Municipal 2013 2014 budget presentation

eThekwini MUNICIPALITY
BUDGET PRESENTATION
DCCI
“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”

 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 BACKLOG
SERVICE 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

 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.”

ELECTRICITY
Residential connections 655 338
Business connections 44 702
Total connections 700 040
No. of FBE beneficiaries 82 546
No of Street Lights 184 950
No. of reticulation faults 283 097
21
Warren Buffet on earning: “Never depend
on a single income. Make investments to
create a second source”

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 1004
Provincial 70
National 116
International 2
Local
84%
Provincial
6%
National
10%
International
0%
% of awards per Location
2011/2012 Financial Year
• SCM spend is local – 84% spend on local businesses
• Will unpack remaining 16% for local businesses to identify
opportunities and gear up to tender for same

AUSTERITY MEASURES
▪ 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

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 INCREASES
2013/14 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%

COMPARISONOFHOUSEHOLDBILLS-NATIONALTREASURY
Measure Johannesburg CapeTown eThekwini Ekurhuleni Tshwane
Nelson
MandelaBay BuffaloCity Mangaung
AVERAGEHOUSEHOLDBILLS
Propertyrates 162.58 151.55 289.43 173.47 330.06 176.73 298.84 82.34
Electricity:Basiclevy 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:Basiclevy 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
Refuseremoval 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
TotalMonthlyBill 1329.89 1180.48 1179.4 972.04 1296.7 1085.82 1234.84 1127.13

DETAILS
ESTIMATE
2013/14
R'000
APPROX
2012/13
R'000
ESTIMATE
2012/13
R'000
EST - EST
VARIANCE %
SALARIESAND 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
REPAIRSAND MAINTENANCE 2,906,845 2,602,380 2,489,702 16.75
CONTRIBUTIONS 3,960,723 3,542,993 3,356,241 18.01
TOTAL EXPENDITURE 34,458,004 31,210,143 31,755,144 8.51
RECOVERIES& CHARGE OUTS (2,611,616) (2,252,055) (2,220,072) 17.64
NET EXPENDITURE 31,846,388 28,958,088 29,535,072 7.83
INCOME (31,846,388) (28,958,088) (29,535,072) 7.83
SURPLUS/DEFICIT (0) (0) (0)
TOTAL OPERATING BUDGET

MAJOR EXPENDITURE ITEMS
2013/2014
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

CONSOLIDATED BUDGET: Rate & GeneralSelectedOrganization:Rate and
DETAILS
ESTIMATE
2013/14
R'000
APPROX
2012/13
R'000
ESTIMATE
2012/13
R'000
EST-EST
VARIANCE %
SALARIESAND 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
REPAIRSAND MAINTENANCE 1,233,196 1,309,901 1,234,158 -0.08
CONTRIBUTIONS 2,622,980 2,239,614 2,262,699 15.92
RECOVERIES (927,789) (870,365) (871,611) 6.45
CHARGE OUTS (895,215) (629,141) (651,125) 37.49
NETEXPENDITURE 16,342,592 15,009,339 15,052,020 8.57
INCOME (16,342,592) (15,009,339) (15,052,020) 8.57

Total Rates and General Budget increased by R1.3bn (8.57%) to R16.3bn
The Rates and General budget per cluster as follows :
Office of the City Manager
 Budget increased by R76.8m(6.2%) to R 1.2bn
Treasury
 Budget increased by R6.2m(0.2%) to R3.5bn
Community and Emergency Services
Corporate Human Resources
 Budget increased by R31.5m(10.8%) to R402.4m.
Sustainable Development and Planning
 Budget increased by R50.4m(6.8%) to R793.3m .
Human Settlements and Infrastructure
Governance
 Budget increased by R50m(13.4%) to R424.4m
RATE AND GENERAL (CONTD)

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 items
REPAIRS & MAINTENANCE
 Decreased by 0.08% mainly due a decrease of R21.6m in the priority zone
areas as much of the planned work was done in the current year
INCOME
Income increased mainly as a result of the rates increase of 6.9% a, 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’000
EST-EST VARIANCE
%
SALARIES &
ALLOWANCES 577,217 457,226 477,651 20,8
GEN EXPENSES 3,374,619 3,109,696 3,566,810 -5.4
REPAIRS &
MAINTENANCE 498,133 473,847 432,562 15,2
CONTRIBUTIONS 286,118 277,936 264,846 8.0
TOTAL EXPENDITURE 4,736,087 4,318,705 4,741,869 -0.1
RECOVERIES &
CHARGE OUT
-430,784
-134,603
-406,993
-119,865
-385,293
-117,795
11,8
14,3
NET EXPENDITURE 4,170,700 3,791,847 4,238,781 -1,6
INCOME -4,170,700 -3,791,847 -4,238,781 -1,6
DEPARTMENT TOTAL 0 0 0 43

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’000
EST-EST VARIANCE
%
SALARIES &
ALLOWANCES 305,294 260,072 261,528 16.73
GEN EXPENSES 811,573 762,419 785,518 3.30
REPAIRS &
MAINTENANCE 269,275 259,474 254,834 5.67
CONTRIBUTIONS 510,145 488,555 160,970 216.92
RECOVERIES &
CHARGE OUT
-149,113 -139,534 -139,534 6.87
NET EXPENDITURE 1,747,174 1,630,986 1,323,316 32.03
INCOME -1,747,174 -1,661,876 -1,323,316 32.03
DEPARTMENT TOTAL 0 -30,890 0 46

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

CLEANSING & SOLID WASTE
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’000
EST-EST VARIANCE
%
SALARIES &
ALLOWANCES 943,056 798,219 849,886 11
GEN EXPENSES 8,222,588 7,582,056 7,778,779 6
REPAIRS &
MAINTENANCE 809,977 743,600 748,646 8
CONTRIBUTIONS 1,047,462 1,016,560 825,027 27
TOTAL EXPENDITURE 11,023,083 10,140,435 10,202,338 8
RECOVERIES &
CHARGE OUT
-223,224 -225,691 -194,247 15
NET EXPENDITURE 10,799,859 9,914,744 10,008,091 8
INCOME -10,799,859 -9,914,744 -10,008,091 8

ELECTRICITY SERVICES
SALARIES & 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 Sites
Proposed new sites from 2013/14 to 2015/16 Financial Years.
• Umbogintwini
• Galleria and Arbor Town
• King Shaka International Airport and Dube Trade Port.
• National Route Interchange [N2/N3]
• Mpumalanga / Cato Ridge is being considered.
• Links into the Kingspark Rugby Stadium VOC
• Interface with the SANRAL camera network.
• Chatsworth Shopping and Sports precinct.
• National Key Points
• SABC
• Reserve Bank
• Major Electricity Substations
• Umgeni Heights Reservoir
Proposed 3 year Budget
• 2013/14: R34.2m
• 2014/15: R34.8m
• 2015/16: R23.9m
“Business is a game, played for fantastic stakes,
and you're in competition with experts. If you
want to win, you have to learn to be a master of
the game.”
― Sidney Sheldon, Master of the Game

ETHEKWINI TRANSPORT AUTHORITY
Expenditure increased by R220,9m to R1,1 bn.
PUBLIC TRANSPORT
Expenditure increased by R253,1m to R473,7m
 People Mover – budget increased by R3,5m to R30,0m
 Durban Transport Bus Service (Subsidy) – budget increased by R10,8m
toR152,8m
 Transport for the 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 – R50,9m
 Consultants fees for development and management of IRPTN projects –
R6,0m
 Brand Advertising – R5,0m

ETHEKWINI TRANSPORT AUTHORITY
(CONT…)
ROAD SYSTEM MANAGEMENT
Expenditure 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 areas
and related control systems.
“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

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

27 %
30 %
40 %
1% 2%
Capital budget split for 2015/16 - MSFM Model
-
Social Economic Rehab
Environment Admin

DRAFT CAPITAL BUDGET -2013/14 TO 2015/16
R'000 % R'000 % R'000 %
TotalCapitalBudget 5,432.2 5,767.1 6,441.9
Funded asfollows:
Grant Funding 3,355.5 61.8 3,830.0 66.4 4,341.4 67.4
InternalFunding 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 '000
GRANTS 3,355,508 3,830,013 4,341,357
CONDITIONAL 3,298,308 3,709,313 4,213,057
Public Transport and Infrastructure
Systems Grant 707,366 884,751 937,287
Neighborhood Development Grant 3,555 70,000 75,000
Urban Settlements Development
Grant 1,580,999 1,800,075 1,863,667
Department of Housing 639,306 577,587 941,500
Integrated National Electrification
Grant 35,000 35,000 40,000
Integrated City Development Grant 9,539
National Treasury Fuel Levy 322,543 341,900 355,603
OTHER 57,200 120,700 128,300
PROVINCIAL SUBSIDY 44,000 119,700 122,000
Lotto Museum 13,200 1,000 6,300.00
BORROWINGS – 2013/14 1,000,000 1,000,000 1,000,000
Additional Borrowings/ Internal 1,076,638 937,061 1,100,523
TOTAL 5,432,146 5,767,074 6,441,880

Loans O/S
2011/06/30
R’000
New Loan
2011/12
R’000
Net
Repayment
2011/12
R’000
Loans O/S
2012/06/30
R’000
New Loan
2012/13
R’000
Net
Repaym
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 20.7
Water 3,924,632 150,000 121,826 3,952,806 187,500 242,390 3,897,916 36.6
Sanitation 732,134 14,364 717,770 45,448 672,322 6.3
Solid Waste 69,612 1,296 68,316 4,808 63,508 0.6
Roads
1,953,948 320,000 113,463 2,160,485 185,000 158,468 2,187,017 20.6
ETA
Infrastructure
HSS
1,430,786 330,000 138,074 1,622,716 190,000 192,885 1,619,831
Note
15.2
SSS
SDCE
Treasury
Governance
OCM
TOTAL 10,110,454 1,000,000 431,450 10,679,006 750,000 786,781 10,642,226 100
Note: Included in the 15.2% is infrastructure costs relating to Halls, Libraries etc which with take the
total loans allocated to infrastructure to 90% (Loans only fund Capital Expenditure)
PROJECTED LOANS OUTSTANDING -
30 JUNE 2013

DRAFT CAPITAL BUDGET-HIGH LEVEL SUMMARY
Total Budget
2013/14
Total Budget
2014/15
Total Budget
2015/16
HUMAN SETTLEMENTS &
INFRASTRUCTURE 4,753,608 4,865,577 5,504,138
Housing 789,306 707,587 1,327,400
Engineering 729,805 727,785 721,641
Water 744,430 841,400 806,100
Electricity 568,798 642,352 653,774
Sanitation 770,400 700,750 677,400
Solid Waste 82,800 85,635 90,773
ETA 1,068,069 1,160,068 1,227,050
% of total budget 88% 85% 85%

Total Budget
2013/14
Total Budget
2014/15
Total Budget
2015/16
HEALTH & SOCIAL SERVICES 135,410 273,189 270,900
Establishment of parks & gardens 4,685 13,437 9,900
Sport fields 10,020 11,994 16,937
Community halls 2,163 2,332 2,471
Cemeteries 450 3,457 3,630
Libraries 59,589 179,640 185,900
Recreation facilities 14,592 33,832 35,861
Museums & art galleries 13,650 3,497 6,300
Clinics 30,262 25,000 9,900
SOCIAL & SECURITY SERVICES 81,521 93,878 91,790
Fire & Emergency Services 35,072 51,938 60,072
Emergency Control & Disaster
Management 34,200 34,857 23,850
Metro Police 2,277 7,083 7,868
Security Management 9,972 0 0

Total Budget
2013/14
Total Budget
2014/15
Total Budget
2015/16
SUSTAINABLE DEVELOPMENT
& CITY ENTERPRISES 160,156 204,740 247,100
Economic Development ' 105,188 154,300 181,000
Business Support 1,152 1,170 4,200
D'Moss 3,587 3,150 3,600
Markets 4,230 3,420 19,800
Strategic Projects 45,999 42,700 38,500
TREASURY 110,580 144,750 115,932
GOVERNANCE 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 CAPITAL PROJECTS MTREF
BUDGET 2013/14 BUDGET 2014/15 BUDGET 2015/16
Rm Rm Rm
Treasury
Fleet Replacement & Maintenance- R & G 29 41 47
RMS 40 52 0
Libraries
New Central Library 34 112 122
Solid Waste Projects 83 86 91
Roads
Road Rehabilitation and reconstruction 323 372 385
Port Expansion & Freight 90 108 0
N2 Interchange 43 22 0
Bellair Road Upgrade – Phase 2 30 40 40
Northern Areas Road Upgrades 23 23 81
Economic development Projects - Various 105 205 247
Strategic Projects 70 70 70

MAJOR CAPITAL PROJECTS MTREF
Rm Rm Rm
Water
Water Flagship Project - Western Aqueduct 244.000 300.000 380.000
Mini Hydro Power Stations 25.000 10.000 5.000
Waterloss 35.000 65.000 50.000
Relays & Extension 40.000 25.000 25.000
Northern Aqueduct 190.000 100.000 90.000
Water - Plant and Equipment 27.900 22.500 27.000
Electricity
Durban South S/S 25.000 0.000 0.000
Control Centre Buildings 27.000 27.000 9.000
Sapref 33.800 11.000 0.000
Jameson Park S/S 20.000 37.000 0.000
MVLV Replacement Reticulation 35.000 30.000 10.000
Klaarwater S/S 42.000 22.000 0.000
Himalayas / Austerville Link 25.000 33.000 0.000
Umgeni / Klaarwater OHTL 32.000 7.000 0.000
Prepayment Connection Costs 35.000 30.000 30.000
MVLV New Supply - Sundry 45.000 45.000 45.000
Housing Infrastructure Development
Cornubia Ph 2 44.000 80.000 0.000
Etafuleni Ph2 20.000 10.000 20.400
Ntuzuma D Ph 2 & 3 48.306 0.000 0.000
Etafuleni Phase 1 60.000 0.000 0.000

MAJOR CAPITAL PROJECTS 2013/14
Rm Rm Rm
Information Technology
Major System Enhancement 22 14 0
Ethekwini Transport Authority
PTIS Blocksum 679 896 887
Bayhead – Edwin Swales Link 255 183 153
Stormwater
Storm Damage 50 0 0
Sanitation
New Airport - Infrastructure 27 60 62
Water Reuse 49 10 0
Expansion of Phoenix WTW 80 75 40
Ablution Blocks - In Situ Upgrade 233 240 230
SWWTW Digester Online 32 42 50
Tongaat Central WTW Expansion 50 40 10
Informal Settlements W & S plus 42 10 20
Kwa Mashua WWTW 50 10 10
Block Sum 36 7 7

Key Economic Infrastructure
MAYDON WHARF CT
DCT BERTH DEEPENING
BAYHEAD
EXPANSION
CONTAINER EXPANSION SEQUENCE
DCT AND PIER 1 : 3.6m TEU : 2013
PIER 1 CT PHASE 2 : +0.7m TEU : 2015
DCT DEEPENING : -1.0m TEU: 2014/15-
2017/18
MAYDON WHARF CT : +0.6m TEU :
2017
AIRPORT SITE : +9.6m TEU : 2019 TO
2037
1
3
2 Port:
Short-term expansion
New dig-out basin in
Bayhead
Durban-Gauteng
Freight Corridor
Phase 1 to
4
Container
Terminals
Liquid
Bulk
Terminal
Vehicle
Terminal
Dig-Out Port

DIG OUT PORT
• 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 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 Empowerment
2. Construction
3. Support to Enterprises
4. Business Linkages
5. Sister Relationships
6. Finance Strategy
7. Partnerships with
Financial Institutions
8. 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.

Sectors
97
• 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 Centre
Others are:
Umlazi-Malukazi
Bridge City
INK
Mpumulanga Town
Centre
Clermont-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
“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
"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

Extension of the promenade from Countr
Club Beach I to Blue Lagoon Beach/Ellis
Brown Bridge with associated road works
and parking
mproved maintenance of the Central Beachfront
rom Country Club Beach I through to Blue Lagoon,
ncluding public ablutions.
The replacement of street furniture and lighting
rom Country Club Beach I through to Blue Lagoon
n 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
3
4
5A
5
8
7
6
11
10
9
12
13/14/15
11
16
17A
17B
18
19
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

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 developed
RESEARCH 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

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 KITCHENS
No. of volunteers (19 drivers & 129 assistants) 148
No. of Soup Kitchens 18
No. of Indigent people fed per month per site daily
500
Each site is servicing 4 wards
Budget Provision 2013/14 R12,3m
“There can be no keener revelation of a 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

Municipal 2013 2014 budget presentation

Municipal 2013 2014 budget presentation

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Municipal 2013 2014 budget presentation