DURBANCHAMPIONING THE INDIGENT

MAXIMISING SERVICE DELIVERYCREATING HIGH-QUALITY LIVING ENVIRONMENTS

DRIVING INVESTMENT IN PUBLIC INFRASTRUCTURE

A PREVIEW OF THE 2008/2009 MUNICIPAL BUDGET

MANAGING PUBLIC FUNDS

PRUDENTLY }

CONTENTS

FOREWORD FROM THE LEADERSHIP

AN INCLUSIVE BUDGET

WINNING BECAUSE WE DELIVER

A LONG-TERM VISION

A COMPLEX OPERATING BUDGET

GOING BEYOND OUR MANDATE

PLATFORM INFRASTRUCTURE

PROVIDING RESOURCES

SUPPORTING OUR COMMUNITIES

A DIVERSE RANGE OF LINE SERVICES

KEEPING TARIFFS REALISTIC

A SIGNIFICANT CAPITAL BUDGET

MANAGING LEGISLATIVE CHANGE

A GOOD FINANCIAL RECORD

COMPARING WITH OUR COUNTERPARTS

UNQUALIFIED FINANCIAL STATEMENTS

STIMULATING THE ECONOMY

READINESS FOR 2010

MEASURING THE ECONOMY

INVESTMENT IN THE CITY

CARING FOR ALL OUR CITIZENS

PROVEN CAPABILITIES

THE BUILDING-BLOCKS FOR SUCCESS

A METRO THAT IS OPEN TO DISCUSSION

WE CARE, WE BELONG, WE SERVE

FOREWORD FROM THE LEADERSHIP

Year-on-year, the challenges faced by metropolitan authorities in South Africa becomes increasingly more complex. Cities are seen as havens for jobs, better livelihoods, access to superior public infrastructure and business opportunities by rural communities. Yet, it is cities that face the biggest hurdles with this population migration. The need for services increases dramatically, placing great strains on already-stretched municipal budgets. With this rise in city populations, there is little corresponding increases in terms of income for the Municipality. Revenue increases from rates and our trading services like water and electricity are quite rightly capped within acceptable national limits. Thus, our challenges as a metro are immense. The demands created by basic human needs are high, straining the resources of a low-growth base in real terms. Into our ninth year of the new millennium, many indigent people still do not have access to acceptable housing, water supply, sanitation and electricity. It is within these limiting financial constraints that eThekwini continues to provide a vast array of public services including: housing, transport, water, sanitation, roads, security, refuse removal, emergency services, libraries, clinics, social services, economic infrastructure and even opportunities to local SMME’s. Concomitantly, our budgets are developed with a specific pro-poor focus.At the same time, we are committed to enhancing our enabling environment to support business and attract investment. Accordingly, we have created the relevant platform infrastructure over the years as well as increased bulk services for business to utilise or access. Further to this, we have a significant capital expenditure spend of over R50 billion projected over the next ten years. In addition, for the 2008/2009 financial year, the repairs and maintenance portion of the budget is 10.8%, which is well above the norm for any other local metro.As promised in our inaugural brochure last year, we endeavour to provide an annual update on our budget and its related processes. Every year, we will choose a specific aspect of our budget to highlight. Due to the current discussions around the new Municipal Property Rates Act (MPRA), which comes into operation in the 2008/2009 financial year, we will focus on providing some background information on the Act and its implications for the Municipality and the ratepayers of Durban. As expected, misinformation has circulated, creating dissent about the re-assessment of properties from certain quarters. As we have been reiterating, this process will provide market parity in evaluations within the city.eThekwini is a complex organisation as can be gleaned by the services we provide, in addition to us managing a R23 billion budget, and with over 18000 workers in our employ. Our budget process is consultative and our strategic intent in terms of the Integrated Development Plan (IDP) is developed with all our stakeholders. Thus, despite the sometimes overwhelming impediments that face us in making Durban the most liveable city in Africa, we always strive to create solutions that benefits all our citizens.

DR. MICHAEL SUTCLIFFE MR. KRISH KUMARCITY MANAGER CITY TREASURER

There are a number of interventions that government, at all levels, has introduced to better the lives of the poor and disabled. Recently, the national Minister of Finance lessened their financial burden by increasing their grants. We have incorporated this principle into our 2008/2009 budget. Some 108000 households will be exempt from paying rates as opposed to the 72000 households previously. Further, government subsidises these households in respect of free basic services. About 227000 (55%) of households will receive a reduction in rates. Properties valued less than R400000 according to the latest property valuations will be exempt from rates if those households are headed up by children or pensioners. Higher-valued properties owned by this demographic will have rates levied on the portion that exceeds R400000. This consideration has also been extended to those who are boarded on medical grounds or receive government disability grants, allowing for a more equitable and effective system of taxation.Our Long-Term Development Framework (LTDF) clearly maps out the strategy for the City over the next twenty years. In an effort to achieve our 2020 vision, the LTDF details the complex development priorities facing us. The essence of the LTDF is to achieve a balance between meeting basic needs, strengthening the economy, developing people skills, and creating a technology base for the future. In an effort to achieve our 2020 vision, these four Strategic Focus Areas of intervention need to be balanced and integrated. It is mandatory that the City’s budget be a pro-growth one that meets basic needs and builds on existing skills and technology. We will continue to balance the requirements of having a pro-poor budget whilst funding infrastructure that facilitates the creation of a strong economy.

MR. OBED MLABAMAYOR

AN INCLUSIVE BUDGET

The creation of our municipal budget is a consultative process. As this entails the management of council funds, we liaise with civil society and business. The budget is developed within the framework of the Municipal Finance Management Act. Added to this, it must align with the City’s Integrated Development Plan (IDP). Below is a description of the process.

In compliance with the Municipal Structures Act (1998) and Municipal Financial Management Act (2003), our city budget is informed and aligned to the IDP objectives. The IDP determines and prioritises the needs of the community. The budgetary allocations for both the capital and operating expenditure are undertaken in a manner that will not only ensure that our IDP outcomes are achieved but also to ensure that our city’s 2020 vision is realised. We have come a long way in capital budgeting, away from departmental budgeting. Currently the capital budget is allocated according to the IDP eight-point plan. During the 2008/09 IDP revision process, this allocation process was further entrenched through committing to make hard choices. In terms of the operating budget we have made an excellent start but are now more committed than ever to ensure that critical operating budget resources are prioritised in terms of stated IDP outcomes.More importantly, the Performance Management System (PMS) allows the municipality an opportunity to monitor and evaluate individual and organisational performance in meeting our IDP outcomes and vision.

September October November December January February March April May

•Process begins with assessment of the previous year’s Budgets.

•Development of the first draft Budgets.

•Review of IDP.

•Draft tariff estimate report commences.

•Draft Capital Budget is

developed.•Draft Operating Budget is

developed.

•EXCO (Council’s Executive Committee) discusses the proposed tariff increases and lifeline policies.

•Council approval of Capital Budget.

•Draft Operating Budget is presented to Council.

•Operating Budget review.

•Presentation of revised Operating Budget to EXCO and Council.

•Finalisation of tariff estimates and rates increases.

•Presentation of Budgets to Business.

•Proposed increases tabled at Council by the Mayor.

•Public hearings on Budgets.

•Regional hearings on Budgets.

•Approval of final Budgets by EXCO and the rest of Council.

• Service Delivery Budget Implementation Plan (SDBIP) finalised.

Refinement of Operating Budget at Each Stage

CIVIL SOCIETY COUNCIL

BUDGETADMINISTRATION

BUSINESS

THE BUDGET IS AN INTEGRATED PRODUCT DEVELOPED WITH INPUT FROM MAJOR STAKEHOLDERS

LEGISLATION

WINNING BECAUSE WE DELIVER

DID YOU KNOW THAT WE?•Delivered of 75000 housing units during the five year period 2002-2007.•Provided 6kl of free basic water per month to 965480 households (including apartments) in 2007.•Extended water and sanitation (new service) to 18000 households per annum•Constructed 32km of new roads, 165km of sidewalks, 201km of gravel to ‘black-top’ roads and 33 pedestrian bridges 2002-2007.•Extended refuse-removal (new service) to 159000 households per annum during the five year period 2000-2005.•Provided 155188 new electricity connections 1997-2007 and built 15 new major sub-stations 2003-2007.

The Municipality kept its winning ways throughout 2007. Some of the achievements being: -

Winner of the Vuna

Awards for being the

best performing

Metro in the country

(financial viability),

for the third consecutiv

e year.

Best Municipality in Africa – Afriglobe Awards.

United Nations Public

Service Award – Water

services debt relief scheme.

Diamond Arrow Award for bringing

investment to the Province

(DIPA).

SAICE Golden Arrow award for the

Marianhill Landfill

Conservancy project

Silver Gilt Award – Chelsea

Flower Show.

Silver Gilt Award – Chelsea

Flower Show.

Professional Management

Review Award for

most Proactive Mayor.

Award for technical

excellence for the Umhlanga Rocks Pier.

A LONG-TERM VISION

INTEGRATED DEVELOPMEN

T PLAN

CITIZENS LIVING IN HARMONY.A CARING CITY.

A CITY THAT WE ARE PROUD OF.

The above pillars serve as the core guides in the design of our operating and capital budgets for 2008/2009.

OUR IDP VISION

Sustaining Our Built and Natural

Environment:

R 223 680 969

Economic Development

and Job Creation:

R 3 896 404 910

Quality LivingEnvironments:

R 15 191 422 960

Safe, Healthy and Secure

Environments:

R 992 223 561

Empowering Our Citizens:

R 148 484 220

Embracing Our Cultural Diversity:

R 343 322 820

Good Governance:

R 780 798 095

Financial Viability

andStability:

R 1 676 437 225 R 147 136 000

Support Services

andOther:

A COMPLEX OPERATING BUDGET

TOTAL OPERATING BUDGET = R17.470 billion.

RATES AND GENERAL•Salary increase of 8.75%.•Provision for critical vacancies – R80 million (includes 200 Trainee Constables, Fire Safety, IT, Health, Skills, Municipal Court, and Planning & Development Staff.

•Interest on loans increased due to additional loans from DBSA being taken (R35m).

•Provision for Bad Debts (Increased by R200m).•Additional Repairs and Maintenance (R157.9 million).•95% collection rate.

KEY ISSUES

WATER•Bulk purchases tariff increase – 2% .•Provision for Bad Debts – R107 million.•Salary increase of 8.75%.•Impact of Capital Projects (R1040.7m) on operating, e.g.. Western Aqueduct (R250m), Replacement of pipes (R100m).

•Water loss is currently at 36%, targeting 30% for 2008/09. (9% of the 36% represents leakage from mains and this is being addressed through the AC mains replacement project.)

•95% collection rate.

ELECTRICITY•Eskom bulk purchase tariff increase – 15.2%.•Salary increase of 8.75% and recruitment of skilled professionals.•Provision for Bad Debts increased by R20m•Rollout of Infrastructure to new areas / developments•No provision for REDS implementation•Levy of 2 cents per kwh. An additional R228.5m will be levied to consumers on behalf of SARS.

•98% collection rate.

GOING BEYOND OUR MANDATE

Salaries and AllowancesThis expenditure is continually being reviewed and as a result the percentage of Salaries and Allowances of the total Operating Budget has declined steadily over the years to an acceptable level of 27.6%. The placement of staff in accordance with the recent restructuring process is near completion. However, the Municipality will continue to look at new ways of doing business, improving productivity, implementing Business Process Re-engineering (BPR) and undertaking restructuring initiatives in order to maintain this expenditure at acceptable levels. Furthermore, in terms of the placement policy negotiated with Labour, temporary Council contract employees who were employed for a continuous period of two and a half years (30 months) as at 1 April 2003 may be placed in permanent positions.

Unfunded MandatesThe eThekwini Municipality provide Health Services, Libraries, Museums, and Housing. The reduction or non-payment for these services by other tiers of government requires the Municipality to allocate its own resources to make up the shortfall.

Unaccounted for Water (Loss in Distribution)Unaccounted for water is determined by comparing the water purchase volumes with sales volumes. It is estimated that for the 2008/09 year, the targeted loss in distribution will be a reduction to 30% from current level of 35%. The water loss intervention programme to reduce the water loss to more acceptable levels is continuing with further funding provided to appoint specialist consultants to assist the process and the replacement of ageing infrastructure. Every possible measure will be taken to curb the water loss as this has an impact on the setting of an affordable water tariff. The effectiveness of the measures put into place will be reviewed on an ongoing basis.

Regional Electricity Distributors (REDS)The necessity for RED’S is appreciated by Council. However, the institutional framework i.e. the public entity model may impact on the Municipality’s funding given the significant reliance in terms of both income and leverage for credit control. The Council, however, supports the SALGA position in this matter i.e. there must be no impact on the finances of the Municipality and it must not adversely impact on the customer’s payment for services.

Load Shedding - ElectricityThe recent load shedding experienced throughout the country also poses a challenge. As a broad assumption, a 5% reduction in energy (consumption/purchase) will reduce the units gross income margin by R 95 million. In order to cover this potential shortfall in income, Council will be implementing a surcharge of 3% on electricity consumption with effect from 2008-07-01.Council is in the process of carrying out a load shedding-awareness campaign to reduce consumption by 10%. In addition, more energy-saving light bulbs will be distributed and the likelihood of load-controlling geyser switches will be phased in this year. The rollout of energy saving light bulbs has already saved about 130MW for the City.

KEY ISSUES AFFECTING THE

OPERATING BUDGET

PLATFORM INFRASTRUCTURE

Infrastructure Provision and Repairs and Maintenance continues to draw a large proportion of our budgets. Total expenditure for 2008/2009 is R1.62 billion: -

ITEM / DESCRIPTION R’ m

Rehabilitation of housing rental stock to facilitate the sale of approximately 3000 units in terms of the Housing Sales Campaign: 85.0

Maintenance of Road Network and Asphalt road surfacing inherited from other entities: Addressing of backlogs and higher frequency of maintenance (increase of): 82.0

Maintenance of additional storm water infrastructure inherited from other entities together with addressing the flood damage backlog (increase by R 10.3m to): 15.3

Repairs and maintenance of ageing infrastructure and expansion of water services to rural areas: 246.8

Repairs and maintenance to the electrical network due to increased faults and planned maintenance: 351.1

Verge maintenance - Grass cutting (including new areas) - Increase by R 5m to: 20.0

Contract for reinstating and maintaining all red robot cameras: 3.0

Maintenance of ablution blocks in informal areas (improving sanitation): 4.0

Implementation of a comprehensive maintenance plan within the fire department for specialised fire fighting equipment: 2.0

Maintenance of the entire Information Technology network of the Municipality: 17.0

OUR REPAIRS AND MAINTENANCE PORTION OF THE BUDGET IS 10.8%, WHICH IS HIGHER THAN ANY OTHER METRO

PROVIDING RESOURCES• The hiring of new staff for critical vacancies and

salary increases of 8.75% with effect from 1 July 2008 takes up a significant proportion of the Operating Budget.

• This expenditure is continually being reviewed and as a result the percentage Salaries and Allowances of the total Operating Budget has declined steadily over the years to an acceptable level of 27.6%. The placement of staff in accordance with the recent restructuring process is near completion. Whilst provision has been made in the budget for the review and revision of grades, the full impact can only be determined once the grading process has been completed. However, the Municipality will continue to look at new ways of doing business, improving productivity, implementing Business Process Re-engineering (BPR) and undertaking restructuring initiatives in order to maintain this expenditure at acceptable levels.

• Furthermore, in terms of the placement policy negotiated with Labour, temporary Council contract employees who were employed for a continuous period of two and a half years (30 months) as at 1 April 2003 may be placed in permanent positions. This expenditure has been partially funded based on the anticipated effective date of placement.

• As a result of the annualised effect of vacancies filled during 2007/2008, the use of temporary and agency staff and the provision for task regarding, the year on year increase on employee related costs is 13.1%.

• The Salaries and Allowances Task Team will continue to monitor the top 150 earners and staff that receive overtime in excess of 50% of their basic salary. In order to comply with the Basic Conditions of Employment Act, staff that work more than 10 hours overtime per week will be investigated in order to reduce overtime costs.

ITEM / DESCRIPTION R’m

New personnel and operational costs in respect of hostels taken over from KZNPA 124.0

Provision for filling of 41 critical vacant posts for libraries 8.4

Provision for filling of 231 vacant posts for Parks, Recreation, Cemeteries and Culture 28.0

Provision for recruiting 193 authorised officers to assist with traffic violations 16.0

Learnership Programme for 200 Peace Officers 4.0

Additional staff requirements to assist with the illegal occupation of newly built houses 3.0

Staffing resources at new clinic in Adams Mission and other vacancies 5.0

Provision for 50 critical additional posts across all Fire and Emergency Unit. 10.0

Provision for 40 learnership posts in the Fire Department 2.0

Provision for vacancies: improving turnaround time (building plans) 4.0

Advertising for staff vacancies 5.1

Additional security services at one-stop-shops for Regional Centres 6.2

Hire of community co-operatives for cleaning services 2.6

Recruitment of additional forensic investigators 2.0

Trainee Accountant / Graduate Accountant Programme: skilled staff 6.0

Filling of technical / skilled posts in Electricity Unit 40.0

I. T. staff vacancies 8.0

Skills Development Unit staff vacancies 5.0

Other critical vacancies and new posts 21.0

The table below details the additional posts and related operations that need to be filled /undertaken in the 2008/2009 financial year (R300 million)

SUPPORTING OUR COMMUNITIES

The following are selected highlights from the departmental operating budgets for 2008/2009-

Free Basic ElectricityOur Indigent Policy enables us to provide free 50 kwh of electricity to those customers who consume less than 130 kwh per month. We adopted a self-targeted approach whereby customers who believe themselves to be indigent can apply, provided their average past 6-month consumption is below the 150 kwh threshold.

Zibambele Poverty AlleviationThe Council ensures the empowerment of people in the community by providing small municipal contracts for grass-cutting, verge clearance, etc. There is also a platform that the Council operates for small co-operatives, providing administrative assistance, along with guidance on business issues.

PROJECT / ITEM R’ m

Provision of free basic electricity: indigent customers: 16.7

Zibambele poverty alleviation project for roads and verge maintenance: 51.9

Refuse removal service to cover 100% of City: 20.0

Rehabilitation of landfill sites: 14.9

Provision for critical staff vacancies: 80.0

Eighteen operational soup kitchens: (11000 indigents): 6.5

Interest on loans : Additional DBSA loans: 35.0

Demolition of old tunnel: harbour entrance widening: 21.0

Special events (including 2010 preparation): 15.9

Maintenance of IT network structure: 17.0

Repairs and maintenance: 827.7

- Water: (ageing infrastructure) increases to: 246.8

- Electricity: network maintenance increases by R 71.9m to: 351.1

- Roads maintenance increases by R 47.3m to: 229.8

Refuse RemovalWe have extended provision of the service to newly-incorporated areas by using community-based contractors.

Rehabilitation of Landfill SitesPlanning and development of regional landfill sites continue to demand a substantial investment by the Municipality to ensure that waste is appropriately disposed off.

Critical Staff VacanciesWe have provided for R300 million for new employees with related operations, including critical staff (R80m). This is to increase our service delivery to the public. Security staff is a large proportion of this total.

Soup KitchensThis is one of our poverty-alleviation programmes. We provide free meals to the poor. We are currently servicing 18 sites.

Interest on LoansThe interest is paid on an additional DBSA loan of R950 million.

Harbour WideningThis includes a portion of the cost for the demolition of the old sub-aqueous tunnel.

Special EventsWe cater for a number of events annually, including local and international events. These include all our 2010 functions. This includes your One Nations Cup, Durban Beach Festival and Comrades Marathon, etc. Some events are hosted in partnership with other entities, including Provincial Government and the 2010 LOC.

IT NetworkThis cost is for the management and maintenance of the IT infrastructure network throughout the Municipality for the purposes of using excess capacity to provide competitive data and voice services to the general public.

Repairs and MaintenanceOverall repairs and maintenance amounts to R 1.62 billion for the year, which represents 10.8% of the total budget, which is above most metros in the country.

A DIVERSE RANGE OF LINE SERVICES

Vote Description

2005/2006 2006/2007 2007/2008 2008/2009

Expenditure (R)

Actual Actual Full Year Forecast Full Year Forecast

Electricity 2 703 744 000 2 794 746 000 3 288 113 840 3 956 818 120

Water 1 688 119 000 1 768 259 000 1 984 397 830 2 421 443 060

Treasury 802 550 000 1 530 918 000 1 534 482 000 2 152 186 000

Engineering 672 203 000 699 620 000 890 391 305 1 105 839 720

Parks, Recreation, Cemeteries & Culture 715 662 000 715 101 000 838 188 750 1 001 776 195

Sanitation 432 826 000 418 326 000 502 246 740 612 536 860

Cleansing & Solid Waste 376 249 000 421 873 000 478 969 290 547 798 860

Metropolitan Police 346 463 000 345 846 000 418 192 620 460 721 400

eThekwini Transport Authority 172 567 000 204 180 000 304 748 380 391 029 040

Health 209 765 000 212 545 000 248 658 330 303 159 700

Housing 460 826 000 619 436 000 153 850 640 234 498 950

Emergency Services 140 883 000 145 023 000 174 141 720 215 111 500

Development Planning & Management 73 157 000 77 202 000 104 393 570 128 767 300

City Enterprises 60 243 000 46 116 000 75 250 580 87 889 360

Community Participation & Action Support 21 498 000 25 399 000 41 398 100 56 355 200

Area Based Management 40 560 000 42 189 000 58 103 470 52 466 120

Regional Centres 23 765 000 28 015 000 40 672 430 48 694 670

Economic Development & Facilitation 33 828 000 33 037 000 40 697 450 45 277 870

Business Support 22 675 000 25 189 000 30 912 396 35 933 860

Market Service 23 612 000 21 766 000 30 993 070 30 847 660

KEEPING TARIFFS REALISTIC

YEAR RATES WATER ELECTRICITY CPI

1997-1998 13.3 9.8 8.7 9.7

1998-1999 9.8 18.7 7.3 7.0

1999-2000 8.9 14.1 5.7 7.7

2000-2001 7.9 13.2 4.7 7.8

2001-2002 9.9 29.6 5.1 8.0

2002-2003 9.9 7.5 8.0 10.3

2003-2004 12.5 9.9 5.6 9.5

2004-2005 8.5 7.9 5.0 6.3

2005-2006 5.9 7.5 5.9 5.1

2006-2007 7.5 7.5 7.5 5.2

2007-2008 9.9 15.0 7.5 5.1

2008-2009 9.9 9.9 15.0 6.0

TARIFF INCREASES VERSUS CPI

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1997-19981998-19991999-20002000-20012001-20022002-20032003-20042004-20052005-20062006-20072007-20082008-2009

FINANCIAL YEARS

INCREASES (%)

RATES

WATER

ELECTRICITY

CPI

• In the light of the significant challenges in the roll out of basic services to all our citizens, tariff increases have been moderately above inflation.

• The spikes in water supply tariff increases are attributed to a high water loss and increases from our bulk water supplier

• The significant increase in electricity expected in 2008/2009 includes a 3% surcharge to cover the shortfall attributable to load-shedding.

• As a result of ongoing, fruitful negotiations with Government departments a higher collection rate is anticipated. Good progress has also been made with collection of old debts (including government departments), which is also reflected in this projection.

• Due to a focus on government departments and businesses that owe large amounts a higher collection rate is anticipated.

• A programme has been put in place to encourage water customers to pay their current accounts in return for a reduction in the debt they have incurred. The approach targets the poorer section of our society that own properties valued at or less than R100000. Due to this programme an improved collection rate is anticipated.

A SIGNIFICANT CAPITAL BUDGET

FUNDING SOURCES (2008/2009)CAPITAL PROJECTS 2008/09 2009/10 2010/11

R’m R’m R’m

2010 Soccer World Cup

- Stadium

- Stadium Precinct

- Transport

- City Regeneration

1 318.9

13.3

519.1

112.5

299.4

0.0

411.6

85.0

26.8

0.0

529.7

0.0

Port (Freight Man) 46.7 28.1 28.7

IT – Strategic Projects 84.9 31.5 89.2

Western Aquaduct 250.0 200.0 200.0

Tourism nodes development 10.9 15.5 13.3

Town Centre Renewals 22.7 22.5 31.2

Neighbourhood Development Partnership 74.5 133.1 172.2

Housing Delivery 1 164.9 1 250.7 1 186.9 King Shaka Airport Infrastructure 11.2 40.0 70.0

Infrastructure to meet backlogs:

- Water

- Sanitation

- Roads

- Storm water

- Community Projects

260.5

170.5

50.5

15.1

30.0

137.5

151.3

81.3

17.1

30.0

138.7

95.5

47.8

17.5

45.0

Safety and Security 18.5 8.0 9.0

Public Transport Plan 22.2 24.0 24.0

Bulk Rehabilitations/Reinforcement

- Water

- Waste Water

- Refuse Removal

- Roads / Pedestrian Safety

- Electricity

- Stormwater

- Community Facilities

- Vehicle Replacement

- Operations: Various Services

- ABM’s

- Other (Markets, Fire Stations, etc.)

439.9

142.5

64.6

237.5

427.7

20.8

47.9

65.7

148.6

29.8

107.9

483.1

178.5

39.5

248.7

520.3

38.3

54.4

57.0

130.9

11.2

105.0

253.0

224.5

83.7

304.5

550.8

30.9

67.8

67.0

158.3

11.9

89.4

KING TO PLACE PIE GRAPH OF CAPITAL BUDGET HERE.

TOTAL DRAFT CAPITAL FUNDING R5. 9297 BILLION

WHERE THE MONEY COMES FROM

Council (R2350.5M) 39.0%2010 Stadium,

National Treasury, KZN, Council

(R1318.9M) 21.9%

Dept of Housing (R816.0M) 13.5%

Equitable Share (R314.5M) 5.2%

MIG (R445.8M) 7.4%

PTIF (R492.0M) 8.2%

Other (R292.0M) 4.8%

Did you know that…We have the largest capital budget spend of any municipality in South Africa.

•We ensure communities become and remain sustainable in terms of livelihood is becoming one of the greatest challenges for the municipality. It is clear that sufficient resources are not available to eliminate all backlogs at the current service levels. Without additional sources of revenue, the Municipality had to consider alternative options. Various alternative funding options are being considered for inclusion in the Long Term Financial Strategy. Borrowings of R 950 million will be made during the year in order to accelerate the capital program, in an attempt to eliminate the backlogs.

•The projected capital expenditure budget for the 2008/2009 financial year period is R 5.93 billion (2007/08: R 4.20 billion ) which is a growth of 41.2 % on that of the previous year.R 4 765 R 3 583 R 3 380TOTALS

MANAGING LEGISLATIVE CHANGE

Section 3(1) of the Local Government Municipal Property Rates Act, 2004 (Act 6 of 2004) and section 62 (1)(f) of the MFMA determines that a municipality must adopt and implement a rates policy on the levying of rates on rateable properties. The new rates policy was approved by Council on the 11 February 2008 and complies with the Municipal Property Rates Act. Thus, the levying of rates will have an impact on the rates individual property owners will pay with effect from 1 July 2008. As properties are now being assessed based on the market value there is a shift in incidence. The cent in the rand (randage) has been adjusted downward to compensate for the higher values. In addition, the impact on the indigent, pensioners, disability grantees and lower and middle-income ratepayers was considered to ensure a limited impact. Revenue neutrality has been maintained using existing income per category of property as a base to calculate the rate randage for the new year. The rating of property based on market value has resulted in a minimal shift in incidence between the different categories of property. State property is now rated in accordance with usage resulting in a shift to other property categories particularly business, commercial, as well as vacant land.

ANALYSIS OF VALUATION ROLL

Residential Business and Commercial

Total number of properties is 415469.

Approximately 108971 (26%) of residential properties are valued at under R120000 and will pay no rates.

227870 (55%) of properties will see a reduction in rates.

About 16% of residential property have a value higher than R1 million.

No rates payable in respect of properties valued R400000 or less for pensioners, disability grantees, child-headed households and the medically boarded.

Total number of properties: 15549.

About 5814 (37%) properties will have a reduction in rates.

Industrial

Total of 4018 properties.

Nearly 2424 (60%) properties will see a reduction in rates.

Vacant Land

Total number of properties is 54300.

All vacant land will receive the first R30000 of value as a reduction for rates.

Nearly 18620 (34%) of properties will pay less for rates.

Category of PropertiesNumber of Properties

New Property Value

Old Property Value

% Increase

Agricultural 705 1 783 527 000 364 088 000 389.86%

Business & Commercial 15 549 65 554 951 000 22 593 037 300 190.16%

Exempt (e.g. Religious Bodies, etc.) 1 240 3 711 674 000 822 258 500 351.40%

Industrial 4 018 30 578 887 000 12 281 345 400 148.99%

PSI 11 083 6 410 968 000 49 435 800 12 868.27%

Residential 415 483 234 660 282 000 49 091 833 250 378.00%

Vacant Land 54 300 21 974 175 000 2 417 713 243 808.88%

Totals / Average 502 378 364 674 464 000 87 619 711 493 316.20%

A GOOD FINANCIAL RECORD

METRO 05/06 (%)

06/07 (%)

07/08 (%)

ETHEKWINI / DURBAN 93 96 96

* MONTHLY BILLING VERSUS PAYMENTS 2007/2008

Despite the increase in debtors, the payment/cash collection rates have increased. The debtor increase is due to interest charges and penalties from historical debt and higher levels of poverty.

METRO

S/TERM DEBT (Rm)

L/TERM DEBT (Rm)

TOTAL DEBT

(Rm)

CASH HOLDINGS

(Rm)

CASH COVERAGE

(TOTAL DEBT)

CAPE TOWN 137.5 2 217.2 2 354.7 2 054.5 0.9

EKURHULENI 52.8 1 295.5 1 348.3 2 737.9 2.0

ETHEKWINI / DURBAN 236.6 4 345.1 4 581.6 3 657.7 0.8

JOHANNESBURG 113.6 5 770.5 5 884.1 2 354.3 0.4

NELSON MANDELA 26.4 413.3 439.6 1 396.0 3.2

TSHWANE 105.0 2 680.3 2 785.4 1 136.2 0.4

TOTAL 671.9 16 721.9 17 393.7 13 336.6 0.8

* DEBT & LIQUIDITY 2007/2008

* FINANCIAL STATISTICS 2007/2008

The Municipality has yet again managed to maintain its excellent credit rating of A1+ (short-term) and AA (long-term) for the third year in succession, as published by the Global Credit Ratings Company. These short and long- term ratings are amongst the highest ratings accorded to local authorities in South Africa and naturally it will provide the Municipality with a sound financial platform to meet its economic challenges and service delivery targets.

The factors influencing the strong credit ratings are as follows: -

•The significant progress that we have made since transforming into a metropolitan municipality, supported by the Municipality’s experience and capable management team, and the prudent judgment displayed by the political leadership.

•The substantial and increasing level of spending by Council on the World Cup related and socio-economic projects, and the associated longer term benefits thereof.

•The Municipality continues to display a robust financial profile, characterised by strong cash generation and high liquidity levels.

•Key debtors ratios have remained fairly stable in recent years, while collection levels have improved.

METRO TOTAL INCOME

(Rm)

DAYS CASH ON

HAND

NET CAPEX: TOTAL

INCOME (RATIO)

TOTAL DEBT :

INCOME (RATIO)

NET DEBT : INCOME

(RATIO)

CAPE TOWN 9 394.8 78.6 15.6 25.1 3.2

EKURHULENI 8 470.3 144.7 9.0 15.9 (16.4)

ETHEKWINI / DURBAN 11 539.1 143.1 20.1 39.7 8.0

JOHANNESBURG 14 088.8 69.0 19.4 41.8 25.1

NELSON MANDELA 2 962.4 169.7 17.5 14.8 (32.3)

TSHWANE 8 067.4 60.1 19.4 34.5 20.4

WEIGHTED AVERAGE N/A 102.3 17.2 31.9 7.4

* NOTE: MUNICIPALITIES MAY DIFFER IN THE METHOD USED TO DETERMINE KEY STATISTICS.

COMPARING WITH OUR COUNTERPARTS

Service eThekwini / Durban Cape Town Johannesburg Tshwane Nelson Mandela Ekurhuleni

Water • Increased by 9.9%.• 6kl free. • No fixed charge for property < R190K.

• Increased by 9.2%.• 6kl free.

• Increases unavailable.

• 6kl free. • 4 rising block tariffs.

• Increased by 8.0%.• 6kl free. • 4 rising block tariffs.

• Increased by 6.0%. • Increased by 6.3%.• 6kl free.• 4 rising block tariffs.

Electricity • Increased by 12.0% + 3.0% surcharge.

• Consumption based. • One tariff.• The first 50kwh of electricity is free to residents using less than 150kwh per month.

• Increased by 15.0%.• Consumption based. • Fixed charge + 1 tariff.

• Increases unavailable.

• Consumption based. • Fixed charge + 2 tariffs high/low season.

• Increased by 12.0%.• Consumption based. • One tariff.

• Increased by 12.0%. • Increased by 12.2%.• Consumption based + 2 tariffs for high/low season.

Rates • Increased by 9.9%.• On market value of property.

• No rates on first R120K of all properties.

• Increased by 7.3%.• Only market values of properties.

• No rates on first R80K of all properties.

• Increases unavailable.

• No lifeline for rates.• No rates on first R15K of all properties.

• Increased by 8.0%.• No rates on first R10K of all properties.

• Increased by 8.5%. • Increased by 3.0%.• On land only.• No rates if below the indigent limit & rebates based on earnings.

Refuse • Increased by 9.9%.• Included as part of rates randage.

• Increased by 7.5%. Based on container size.

• Rebate % based on property value <R50K to R125K.

• Increases unavailable.

• Based on property size.

• Rising block tariff as size increases.

• Increased by 8.0%.• Based on container size and removal frequency.

• Increased by 6.0%. • Increased by 8.0%.• Fixed charge.

Sewerage • Increased by 9.9%.• Included as part of rates randage.

• Increased by 6.0%.• Based on kl water used.

• Increases unavailable.

• Based on kl water used.

• < 6kl no charge then rising block tariff.

• Increased by 8.0%.• Based on kl water used.

• Increased by 6.0%. • Increased by 7.5%.• < 6kl: no charge then there is a rising block tariff system.

Average Weighted Increase

10.9% 12.0% N/A 9.0% 9.3% 7.4%

The following tables give a comparable indication of residential tariffs between the various metros for 2008/2009: -

WE PROVIDE A COMPARABLE BASKET OF SERVICES WITH OTHER CITIES

UNQUALIFIED FINANCIAL STATEMENTS

DETAIL (In millions of Rands) 2007 2006

TOTAL REVENUE 12 004 10 403

TOTAL EXPENDITURE 10 874 9 601

SURPLUS FOR THE YEAR BEFORE TRANSFERS 1 130 802

ACCUMULATED FUNDS & RESERVES 10 084 8 954

NET CASH & CASH RESOURCES

(Bank, Cash & Call Deposits)

275 641

TOTAL ASSETS 21 999 20 168

CONSUMER DEBTORS 1 773 1 732

ASSETS/LIABILITIES 2007

R’m

2006

R’m

Assets–Cash and Short-Term Investments –Property,Plant & Equipment–Consumer Debtors–Investments–Other

2 062

11 613

1 773

3 749

2 802

3 261

10 292

1 732

2 601

2 282

Total Assets 21 999 20 168

Liabilities–Long-Term Liabilities–Creditors–Unspent Conditional Grants–Other

4 345

3 391

131

4 048

3 738

2 827

101

4 547

Total Liabilities 11 915 11 213

Net Assets 10 084 8 955

RATIOS AND BENCHMARKS

•Assets/Liabilities Ratio: 1.8/1.0

Favourable and stable from previous year.

BENCHMARK: 1.0:1.0

•Current Ratio: 1.4/1.0

Favourable and has improved from previous year.

BENCHMARK: 2.0:1.0

•Gearing Ratio 1.4/1.0

Favourable and has increased from previous year.

BENCHMARK: 1.0:2.5

Consumer Collection Rates:

•Rates:

95.8%

•Water:

92.8%

•Electricity: 98.0%

SNAPSHOT: 2007/2008

Assets: Property, Plant & Equipment

Acquisitions of R4.2 billion.Depreciation of R1.1 billion.

Consumer DebtorsStatic over the last two years. R41m increase between 2006 and 2007.

Long-Term Borrowings

Borrowed R950 million at 8.3 % fixed for 20 years.

Consumer Debtors Collection Rates: 95%.

STIMULATING THE LOCAL ECONOMY

The Durban ICC continues to be foremost convention centre in Africa. Durban certainly set the trend, as other cities in the country and the continent at large, began to construct their own centres. Further to this, the Durban ICC ranks in the Top Ten in the world, having brought a number of delegates to Durban through its hosting of seminars, conventions and other functions. Effectively, the ICC has paid for its construction and its operating costs many times over through its multifarious effects on the local economy through spurring secondary tourism. Beyond just municipal coffers in terms of increased revenues, local hotels, restaurants and other tourist-related infrastructure have seen significant growth in turnover that can be indirectly attributable to the ICC. Effectively, it is a key marketing tool in the City, that places us on the global map. As with any infrastructure, evolution is key to maintaining the superiority of its product. Concomitantly, the ICC has nearly completed its expansion. It has effectively doubled its convention space, and can also be used as an indoor sporting facility as well as a venue for musical concerts on a larger scale. The total economic impact flowing from the ICC business for the financial year was R565.5m. Based on a multiplier of 4, which is the commonly used factor in the meetings industry, the total economic impact of the business generated by the ICC equates to R1.068billion. This effectively means that the contribution of the Centre to the GDP of the KZN province is almost 1% (0.58%). Foreign exchange earnings to the tune of R81million and a total direct spend estimated at R267million were generated from conference delegates. Overall financial performance for the year was better than budget, with total revenue at R73.3m against a budget target of R54.9m. This was largely driven off business levels for the first and second quarters of the financial year. The Municipality contributed R22m in the 2007/2008 financial year to the ICC.

From 2004 to 2005, uShaka was instrumental in catalysing the growth of stagnant housing prices in the Point area, which was experiencing spiralling urban decay. Because of the Municipality’s intervention, growth in the area exceeded the national housing price index. In a period of two years, increases of 200% was achieved in the area. uShaka has catalysed further growth in the area, specifically the sweeping development of the Point Waterfront, Canal System and the Small Craft Harbour. Because of municipal intervention, an area that was once in a state of decay, has now become an integrated residential, recreational, tourist and soon-to-be shopping destination. Over and above these sweeping positive effects, uShaka continues to receive international accolades for its truly innovative design and world-class facilities. Employing approximately 750 staff (including the South Association for Marine and Biological Research) , uShaka MARINE WORLD achieved 90% of its budgeted footfall into the paid environment in its first year at 1.2 million guests and 3.8 million guests into the whole park. On 19 September 2007 the controlling shareholder, eThekwini Municipality, invested a further R157m into the theme park for which 1617 shares will be issued. These funds were used to settle the outstanding capital loans with Citibank (R88m as of 30 June 2007) and the Development Bank of Southern Africa.

This project has unlocked more than 160 ha of low yielding sugar cane land, enhancing the concept of the activity corridor as a business activity node. It has effectively brought the workplace closer to the workforce. It has promoted spatial efficiency with regard to KwaMashu, Inanda & Ntuzuma and unlocked the development node of Phoenix. The industrial usage of the area has higher economic benefit than agricultural use and has had a positive effect on land values of the surrounding areas. The project created some 3500 jobs during the construction phase and some 13500 new jobs post development is expected in the long-term.

READINESS FOR 2010

COST IMPLICATIONS Will have a major impact on spending for the Municipality. Total cost of stadium: R2.6 billion.

National Government: R 1.8 billion.Provincial Government: R 0.3 billion.eThekwini: R 0.5 billion.

Financial impact of related infrastructure: R4.0 billion. (Still under discussion with FIFA LOC and National Treasury.)

Stadium Funding InfrastructureTransport.ICT.Upgrading / Improvements.Operating costs.

The new Moses Mabhida stadium will be a world-class facility.Most prominent feature of the new stadium, to be built on the site of the existing football stadium, will be the 30-storey arch stretching its entire length. Stadium will be built on the site of the existing King's Park stadium and has been designed as a first-class multi-purpose sporting facility.The 100m high arches will mark the centre of Durban's growing Sports City Complex.Stadium will have a seating capacity for 70000 people. Arches will have a cable-car erected.Stadium will cover 320 x 280 square metres and will be 45m in height. Parking for 10000 cars.

MEASURING THE ECONOMY

The local economy is affected by the performance of the national economy, although recent indicators suggest it is outperforming the national one in terms of the Gini Coefficient, unemployment rate and the Gross Domestic Product. The national economy continued to enjoy growth of around 4.7% during 2006 and is starting to reap the benefits of sustained sound macroeconomic management and structural reforms.In addition to achieving the Accelerated and Shared Growth Initiative (ASGISA) target of 4.5% per annum, the country has also experienced 36 quarters of uninterrupted economic growth. Presently South Africa is ranked as the 18th most attractive destination for Foreign Direct Investment according to a recent international survey. Massive infrastructure investment plans have been announced by both the private and public sectors for public transport, new power plants and township renewal growth. Unemployment remains high, but job prospects are amongst the highest in the world for the second year running, creating 200000 jobs between March 2006 and 2007. In the first phase, between 2005 and 2009, ASGISA seeks an annual growth rate that averages 4.5% or higher. In the second phase, between 2010 and 2014, an annual average growth rate of at least 6% of GDP is targeted.GDP growth in Durban has grown at an average annual rate of 3.9% over the period 1996-2006 and has been consistently strong and lagging slightly behind Johannesburg and Cape Town. As reflected in the graph below, the manufacturing sector in Durban is the biggest contributor to the GDP growth, followed by finance, trade and then transport. When deconstructing the manufacturing sector in Durban, the success is due largely to the chemical, automotive, pulp and paper, wood and wood products, and food and beverages components. The City’s Economic Strategy acknowledges the importance of these sectors’ potential for growth, job creation and global competitiveness, and has aligned appropriate medium-to-long-term plans for further enhancement. The National Government’s new industrial-policy framework that re-emphasizes the development of the country’s manufacturing sector as the cornerstone of the economy will also contribute to this sectors growth.The introduction of the Dube Trade Port and King Shaka International Passenger Airport, the 2010 World Cup Soccer Competition, and the major expansion plans around the Port of Durban are the three main projects that will act as a major catalyst to the City’s economy over the next ten years.

Measure 2006

Gross Value Added (GVA) R115.7 billion

Gross Domestic Product R126.6 billion

Gini Coefficient 0.60

Per Capita Income R34 392

GVA Average Annual Growth 5.2%

Population 3 299 788

Age Structure:00-1415-2425-4445+

27%21%32%20%

Population Growth (2005-2006) 0.6%

Geographic Area 2 297km2

Population Density 1 437 persons/ km2

Human Development Index 0.68

Urban Population 86.2%

Employment Rate: 64.5%

Unemployment Rate: 35.5%

Operating Budget: 2007/2008 R13.2 billion

Capital Budget: 2007/2008 R4.2 billion

Municipal Staff Employed: 2006 18 500

Number of Households: 914 198

Number of People in Poverty: < $2 per day 397 073

% of People in Poverty: 12.0%

Urbanisation Rate: 91.4%

Annual Total Disposable Income: R73 791

Annual Household Expenditure: R113.7 billion

Annual Retail Sales: R36.4 billion

Total Exports: R31.3 billion

Total Imports: R48.3 billion

1%

0%

23%

3%

3%

18%

16%

20%

16%

Agriculture, hunting, forestry andfishing

Mining and quarrying

Manufacturing

Electricity, gas and w ater supply

Construction

Wholesale and retail trade

Transport, storage andcommunication

Financial, insurance, real estateand business services

Community, social and personalservices

INVESTMENT IN THE CITY

Business & Investment Marketing:Business & Investment Marketing: - Other targets & channels engaged; Products developed & distributed; Effective budget allocation in synergy with other Units.

Existing Business Retention and ExpansionExisting Business Retention and Expansion: - BR&E rollout continues; South Durban Basin (SDB) Area 1 in conclusion; SDB Area 2 launched; Multiple Chamber partnership projects continue; Strategic businesses & flagship investment projects in ongoing engagement/aftercare.

Foreign Investor Support:Foreign Investor Support: - Leveraging targeted work with other spheres & Agencies; several fdi engagements held; 3 large fdi enquiries converted; 2 incubated on site; bids for more in progress.

Business Development in R293 TownshipsBusiness Development in R293 Townships: - Draft strategic outline developed, but due to changes in Project Managers, progress is slowed.

Create a Business-Friendly Environment:Create a Business-Friendly Environment: - Ad hoc interventions continue on a case by case basis, but formal project outline now completed (National Government assistance) & project manager engaged for roll-out, but progress has slowed.

Under-Capitalised Investment DevelopmentUnder-Capitalised Investment Development: - 3 projects being developed: One in multiple location aquaculture; the other a large Umlazi Business Service Centre; the 3rd in computer & TV assembly.

Business Investment & Targeted Incentives StrategyBusiness Investment & Targeted Incentives Strategy: - Draft outline developed, & 1st City work shop held but due to change in Project Manager, plus HR constraints, progress has slowed.

AgriBusiness Forum:AgriBusiness Forum: – PPP Forum established; Summits held; Market Days launched; Strategy refined; Amakhosi projects progressed; Newsletter launched; breakfast workshops held; new staff capacity engaged.

2010 Eco-Dev & Bus. Opportunities Workstream:2010 Eco-Dev & Bus. Opportunities Workstream: - Team sourced & developed; Strategy presented & agreed; authorised engagements held; action plan presented & in roll-out; partnerships with chambers & other government spheres developed; new staff capacity engaged.

Most important port in Africa

Excellenttransport

infrastructure

Low cost ofindustrial land

Lowest cost package of municipal services

Modern IT andTelecomnetworks

Large pool ofskilled workers

Significant opportunities

for 2010

Spinoffs fromDube Trade

Port

Maintain a positive

operating cashflow,

All reserves are cash-backed.

Capital expenditure of

(R50 Billion in ten years)

Finance capital projects mainly

through internal funds.

Critical indicators to benchmark

our productivity.

We have a 5-point plan as

our approach in managing the Municipality’s

finances: -

CARING FOR ALL OUR CITIZENS• Ideally the City would like to deliver 20000 units annually to deal with the housing backlog, however, due to yearly limitations on housing subsidies this is not achievable. Accordingly, the Municipality is in the process of developing an Accelerated Housing Delivery Model, which would involve securing funding from a range of sources which would inter alia involve the major financial institutions as well as the private sector and social housing institutions.

•The basic social package is an affirmation of the Municipality’s commitment to push back the frontiers of poverty by providing a social welfare to those residents who cannot afford to pay, because of adverse social and economic realities. The social package will also assist the municipality in meeting its constitutional obligations. However, in order for us to continue to deliver these services in a financially sustainable manner, all residents will have to pay for services over and above the free basic services provided.

•The estimated cost of the social package (i.e. income foregone) amounts to approximately R1074.8m for the 2008/09 budget year. This is mainly funded from the R1.6 billion equitable share from national government.

DESPITE OUR SUCCESSES, THE CHALLENGE TO

PROVIDE EQUALITY FOR

ALL STILL EXISTS, BUT WE ARE

DETERMINED TO MAKE DURBAN A LIVEABLE CITY

FOR EVERYONE.

Basic Service Existing Backlog

Housing 200 000 households

Water 165 000 households

Sanitation 200 000 households

Electricity 200 000 households

Solid Waste Nil households

Stormwater R 143 000 000

Roads R 2 200 000 000

Sidewalks, pedestrian bridges & footpaths

R 131 000000

SERVICE SOCIAL PACKAGEAPPROXIMATE

COSTR’M

ESTIMATED NUMBER OF HOUSEHOL

DS

Assessment Rates

Residential property owners are exempt from paying rates on the first R 120 000 of their property value.

108 971

Pensioners, child-headed households, disability grantees and the medically boarded are exempt from paying rates on the first R400000 of their property value. (This amount is inclusive of the R120000 mentioned above.)

20 258

Total Exemption in Rebates, Reduction, Properties Valued Under R120K, etc.

855.8 129 229

WaterThe first 6kl of water is free to all residents. Households with property values at R40 000 or less do not pay the fixed charge for water.

202.0 280 000

ElectricityThe first 50kwh of electricity is free to residents using less than 150kwh per month (Qualifying households will have to make application for this concession).

17.0

58 000

TOTAL 1 074.8

PROVEN CAPABILITIES

SOME IT STATISTICS

• No. of faults processed per month: 2 500

• No. of change requests processed per month: 500

• No. of PC users: 7 000

• No. of daily transactions processed: 1 000 000

• No. of internet users 2 000

• No. of bills / inserts printed per month: 2 000 000

• No. of fines processed per month: 85 555

A TECHNOCRATIC CITY…

OUR GLOBAL POSITIONING

• Sister cities twinned with Durban: 12

• Active projects with sister cities: 39

• Incoming international delegations: 50

• Meetings with consular corps: 26

• CIFAL training sessions held: 2

A COSMOPOLITAN CITY…

LINKING WITH THE PRIVATE SECTOR•About R3.1 billion S.A. company new investments/expansions thus far.

•Business Retention and Expansion (BR&E) project roll-out in SDB Area: 2 of 3 in South Durban Basin (950 businesses directly assisted; 16 Action Teams launched; new Business tools distributed).

•R1.7 billion foreign investment already confirmed/secured thus far + another R2.5Bn being sourced/facilitated at present.

•Full investment promotion marketing: plans converted and products rolled out for full Council benefit.

•Agri-Business Forum expanded & various projects initiated. Ramping up to capitalise on Dube TP & other flagship projects.

•Three new business development projects of R1.7 billion being progressed.

•2010 Eco-Dev & Bus. Opportunities Work Stream plan confirmed, resourced & being rolled out through partnerships.

A CITY THAT ENGAGES WITH BUSINESS…

LIGHTING UP THE CITY• Major Substations 99• Distributor Substations 631• Mini Substations 5461• Brick Substations 2736• Pole Transformers 4350• Streetlights 200 000

A CITY THAT BRIGHTENS YOUR DAY…

WATER AND SANITATION•11 000 km of pipelines.•725 000 units connected.•220 reservoirs.•8 000 km wastewater pipes.•27 wastewater treatment works.•280 pumpstations.A CITY THAT PROVIDES…

SOLID WASTE•No. of tons removed and disposed: 1 418 264 tons•No. of houses serviced: 1.1 million•No. of refuse bags distributed: 43 million•No. of commercial customers: 31 000•No. of wheeled containers & skips: 80 000•No. of landfill sites: 3•No. of transfer stations: 8•No. of garden refuse sites: 12•Vehicle fleet complement: 424•No. of re-cycling drop-off centres: 15•No. of re-cycling buy-back centres: 7A CLEAN CITY…

WE ARE A COMPLEX ORGANISATION THAT

DEALS WITH COMPOSITE SOCIAL, TECHNICAL,

FINANCIAL AND ECONOMIC ISSUES…

FLEET AND PLANT•Total vehicles serviced: 2939 •Number of the targeted services: 3696 •Ratio of artisans to vehicles:. 1:103•Average vehicle availability: 94%•Number of vehicles licenced: 1695•Income from hire pool: R6.45m•Income from disposal of vehicles: R2.3m A CITY THAT WORKS…

THE BUILDING-BLOCKS FOR SUCCESS

WE HAVE STRONG, PRAGMATIC

MANAGEMENT LEADERSHIP WITH

PROVEN EXPERTISE IN MUNICIAL SERVICE

DELIVERY.

WE HAVE A PRO-POOR FOCUS IN

TERMS OF SERVICE-DELIVERY.

WE HAVE A STABLE EXPERIENCED

ADMINISTRATION.

WE HAVE THE HIGHEST CREDIT-

RATING AWARDED IN THE MUNICIPAL

SECTOR.

WE HAVE REVERSED URBAN DECAY IN

MANY AREAS IN THE CITY.

WE RECEIVE REVENUE &

ELECTRICITY FROM LANDFILL SITES,

SIMULTANEOUSLY USING SUSTAINABLE

DEVELOPMENT METHODOLOGIES.

WE HAVE A DEBTORS’

COLLECTION RATE CONSISTENTLY

ABOVE 95%.

WE HAVE ACHIEVED MORE THAN 95%

CAPITAL SPEND PER ANNUM.

WE HAVE CONSISTENTLY

APPLIED A STRATEGIC SPLIT BETWEEEN OUR

SOCIAL AND ECONOMIC

EXPENDITURE.

WE WERE THE FIRST MUNICIPALITY IN

SOUTH AFRICA TO ESTABLISH AN

INTERNATIONAL CONVENTION

CENTRE.

WE HAVE ACHIEVED CONSISTENT UNQUALIFIED (CLEAN) AUDIT

REPORTS.

WE HAVE A STRATEGIC

PARTNERSHIP WITH THE PORT TO

INCREASE EFFICIENCIES IN THE

HARBOUR AREA.

A METRO THAT IS OPEN TO DISCUSSION

GENERAL DETAIL

General Council Number 031-311 1111

Treasury 031-311 1131

Website www.durban.org.za

Core Hours of Business 09h00 – 12h00

13h00 – 16h00

Call us for discussions / advice on: -

•Investor Services

•Business Support.

•Economic Services.

•Logistics Information.

•Land Acquisition.

•Infrastructure Provision.

OUR COMMITMENT TO YOU: WE WILL RESOLVE EVERY QUERY FROM THE PUBLIC AND BUSINESSES