UCLG INTERMEDIARY CITIES

LEARNING EXCHANGE PROGRAMME:

DATE: 18th -20th of March 2013

ZIMBALI, FAIRMONT HOTEL,

KWADUKUZA MUNICIPALITY,

KWAZULU NATAL

PRESENTATION OUTLINE

1. KWADUKUZA AT A GLANCE

2. WHAT WE OFFER

3. DEVELOPMENTAL CHALLENGES

4. PUBLIC PARTICIPATION PROCESSES

5. INSTITUTIONALARRANGEMENT

6. FINANCIAL PLANNING & VIABILITY

7. STRATEGIC GOVERNANCE

8. KWADUKUZA FUTURE

KWADUKUZA AT A GLANCE

Admin. Structure: KZN & ILEMBE DM

LOCATED ALONG THE EAST OF KZN,

BORDERING ETHEKWINI METRO

(SOUTH)

HISTORICAL: AMALGAMATION OF

THREE LOCAL MUNICIPALITIES

ONE OF 4 MUN. THAT CONSTITUTE

THE ILEMBE DISTRICT MUNICIPALITY,

KWADUKUZA (KZ292): 750 KM2

6-15KM FROM KING SHAKA

INTERNATIONAL AIRPORT & DUBE

TRADE PORT

MOST SIGNIFICANT FROM AN

ECONOMIC AND DEVELOPMENT

PERSPECTIVE IN THE SUB REGION

(ILEMBE DISTRICT),

2012/13 BUDGET

TOTAL INCOME: R 932 386 Mil ($101 346m)

TOTAL EXPENDITURE:R932 346 mil ($101 342m)

ADMINISTRATIVE STRUCTURE

27 WARDS: AVERAGE POP- 8500

53 MUNICIPAL COUNCILLORS

BALLITO: COMMERCIAL NODE,

KWADUKUZA: COMMERCIAL/ ADMINISTRATION NODE

SMALL TOWNS (NEIGHBOURHOOD NODES): SHAKASKRAL/UMHLALI

KEY FUNCTIONS

SERVICE DELIVERY

ELECTRICAL SUPPLY;

WASTE REMOVAL;

ROADS & STORMWATER

OTHER

PLANNING

LOCAL ECONOMIC DEVELOPMENT

TOURISM

OTHER ROLE PLAYERS:

WATER & SANITATION: ILEMBE DM

WATER & SANITATION- CONCESSION AREA (SOUTH): SEMPCORB SIZA WATER

PROVINCIAL/ DISTRICT ROADS: DEPT. OF TRANSPORT

ELECTRICAL SUPPLY: ESKOM

HOUSING: HUMAN SETTLEMENTS

POPULATION DYNAMICS ILEMBE:

2001= 560 389 (5,8%);

2011= 606 809 (5,9%)

KWADUKUZA:

2001= 167 805

2011= 231 187

POP. GROWTH PER ANNUM (p.a):

ILEMBE 2001-2011 (0,8%)

KDM

1996-2001 (3.02%)

2001-2011 (3.2%)

YOUTHFUL POPULATION - 15-34 (65-70%)

UNEMPLOYMENT RATE :

2001= 34.3%; 2011= 25%

MONTHLY INCOME:

R0 – R1600 = 89,3%

R 1601 - R 6400 = 7,50%

R 6 401 or more = 3,8%

TROIKA CHALLENGES:

UNEMPLOYMENT/ INEQUALITY/ POVERTY

(Source Census 2011)

-15.0 -10.0 -5.0 0.0 5.0 10.0 15.0

00 - 04

05 - 09

10 - 14

15 - 19

20 - 24

25 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

55 - 59

60 - 64

65 - 69

70 - 74

75 - 79

80 - 84

85+

KwaDukuza Pyramid

SPATIAL ARRANGEMENT

KEY SPATIAL INFORMANTS ROUTES

MOVEMENT

NORTH/SOUTH LINKAGES (NATIONAL ROAD 2/ R102)

RAILWAY LINE

EAST- WEST ‘DIVIDE’: COASTAL & INLAND

NATURAL SYSTEM

WEST/EAST DIRECTION (TONGAAT/UMVOTI/ ZINKWAZI RIVERS)

SETTLEMENT STRUCTURE

URBAN SETTLEMENTS:

MAINLY LOCATED ALONG COAST & ALONG MAIN ROUTES -FORMALLY ESTABLISHED TOWNS (KWADUKUZA)

PERI URBAN TO SEMI-RURAL :

MAINLY LOCATED CENTRAL (ALONG R102) E.G. GROUTVILLE;

RURAL/TRADITIONAL SETTLEMENTS:

MAINLY CONCENTRATED IN THE WEST OF R102

INFORMAL SETTLEMENTS

‘DOMINANT’ NEW TREND OF SETTLEMENTS:

GATED DEVELOPMENTS: HIGH INCOME, LOW TO MEDIUM DENSITY (EAST OF N2) E.G. SIMBITHI, DUNKIRK, ZIMBALI

TYPICAL SETTLEMENT PATTERNSUrban & Rural Context

WHAT WE OFFER

WHAT WE OFFER

EXCELLENT INVESTOR DESTINATION THAT IS LESS THAN 30 MINUTES FROM

DUBE TRADE POINT ( LOGISTIC HUB),

EXCELLENT INVESTOR DESTINATION THAT IS 1 AND 30 MINUTES AWAY FROM

BIGGEST PORT IN AFRICA (DURBAN HARBOUR & RICHARDS BAY PORT),

DEVELOPMENT SPACE AND LAND

ABUNDANT LABOUR FORCE,

PRIME PROPERTY INVESTMENT DESTINATION,

PART OF THE PLANNED ‘AEROTROPOLIS’

RATES AND TARIFF CHARGES ARE VERY COMPETITIVELY PRICED

SUMMARY OF ACHIEVEMENTS

HOUSING DELIVERY AWARDS:

PROVINCIAL AND NATIONAL HOUSING AUTHORITY AWARD, 2005

PROVINCIAL INAUGURAL GOVAN MBEKI AWARD, 2007

NATIONAL INAUGURAL GOVAN MBEKI AND MEC MERIT AWARD, AWARD 2008

HOUSING DELIVERY:

+17 800 HOUSING OPPORTUNITIES- PAST 11 YRS (LOW INCOME HOUSING)

TOURISM:

CULTURE AND HERITATE (CHIEF ALBERT LUTHULI; KING SHAKA TOURISM ROUTE, MAHATMA GANDHI)

COASTAL RECREATION (BEACH)

HOLIDAY PROGRAMMES (Matric Rage, New Years Eve Party)

PARTNERSHIPS (Mr Price Pro – International Surfing Event)

GOVERNANCE/ FINANCIAL MANAGEMENT

7 CONSECUTIVE UNQUALIFIED AUDIT OPINIONS;

RATED AS THE MOST FINANCIAL SUSTAINABLE LOCAL AUTHORITY FOR 2012 IN THE COUNTRY BY AN INDEPENDENT ASSESSOR (RATINGS AFRICA)

DEVELOPMENTAL CHALLENGES

SUMMARY OF DEVELOPMENT SCENARIO OVER THE YEARS

TABLE : Value of Buildings Passed for KZN 2005 & 2011

Municipality Year 2005 Year 2011

Value (R Million

% Value (R Million)

%

Ethekwini Metro 2 748,2 57,8 5 835,5 71,7

KwaDukuza 676,6 14,2 1 076,2 13,2

Newcastle - - 528,0 4,2

TOTAL KZN 4 757,3 8 136,0

BUILDING PLAN APPROVALS (LAST 7 YRS)

FEES (MUNICIPAL REVENUE): APPROXIMATELY R23million

NO OF PLANS: APPROX. 8000

BULK PURCHASE FROM ESKOM INCREASED BY MORE THAN 500%SINCE 2000/01

Development Growth

.

Greater Ballito Area 2002 Greater Ballito Area 2012

Shakashead Area 2002 Shakashead Area 2011

Development Growth

.

Ethafeni Area 2006 Ethafeni Area 2012

KEY CHALLENGES

IN MIGRATION PEOPLE LOOKING FOR OPPORTUNITIES RESULTING IN PRESSURE ON MUNICIPALITY

SLUMS - HOUSING DELIVERY,

COMMUNITY/ SOCIAL AMENITIES,

ILLEGAL INVASION OF MUNICIPAL LAND

LACK OF BULK INFRASTRUCTURE (NORTH)/ CAPACITY TO HANDLE GROWTH (SOUTH)

INADEQUATE POLICY PLANS TO DIRECT DEVELOPMENT

FRAGMENTED DEVELOPMENT

UNREGULATED/ILLEGAL DEVELOPMENT (REVENUE COLLECTION)

CONTRIBUTIONS TO BE PAID BY PRIVATE DEVELOPERS AND NODES WHERE THE LOCAL

MUNICIPALITY WISHES TO PROMOTE DEVELOPMENT.

LACK OF MAINTAINANCE OF EXISTING INFRASTRUCTURE

ENERGY MASTER PLAN (2011) – R1 Billion

ROADS & STORMWATER MASTER PLAN (2011) – R2 Billion

ALIGNMENT BETWEEN DISTRICT & LOCAL MUNICIPALITY ITO PLANNING AND PRIORITIES;

SERVICING BACKLOGS vs FUNDING AVAILABILITY

UNDERDEVELOPED PUBLIC TRANSPORTATION SYSTEM

KEY INSTITUTIONAL CHALLENGES

INTERGOVERNMENTAL RELATIONS – (LOCAL/DISTRICT/PROVINCE)

e.g. ROADS MANY LEVELS OF AUTHORITY (SANRAL/ KZN DOT)

INADEQUATE WORKFLOW SYSTEMS BETWEEN DEPARTMENTS;

STAFF CAPACITY –

HIGH VACANCY RATES,

HIGH TURNOVER RATES,

EXPERIENCE

LACK OF RELEVANT SKILLS AND COMPETENCIES (ENGINEERING DEPARTMENT)

e.g. ELECTRICAL: 72% Of Qualified/Skilled Staff Are 40+

39% Of Qualified/Skilled Staff Are 50+)

RELIANCE ON OUTSIDE CONSULTANTS/SERVICE PROVIDERS

e.g. Housing, Civil & Electrical Engineering

OVER-REGULATED OPERATING ENVIRONMENT THAT FORCES SENIOR MANAGEMENT TO FOCUS MORE ON OPERATIONS RATHER THAN ON STRATEGY.

RELIABILITY OF STATISTICAL INFORMATON (BACKLOGS ETC.)

MISMATCH BETWEEN DEVELOPMENT GROWTH MUNICIPAL CAPACITY;

KEY CHALLENGES: ‘TOWN PLANNING’

KEY LEGISLATION/ POLICIES

PLANNING AND DEVELOPMENT ACT (2008),

TOWN PLANNING ORDNANCE (1949)

TOWN PLANNING SCHEMES (9)

DEVELOPMENT PLANNING SECTION

DEVELOPMENT CONTROL (STATUTORY PLANNING),

BUILDING CONTROL ,

STRATEGIC PLANNING,

ENVIRONMENT MANAGEMENT

INTEGRATED DEVELOPMENT PLANNING SECTION

PREPARATION OF INTEGRATED DEVELOPMENT PLAN

DEVELOPMENT APPLICATION PROCESS SUMMARY:

PRE SUBMISSION;

FORMAL SUBMISSION

ASSESSMENT (PUBLIC INPUT)

DECISION

DEVELOPMENT APPLICATION COORDINATIONS MECHANISMS:

DEVELOPMENT REVIEW PROCESS (DRC)

MUNICIPAL INPUT PRIOR TO SUBMISSION

DEVELOPMENT RELATED ISSUES;

TECHNICAL COMMITTEE (TOWN PLANNING) –

ENSURE CONSISTENCY IN ASSESSMENT & DECISION MAKING);

OTHER: HOUSING TECHNICAL COMMITTEE (HOUSING PROJECTS)

DECISION MAKING:

DELEGATIONS BY COUNCIL;

COUNCIL DECISION (RESOLUTION)

CAPACITY (STATUTORY PLANNING & STRATEGIC PLANNING):

13x TOWN PLANNING OFFICIALS

INCLUDE MANAGEMENT,

2x SHARED SERVICES PROGRAMME

3x PROFESSIONAL PLANNERS

2 SHARED SERVICES

OTHER:

ENVIRONMENTAL/GIS UNIT:

2x Snr ENVIRO OFFICER

2x GIS OFFICERS

CHALLENGES: ‘TOWN PLANNING’

PRIVATE SECTOR LED DEVELOPMENT

IN ADEQUATE ‘SERVICING’ OF PREVIOUSLY DISADVANTAGED AREAS I.E. ‘NON SCHEME AREAS’

INADEQUATE/ LACK OF CAPACITY IN KEY AREAS (ENVIRONMENT)

INADEQUATE ENFORCEMENT AND COMPLIANCE MONITORING

DEVELOPMENT APPLICATION PROCESS - INPUT FROM DEPARTMENTS

NEW LEGISLATION (PDA, 2008) - TRAINING

INADEQUATE WORKFLOW SYSTEMS BETWEEN DEPARTMENTS;

PUBLIC PARTICIPATION:PLANNING & BUDGETING

PARTICIPATION

LEGISLATED PARTICIPATION

BUDGETING & INTEGRATED DEVELOPMENT PLAN

PDA PROCESS (ADVERTISE MEDIA, REGISTERED POST)

ENVIRONMENTAL INTEGRATED ASSESSMENT (EIA)

COMMUNITY PARTICIPATION STRUCTURES

WARD COMMITTEE SYSTEM

INTEGRATED DEVELOPMENT FORUM

MAYORAL IZIMBIZO (GATHERINGS);

PROJECT SPECIFIC

PROJECT STEERING COMMITTEES

INSTITUTIONAL ARRANGEMENT

ADMINISTRATION

MUNICIPAL MANAGER

(ACCOUNTING OFFICER)

• CORPORATE GOVERNANCE

• COMMUNICATION AND MARKETING

• LEGAL

ECONOMIC DEVELOPMENT &

PLANNING

• DEVELOPMENT PLANNING

• HUMAN SETTLEMENT

• LOCAL ECONOMIC DEVELOPMENT

FINANCE

• EXPENDITURE

• REVENUE

• SUPPLY CHAIN MANAGEMENT

TECHNICAL SERVICES

• CIVIL ENGINEERING

• ELECTRICAL ENGINEERING

• PROJECT MNAGEMENT

MUNICIPAL SERVICES

• TRAFFIC & CRIME PREVENTION

• OPERATIONS (REFUSE REMOVAL /PARKS & GARDENS)

CORPORATE SERVICES

• ESTATES

• ADMINISTRATION

• HUMAN RESORCES

POLITICAL

ECONOMIC DEVELOPMENT & PLANNING PORTFOLIO

COMMITTEE

•CHAIRED BY MEMEBR OF EXCO

•SITS ONCE A MONTH

FINANCE

•CHAIRED BY MEMBER OF EXCO

•SITS ONCE A MONTH

TECHNICAL SERVICES

•CHAIRED BY MEMBER OF EXCO

•SITS ONCE A MONTH

MUNICIPAL SERVICES

•CHAIRED BY MEMBER OF EXCO

•SITS ONCE A MONTH

CORPORATE SERVICES

•CHAIRED BY MEMBER OF EXCO

•SITS ONCE A MONTH

KWADUKUZA COUNCIL

(53 COUNCILLORS)

• CHAIRED BY MUNICIPAL SPEAKER

• POLICY DECISIONS

• SITS ONCE A QUARTER (SPECIAL MEETINGS)

EXECUTIVE COMMITTEE

(10 COUNCILLORS)

• CHAIRED BY MUNICIPAL MAYOR

• DAY TO DAY RUNNING OF MUNICIPALITY (DECISION)

• SITS TWICE A MONTH

OTHER: GOVERNANCE COMMITTEES

AUDIT COMMITTEE

SCOPA

FINANCIAL PLANNING AND VIABILITY

FINANCIAL MODELING

ASSESS THE VIABILITY OF TAKING UP LOAN DEBT (CAPITAL

PROJECTS).

ASSESSMENT INVOLVES:

PROJECTING INCOME AND EXPENDITURE OVER A 10 YEAR PERIOD USING TRENDS AND CERTAIN PARAMETERS;

PROJECTING FINANCIAL POSITION (ASSETS & LIABILITIES);

ANTICIPATED ACQUISITION OF ASSETS WHILST SERVICING DEBT;

ANTICIPATED COLLECTION RATES;

FROM THESE PROJECTIONS WE PERFORM RATIO ANALYSIS AND PLOT TRENDS ONTO GRAPHS

ANALYSIS WILL PROVIDE FINANCIAL LEVERAGE, SOLVENCY,

LIQUIDITY, PROFITABILITY AND GROWTH IN REVENUE VERSUS

OPERATING EXPENDITURE.

SOURCES OF FUNDING

EXTERNAL LOAN FUNDING

DEVELOPMENT CHARGES

DEMAND BASED

CONTRIBUTIONS –ELECTRICITY

SOURCE OF INCOME

PRIMARILY RATES ASSESSMENT,

ELECTRICITY SALES AND REFUSE COLLECTION CHARGES.

OTHER SMALLER STREAMS SUCH AS BUILDING PLAN FEES, TRAFFIC FINES, ETC

–

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

1 2 3 4 5

Property rates

Service charges

Investment revenue

Transfers recognised -operational

Other own revenue

COUNCIL OWN FUNDING

GRANT FUNDING (CONDITIONAL/ UNCONDITIONAL)

NATIONAL E.G. EQUITABLE SHARE (BASED ON POPULATION)

PROVINCIAL E.G. MUNICPAL INFRASTRUCTURE GRANT(ROADS,

HALLS ETC.), CORRIDOR FUNDING

07/08 08/09 09/10 10/11 11/12

STRATEGIC GOVERNANCE

STRUCTURES IN PLACE

POLITICAL STRUCTURES: MAYORS FORUM,

SPEAKERS FORUM,

COMMUNITY STRUCTURES YOUTH FORUMS,

ENVIRONMENTAL FORUM,

BUSINESS FORUMS

DEVELOPERS FORUM (DEFUNCT)

ADMINISTRATIVE STRUCTURES MANAGEMENT COMMITTEE

IDP STEERING COMMITTEE

KWADUKUZA FUTURE

VISION AND MISSION

INTEGRATED DEVELOPMENT PLAN 5 YEAR PLAN REVIEWED ANNUALLY

SECTOR PLANS

SPATIAL DEVELOPMENT FRAMEWORK SPATIAL REPRESENTATION OF THE IDP

BY 2030, VIBRANT CITY COMPETING IN THE GLOBAL VILLAGE - ECONOMICALLY,

SOCIALLY,

POLITICALLY AND

IN A SUSTAINABLE MANNER.’

MISSION: TO ACHIEVE HIGHEST ECONOMIC STATUS THROUGH:

DRIVING LOCAL ECONOMIC DEVELOPMENT;

DELIVERING A HIGH STANDARD OF ESSENTIAL SERVICES;

ENCOURAGING PUBLIC PARTICIPATION;

OVERCOMING DEBT AND ACHIEVING COST RECOVERY ON SERVICES PROVIDED

REGION: ILEMBE REGIONAL SPATIAL DEVELOPMENT PLAN

SPATIAL DEVELOPMENT FRAMEWORK

INFRASTRUCTURE INVESTMENT

ROADS & STORMWATER MASTERPLAN (2011)

CAPITAL EXPENDITURE OF R2 BILLION

ENERGY MASTER PLAN (2011)

CAPITAL EXPENDITURE OF APPROXIMATELY R1 BILLION CAPEX OVER 20 YEARS (UN-ESCALATED)

IMPLEMENTATION:

KWADUKUZA LOAN FUNDING: (R276,6 million)

ILEMBE DISTRICT BULK INFRASTRUCTRE PLAN (2025)

LOWER TUGELA WATER SCHEME (R2,4 Billion)

GROUTVILLE SANITATION (R254 million)

STRENGTHEN/ BUILD PARTNERSHIPS

E.g. SWISS GOVERNEMENT PROGRAMME

LOCAL ECONOMIC DEVELOMENT

TOURISM:

VIBRANT TOURISM DESTINATION

EVENTS DRIVEN - NOT SEASONAL

STRENGTHINING CULTURAL & HERITAGE

IN LINE WITH TOURISM VISION

UPGRADING OF FACILITIES

RE ESTABLISHMENT OF TOURISM ASSOCIATIONS

UPGRADING OF KEY RECREATIONAL BEACH NODES

INDUSTRY

ATTRACT NEW INDUSTRIES (COMPENSATION/GREATERDRIEFONTEIN AREAS)

STRENGTHNING MANUFACTURING SECTOR

AGRICULTURE:

BENEFICIATION

SERVICE DELIVERY

HUMAN SETTLEMENT ACCREDITATION

GAP HOUSING DELIVERY - FOR WORKING CLASS (PEOPLE EARNING BETWEEN R3500 AND R12500), -

GREATER CONTROL OF HOUSING DELIVERY

ADDITIONAL FUNDS, ADDITIONAL HUMAN CAPACITY

SECTION 78 INVESTIGATION (REFUSE REMOVAL)

‘ROLL OUT’ OF REFUSE REMOVAL SERVICE

HUMAN RESOURCE CAPACITATION

ONGOING TRAINING (STAFF BURSARIES)

WORKSHOPS

TRANSPORTATION

IMPROVED INTEGRATED TRANSPORT SYSTEM (INTERMODAL FACILITIES)

CLIMATE CHANGE

ENERGY EFFICIENT CITY

REPLACEMENT OF STREET LIGHTS

GRANT FUNDING: R8m (ESKOM), R5m (COGTA)

CLIMATE CHANGE PROGRAMME:

PROFILE CLIMATE CHANGE IMPACTS AND RISKS

BASELINE KEY EMISSIONS

CONSULT LOCAL STAKEHOLDERS

OUTLINE OPPORTUNITIES FOR BOTH ADAPTATION AND MITIGATION ACROSS KEY THEMES

OUTLINE KEY STRATEGIES TO TAKE FORWARD IN PLANNING

ICLEI PROGRAMME (3 yrs)

BIODIVERSITY PLAN

INCOPORATE OF PART OF MAIN LINE PLANNING POLICIES

THE ENDThank You, Siyabonga