eThekwini MUNICIPALITY

BUDGET PRESENTATIONDCCI

“Cities that have a close relationship / partnership with business are winning cities”

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 million ways”

CONTEXT & CHALLENGES

Good liquidity – average cash holdings of R5 billion equating to about 96 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 the collection 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 well managed

Excellent political support in implementing policies

FINANCIAL POSITION

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 City’s

control Unaccounted for water and theft of electricity

THE CHALLENGES

DEVELOPERS• Want to pay minimal amount for bulk services

• Providing infrastructure without an informed spatial development framework

• Not prepared to guarantee an uptake

• Only 0.1% of total revenue derived from development charges

• Not sustainable – need development levy

• Serviced industrial land – business must come up with the 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 and ceases to exist.” – Calvin Coolidge

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 plan approved, 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 rates policy.

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 the inefficiency.” – Bill Gates

USE OF PUBLIC TRANSPORT• How do we ensure maximum use?

• IRTPN – success dependent on densification and effective nodes 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”

• 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, I’ve discovered that my purpose is to do my best to my utmost ability every day. That’s my standard. I learned early in my life that I had high standards.” – Donald Trump

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

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

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”

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 meet this 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?

SERVICES BACKLOGSERVICE NO. OF

HOUSEHOLDS HAVE SERVICE

NO. OF HOUSEHOLDS

WITHOUT 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

ACHIEVEMENTS TO DATE

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 (SMME’s) – 375 (R243m)

Employment created through contractors in excess of 3,800 people employed

CLEANSING & SOLID WASTE

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.”

SANITATION

• 7 697 km Wastewater Pipes.

• 31 Wastewater Treatment Works

• 300 Pump Stations.• 362 Ablution Blocks.• 80 000 UD’s 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

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.”

ELECTRICITYResidential connections 655 338Business connections 44 702Total 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”

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 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

Location Number of awards

Local 1004Provincial 70National 116International 2

Local84%

Provincial6%

National10%

International0%

% of awards per Location2011/2012 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

▪ 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 CM’s 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.

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 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

ABM’s 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• 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-first blow 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

THE 2013/2014 BUDGET

BROAD BUDGETING PRINCIPLES AND GUIDELINES

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 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 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

“Let’s be honest. There’s 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• 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 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%

COMPARISON OF HOUSEHOLD BILLS - NATIONAL TREASURY

Measure Johannesburg Cape Town eThekwini Ekurhuleni TshwaneNelson

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

OPERATING BUDGET

DETAILS

ESTIMATE 2013/14

R'000

APPROX 2012/13

R'000

ESTIMATE 2012/13

R'000EST - 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)Includes capital grants

TOTAL OPERATING BUDGET

MAJOR EXPENDITURE ITEMS2013/2014 ESTIMATES

2013/14 %

R’000 R’000 R’000 R’000 R’000

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

OF TOTAL OPEX

REPAIRS AND MAINTENANCE 2,906,845 11.5

DEPRECIATION 1,079,106

40

CONSOLIDATED BUDGET: Rate & General Selected Organization:Rate and

DETAILS

ESTIMATE 2013/14

R'000

APPROX 2012/13

R'000

ESTIMATE 2012/13

R'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 9.16 REPAIRS 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

41

Total Rates and General Budget increased by R1.3bn (8.57%) to R16.3bnThe Rates and General budget per cluster as follows :Office of the City Manager Budget increased by R76.8m(6.2%) to R 1.2bnTreasury Budget increased by R6.2m(0.2%) to R3.5bnCommunity and Emergency Services Budget increased by R189.7m(7.9%) to R2.6bnCorporate 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 R7.3bnGovernance Budget increased by R50m(13.4%) to R424.4m

RATE AND GENERAL (CONTD)

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 yearINCOMEIncome increased mainly as a result of the rates increase of 6.9% a, increases

in 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

DETAILS

2013/2014 ESTIMATE

R’000

2012/2013 APPROX

R’000

2012/2013 ESTIMATE

R’000EST-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 -1,6INCOME -4,170,700 -3,791,847 -4,238,781 -1,6

DEPARTMENT TOTAL 0 0 0 43

44

WATER SERVICES

(Major variances and major additional items and highlights) Expenditure decreased by R68,1m from R4,24bn to R4,17bn

Bulk Water Purchases–budget 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 for top level

restructure). Electricity Costs–budget 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 to

accurately 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

“It’s through curiosity and looking at opportunities in new ways that we’ve always mapped our path at Dell. There’s always an opportunity to make a difference.” – Michael Dell

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

DETAILS

2013/2014 ESTIMATE

R’000

2012/2013 APPROX

R’000

2012/2013 ESTIMATE

R’000EST-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 32.03INCOME -1,747,174 -1,661,876 -1,323,316 32.03

DEPARTMENT TOTAL 0 -30,890 0 46

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 (increased number of ablution facilities)

Water - budget increased by R12,2m from R17,4m to R29,6m (increased ablution facilities)

Contributions to Capital (USDG Grant) – budget increased by R357,3m from R222,7m 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 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

DETAILS

2013/2014 ESTIMATE

R’000

2012/2013 APPROX

R’000

2012/2013 ESTIMATE

R’000

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 32INCOME -1,747,174 -1,661,877 -1,323,316 32

DEPARTMENT TOTAL 0 0 0 49

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 in September 2013 due to the partial closure of Bisasar Road Landfill. Provision of additional staff and operating costs of R7.9m

Contributions to Capital (USDG Grant) – budget increased by R127.3m to R 136.0m

Increased Community Based Contractors (R3,0m) to service expanded and new areas

50

“I wasn’t satisfied just to earn a good living. I was looking to make a statement.” – Donald Trump

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

DETAILS

2013/2014 ESTIMATE

R’000

2012/2013 APPROX

R’000

2012/2013 ESTIMATE

R’000EST-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 8INCOME -10,799,859 -9,914,744 -10,008,091 8

DEPARTMENT TOTAL 0 0 0 0

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 Proposed tariff increase 8% - is being reviewed ESKOM increase of 8% - to be reduced Final tariff increase depends on NERSA’s 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 262 Existing SitesProposed 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

Expenditure increased by R220,9m to R1,1 bn.

PUBLIC TRANSPORTExpenditure increased by R253,1m to R473,7m

People Mover – budget increased by R3,5m to R30,0mDurban Transport Bus Service (Subsidy) – budget increased by R10,8m

toR152,8m Transport for the Disabled –budget increased by R 3,6m to R10,0m

INTEGRATED RAPID PUBLIC TRANSPORT NETWORK (IRPTN)New department responsible for planning and implementation of Rapid Public Transport projects.

IRPTN Planning – R50,9mConsultants fees for development and management of IRPTN projects –

R6,0mBrand Advertising – R5,0m

ETHEKWINI TRANSPORT AUTHORITY (CONT…)

ROAD SYSTEM MANAGEMENTExpenditure increased by R0,822m to R83,18m

Traffic lines and signs –budget increased by R0,388m to R8,1mTraffic signals – budget increased by R0,473 to R8,3mMaintenance 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 or two don’t 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

58

SECTORS

JOB CREATION AND SKILLS DEVELOPMENT Use of approximately 600 plumbing contractors on a rotational basis to

undertake water related services 370 caretakers employed at Ablution Facilities with a further 250 to be

employed within the next 6 months as further Ablution Facilities are completed Use of 372 Community Based Contractors utilising about 3770 people for

Refuse Removal services 20 trainee engineers employed under the mentorship programme EPWP Grant (R47.4m), Maximum payable is R100 per day of which R50 is

subsidised 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 water and

sanitation projects

“In the past a leader was a boss. Today’s leaders must be partners with their people.. they no longer can lead solely based on positional power.” - Ken Blanchard

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 and

Job 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, plus

Foreign 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 for Industry Professionals – R1.8m budget)

Development Programme (Intermediate and Entry Level Producers – R1m budget)

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 Incubator –Capital (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 key tourism asset. Operating budget – R16.2 million.

Town Centre Renewals – Prioritised Attention Industrial Renewal – Commencement of Programme

TOURISM• Durban is the domestic tourism capital: 1.7m visitors p.a.• City’s visitor industry under stress due to declining visitors and

reducing spends• Three cities international marketing campaign – flighting highlights of

the city’s 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) to maintain 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 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) Africa’s 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 ( CTO’s) - (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 –SMME’S/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 –SMME’S/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 SMME’s 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

CAPITAL BUDGET 2013-14 MTREF

27 %

30 %

40 %

1 % 2 %

Capital budget split for 2015/16 - MSFM Model-

Social Economic Rehab

Environment Admin

DRAFT CAPITAL BUDGET

DRAFT CAPITAL BUDGET -2013/14 TO 2015/16

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 67.4 Internal 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

BUDGET 2013/14

BUDGET 2014/15

BUDGET 2015/16

R '000 R '000 R '000GRANTS 3,355,508 3,830,013 4,341,357

CONDITIONAL 3,298,308 3,709,313 4,213,057Public Transport and Infrastructure Systems Grant 707,366 884,751 937,287

Neighborhood Development Grant 3,555 70,000 75,000Urban Settlements Development Grant 1,580,999 1,800,075 1,863,667Department of Housing 639,306 577,587 941,500Integrated National Electrification Grant 35,000 35,000 40,000

Integrated City Development Grant 9,539National Treasury Fuel Levy 322,543 341,900 355,603 OTHER 57,200 120,700 128,300PROVINCIAL SUBSIDY 44,000 119,700 122,000Lotto Museum 13,200 1,000 6,300.00BORROWINGS – 2013/14 1,000,000 1,000,000 1,000,000Additional Borrowings/ Internal 1,076,638 937,061 1,100,523TOTAL 5,432,146 5,767,074 6,441,880

Loans O/S 2011/06/30

R’000

New Loan 2011/12

R’000

Net Repayment

2011/12R’000

Loans O/S2012/06/30

R’000

New Loan 2012/13

R’000

NetRepaym

ent 2012/13

R’000

Loans O/S 2012/13

R’000%

Electricity 1,999,342 200,000 42,427 2,156,914 187,500 142,782 2,201,632 20.7Water 3,924,632 150,000 121,826 3,952,806 187,500 242,390 3,897,916 36.6Sanitation 732,134 14,364 717,770 45,448 672,322 6.3Solid Waste 69,612 1,296 68,316 4,808 63,508 0.6Roads

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

SSSSDCETreasuryGovernanceOCM

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)

PROJECTED LOANS OUTSTANDING - 30 JUNE 2013

HIGH LEVEL SUMMARY

DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARY

Total Budget2013/14

Total Budget2014/15

Total Budget2015/16

HUMAN SETTLEMENTS & INFRASTRUCTURE 4,753,608 4,865,577 5,504,138

Housing 789,306 707,587 1,327,400Engineering 729,805 727,785 721,641Water 744,430 841,400 806,100Electricity 568,798 642,352 653,774Sanitation 770,400 700,750 677,400Solid 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 SUMMARY

Total Budget2013/14

Total Budget2014/15

Total Budget2015/16

HEALTH & SOCIAL SERVICES 135,410 273,189 270,900

Establishment of parks & gardens 4,685 13,437 9,900Sport fields 10,020 11,994 16,937Community halls 2,163 2,332 2,471Cemeteries 450 3,457 3,630Libraries 59,589 179,640 185,900

Recreation facilities 14,592 33,832 35,861

Museums & art galleries 13,650 3,497 6,300Clinics 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 23,850Metro Police 2,277 7,083 7,868

Security Management 9,972 0 0

DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARY

Total Budget2013/14

Total Budget2014/15

Total Budget2015/16

SUSTAINABLE DEVELOPMENT & CITY ENTERPRISES 160,156 204,740 247,100

Economic Development ' 105,188 154,300 181,000Business Support 1,152 1,170 4,200D'Moss 3,587 3,150 3,600Markets 4,230 3,420 19,800

Strategic Projects 45,999 42,700 38,500TREASURY 110,580 144,750 115,932GOVERNANCE 13,500 23,680 14,310

CORPORATE HUMAN RESOURCE 10,170 2,250 810

OFFICE OF THE CITY MANAGER 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

MAJOR PROJECTS

MAJOR CAPITAL PROJECTS MTREF

BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16Rm Rm Rm

TreasuryFleet Replacement & Maintenance- R & G 29 41 47RMS 40 52 0LibrariesNew Central Library 34 112 122

Solid Waste Projects 83 86 91

RoadsRoad Rehabilitation and reconstruction 323 372 385Port Expansion & Freight 90 108 0N2 Interchange 43 22 0Bellair Road Upgrade – Phase 2 30 40 40Northern Areas Road Upgrades 23 23 81

Economic development Projects - Various 105 205 247

Strategic Projects 70 70 70

MAJOR CAPITAL PROJECTS MTREF

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 5.000Waterloss 35.000 65.000 50.000Relays & Extension 40.000 25.000 25.000Northern Aqueduct 190.000 100.000 90.000

Water - Plant and Equipment 27.900 22.500 27.000Electricity Durban South S/S 25.000 0.000 0.000Control Centre Buildings 27.000 27.000 9.000Sapref 33.800 11.000 0.000Jameson Park S/S 20.000 37.000 0.000

MVLV Replacement Reticulation 35.000 30.000 10.000Klaarwater 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 0.000Etafuleni Ph2 20.000 10.000 20.400Ntuzuma D Ph 2 & 3 48.306 0.000 0.000Etafuleni Phase 1 60.000 0.000 0.000

MAJOR CAPITAL PROJECTS 2013/14 BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16

Rm Rm RmInformation Technology

Major System Enhancement 22 14 0

Ethekwini Transport Authority PTIS Blocksum 679 896 887Bayhead – Edwin Swales Link 255 183 153Stormwater Storm Damage 50 0 0Sanitation New Airport - Infrastructure 27 60 62Water Reuse 49 10 0Expansion of Phoenix WTW 80 75 40Ablution Blocks - In Situ Upgrade 233 240 230SWWTW Digester Online 32 42 50Tongaat Central WTW Expansion 50 40 10Informal Settlements W & S plus 42 10 20Kwa Mashua WWTW 50 10 10Block Sum 36 7 7

MAJOR DEVELOPMENTS

Key Economic Infrastructure

MAYDON WHARF CT

DCT BERTH DEEPENING

BAYHEADEXPANSION

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 TO 2037

1

3

2 Port:Short-term expansionNew 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• Old airport site secured by Transnet unlocking multibillion

rand plans• Development of site is a mega engineering project, could

employ +/- 20 000 workers directly (cost over R 100bn over 25 years)

• Development of terminal with 16 container berths, 5 automotive berths and 4 liquid berths

• Construction to be done in collaboration with the private sector

• 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

• National government set aside R 21.3bn on Durban port infrastructure over seven years

• Once operational it would employ 12 000 people directly and another 16 000 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 Durban’s place as the major container hub in Africa

by doubling the capacity of current berths• Could propel the city to take over as economic hub of the country

DIG OUT PORTDIG OUT PORT

“I really want people to know that I’ve worked hard, very hard, to get to where I am today… this didn’t just happen overnight. I started in business over 25 years ago and have found a way to build on what I’ve learned through every partnership and opportunity.” - Magic Johnson

Enterprise Development

84

SMME Fair

Other SMME Programmes:

1. Women Empowerment2. Construction3. Support to Enterprises4. Business Linkages5. Sister Relationships6. Finance Strategy7. Partnerships with

Financial Institutions8. Financial Education

Key Projects

5. Umlazi-KwaMnyanda Node

4. PRASA Upgrade & Commercial Development at Stations

Umlazi-KwaMashu Pinetown-Umgeni

3. Dube Trade Port: Development of AgriZone

2. Cornubia

1. Bridge City

CORNUBIA• 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 and

infrastructure• Provision of 20 000 housing opportunities as well as employment

and economic opportunities• Envisage to create about 48 000 permanent and 15 000 construction

jobs 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

BENEFITS - SUMMARY• 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• Unique airport city north of Durban

• Currently 2 040ha in extent, with 60 year developments master plan: expansion to 20 000ha

• Proximity to port’s gives edge as a transport and logistics hub

• Proposals for dedicated light railway network to link Dube TradePort with north coast and Durban’s CBD

• Road and rail links along the coast to the ports will make it easier to switch 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• Important initiative in the economic integration through a

Durban-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 retail experiences

“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 Strategic Framework & Action

Plan

Aim of the project• Build on freight plans already developed by

eThekwini Municipality, Transnet & Dube Tradeport;• Develop a set of interventions that will essentially

address freight & logistics infrastructure & operations within the municipal area;

• Minimize logistics costs; &• Enhance the cities industrial competitiveness by

taking advantage of freight & logistics infrastructure & operators located in the municipal area.

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

94

Port of Durban

Pinetown

Cato Ridge

• Building is 15000sqm• Development Manager Appointment just

gone 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

DURBANCENTRALLIBRARY

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 eThekwini’s 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 Municipality’s Economic Development Strategy.

Sectors97

• Clusters

Materials Recovery

Durban Automotive

Chemicals

Metals & Tooling

Clothing & Textiles

Furniture

Maritime & Logistics

Arts & Crafts

Fashion

Durban Film Office

I C T

• Sectors aligned with New Growth Path focus areas

Planning

Secondary CBDs: Isipingo

Others are: Pinetown, Verulam & Tongaat

Northern Urban Development Corridor (NUDC)

Spatial Development Plans:

Priority Nodes:KwaMashu Town CentreOthers are: Umlazi-MalukaziBridge CityINKMpumulanga Town CentreClermont-KwaDabeka

OBJECTIVES• Integrate the 7 km Central

Beachfront• Providing amenity for a

diverse range of beach users.

• Greening• Creating a Safe

environment • Promoting a healthy

lifestyle

BEACHFRONT DEVELOPMENT

“If you 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

• Redevelopment in two main phases

• Phase 1 – Ushaka through to Country Club Beach

– Realignment of promenade– New nodes– Dune rehabilitation– 257 Trading stalls developed

• Successfully completed before the 2010 FIFA World Cup

BEACHFRONT DEVELOPMENT

“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

• Redevelopment of existing Promenade between North Pier and Bay of Plenty

• Extension of Sylvester Ntuli Road through Natal Command site to Suncoast Boulevard

• Additional stormwater drainage at Snell Parade & Erskine Terrace

• Footpaths to certain side-roads at Snell Parade & Erskine Terrace

BEACHFRONT DEVELOPMENT

"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

• Extension of promenade to Umgeni River• Redevelopment of public facilities within this area including

club facilities, ablutions, swimming pools and possible commercial node development

• Realignment of Snell Parade to slow traffic and include cycle route

BEACHFRONT DEVELOPMENT

Extension of the promenade from Country Club Beach I to Blue Lagoon Beach/Ellis

Brown Bridge with associated road works and parking

Improved maintenance of the Central Beachfront from Country Club Beach I through to Blue Lagoon, including public ablutions.

The replacement of street furniture and lighting from Country Club Beach I through to Blue Lagoon in a way that creates a common standard for the whole Beachfront

The rehabilitation and extension of the vegetated dune abutting the proposed promenade.

1

2B2A 34

5A

5

8

7

6

1110

912

13/14/15

11

16

17A

17B

1819

KINGS PARK SPORTS AND RECREATION DEVELOPMENT PLAN

CONCEPT SPATIAL PLAN

1. Cricket 2. Hotel/sports fields 3. Baseball/Softball

4. Hotel/sports accommodation 5. People’s 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 SECURITY AND LAND REFORM

CORPORATE SOCIAL RESPONSIBILITY

Can partner with the city on the following

RURAL DEVELOPMENT, FOOD SECURITY AND LAND REFORM

ENGINEERING 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 and

dams Rural Fish Farming -10 fish farming sites –being developedRESEARCH AND DEVELOPMENT Northdene ;Inchanga, Marianhill, Umbumbulu , Hambanathi and Sterkspruit

Hubs being upgraded. KwaXimba Green Soya trials within the community Newlands research hub on DEWATS concept.

RURAL DEVELOPMENT, FOOD SECURITY AND LAND REFORM

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 SECURITY AND LAND REFORM

RURAL DEVELOPMENT, FOOD SECURITY AND LAND REFORM

Creation of dedicated structure to drive Agriculture, Aqua and Poultry farming

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 KITCHENSNo. 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 society’s soul

than the way in which it treats its children.” – Nelson Mandela

YOUTH DEVELOPMENT

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 Buffelsdraai and Inanda Reforestation ( R 10.9m)

D’MOSS – Capital R 3.9m

Development of the Durban Climate Change Strategy (R 915,000)

Implementation of the Durban Adaptation Charter (externally funded)

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

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 developments must be supported by business plan and ROI analysis

• Partnerships – for example, Cape Town has about 40 UIP’s whereas we only have 9. Business needs to partner with us – UIP’s, priority zones, PPP’s, CSR initiatives, etc.

• “Cities that have a close relationship / partnership with business are winning cities”

CONCLUSION• 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