_quotes/authors/guy-de-rothschild/index.htm -
7/30/2019 Dcci 2013-2014 Budget Presenttaion
101/114
Redevelopment of existingPromenade between North
Pier and Bay of Plenty Extension of Sylvester Ntuli
Road through Natal Commandsite to Suncoast Boulevard
Additional stormwater
drainage at Snell Parade &Erskine Terrace
Footpaths to certain side-roadsat Snell Parade & ErskineTerrace
"Few companies have everything that they need.
You may need money, customers, or product. No
matter what you need, there is someone who has
it. That someone is a potential Corporate Partner."
Curtis E. Sahakian
BEACHFRONT DEVELOPMENT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
102/114
Extension of promenade to Umgeni River
Redevelopment of public facilities within this area includingclub facilities, ablutions, swimming pools and possible
commercial node development
Realignment of Snell Parade to slow traffic and include cycle
route
Extensionof the promenade from Count
Cl b B h I Bl L B h/Elli
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
103/114
Club Beach I to Blue Lagoon Beach/Ellis
Brown Bridge with associated road work
and parking
proved maintenance of the Central Beachfront
om Country Club Beach I through to Blue Lagoon,
cluding public ablutions.
he replacement of street furniture and lighting
om Country Club Beach I through to Blue Lagoona way that creates a common standard for the
hole Beachfront
he rehabilitation and extension of the vegetated
une abutting the proposed promenade.
KINGS PARK SPORTS AND RECREATION DEVELOPMENT PLAN
CONCEPT SPATIAL PLAN
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
104/114
1
2B2A3
45A
5
8
7
6
1110
912
13/14/15
11
16
17A
17B
1819
1. Cricket 2. Hotel/sports fields 3. Baseball/Softball
4. Hotel/sports accommodation 5. Peoples Park & underground 5/A. Potential Training Fields
6. Football/athletics 7. Proposed railway station 8. Aquatics
9. Rugby 10.Athletics 11. Archery
12. Cycling 13. High performance centre 14. Indoor sports centre
15. Tennis 16. Equestrian 17A/B. Golf/trails
18. Canoeing 19. A1 Racing
RURAL DEVELOPMENT, FOOD SECURITYAND LAND REFORM
CORPORATE SOCIAL RESPONSIBILITY
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
105/114
AND LAND REFORM
Can partner with the city on the
following
RURAL DEVELOPMENT, FOOD SECURITYAND LAND REFORM
RURAL DEVELOPMENT, FOOD SECURITY ANDLAND REFORM
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
106/114
AND LAND REFORMENGINEERING IMS DEPARTMENT
Structure has been created within IMS dealing with Agriculture,Aquaculture and Rural Development.
AQUACULTURE
Northdene Fish hatchery developed to support the program.
Produced young male (4000) ready to be transported and stock ponds anddams
Rural Fish Farming -10 fish farming sitesbeing developed
RESEARCH AND DEVELOPMENT
Northdene ;Inchanga, Marianhill, Umbumbulu , Hambanathi and SterkspruitHubs being upgraded.
KwaXimba Green Soya trials within the community
Newlands research hub on DEWATS concept.
LAND REFORM
RURAL DEVELOPMENT, FOOD SECURITY AND LANDREFORM
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
107/114
AGRICULTURE
Community Gardens Phase 1 -33 gardens 80% complete
Phase 2 Gardens 40 gardens 25% complete.
Phase 3 Gardens being assessed .
Fruit trees average of 10 trees per garden
Testing of soil & water
Supported with organic fertilizer and compost .
Provision of fencing, storage containers, toilets and water provision
infrastructure
Provision of farming tools EPWP Grant funding 2012/2013. Used to create employment
Total Agric Budget of R20M
EPWP funding used to create sustainable food arms and payment of stipends
Budget of R42 M.
RURAL DEVELOPMENT, FOOD SECURITYAND LAND REFORM
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
108/114
AND LAND REFORM
Creation of dedicated structure to drive Agriculture, Aqua and Poultryfarming
Aquaculture Umgababa
Agriculture Projects include Soya Bean project, 20 Community
Support Farms, 423 Community Gardens
Seedling and compost together expertise to be provided to
communities to alleviate poverty
EPWP funding to be used to create sustainable food farms and forests
The children who sleep in the streets, reduced to begging to make a living, are testimony to
an unfinished job. Nelson Mandela
SOUP KITCHENS
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
109/114
No. of volunteers (19 drivers & 129 assistants) 148
No. of Soup Kitchens 18
No. of Indigent people fed per month per site daily
500
Each site is servicing 4 wards
Budget Provision 2013/14 R12,3m
There can be no keener revelation of a societys soul
than the way in which it treats its children. Nelson
Mandela
YOUTH DEVELOPMENT
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
110/114
Youth Development : To mainstream youths ito economic
development / create job opportunities / Capacity building. Achievement : More than 10 000 youths have benefited from
this programme.
Budget Provision 2013/14 R 661 500 in CPAS
Youth Sports Program - R 1.6m provided in 2013/14
Youth Football Development - R 1.1m provided in 2013/14
Street Children Project - R 1.68m provided in 2013/14
What is important is not only to attain victory
for democracy, it is to retain democracy.
Nelson Mandela
CLIMATE CHANGE
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
111/114
Buffelsdraai and Inanda Reforestation ( R 10.9m)
DMOSS Capital R 3.9m
Development of the Durban Climate Change Strategy (R 915,000)
Implementation of the Durban Adaptation Charter (externallyfunded)
EM UKZN Joint Research Partnership (R 1.65m over three years)
Green Roof Pilot Programme (R 65,640)
Corruption in government that is a plague that must be erased from every regime in every
place in the world. Nelson Mandela
CONCLUSION Security we have invested a lot in this, for example, 30 new
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
112/114
Security we have invested a lot in this, for example, 30 new
security guards on beachfront and CCTV cameras and 2 615 Metro
police person
How do we retain businesses?
Growth how do we attract new businesses?
Also need to work together to grow existing business so that
business can create more jobs business ideas and developmentsmust be supported by business plan and ROI analysis
Partnershipsfor example, Cape Town has about 40 UIPs whereas
we only have 9. Business needs to partner with usUIPs, priority
zones, PPPs, CSR initiatives, etc.
Cities that have a close relationship / partnership with business
are winning cities
CONCLUSION Services enabling environment
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
113/114
Services enabling environment
Need to work together to reduce the environmental impact
of business and industry
Developmental Charges
Local Business Tax City Planning Commission
Best Practices City Commission
Blue Flag Status
Derelict Buildings
Water Loss
"Partnering should be wielded as a sword, not a shield.
It best suits companies with aspirations that exceed
their resources. You should be driven by a motivation
to reach out and gain market share, develop new
markets, and leverage your current position."
Curtis E. Sahakian
-
7/30/2019 Dcci 2013-2014 Budget Presenttaion
114/114