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Municipal 2013 2014 budget presentation


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Presented by Krish Kumar (Deputy City Manager: Treasury) and Team

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Municipal 2013 2014 budget presentation

  1. 1. eThekwini MUNICIPALITYBUDGET PRESENTATIONDCCI“Cities that have a close relationship /partnership with business are winning cities”
  2. 2. 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 concernedabout verge cutting and potholes whilst other areas are concernedabout housing and basic services• Crime and unemployment were also raised• Informal traders• Need to ensure that the social, economic and rehabilitative balanceis in place• Need to focus on ensuring that all have access to basic services andmaximising job creation opportunities“Empty pockets teaches you a million things in life. But full pockets spoils you in a millionways”
  4. 4.  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 policiesFINANCIAL POSITION
  5. 5.  Strict compliance with supply chain management policy, VFM &benchmarking given key focus Sustainability of housing provision from current financingsources 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’scontrol Unaccounted for water and theft of electricityTHE CHALLENGES
  6. 6. 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 oninvestment and take-up“No enterprise can exist for itself alone. It ministers to some great need, it performs somegreat service, not for itself, but for others.. or failing therein, it ceases to be profitable andceases to exist.” – Calvin Coolidge
  7. 7. ECONOMIC DEVELOPMENT REBATE• Rating Policy – targeted relief on big developments beingconsidered• Developments that fall within the Development node approvedby Council may receive a rebate as approved by Council onapplication 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 planis 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 yearand will be apportioned in accordance with the completion andtransfer of units within the development in terms of the ratespolicy.
  8. 8. 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 - discussedlater in more detail• Cato Ridge – industrial expansion and dry port• South Durban Basin – regenerating the industrial base –creating cleaner, greener industries, improving QOL andstimulating new development• Inner City – iTRUMP - regeneration“The first rule of any technology used in a business isthat automation applied to an efficient operation willmagnify the efficiency. The second is that automationapplied to an inefficient operation will magnify theinefficiency.” – Bill Gates
  9. 9. 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 rememberyou only at the time of their need. Feelprivileged that they think of you like acandle in the darkness of their life”
  10. 10. • The system consists, inter-alia :– Roads• Road works• Bridges• Interchanges• Intersections– Associated buildings• Terminal Stations• Transfer Stations• Depots– Information and CommunicationTechnology (ICT)– Fare and revenue collection systems– Control CentreIRPTN Infrastructure“In business, I’ve discovered that mypurpose is to do my best to my utmostability every day. That’s my standard. Ilearned early in my life that I had highstandards.” – Donald Trump
  11. 11. b e i n s p i r e d , b e m o v e dC O R R I D O R P H A S I N G2011/10/2411C1C9C3C6C6C7C7C5UmhlangaCBDUmlaziMpumalangaPinetownChatsworthRossburghTongaatHillcrestWarwickBridge CityAirportProspectonMerebankC8C8C4C2Phase 1Phase 2Phase 3Phase 4•Phase 0: Durban Transport•Phase 1: C1, C2, C3, C9•Phase 2: C2, C5, C7•Phase 3: C4, C8•Phase 4: C6EmploymentResidentialMixedPark and RideTransfer Station
  12. 12. UNEMPLOYMENT – 2011 census% EMPLOYED 79.6%% UNEMPLOYED 20.4%% FORMALEMPLOYMENT76%% INFORMALEMPLOYMENT24%• 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 benurtured
  13. 13. BUSINESS: FORMAL VS INFORMAL• Need to focus on assisting and facilitating• Retention, attraction and growth of business - must be a keypriority• Creating zones for informal traders with good footfalls• Reduce litterNO. OF FORMALBUSINESSES21 148NO. OF INFORMALBUSINESSES9 200“10% of conflicts is due to difference in opinion and 90% is due to wrong tone of voice”
  14. 14. HOUSINGNUMBERFORMAL HOUSING 524 582INFORMAL 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?
  15. 15. SERVICES BACKLOGSERVICE NO. OFHOUSEHOLDSHAVE SERVICENO. OFHOUSEHOLDSWITHOUTSERVICEELECTRICITY 651 682 294 228WATER 872 629 73 281REFUSE 945 910 0SANITATION 721 374 224 536This is being fast tracked with the interim services programme and amajor dent in the backlog will be made over the next 5 years
  17. 17.  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 peopleemployedCLEANSING & SOLID WASTE
  18. 18. 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 waterdispensers/standpipes/ablution blocks1 287 Plant and Vehicle Fleet2 968 Staff Complement18“Life is an echo. What you send out –comes back. What you so – you reap. Whatyou give – you get. What you see in others– exists in you. Remember, life is an echo. Italways gets back to you.”
  19. 19. SANITATION• 7 697 km WastewaterPipes.• 31 Wastewater TreatmentWorks• 300 Pump Stations.• 362 Ablution Blocks.• 80 000 UD’s installed• 560 000 kl/d effluent flowsinto the Works• 300 Plant and Vehicle Fleet“In the business world, everyone is paid in two coins: cash and experience. Take theexperience first; the cash will come later.” –Harold Geneen
  20. 20. 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 estuaries20“When something bad happens you have three choices. You can either let it define you. Let itdestroy you. Or you can let it strengthen you.”
  21. 21. ELECTRICITYResidential connections 655 338Business connections 44 702Total connections 700 040No. of FBE beneficiaries 82 546No of Street Lights 184 950No. of reticulation faults 283 09721Warren Buffet on earning: “Never dependon a single income. Make investments tocreate a second source”
  22. 22. 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 leftafter saving.”
  23. 23. 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
  24. 24. SCM SPEND ANALYSISLocationNumber ofawardsLocal 1004Provincial 70National 116International 2Local84%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 identifyopportunities and gear up to tender for same
  25. 25. 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 thevehicle tracking system. Only essential trips to be made.▪ All officials to continue to travel in economy class and all travelmust be approved by the CM’s office.▪ No overnight stays for team building.▪ Bench-marking of prices to be introduced through the QuoteManagement System.“To be successful, you have to have your heart in your business, and your business in yourheart.” – Thomas Watson, Sr.
  26. 26. AUSTERITY MEASURES▪▪ Productivity assessment and bench-marking of costs to beundertaken by Management Services.▪ Security costs to be reviewed.Alarm systems to be installed at low risk sites replacing securityguards.▪ Zero tolerance with regard to theft of electricity and water andnon-payment of accounts.▪ Electricity and Water losses to be actively managed.“Warren Buffet on investment: “Do not put all eggs in one basket.”
  27. 27. INTEGRATED MANAGEMENT An integrated approach regarding maintenance and service in anarea Priority zones – commenced with strategic nodes - successful – needto 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 successthrough honest dealing and strict adherence to the view that, foryou to gain, those you deal with should gain as well.” – AlanGreenspan
  28. 28. iTRUMP• Eradication of bad / dilapidated buildings• Better buildings programme• Clean up operations• Operational projects“Look at a stone cutterhammering away at hisrock, perhaps a hundred timeswithout as much as a crackshowing in it. Yet at thehundred-and-first blow it willsplit in two, and I know it wasnot the last blow that did it, butall that had gone before.” ~Jacob A. Riis
  29. 29. THE 2013/2014 BUDGET
  31. 31. 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 materialisereview expenditure Realistic and achievable collection rates Project planning at least 6 months prior to commencement of financialyear 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)
  32. 32. 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 ASSET5.6%< 10%1% pa6.85%95%“The new source of power is not money in the handsof a few, but information in the hands of many.” –John Naisbitt
  33. 33. TOTAL BUDGET2013/14 2012/13Total Budget - Operating R 28 389.1m R 26 183.5mCapital R 5 432.1m R 5 285.2mR 33 821.2m R 31 468.7m“Let’s be honest. There’s not a business anywhere that is without problems. Business iscomplicated and imperfect. Every business everywhere is staffed with imperfect human beingsand exists by providing a product or service to other imperfect human beings.” –Bob Parsons
  34. 34. TARIFF INCREASES• Need to be cost reflective• Impact of cross subsidisation• Elasticity• Affordability• CPI related• THE GOOD NEWS: Electricity tariff reduced from 8% bya further 2% for business to 6% and 3.9% for indigentand general residential to 4.9%“We use Pencil when we were small but now we use pens… Do you know why?? Bcoz mistakesin Childhood can be erased. But not now…”
  35. 35. COMPARATIVE TARIFF INCREASES2013/14 2012/13 2011/12 2010/11 2009/10 2008/09Electricity 8% 11% 19.8% 25% 30% 27.25%Water:DomesticBusiness9.5%12.5%12.5%15.5%7.5%12.5%9.5%12.5%9.9%12%9.9%RefuseRemoval6.9% 7% 6.5% 7.5% NEWSanitation 6.9% 6.5% 6.5% NEWRates:ResidentialBusiness6.9% 6.5% 6.5% 7.9% 5.6%11.9%9.9%
  36. 36. COMPARISONOFHOUSEHOLDBILLS-NATIONALTREASURYMeasure Johannesburg CapeTown eThekwini Ekurhuleni TshwaneNelsonMandelaBay BuffaloCity MangaungAVERAGEHOUSEHOLDBILLSPropertyrates 162.58 151.55 289.43 173.47 330.06 176.73 298.84 82.34Electricity:Basiclevy 322.39 0.00 0 0 0 0 0 0Electricity:Consumption 448.1 590.3 520.09 453.72 574.36 504.84 464.50 574.45Water:Basiclevy 0 0 0 0 0 23.66 0 0Water:Consumption 201.34 205.44 265.02 176.8 232.24 186.46 257.82 248.37Sanitation 98.7 147.98 55.85 85.28 117.67 133.09 173.68 71.76Refuseremoval 96.78 85.21 49.01 82.77 42.37 61.04 40.00 122.15Other 0 0 0 0 0 0 0.00 28.06TotalMonthlyBill 1329.89 1180.48 1179.4 972.04 1296.7 1085.82 1234.84 1127.13
  38. 38. DETAILSESTIMATE2013/14R000APPROX2012/13R000ESTIMATE2012/13R000EST - ESTVARIANCE %SALARIESAND ALLOWANCES 7,035,897 6,103,231 6,350,359 10.80GENERAL EXPENSES 20,554,540 18,961,539 19,558,843 5.09REPAIRSAND MAINTENANCE 2,906,845 2,602,380 2,489,702 16.75CONTRIBUTIONS 3,960,723 3,542,993 3,356,241 18.01TOTAL EXPENDITURE 34,458,004 31,210,143 31,755,144 8.51RECOVERIES& CHARGE OUTS (2,611,616) (2,252,055) (2,220,072) 17.64NET EXPENDITURE 31,846,388 28,958,088 29,535,072 7.83INCOME (31,846,388) (28,958,088) (29,535,072) 7.83SURPLUS/DEFICIT (0) (0) (0)TOTAL OPERATING BUDGET
  39. 39. MAJOR EXPENDITURE ITEMS2013/2014ESTIMATES2013/14%R’000 R’000 R’000 R’000 R’0004,540,518 4,822,931 6,487,630 6,350,3595,495,517 6,666,970 7,839,6672,193,111 1,793,026 1,804,496 2,489,7021,428,598 1,455,464 1,777,563687,345 855,249 1,152,295SUB TOTAL 12,825,621 14,227,417 17,269,809 19,609,586 21,175,723 83.8DETAILS ACTUAL2009/2010ACTUAL2010/2011ACTUAL2011/20122012/2013ESTIMATESALARIES ANDALLOWANCES1,799,457 7.17,035,897 27.8BULK PURCHASES 4,531,944 8,380,735 33.2INTEREST ONLOANS 480,942 1,052,789 4.2OFTOTALOPEXREPAIRS ANDMAINTENANCE 2,906,845 11.5DEPRECIATION 1,079,106
  40. 40. CONSOLIDATED BUDGET: Rate & GeneralSelectedOrganization:Rate andDETAILSESTIMATE2013/14R000APPROX2012/13R000ESTIMATE2012/13R000EST-ESTVARIANCE %SALARIESAND ALLOWANCES 5,467,750 4,807,710 4,978,490 9.83GENERAL EXPENSES 8,841,671 8,151,620 8,099,408 9.16REPAIRSAND MAINTENANCE 1,233,196 1,309,901 1,234,158 -0.08CONTRIBUTIONS 2,622,980 2,239,614 2,262,699 15.92TOTAL EXPENDITURE 18,165,597 16,508,845 16,574,756 9.60RECOVERIES (927,789) (870,365) (871,611) 6.45CHARGE OUTS (895,215) (629,141) (651,125) 37.49NETEXPENDITURE 16,342,592 15,009,339 15,052,020 8.57INCOME (16,342,592) (15,009,339) (15,052,020) 8.57
  41. 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 R424.4mRATE AND GENERAL (CONTD)
  42. 42. SALARIES & ALLOWANCES Increase of 9.83% due to national negotiated salary increase of 6.85% aswell as provision being made for conversion of temporary staff topermanent , 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 zoneareas as much of the planned work was done in the current yearINCOME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 bydecrease in Equitable Share of R 30.1m and Fuel Levy of R4.2mRATE AND GENERAL (CONTD)“Definition of a birthday: The only day in your life… your mother smiled when you cried.”
  43. 43. WATER SERVICESDETAILS2013/2014ESTIMATER’0002012/2013APPROXR’0002012/2013ESTIMATER’000EST-EST VARIANCE%SALARIES &ALLOWANCES 577,217 457,226 477,651 20,8GEN EXPENSES 3,374,619 3,109,696 3,566,810 -5.4REPAIRS &MAINTENANCE 498,133 473,847 432,562 15,2CONTRIBUTIONS 286,118 277,936 264,846 8.0TOTAL EXPENDITURE 4,736,087 4,318,705 4,741,869 -0.1RECOVERIES &CHARGE OUT-430,784-134,603-406,993-119,865-385,293-117,79511,814,3NET EXPENDITURE 4,170,700 3,791,847 4,238,781 -1,6INCOME -4,170,700 -3,791,847 -4,238,781 -1,6DEPARTMENT TOTAL 0 0 0 43
  44. 44. 44WATER SERVICES(Major variances and major additional items and highlights) Expenditure decreased by R68,1m from R4,24bn to R4,17bnBulk 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 fortop 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 toaccurately reflect the cost of free basic services . Equivalent decease made in Income aswell Contributions to Capital (USDG Grant) – budget increased by R11.7 from R235,0 toR246.7m“It’s through curiosity and looking at opportunities in newways that we’ve always mapped our path at Dell. There’salways an opportunity to make a difference.” – Michael Dell
  45. 45. 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 NorthernAqueduct 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 thedefining characteristics of politics and religion.” – Nelson Mandela
  46. 46. SANITATION SERVICESDETAILS2013/2014ESTIMATER’0002012/2013APPROXR’0002012/2013ESTIMATER’000EST-EST VARIANCE%SALARIES &ALLOWANCES 305,294 260,072 261,528 16.73GEN EXPENSES 811,573 762,419 785,518 3.30REPAIRS &MAINTENANCE 269,275 259,474 254,834 5.67CONTRIBUTIONS 510,145 488,555 160,970 216.92TOTAL EXPENDITURE 1,896,287 1,770,520 1,462,850 29.63RECOVERIES &CHARGE OUT-149,113 -139,534 -139,534 6.87NET EXPENDITURE 1,747,174 1,630,986 1,323,316 32.03INCOME -1,747,174 -1,661,876 -1,323,316 32.03DEPARTMENT TOTAL 0 -30,890 0 46
  47. 47. SANITATION SERVICES(Major variances and major additional items and highlights)SANITATIONExpenditure 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 trulydangerous thing is asking the wrong question.” –Peter Drucker
  48. 48. SANITATION delivery Expand waste water treatment at Northern , KwaMashu and TotiWorks 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 transitcamps Zero based tariffs for households with property values less than orequal to R 250 000“Cash hand outs might sustain you for a fewmonths, at the end of which your problemsremain.” – Nelson Mandela
  49. 49. SANITATIONDETAILS2013/2014ESTIMATER’0002012/2013APPROXR’0002012/2013ESTIMATER’000EST-ESTVARIANCE%SALARIES &ALLOWANCES 305,294 260,072 261,528 17GEN EXPENSES 811,573 762,419 785,518 3REPAIRS &MAINTENANCE 269,275 259,474 254,834 6CONTRIBUTIONS 510,145 519,445 160,970 217TOTAL EXPENDITURE 1,896,287 1,801,410 1,462,850 30RECOVERIES &CHARGE OUT-149,113 -139,533 -139,534 7NET EXPENDITURE 1,747,174 1,661,877 1,323,316 32INCOME -1,747,174 -1,661,877 -1,323,316 32DEPARTMENT TOTAL 0 0 0 49
  50. 50. CLEANSING & SOLID WASTE(Major variances and major additional items and highlights)MAJOR ADDITIONAL ITEMSExpenditure 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 newareas50“I wasn’t satisfied just to earn a good living. I was looking tomake a statement.” – Donald Trump
  51. 51. CLEANSING AND SOLID WASTE delivery Extend refuse removal to 100% coverage Gradual closure of the Bisasar Road Landfill site and thecommissioning of the Electron Road Transfer Station by September2013. 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 orequal to R 250 000“A child asked God: If everything is already written inour destiny, then why pray? God smiled and said: Maybe in a few places I have written “As u wish”.”
  52. 52. ELECTRICITY SERVICESDETAILS2013/2014ESTIMATER’0002012/2013APPROXR’0002012/2013ESTIMATER’000EST-EST VARIANCE%SALARIES &ALLOWANCES 943,056 798,219 849,886 11GEN EXPENSES 8,222,588 7,582,056 7,778,779 6REPAIRS &MAINTENANCE 809,977 743,600 748,646 8CONTRIBUTIONS 1,047,462 1,016,560 825,027 27TOTAL EXPENDITURE 11,023,083 10,140,435 10,202,338 8RECOVERIES &CHARGE OUT-223,224 -225,691 -194,247 15NET EXPENDITURE 10,799,859 9,914,744 10,008,091 8INCOME -10,799,859 -9,914,744 -10,008,091 8DEPARTMENT TOTAL 0 0 0 0
  53. 53. ELECTRICITY SERVICESSALARIES & ALLOWANCES Besides the salary increase of 6.85%, provision has been made to fill 498 vacant posts. Thereis a dire shortage of critical staff.GEN EXPENSES The primary reason for the increase is the bulk purchase of electricity from Eskom which hasincreased 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 ageinginfrastructure, maintenance expenditure on the electrical network has increased. Theft andvandalism are also major contributors.CONTRIBUTIONS The increase is due to contributions to the Capital Replacement Reserve resulting from therestatement of the “Contingency – provision for a decrease in Consumption” previouslyreflected as a debit against Sales. RECOVERIES Recoveries have increased due to an increase in the no. of technical staff being employedwho 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 isnecessary to balance the Electricity budget.
  54. 54. 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 belowInternational norms Theft of Electricity and Electricity infrastructure continues to be a challenge Free Basic Electricity allocation for poor residents is 65 KwH for thoseconsuming 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, businessowners and managers ought to get excited about it. Thecomplaining customer represents a huge opportunity for morebusiness.” – Zig Ziglar
  55. 55. CCTV - CAMERAS262 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 ReservoirProposed 3 year Budget• 2013/14: R34.2m• 2014/15: R34.8m• 2015/16: R23.9m“Business is a game, played for fantastic stakes,and youre in competition with experts. If youwant to win, you have to learn to be a master ofthe game.”― Sidney Sheldon, Master of the Game
  56. 56. ETHEKWINI TRANSPORT AUTHORITYExpenditure 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 R30,0m Durban Transport Bus Service (Subsidy) – budget increased by R10,8mtoR152,8m Transport for the Disabled –budget increased by R 3,6m to R10,0mINTEGRATED 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 projects –R6,0m Brand Advertising – R5,0m
  57. 57. ETHEKWINI TRANSPORT AUTHORITY(CONT…)ROAD SYSTEM MANAGEMENTExpenditure increased by R0,822m to R83,18m Traffic lines and signs –budget increased by R0,388m to R8,1m Traffic signals – budget increased by R0,473 to R8,3m Maintenance of traffic signals ,road markings, traffic signage, traffic areasand related control systems.“The organizational architecture is really that acentipede walks on hundred legs and one ortwo don’t count. So if I lose one or twolegs, the process will go on, the organizationwill go on, the growth will go on.” - MukeshAmbani
  58. 58. SECTORS
  59. 59. 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. Today’s leaders must be partners with their people.. they nolonger can lead solely based on positional power.” - Ken Blanchard
  60. 60. 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)
  61. 61. 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 ofInfrastructure upgrades and promotion of sport Tourism/ Events.Capital budget - R6 million. Central Beachfront precinct management (including beachfrontleases) in support of infrastructure upgrades and promotion of keytourism asset. Operating budget – R16.2 million. Town Centre Renewals – Prioritised Attention Industrial Renewal – Commencement of Programme
  62. 62. TOURISM• Durban is the domestic tourism capital: 1.7m visitors p.a.• City’s visitor industry under stress due to declining visitors andreducing spends• Three cities international marketing campaign – flighting highlights ofthe city’s urban centre on National Geographic and DiscoveryChannels (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 thingclearly: every prince needs allies, and the bigger the responsibility, the more allies he needs.” -Silvio Berlusconi
  63. 63. TOURISM THREE CITIES GLOBAL MARKETING STRATEGY (R14.1m)Viewership of 363 million in 160 countries in 60 languages. In April 2013 NationalGeographic will launch a 30 minute documentary on Durban. This will bebroadcasted more than 4 times across all its channels. TOURISM INDABA ( R17.4m)Africa’s largest travel & tourism trade show. Attracts 2000 Exhibitors and 12500Delegates .Socio economic impact in excess of R250 million and creates about1500 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 tourismventures“No South African should rest and wallow in the joy of freedom.” – Nelson Mandela
  64. 64. BUSINESS SUPPORT TRAINING AND DEVELOPMENT –SMME’S/CO-OPTS SECTOR DEVELOPMENT PROGRAMESArts & 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 WorkshopsWomen empowerment (R1.1m)Tourism marketing awareness (R 1.6m)“At the end of the day government is about teamwork andpartnership and we will be proving that by working together.”Julia Gillard
  65. 65. BUSINESS SUPPORT TRAINING AND DEVELOPMENT –SMME’S/CO-OPTS (contd) Support to Agencies providing assistance to small and mediumbusinesses –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 amongstbusinesses through SMME fairs.“Freedom cannot be achieved unless women havebeen emancipated from all forms of oppression.” –Nelson Mandela
  66. 66. CAPITAL BUDGET 2013-14 MTREF
  67. 67. 27 %30 %40 %1% 2%Capital budget split for 2015/16 - MSFM Model-Social Economic RehabEnvironment Admin
  69. 69. DRAFT CAPITAL BUDGET -2013/14 TO 2015/16R000 % R000 % R000 %TotalCapitalBudget 5,432.2 5,767.1 6,441.9Funded asfollows:Grant Funding 3,355.5 61.8 3,830.0 66.4 4,341.4 67.4InternalFunding 1,076.7 19.8 937.1 16.2 1,100.5 17.1Borrowings 1,000.0 18.4 1,000.0 17.3 1,000.0 15.55,432.2 5,767.1 6,441.9Details 2013/2014 2015/20162014/2015“I felt fear more times than I can remember, but I hid itbehind a mask of boldness.” – Nelson Mandela
  70. 70. CAPITAL FUNDING – more detailBUDGET2013/14BUDGET2014/15BUDGET2015/16R 000 R 000 R 000GRANTS 3,355,508 3,830,013 4,341,357CONDITIONAL 3,298,308 3,709,313 4,213,057Public Transport and InfrastructureSystems Grant 707,366 884,751 937,287Neighborhood Development Grant 3,555 70,000 75,000Urban Settlements DevelopmentGrant 1,580,999 1,800,075 1,863,667Department of Housing 639,306 577,587 941,500Integrated National ElectrificationGrant 35,000 35,000 40,000Integrated City Development Grant 9,539National Treasury Fuel Levy 322,543 341,900 355,603OTHER 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
  71. 71. Loans O/S2011/06/30R’000New Loan2011/12R’000NetRepayment2011/12R’000Loans O/S2012/06/30R’000New Loan2012/13R’000NetRepayment2012/13R’000Loans O/S2012/13R’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 0.6Roads1,953,948 320,000 113,463 2,160,485 185,000 158,468 2,187,017 20.6ETAInfrastructureHSS1,430,786 330,000 138,074 1,622,716 190,000 192,885 1,619,831Note15.2SSSSDCETreasuryGovernanceOCMTOTAL 10,110,454 1,000,000 431,450 10,679,006 750,000 786,781 10,642,226 100Note: Included in the 15.2% is infrastructure costs relating to Halls, Libraries etc which with take thetotal loans allocated to infrastructure to 90% (Loans only fund Capital Expenditure)PROJECTED LOANS OUTSTANDING -30 JUNE 2013
  73. 73. DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARYTotal Budget2013/14Total Budget2014/15Total Budget2015/16HUMAN SETTLEMENTS &INFRASTRUCTURE 4,753,608 4,865,577 5,504,138Housing 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 90,773ETA 1,068,069 1,160,068 1,227,050% of total budget 88% 85% 85%
  74. 74. DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARYTotal Budget2013/14Total Budget2014/15Total Budget2015/16HEALTH & SOCIAL SERVICES 135,410 273,189 270,900Establishment 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 59,589 179,640 185,900Recreation facilities 14,592 33,832 35,861Museums & art galleries 13,650 3,497 6,300Clinics 30,262 25,000 9,900SOCIAL & SECURITY SERVICES 81,521 93,878 91,790Fire & Emergency Services 35,072 51,938 60,072Emergency Control & DisasterManagement 34,200 34,857 23,850Metro Police 2,277 7,083 7,868Security Management 9,972 0 0
  75. 75. DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARYTotal Budget2013/14Total Budget2014/15Total Budget2015/16SUSTAINABLE DEVELOPMENT& CITY ENTERPRISES 160,156 204,740 247,100Economic Development 105,188 154,300 181,000Business Support 1,152 1,170 4,200DMoss 3,587 3,150 3,600Markets 4,230 3,420 19,800Strategic Projects 45,999 42,700 38,500TREASURY 110,580 144,750 115,932GOVERNANCE 13,500 23,680 14,310CORPORATE HUMANRESOURCE 10,170 2,250 810OFFICE OF THE CITYMANAGER 167,200 159,010 196,900Information Technology 97,200 89,010 99,900Strategic Projects 70,000 70,000 97,000TOTAL 5,432,146 5,767,074 6,441,880
  77. 77. MAJOR CAPITAL PROJECTS MTREFBUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16Rm Rm RmTreasuryFleet Replacement & Maintenance- R & G 29 41 47RMS 40 52 0LibrariesNew Central Library 34 112 122Solid Waste Projects 83 86 91RoadsRoad 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 81Economic development Projects - Various 105 205 247Strategic Projects 70 70 70
  78. 78. MAJOR CAPITAL PROJECTS MTREFBUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16Rm Rm RmWaterWater Flagship Project - Western Aqueduct 244.000 300.000 380.000Mini 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 90.000Water - Plant and Equipment 27.900 22.500 27.000ElectricityDurban 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 0.000MVLV Replacement Reticulation 35.000 30.000 10.000Klaarwater S/S 42.000 22.000 0.000Himalayas / Austerville Link 25.000 33.000 0.000Umgeni / Klaarwater OHTL 32.000 7.000 0.000Prepayment Connection Costs 35.000 30.000 30.000MVLV New Supply - Sundry 45.000 45.000 45.000Housing Infrastructure DevelopmentCornubia 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
  79. 79. MAJOR CAPITAL PROJECTS 2013/14BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16Rm Rm RmInformation TechnologyMajor System Enhancement 22 14 0Ethekwini Transport AuthorityPTIS Blocksum 679 896 887Bayhead – Edwin Swales Link 255 183 153StormwaterStorm Damage 50 0 0SanitationNew 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
  81. 81. Key Economic InfrastructureMAYDON WHARF CTDCT BERTH DEEPENINGBAYHEADEXPANSIONCONTAINER EXPANSION SEQUENCEDCT AND PIER 1 : 3.6m TEU : 2013PIER 1 CT PHASE 2 : +0.7m TEU : 2015DCT DEEPENING : -1.0m TEU: 2014/15-2017/18MAYDON WHARF CT : +0.6m TEU :2017AIRPORT SITE : +9.6m TEU : 2019 TO2037132 Port:Short-term expansionNew dig-out basin inBayheadDurban-GautengFreight CorridorPhase 1 to4ContainerTerminalsLiquidBulkTerminalVehicleTerminalDig-Out Port
  82. 82. DIG OUT PORT• 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 TransnetNational Ports Authority“I dont want to be just a voice on the phone. I have to get to know these guys face-to-faceand develop a sincere relationship. That way, if we run into problems in a deal, it doesnt getadversarial. We trust each other and have the confidence we can work things out.” -Wayne Huizenga
  83. 83. • 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 internationaltrade with many spin-offs• Enhances competitive edge over other provinces• This will cement Durban’s 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 countryDIG 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 wayto build on what I’ve learned through every partnership and opportunity.” - Magic Johnson
  84. 84. Enterprise Development84SMME FairOther SMMEProgrammes:1. Women Empowerment2. Construction3. Support to Enterprises4. Business Linkages5. Sister Relationships6. Finance Strategy7. Partnerships withFinancial Institutions8. Financial Education
  85. 85. Key Projects5. Umlazi-KwaMnyanda Node4. PRASA Upgrade &Commercial Developmentat StationsUmlazi-KwaMashuPinetown-Umgeni3. Dube Trade Port:Development ofAgriZone2. Cornubia1. Bridge City
  86. 86. CORNUBIA• Multi billion rand mixed use and mixed development project• Largest sustainable integrated human settlement project in theprovince 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 expectationsof our customers, business partners, shareholders, and creditors, as well as the communities inwhich we operate and society at large.” - Akira Mori
  88. 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 TradePortwith north coast and Durban’s 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 aretiny matters compared to what lies withinus.” ~Henry S. Haskins, Meditations in WallStreet, 1940
  89. 89. DUBE TRADEPORT• 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 afirm foundation with the bricks that othersthrow at him or her.” ~ David Brinkley
  90. 90. Integrated Freight & LogisticsStrategic Framework & Action Plan
  91. 91. 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 themunicipal area.
  92. 92. Plans objectivesData analysis& literature reviewStakeholderengagementData collectionInternational bestpracticeStatus QuoAnalysisReduce logisticscostsIncrease logisticsefficiencyReduce negativetrucking impactIncrease competitiveadvantageStrategicFrameworkInfrastructureOperationsRegulationsCommunication &networkingAction PlanStakeholder Engagement
  93. 93. Dedicated Freight Route94Port of DurbanPinetownCato Ridge
  94. 94. • 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 & CultureDURBANCENTRALLIBRARY
  95. 95. 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 pastand future public investment,– position the urban core as a competitive and liveablelocation, and contribute to overall economic growth.• These are key objectives of the eThekwini Municipality’sEconomic Development Strategy.
  96. 96. Sectors97• ClustersMaterials RecoveryDurban AutomotiveChemicalsMetals & ToolingClothing & TextilesFurnitureMaritime & LogisticsArts & CraftsFashionDurban Film OfficeI C T• Sectors alignedwith New GrowthPath focus areas
  97. 97. PlanningSecondary CBDs:IsipingoOthers are: Pinetown,Verulam & TongaatNorthernUrban DevelopmentCorridor (NUDC)Spatial DevelopmentPlans:Priority Nodes:KwaMashu Town CentreOthers are:Umlazi-MalukaziBridge CityINKMpumulanga TownCentreClermont-KwaDabeka
  98. 98. OBJECTIVES• Integrate the 7 km CentralBeachfront• Providing amenity for adiverse range of beachusers.• Greening• Creating a Safeenvironment• Promoting a healthylifestyleBEACHFRONT DEVELOPMENT“If you can run the company a bit morecollaboratively, you get a better result, because youhave more bandwidth and checking and balancinggoing on.” - Larry Page
  99. 99. • 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 CupBEACHFRONT DEVELOPMENT“Since Im fortunate enough to be neither hesitant norindecisive, Ive always made a point of consulting mypartners and associates whenever a major decision hasto be made. This is not to say that I have always beenright!” - Guy de Rothschild
  100. 100. • Redevelopment of existingPromenade between NorthPier and Bay of Plenty• Extension of Sylvester NtuliRoad through Natal Commandsite to Suncoast Boulevard• Additional stormwaterdrainage at Snell Parade &Erskine Terrace• Footpaths to certain side-roadsat Snell Parade & ErskineTerraceBEACHFRONT DEVELOPMENT"Few companies have everything that they need.You may need money, customers, or product. Nomatter what you need, there is someone who hasit. That someone is a potential Corporate Partner."Curtis E. Sahakian
  101. 101. • Extension of promenade to Umgeni River• Redevelopment of public facilities within this area includingclub facilities, ablutions, swimming pools and possiblecommercial node development• Realignment of Snell Parade to slow traffic and include cyclerouteBEACHFRONT DEVELOPMENT
  102. 102. Extension of the promenade from CountrClub Beach I to Blue Lagoon Beach/EllisBrown Bridge with associated road worksand parkingmproved maintenance of the Central Beachfrontrom Country Club Beach I through to Blue Lagoon,ncluding public ablutions.The replacement of street furniture and lightingrom Country Club Beach I through to Blue Lagoonn a way that creates a common standard for thewhole BeachfrontThe rehabilitation and extension of the vegetateddune abutting the proposed promenade.
  103. 103. 12B2A345A5876111091213/14/15111617A17B1819KINGS PARK SPORTS AND RECREATION DEVELOPMENT PLANCONCEPT SPATIAL PLAN1. Cricket 2. Hotel/sports fields 3. Baseball/Softball4. Hotel/sports accommodation 5. People’s Park & underground 5/A. Potential Training Fields6. Football/athletics 7. Proposed railway station 8. Aquatics9. Rugby 10.Athletics 11. Archery12. Cycling 13. High performance centre 14. Indoor sports centre15. Tennis 16. Equestrian 17A/B. Golf/trails18. Canoeing 19. A1 Racing
  105. 105. RURAL DEVELOPMENT, FOOD SECURITYAND 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 sites –being developedRESEARCH AND DEVELOPMENT Northdene ;Inchanga, Marianhill, Umbumbulu , Hambanathi and SterkspruitHubs being upgraded. KwaXimba Green Soya trials within the community Newlands research hub on DEWATS concept.RURAL DEVELOPMENT, FOOD SECURITY ANDLAND REFORM
  106. 106. 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 provisioninfrastructure 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 LANDREFORM
  107. 107. RURAL DEVELOPMENT, FOOD SECURITYAND LAND REFORM Creation of dedicated structure to drive Agriculture, Aqua and Poultryfarming Aquaculture – Umgababa Agriculture – Projects include Soya Bean project, 20 CommunitySupport Farms, 423 Community Gardens Seedling and compost together expertise to be provided tocommunities 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 toan unfinished job.” – Nelson Mandela
  108. 108. SOUP KITCHENSNo. of volunteers (19 drivers & 129 assistants) 148No. of Soup Kitchens 18No. of Indigent people fed per month per site daily500Each site is servicing 4 wardsBudget Provision 2013/14 R12,3m“There can be no keener revelation of a society’s soulthan the way in which it treats its children.” – NelsonMandela
  109. 109. YOUTH DEVELOPMENT Youth Development : To mainstream youths ito economicdevelopment / create job opportunities / Capacity building. Achievement : More than 10 000 youths have benefited fromthis 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 victoryfor democracy, it is to retain democracy.” –Nelson Mandela
  110. 110. 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 (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 everyplace in the world.” – Nelson Mandela
  111. 111. CONCLUSION• Security – we have invested a lot in this, for example, 30 newsecurity guards on beachfront and CCTV cameras and 2 615 Metropolice person• How do we retain businesses?• Growth – how do we attract new businesses?• Also need to work together to grow existing business so thatbusiness can create more jobs – business ideas and developmentsmust be supported by business plan and ROI analysis• Partnerships – for example, Cape Town has about 40 UIP’s whereaswe only have 9. Business needs to partner with us – UIP’s, priorityzones, PPP’s, CSR initiatives, etc.• “Cities that have a close relationship / partnership with businessare winning cities”
  112. 112. CONCLUSION• Services – enabling environment• Need to work together to reduce the environmental impactof 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 exceedtheir resources. You should be driven by a motivationto reach out and gain market share, develop newmarkets, and leverage your current position."Curtis E. Sahakian