ANNUAL BUDGET TABLES - ROAD TRENDS - MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK

ROAD TRENDS

1.7 ANNUAL BUDGET TABLES

The ten primary budget tables as required in terms of section 8 of the Municipal Budget and Reporting Regulations follow. These tables set out the municipality’s 2017/18 budget and MTREF. Each table is accompanied by explanatory notes on the facing page.

Description 2013/14 2014/15 2015/16

R thousands Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Financial Performance

Property rates 5,298,905 5,747,115 6,219,986 6,302,049 6,302,049 6,450,600 6,907,500 7,404,118 7,918,622 Serv ice charges 13,076,734 14,284,476 15,597,272 17,370,469 17,370,469 17,340,550 18,265,088 19,877,930 21,651,254 Inv estment rev enue 334,874 380,544 540,599 855,369 862,766 1,140,267 1,296,055 1,419,502 1,524,242 Transfers recognised - operational 2,191,385 2,657,499 2,439,256 3,063,682 3,074,831 2,820,785 3,087,889 3,442,104 3,776,317 Other ow n rev enue 3,521,616 3,803,192 4,245,626 3,675,992 3,748,563 3,715,459 3,828,123 4,013,060 4,190,697 Total Revenue (excluding capital transfers

and contributions)

24,423,514

26,872,826 29,042,739 31,267,560 31,358,677 31,467,661 33,384,655 36,156,714 39,061,131

Employ ee costs 6,893,729 7,157,526 8,251,752 8,755,110 8,713,941 8,778,508 9,824,018 10,554,818 11,297,071 Remuneration of councillors 94,721 100,795 105,334 105,953 105,964 105,917 107,947 114,525 120,711 Depreciation & asset impairment 1,740,969 1,938,879 1,972,414 1,976,669 1,964,233 1,974,017 2,080,881 2,178,020 2,332,789 Finance charges 857,206 950,565 968,805 1,424,373 1,424,294 1,476,351 1,466,337 1,648,016 1,779,020 Materials and bulk purchases 7,895,243 8,436,186 9,515,943 10,563,501 10,563,451 10,506,257 10,840,262 11,862,355 12,986,920 Transfers and grants 166,132 179,772 208,921 216,940 213,748 219,478 226,275 235,191 239,220 Other ex penditure 6,829,520 7,935,139 7,090,380 7,603,728 7,778,648 7,634,748 8,151,551 8,657,781 9,251,277 Total Expenditure 24,477,520 26,698,863 28,113,549 30,646,275 30,764,279 30,695,277 32,697,270 35,250,706 38,007,007 Surplus/(Deficit) (54,006) 173,964 929,191 621,285 594,398 772,384 687,385 906,007 1,054,124 Transfers and subsidies - capital (monetary allocations) (National / Prov incial and District) 2,041,011 2,779,110 3,331,032 3,689,848 3,739,615 3,709,849 3,807,036 3,728,504 3,916,903 Contributions recognised - capital & contributed assets – – – – – – – – – Surplus/(Deficit) after capital transfers &

contributions

1,987,005

2,953,074 4,260,222 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027

Surplus/(Deficit) for the year 1,987,005 2,953,074 4,260,222 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027 Capital expenditure & funds sources

Capital expenditure 4,201,622 4,716,504 4,902,924 6,725,067 6,693,732 6,362,425 7,340,084 7,225,045 7,750,324 Transfers recognised - capital 2,041,011 2,779,110 3,331,031 3,689,848 3,739,615 3,709,849 3,807,036 3,728,504 3,916,903 Public contributions & donations – – – – – – – – – Borrow ing 1,500,000 1,000,000 – 1,000,000 1,000,000 700,000 1,000,000 1,000,000 1,000,000 Internally generated funds 660,611 937,394 1,571,893 2,035,219 1,954,117 1,952,576 2,533,048 2,496,541 2,833,421 Total sources of capital funds 4,201,622 4,716,504 4,902,924 6,725,067 6,693,732 6,362,425 7,340,084 7,225,045 7,750,324 Financial position

Total current assets 13,163,816 12,818,086 15,059,946 14,821,634 15,468,544 15,574,656 16,466,103 17,416,876 18,242,450 Total non current assets 39,823,426 42,577,437 45,079,185 50,434,423 50,389,359 49,321,397 54,530,664 59,605,025 65,052,005 Total current liabilities 10,695,464 10,594,766 11,448,109 10,644,787 10,649,584 10,911,265 11,347,684 11,954,742 12,360,559 Total non current liabilities 12,775,090 12,403,651 11,990,573 13,099,265 13,098,788 12,240,212 12,474,404 12,457,401 12,412,253 Community w ealth/Equity 29,516,688 32,397,106 36,700,449 41,512,006 42,109,532 41,744,576 47,174,679 52,609,759 58,521,644 Cash flows

Net cash from (used) operating 5,041,836 4,024,457 7,037,273 5,912,104 5,556,892 5,875,961 6,016,702 6,198,613 6,599,359 Net cash from (used) inv esting (4,111,416) (4,709,909) (4,891,549) (6,694,753) (6,663,193) (6,403,209) (7,317,652) (7,201,564) (7,726,935) Net cash from (used) financing 369,562 (7,396) (1,096,160) (21,573) (21,115) (352,760) 345,255 220,260 (32,477) Cash/cash equivalents at the year end 6,859,692 6,166,809 7,216,329 5,438,838 6,088,913 6,336,321 5,380,626 4,597,935 3,437,883 Cash backing/surplus reconciliation

Cash and inv estments av ailable 6,859,692 6,166,809 7,216,329 6,705,710 7,359,386 7,610,478 7,982,745 8,345,009 8,508,081 Application of cash and inv estments 5,558,711 5,420,896 5,793,358 4,050,046 4,059,080 3,484,410 3,419,390 2,027,398 1,006,851 Balance - surplus (shortfall) 1,300,981 745,913 1,422,971 2,655,664 3,300,307 4,126,068 4,563,354 6,317,611 7,501,230 Asset management

Asset register summary (WDV) 39,225,988 41,987,380 45,007,719 50,264,940 50,216,042 49,198,062 54,405,710 59,477,267 64,921,782 Depreciation 1,670,114 1,865,656 1,972,820 1,906,519 1,906,519 1,916,304 2,017,502 2,105,583 2,253,683 Renew al of Ex isting Assets 1,243,962 1,457,116 1,506,606 3,117,212 2,729,197 2,524,567 1,027,257 1,118,051 1,086,383 Repairs and Maintenance 2,483,348 3,010,050 2,892,428 3,527,699 3,518,403 3,644,637 3,949,554 4,276,918 4,589,925 Free services

Cost of Free Basic Serv ices prov ided 1,183,687 1,286,064 1,423,509 1,654,765 1,654,765 1,654,765 1,499,706 1,653,906 1,824,125 Rev enue cost of free serv ices prov ided 2,335,267 2,613,835 2,811,880 2,827,233 2,827,233 2,827,233 2,545,890 2,752,443 2,987,410 Households below minimum service level

Water: 80 73 125 128 128 128 126 127 125 Sanitation/sew erage: 202 172 275 189 189 189 172 143 136 Energy : 363 368 394 399 399 399 405 410 415 ETH eThekwini - Table A1 Consolidated Budget Summary

Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

56 EXPLANATORY NOTES TO MBRR TABLE A1 – BUDGET SUMMARY

Table A1 is a budget summary and provides a concise overview of the City’s budget from all of the major financial perspectives (operating, capital expenditure, financial position, cash flow, and MFMA funding compliance). The table provides an overview of the amounts to be approved for operating performance, as well as the municipality’s commitment to eliminating basic service delivery backlogs.

Financial management reforms emphasises the importance of the municipal budget being funded. This requires the simultaneous assessment of the Financial Performance, Financial Position and Cash Flow Budgets, along with the Capital Budget. The Budget Summary provides the key information in this regard:

a. The operating surplus/deficit (after Total Expenditure) is positive over the MTREF b. Capital expenditure is balanced by capital funding sources, of which

i. Transfers recognized is reflected on the Financial Performance Budget;

ii. Borrowing is incorporated in the net cash from financing on the Cash Flow Budget

iii. Internally generated funds are financed from a combination of the current operating surplus and accumulated cash-backed surpluses from previous years.

Even though the Council places great emphasis on the financial sustainability of the municipality, this is not being done at the expense of services to the poor. The section of Free Services shows that the amount spent on Free Basic Services and the revenue cost of free services provided by the municipality continues to increase. In addition, the municipality continues to make good progress in addressing service delivery backlogs.

EXPLANATORY NOTES TO MBRR TABLE A2 – BUDGET PERFORMANCE (REVENUE AND EXPENDITURE BY STANDARD CLASSIFICATION)

Table A2 is a view of the budgeted financial performance in relation to revenue and expenditure per standard classification. The GFS standard classification divides the municipal services into 15 functional areas. Municipal revenue, operating expenditure and capital expenditure are then classified in terms of each of these functional areas which enable National Treasury to compile ‘whole of government’ reports.

As a general principle the revenues for the Trading Services should exceed their expenditures. The table highlights that this is the case for Electricity, Water and Waste water functions, but not the Waste management function. Other functions that show a deficit between revenue and expenditure are being financed from rates

ETH eThekwini - Table A2 Consolidated Budgeted Financial Performance (revenue and expenditure by functional classification) Functional Classification Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Revenue - Functional

Governance and administration Ex ecutiv e and council Finance and administration Community and public safety Community and social serv ices Sport and recreation Public safety Housing Health Economic and environmental Planning and dev elopment Road transport Env ironmental protection Trading services Energy sources Water management Waste w ater management Waste management Other Total Revenue - Functional Expenditure - Functional 8,495,511 9,038,504 9,691,303 10,521,681 10,523,763 10,866,995 11,657,923 12,541,677 13,005,603 1,578 1,377 1,406 169,471 169,471 168,790 253,292 261,556 203,216 8,493,933 9,037,127 9,689,897 10,352,211 10,354,292 10,698,206 11,404,632 12,280,122 12,802,387 738,870 1,223,658 1,256,445 2,182,885 2,185,557 1,949,605 1,949,417 2,027,561 2,038,705 43,541 78,805 106,921 243,515 252,202 202,723 129,205 197,965 162,573 92,445 77,727 75,286 42,764 42,764 43,352 101,843 92,011 94,939 256,026 294,861 611,050 59,696 59,696 59,828 78,506 80,951 57,807 249,669 636,740 313,444 1,478,123 1,472,108 1,476,110 1,444,471 1,450,301 1,510,502 97,190 135,524 149,744 358,787 358,787 167,592 195,391 206,334 212,884 services 1,068,908 1,664,010 2,447,345 1,772,584 1,827,198 1,785,904 1,851,797 1,757,193 1,793,950 197,781 191,871 202,304 360,305 399,453 360,639 321,962 266,424 277,949 867,903 1,466,316 2,241,930 1,403,905 1,419,371 1,403,996 1,529,435 1,490,345 1,515,551 3,224 5,824 3,110 8,374 8,374 21,269 400 424 449 15,695,034 17,208,744 18,385,065 19,900,625 19,902,174 19,910,462 21,044,896 22,795,636 25,397,407 9,945,531 10,784,979 12,235,174 13,058,493 13,058,493 13,070,035 13,245,823 14,222,965 15,625,904 3,198,818 3,899,886 3,871,042 4,367,962 4,367,962 4,356,943 5,154,123 5,669,214 6,425,828 1,730,345 1,633,514 1,305,870 1,469,191 1,470,739 1,476,591 1,539,230 1,682,558 2,027,512 820,340 890,366 972,979 1,004,980 1,004,980 1,006,893 1,105,720 1,220,899 1,318,163 466,201 517,019 593,613 579,633 659,600 664,543 687,658 763,150 742,369 26,464,525 29,651,936 32,373,771 34,957,408 35,098,293 35,177,510 37,191,691 39,885,218 42,978,034

Governance and administration 2,713,420 3,289,741 3,056,834 3,952,587 3,959,889 3,871,122 4,126,307 4,323,982 4,557,691 Ex ecutiv e and council 325,502 369,210 326,764 445,428 445,299 390,157 467,365 467,229 496,627 Finance and administration 2,330,447 2,847,812 2,640,659 3,388,320 3,394,200 3,354,025 3,503,024 3,693,956 3,887,327 Internal audit 57,471 72,719 89,411 118,840 120,389 126,941 155,918 162,797 173,737 Community and public safety 4,643,215 5,045,415 4,878,902 4,782,500 4,805,618 4,788,650 5,398,487 5,775,679 6,112,781 Community and social serv ices 661,919 734,835 788,940 885,884 909,036 892,083 1,044,324 1,136,016 1,206,604 Sport and recreation 1,111,020 1,046,440 1,131,043 1,077,625 1,077,639 1,046,478 1,364,436 1,444,082 1,520,642 Public safety 1,314,368 1,372,711 1,804,944 1,531,503 1,531,482 1,683,133 1,760,567 1,876,049 2,003,387 Housing 1,188,661 1,508,123 754,796 605,083 605,055 674,946 679,806 732,586 755,266 Health 367,248 383,305 399,180 682,405 682,405 492,010 549,354 586,946 626,881 Economic and environmental services 2,583,570 2,584,296 2,901,620 3,345,185 3,364,790 3,230,440 3,298,810 3,444,590 3,670,088 Planning and dev elopment 667,970 668,860 819,176 1,061,264 1,132,350 1,034,424 896,117 881,659 937,812 Road transport 1,778,954 1,765,120 1,958,138 2,021,547 1,970,067 1,936,766 2,125,047 2,266,335 2,418,811 Env ironmental protection 136,646 150,315 124,306 262,373 262,373 259,250 277,646 296,596 313,466 Trading services 13,942,272 15,163,682 16,586,025 17,839,629 17,841,177 18,023,243 19,025,074 20,792,763 22,689,698 Energy sources 8,259,921 9,445,827 10,146,160 11,524,118 11,524,118 11,443,478 11,789,188 12,692,953 13,664,000 Water management 3,705,859 3,718,111 4,179,827 4,191,845 4,191,845 4,369,820 4,922,326 5,568,542 6,253,125 Waste w ater management 1,053,060 1,071,338 1,382,015 1,206,046 1,207,593 1,293,293 1,316,613 1,438,542 1,573,174 Waste management 923,432 928,406 878,023 917,620 917,620 916,652 996,947 1,092,726 1,199,399 Other 595,043 615,730 693,999 726,372 792,805 781,822 848,591 913,693 976,749 Total Expenditure - Functional 24,477,520 26,698,863 28,117,379 30,646,275 30,764,279 30,695,277 32,697,270 35,250,706 38,007,007 Surplus/(Deficit) for the year 1,987,005 2,953,074 4,256,392 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

EXPLANATORY NOTES TO MBRR TABLE A3 – BUDGETED FINANCIAL PERFORMANCE ( REVENUE AND EXPENDITURE BY MUNICIPAL VOTE )

Table A3 is a view of the budgeted financial performance in relation to the revenue and expenditure per municipal vote. This table facilitates the view of the budgeted operating performance in relation to the organizational structure of the City.

ETH eThekwini - Table A3 Consolidated Budgeted Financial Performance (revenue and expenditure by municipal vote)

Vote Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Revenue by Vote

Vote 1 - Office of the City Manager 28,272 34,547 28,297 193,656 193,656 193,656 278,740 288,277 231,283 Vote 2 - City Manager's Operations 231,521 297,438 663,782 135,582 164,282 135,582 158,042 96,705 97,524 Vote 3 - Finance 8,509,911 8,996,173 9,486,785 10,312,409 10,314,491 10,657,630 11,355,583 12,234,606 12,754,648 Vote 4 - Office of the Strategic Management 2,344 2,819 1,653 1,001 1,001 1,001 2,655 2,738 2,825 Vote 5 - Gov ernance 4,146 4,201 3,209 2,820 2,820 2,327 3,075 3,229 3,377 Vote 6 - Corporate and Human Resources 11,276 12,134 11,419 14,052 14,052 13,619 15,107 15,862 16,656 Vote 7 - Economic Dev elopment & Planning 234,588 224,996 254,265 360,904 371,353 371,632 299,661 352,424 302,523 Vote 8 - Community and Emergency Serv ices 163,364 271,076 386,279 656,671 665,358 426,467 454,218 523,506 474,383 Vote 9 - Human Settlements and Infrastructure 1,050,096 1,729,062 2,525,661 2,738,916 2,749,916 2,740,328 2,865,329 2,795,838 2,876,975 Vote 10 - Trading Serv ices 15,870,203 17,675,867 18,540,604 20,120,272 20,120,272 20,134,176 21,234,414 23,016,724 25,626,665 Vote 11 - Durban ICC 174,878 190,920 204,212 207,526 217,892 217,892 233,535 247,084 265,901 Vote 12 - USHAKA MARINE 183,926 212,705 267,605 213,598 283,200 283,200 291,332 308,224 325,276 Total Revenue by Vote 26,464,525 29,651,936 32,373,771 34,957,408 35,098,293 35,177,510 37,191,691 39,885,218 42,978,034

Expenditure by Vote to be appropriated

Vote 1 - Office of the City Manager 475,313 486,140 463,760 481,939 483,488 533,484 594,268 613,306 633,967 Vote 2 - City Manager's Operations 1,018,399 1,024,139 1,076,059 1,296,703 1,374,678 1,468,825 1,358,437 1,377,274 1,472,081 Vote 3 - Finance 1,367,454 1,850,182 3,031,732 2,608,743 2,615,658 2,504,586 2,606,013 2,730,493 2,875,537 Vote 4 - Office of the Strategic Management 22,709 24,360 31,165 39,248 39,234 36,864 45,223 47,975 50,907 Vote 5 - Gov ernance 495,954 574,604 618,867 642,475 666,328 629,363 722,418 736,602 780,057 Vote 6 - Corporate and Human Resources 319,812 353,811 391,201 495,735 493,241 504,994 537,011 567,023 598,616 Vote 7 - Economic Dev elopment & Planning 865,744 828,795 746,701 973,609 964,638 924,867 953,099 1,018,318 1,078,770 Vote 8 - Community and Emergency Serv ices 2,288,800 2,421,787 2,494,355 3,131,320 3,132,458 2,918,260 3,447,530 3,688,487 3,913,434 Vote 9 - Human Settlements and Infrastructure 3,202,292 3,371,462 2,044,948 2,635,823 2,583,661 2,600,159 2,845,987 3,056,264 3,245,242 Vote 10 - Trading Serv ices 14,062,744 15,405,147 16,762,888 17,906,260 17,906,260 18,069,240 19,061,709 20,848,642 22,753,721 Vote 11 - Durban ICC 145,850 152,082 166,572 194,114 188,815 188,815 205,828 225,939 246,985 Vote 12 - USHAKA MARINE 212,448 206,352 289,130 240,305 315,820 315,820 319,747 340,384 357,689 Total Expenditure by Vote 24,477,520 26,698,863 28,117,379 30,646,275 30,764,279 30,695,277 32,697,270 35,250,706 38,007,007 Surplus/(Deficit) for the year 1,987,005 2,953,074 4,256,392 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027

Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

Section 1.4 provides explanatory details on the operating revenue framework.

ETH eThekwini - Table A4 Consolidated Budgeted Financial Performance (revenue and expenditure)

Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Revenue By Source

Property rates 5,298,905 5,747,115 6,219,986 6,302,049 6,302,049 6,450,600 6,907,500 7,404,118 7,918,622 Serv ice charges - electricity rev enue 9,444,493 10,188,864 11,295,514 12,576,060 12,576,060 12,551,032 12,787,852 13,810,005 14,913,885 Serv ice charges - w ater rev enue 2,295,911 2,622,959 2,759,678 3,301,439 3,301,439 3,287,399 3,825,905 4,278,679 4,785,161 Serv ice charges - sanitation rev enue 726,846 800,027 805,590 807,742 807,742 808,650 890,031 979,685 1,078,462 Serv ice charges - refuse rev enue 472,656 524,136 556,239 572,621 572,621 574,408 624,509 680,470 741,434 Serv ice charges - other 136,828 148,490 180,251 112,607 112,607 119,060 136,791 129,091 132,311 Rental of facilities and equipment 532,028 560,625 538,047 489,907 489,907 459,713 486,015 515,229 543,566 Interest earned - ex ternal inv estments 334,874 380,544 540,599 855,369 862,766 1,140,267 1,296,055 1,419,502 1,524,242 Interest earned - outstanding debtors 287,217 337,141 359,569 272,504 272,504 266,104 287,332 310,460 334,682

Div idends receiv ed – – –

Fines, penalties and forfeits 248,511 262,262 591,392 59,463 59,463 56,959 61,300 64,764 66,006 Licences and permits 30,542 30,228 40,912 35,825 35,825 36,905 38,189 40,425 40,505 Agency serv ices 10,795 10,233 10,186 10,552 10,552 10,552 11,185 11,857 12,568 Transfers and subsidies 2,191,385 2,657,499 2,439,256 3,063,682 3,074,831 2,820,785 3,087,889 3,442,104 3,776,317 Other rev enue 2,394,784 2,553,417 2,696,395 2,768,384 2,840,955 2,845,862 2,903,333 3,028,022 3,150,676 Gains on disposal of PPE 17,739 49,286 9,125 39,358 39,358 39,364 40,768 42,303 42,694 Total Revenue (excluding capital transfers

and contributions)

24,423,514

26,872,826 29,042,739 31,267,560 31,358,677 31,467,661 33,384,655 36,156,714 39,061,131

Expenditure By Type

Employ ee related costs 6,893,729 7,157,526 8,251,752 8,755,110 8,713,941 8,778,508 9,824,018 10,554,818 11,297,071 Remuneration of councillors 94,721 100,795 105,334 105,953 105,964 105,917 107,947 114,525 120,711 Debt impairment 1,618,726 2,079,360 1,391,264 648,458 648,458 648,458 649,219 699,259 714,717 Depreciation & asset impairment 1,740,969 1,938,879 1,972,414 1,976,669 1,964,233 1,974,017 2,080,881 2,178,020 2,332,789 Finance charges 857,206 950,565 968,805 1,424,373 1,424,294 1,476,351 1,466,337 1,648,016 1,779,020 Bulk purchases 7,839,588 8,378,618 9,464,736 10,425,185 10,425,185 10,341,318 10,657,978 11,666,518 12,779,126 Other materials 55,655 57,568 51,207 138,316 138,266 164,939 182,284 195,837 207,794 Contracted serv ices 3,285,131 3,775,765 3,652,432 4,356,387 4,470,311 4,455,145 4,841,709 5,143,996 5,584,886 Transfers and subsidies 166,132 179,772 208,921 216,940 213,748 219,478 226,275 235,191 239,220 Other ex penditure 1,925,007 2,079,346 2,044,226 2,598,642 2,659,638 2,530,404 2,659,875 2,813,766 2,950,909 Loss on disposal of PPE 656 668 2,458 241 241 741 749 759 765 Total Expenditure 24,477,520 26,698,863 28,113,549 30,646,275 30,764,279 30,695,277 32,697,270 35,250,706 38,007,007

Surplus/(Deficit) (54,006) 173,964 929,191 621,285 594,398 772,384 687,385 906,007 1,054,124 Transfers and subsidies - capital (monetary

allocations) (National / Prov incial and District) 2,041,011 2,779,110 3,331,032 3,689,848 3,739,615 3,709,849 3,807,036 3,728,504 3,916,903 Transfers and subsidies - capital (in-kind - all)

Surplus/(Deficit) after capital transfers &

contributions

1,987,005

2,953,074 4,260,222 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027

Tax ation 3,830

Surplus/(Deficit) after taxation 1,987,005 2,953,074 4,256,392 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027 Attributable to minorities

Surplus/(Deficit) attributable to municipality

1,987,005

2,953,074 4,256,392 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027

Share of surplus/ (deficit) of associate

Surplus/(Deficit) for the year 1,987,005 2,953,074 4,256,392 4,311,133 4,334,014 4,482,233 4,494,421 4,634,511 4,971,027 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

ETH eThekwini - Table A5 Consolidated Budgeted Capital Expenditure by vote, functional classification and funding

Vote Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Capital expenditure - Vote

Multi-year expenditure to be appropriated

Vote 1 - Office of the City Manager 130,095 111,347 – 340,548 365,200 291,793 435,199 408,432 443,200 Vote 2 - City Manager's Operations 3,488 3,031 – – – – – – – Vote 3 - Finance 102,966 90,975 67,600 134,462 135,266 121,016 257,708 206,438 170,950 Vote 4 - Office of the Strategic Management 225 – – – – – – – – Vote 5 - Gov ernance 7,265 6,476 – 5,738 9,438 5,164 12,508 17,584 20,205 Vote 6 - Corporate and Human Resources 4,468 3,126 – 3,299 3,299 2,969 1,355 864 450 Vote 7 - Economic Dev elopment & Planning 147,019 77,665 193,232 267,015 311,234 240,314 370,751 482,208 477,882 Vote 8 - Community and Emergency Serv ices 122,504 193,303 197,957 427,145 384,988 384,401 433,327 458,495 506,261 Vote 9 - Human Settlements and Infrastructure 1,352,354 2,101,946 2,403,343 3,026,944 2,985,786 2,847,891 3,193,491 3,060,087 3,304,365 Vote 10 - Trading Serv ices 2,306,146 1,968,345 1,736,471 2,070,127 2,070,285 2,071,542 2,148,770 2,232,148 2,340,900 Capital multi-year expenditure sub-total 4,176,529 4,556,214 4,598,604 6,275,278 6,265,496 5,965,090 6,853,108 6,866,256 7,264,213 Single-year expenditure to be appropriated

Vote 1 - Office of the City Manager – 8,595 159,212 21,443 23,257 19,299 6,458 5,196 9,070 Vote 2 - City Manager's Operations – 509 8,537 6,267 6,267 5,640 497 2,614 36,586 Vote 3 - Finance – 29,453 48,938 101,978 101,978 91,780 84,391 25,520 70,357 Vote 5 - Gov ernance – 10,458 9,953 19,863 19,863 17,877 7,697 7,007 7,214 Vote 6 - Corporate and Human Resources – 5,640 8,957 1,500 1,936 1,350 2,946 3,436 4,066 Vote 7 - Economic Dev elopment & Planning – 37,425 2,515 564 564 508 729 1,157 531 Vote 8 - Community and Emergency Serv ices – 816 6,973 34,129 35,929 30,716 120,727 95,181 60,808 Vote 9 - Human Settlements and Infrastructure – 4,782 3,943 24,824 27,660 22,342 8,243 3,780 4,746 Vote 10 - Trading Serv ices – 41,662 14,812 140,293 143,189 140,231 162,401 158,401 239,775 Vote 11 - Durban ICC 9,788 9,856 17,789 64,344 45,809 45,809 77,932 38,547 37,331 Vote 12 - USHAKA MARINE 15,305 11,094 22,692 34,584 21,784 21,784 14,869 17,905 15,412 Capital single-year expenditure sub-total 25,093 160,290 304,319 449,789 428,236 397,335 486,976 358,789 486,111 Total Capital Expenditure - Vote 4,201,622 4,716,504 4,902,924 6,725,067 6,693,732 6,362,425 7,340,084 7,225,045 7,750,324 Capital Expenditure - Functional

Governance and administration 248,507 267,231 304,978 384,182 427,822 331,421 478,576 345,517 428,250 Ex ecutiv e and council 133,808 16,934 9,953 25,600 29,300 23,040 20,205 24,592 27,419 Finance and administration 113,709 247,790 295,025 358,582 237,243 308,381 458,022 320,690 400,581

Internal audit 990 2,508 161,279 348 235 250

Community and public safety 187,188 558,090 525,586 1,667,591 1,621,634 1,623,107 1,843,699 1,827,953 1,921,158 Community and social serv ices 46,160 92,420 103,827 304,859 245,268 273,007 364,496 337,384 360,595 Sport and recreation 45,674 11,329 14,794 48,088 42,088 43,279 99,323 114,850 94,283 Public safety 4,696 70,567 74,328 79,303 104,604 71,373 76,416 78,020 113,954 Housing 64,684 361,592 312,438 1,200,400 1,201,800 1,204,001 1,289,375 1,272,657 1,318,179 Health 25,974 22,182 20,199 34,941 27,874 31,447 14,089 25,043 34,148 Economic and environmental services 1,430,551 1,862,326 2,193,855 2,357,172 2,356,435 2,121,455 2,572,452 2,596,335 2,744,167 Planning and dev elopment 147,619 125,122 200,576 266,102 310,321 239,492 360,608 476,964 467,082 Road transport 1,282,932 1,737,204 1,993,279 2,091,070 2,046,114 1,881,963 2,211,845 2,119,370 2,277,085 Trading services 2,306,537 2,006,622 1,831,497 2,195,945 2,198,999 2,199,276 2,323,255 2,376,638 2,576,475 Energy sources 531,463 541,797 601,678 666,148 666,148 669,479 806,000 806,550 907,900 Water management 812,951 815,638 561,852 785,626 788,425 785,626 775,896 804,368 847,318 Waste w ater management 822,062 583,041 592,347 617,900 618,155 617,900 604,945 628,406 680,234 Waste management 140,062 66,146 75,620 126,271 126,271 126,271 136,414 137,314 141,023 Other 28,839 22,235 47,008 120,177 88,842 87,167 122,103 78,602 80,274 Total Capital Expenditure - Functional 4,201,622 4,716,504 4,902,924 6,725,067 6,693,732 6,362,425 7,340,084 7,225,045 7,750,324 Funded by:

National Gov ernment 1,914,392 2,659,804 3,259,205 2,872,195 2,896,932 2,884,174 2,944,747 2,959,474 3,107,733 Prov incial Gov ernment 122,995 105,188 55,220 815,653 820,518 812,030 862,289 769,030 809,170 Other transfers and grants 3,623 14,118 16,606 2,000 22,166 13,645 – –

Transfers recognised - capital 2,041,011 2,779,110 3,331,031 3,689,848 3,739,615 3,709,849 3,807,036 3,728,504 3,916,903 Borrowing 1,500,000 1,000,000 – 1,000,000 1,000,000 700,000 1,000,000 1,000,000 1,000,000 Internally generated funds 660,611 937,394 1,571,893 2,035,219 1,954,117 1,952,576 2,533,048 2,496,541 2,833,421 Total Capital Funding 4,201,622 4,716,504 4,902,924 6,725,067 6,693,732 6,362,425 7,340,084 7,225,045 7,750,324 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

EXPLANATORY NOTES TO TABLE A5 – BUDGETED CAPITAL EXPENDITURE BY VOTE, STANDARD CLASSIFICATION AND FUNDING SOURCE

Table A5 reflects the city’s capital programme in relation to capital expenditure by municipal vote (multi-year appropriations); capital expenditure by standard classification; and the funding sources necessary to fund the capital budget, including information on capital transfers from national and provincial departments. The MFMA provides that a municipality may approve multi-year or single-year capital budget appropriations. Budget appropriations for the two outer years are indicative allocations based on departmental plans as informed by the IDP and will be reviewed on an annual basis to assess the relevance of the expenditure in relation to the strategic objectives of the city. The capital programme is funded mainly from grants and transfers, borrowings and internally generated funds.

EXPLANATORY NOTES TO TABLE A6 – BUDGETED FINANCIAL POSITION

Table A6 is a consistent with international standards of good financial management practice, and improves understandability for councilors and management of the impact of the budget on the statement of financial position (balance sheet). This format presenting the statement of financial position is aligned to GRAP1, which is generally aligned to the international version which presents Assets less Liabilities as “accounting” Community Wealth. The order of items within each group illustrates items in order of liquidity; i.e. assets readily converted to cash, or liabilities immediately required to be met from cash, appear first.

ETH eThekwini - Table A6 Consolidated Budgeted Financial Position

Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 ASSETS

Current assets

Cash 1,067,314 883,192 1,020,118 1,196,891 1,246,507 1,348,787 1,304,287 1,308,336 1,317,342 Call inv estment deposits 6,149,940 5,471,113 7,026,220 6,500,000 7,100,000 7,100,000 7,500,000 7,850,000 8,000,000 Consumer debtors 2,879,048 3,077,172 2,767,695 3,485,750 3,486,888 3,203,143 3,693,090 4,243,207 4,862,518 Other debtors 2,576,289 2,954,724 3,699,636 3,300,239 3,296,332 3,322,298 3,356,266 3,390,573 3,425,331 Current portion of long-term receiv ables 101,603 10,966 41,595 11,409 11,409 241,327 246,153 251,077 256,098 Inv entory 389,622 420,919 504,682 327,345 327,408 359,102 366,306 373,683 381,161 Total current assets 13,163,816 12,818,086 15,059,946 14,821,634 15,468,544 15,574,656 16,466,103 17,416,876 18,242,450 Non current assets

Long-term receiv ables 91,704 84,497 41,817 88,962 88,737 47,540 47,643 48,901 49,789

Inv estments 500,000 500,000 4,060

Inv estment property 328,723 314,901 305,276 309,929 305,940 362,638 356,064 349,871 343,341 Property , plant and equipment 38,123,721 40,817,004 43,804,248 49,090,941 49,046,422 47,933,895 53,140,616 58,213,642 63,659,941 Intangible 773,544 855,475 898,195 864,070 863,680 901,529 909,030 913,754 918,500 Other non-current assets 5,734 5,560 29,649 80,521 80,521 75,795 77,311 78,857 80,434 Total non current assets 39,823,426 42,577,437 45,079,185 50,434,423 50,389,359 49,321,397 54,530,664 59,605,025 65,052,005 TOTAL ASSETS 52,987,242 55,395,523 60,139,131 65,256,057 65,857,903 64,896,053 70,996,767 77,021,902 83,294,456 LIABILITIES

Current liabilities

Bank ov erdraft 857,562 687,496 830,009 991,181 991,181 838,309 821,543 813,327 809,261 Borrow ing 993,039 1,082,774 1,065,702 923,000 923,000 703,549 829,745 1,083,732 1,114,828 Consumer deposits 1,533,178 1,712,690 1,945,529 1,890,434 1,891,116 1,975,935 2,026,549 2,078,380 2,131,708 Trade and other pay ables 7,061,447 6,385,768 6,950,455 6,146,335 6,150,228 6,753,795 7,042,904 7,364,838 7,702,527 Prov isions 250,238 726,038 656,414 693,837 694,058 639,677 626,944 614,465 602,235 Total current liabilities 10,695,464 10,594,766 11,448,109 10,644,787 10,649,584 10,911,265 11,347,684 11,954,742 12,360,559 Non current liabilities

Borrow ing 9,376,543 9,249,745 8,170,657 9,447,067 9,446,590 8,359,004 8,529,259 8,445,527 8,330,699 Prov isions 3,398,547 3,153,906 3,819,916 3,652,198 3,652,198 3,881,208 3,945,145 4,011,874 4,081,554 Total non current liabilities 12,775,090 12,403,651 11,990,573 13,099,265 13,098,788 12,240,212 12,474,404 12,457,401 12,412,253 TOTAL LIABILITIES 23,470,554 22,998,417 23,438,682 23,744,052 23,748,372 23,151,477 23,822,088 24,412,143 24,772,812 NET ASSETS 29,516,688 32,397,106 36,700,449 41,512,005 42,109,532 41,744,576 47,174,679 52,609,759 58,521,644 COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 15,957,811 19,747,573 24,017,140 28,967,538 29,541,318 28,657,378 33,653,583 38,790,697 44,272,589 Reserv es 13,558,877 12,649,533 12,683,308 12,544,468 12,568,214 13,087,198 13,521,096 13,819,062 14,249,054 TOTAL COMMUNITY WEALTH/EQUITY 29,516,688 32,397,106 36,700,449 41,512,006 42,109,532 41,744,576 47,174,679 52,609,759 58,521,644

Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

Table A6 is supported by an extensive table of notes ( Supporting Table SA3 ) providing a detailed analysis of the major components of a number of items, including:

· Call investments deposits;

· Consumer debtors;

· Property, plant and equipment;

· Trade and other payables;

· Provisions non-current;

· Changes in net assets; and

· Reserves

The municipal equivalent of equity is Community Wealth/Equity. The justification is that ownership and the net assets of the municipality belong to the community.

Any movement on the Budgeted Financial Performance or the Capital Budget will inevitably impact on the Budgeted Financial Position. As an example, the collection rate assumption will impact on the cash position of the municipality and subsequently inform the level of cash and cash equivalents at year end. Similarly, the collection rate assumption should inform the budget appropriation for debt impairment which in turn would impact on the provision for bad debt.

These budget and planning assumptions form a critical link in determining the applicability and relevance of the budget as well as the determination of ratios and financial indicators. In addition the funding compliance assessment is informed directly by forecasting the statement of financial position.

64 TABLE A7 – BUDGETED CASH FLOW STATEMENT

The budgeted cash flow statement is the first measurement in determining if the budget is funded. It shows the expected level of cash in-flow versus cash out-flow that is likely to result from the implementation of the budget. The 2017/18 MTREF has been informed by the planning principle of ensuring adequate cash reserves over the medium-term. Cash and cash equivalents totals R 5.4 billion as at the end of the 2017/18 financial year and is projected to decrease to R 3.4 billion by 2019/2020.

ETH eThekwini - Table A7 Consolidated Budgeted Cash Flows

Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates 5,452,688 5,909,114 6,332,869 6,137,543 6,137,543 6,128,070 6,562,125 7,033,912 7,522,691 Serv ice charges 13,112,696 14,284,476 15,597,272 16,724,943 16,724,943 16,598,731 17,479,397 19,021,802 20,717,481 Other rev enue 1,804,092 813,817 1,915,893 3,348,069 3,420,640 3,240,062 3,479,044 3,638,662 3,788,950 Gov ernment - operating 2,191,384 2,657,499 2,439,256 3,063,682 3,074,831 2,820,735 3,087,889 3,443,905 3,779,289 Gov ernment - capital 2,041,011 2,779,110 3,331,031 3,689,848 3,739,615 3,709,849 3,807,036 3,726,703 3,916,903 Interest 518,343 555,686 787,285 969,349 988,586 1,435,970 1,562,712 1,707,366 1,834,165 Payments

Suppliers and employ ees (19,052,173) (21,844,908) (22,188,607) (26,382,679) (26,891,146) (26,361,627) (28,268,890) (30,490,528) (32,941,879) Finance charges (857,206) (950,565) (968,805) (1,421,709) (1,424,373) (1,476,351) (1,466,337) (1,648,016) (1,779,020) Transfers and Grants (169,000) (179,772) (208,921) (216,940) (213,748) (219,478) (226,275) (235,191) (239,220) NET CASH FROM/(USED) OPERATING ACTIVITIES 5,041,836 4,024,457 7,037,273 5,912,104 5,556,892 5,875,961 6,016,702 6,198,613 6,599,359

CASH FLOWS FROM INVESTING ACTIVITIES Receipts

Proceeds on disposal of PPE 34,768 57,734 14,543 39,358 39,358 39,364 40,768 42,303 42,694 Decrease (Increase) in non-current debtors 2,063 10,318 (1,724) (1,499) (1,486) (1,516) (1,546) (1,577) Decrease (increase) other non-current receiv ables 65,832 – (7,320) (7,320) (836) (818) (853) (887)

Decrease (increase) in non-current inv estments (78,276) (16,002) (16,423) (16,841)

Payments

Capital assets (4,212,016) (4,769,706) (4,916,410) (6,725,067) (6,693,732) (6,361,975) (7,340,084) (7,225,045) (7,750,324) NET CASH FROM/(USED) INVESTING ACTIVITIES (4,111,416) (4,709,909) (4,891,549) (6,694,753) (6,663,193) (6,403,209) (7,317,652) (7,201,564) (7,726,935)

CASH FLOWS FROM FINANCING ACTIVITIES Receipts

Short term loans – – –

Borrow ing long term/refinancing 1,509,589 1,000,000 – 1,000,000 1,000,000 700,000 1,000,000 1,000,000 1,000,000 Increase (decrease) in consumer deposits 88,904 88,885 47,636 48,804 50,005 51,255 Payments

Repay ment of borrow ing (1,140,027) (1,007,396) (1,096,160) (1,110,477) (1,110,000) (1,100,396) (703,549) (829,745) (1,083,732) NET CASH FROM/(USED) FINANCING ACTIVITIES 369,562 (7,396) (1,096,160) (21,573) (21,115) (352,760) 345,255 220,260 (32,477)

NET INCREASE/ (DECREASE) IN CASH HELD 1,299,982 (692,848) 1,049,564 (804,222) (1,127,416) (880,008) (955,695) (782,690) (1,160,053) Cash/cash equiv alents at the y ear begin: 5,559,709 6,859,657 6,166,765 6,243,060 7,216,329 7,216,329 6,336,321 5,380,626 4,597,935 Cash/cash equiv alents at the y ear end: 6,859,692 6,166,809 7,216,329 5,438,838 6,088,913 6,336,321 5,380,626 4,597,935 3,437,883 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

TABLE A8 – CASH BACKED RESERVES/ACCUMULATED SURPLUS RECONCILIATION

The table is aligned to the requirements of the MFMA Circular 42.

In essence the table evaluates the funding levels of the budget by firstly forecasting the cash and investments at year end and secondly reconciling the available funding to the liabilities/commitments that exist.

The outcome of this exercise indicates a surplus. This shows that the cash and investments available exceed the applications indicating compliance with the MFMA requirements that the municipality’s budget is “funded”. As part of the budgeting and planning guidelines that informed the compilation of the 2017/18 MTREF, the end objective of the medium-term framework was to ensure the budget is funded & aligned to section 18 of the MFMA.

ETH eThekwini - Table A8 Consolidated Cash backed reserves/accumulated surplus reconciliation

Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Cash and investments available

Cash/cash equiv alents at the y ear end 6,859,692 6,166,809 7,216,329 5,438,838 6,088,913 6,336,321 5,380,626 4,597,935 3,437,883 Other current inv estments > 90 day s (500,000) (500,000) – 1,266,872 1,266,413 1,274,157 2,602,119 3,747,074 5,070,198 Non current assets - Inv estments 500,000 500,000 – – 4,060 – – – – Cash and investments available: 6,859,692 6,166,809 7,216,329 6,705,710 7,359,386 7,610,478 7,982,745 8,345,009 8,508,081

Application of cash and investments

Unspent conditional transfers 1,328,247 1,125,784 749,320 300,000 300,000 300,000 275,000 250,000 225,000 Unspent borrow ing – – – – – – – – – Statutory requirements

Other w orking capital requirements – – – – – – – – – Other prov isions 328,341 811,222 649,618 691,059 694,058 636,626 623,893 611,415 599,187 Long term inv estments committed – – – – – – – – – Reserv es to be backed by cash/inv estments 3,333,129 3,625,919 4,209,606 3,811,037 3,811,037 2,307,925 2,496,856 1,350,727 625,185 Total Application of cash and investments: 4,989,717 5,562,925 5,608,544 4,802,096 4,805,095 3,244,551 3,395,749 2,212,143 1,449,372 Surplus(shortfall) 1,869,975 603,884 1,607,785 1,903,614 2,554,292 4,365,927 4,586,996 6,132,866 7,058,709 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

66 ETH eThekwini - Table A9 Consolidated Asset Management

Description 2013/14 2014/15 2015/16

R thousand Audited

Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year

Budget Year +1

Budget Year +2 CAPITAL EXPENDITURE

Total New Assets 2,570,040 2,986,172 3,135,125 3,236,578 3,419,536 3,336,395 4,023,079 3,744,953 4,071,800 Roads Infrastructure 205,714 76,463 137,218 128,601 128,601 115,741 137,084 149,533 226,654 Storm water Infrastructure – – 59,321 74,012 74,012 66,611 50,000 50,000 50,000 Electrical Infrastructure 282,467 196,261 404,509 385,827 385,827 385,827 613,126 552,911 561,904 Water Supply Infrastructure 555,131 637,208 397,143 649,798 448,857 448,857 589,605 623,329 665,353 Sanitation Infrastructure 788,710 565,240 481,299 542,102 456,252 456,252 455,854 397,257 406,216 Solid Waste Infrastructure 88,384 38,403 22,795 28,243 28,243 28,221 43,000 43,000 53,000 Infrastructure 1,920,406 1,513,575 1,502,285 1,808,584 1,521,793 1,501,510 1,888,669 1,816,030 1,963,127 Community Facilities 243,979 901,403 1,341,257 983,574 971,601 957,036 287,074 509,108 341,542 Sport and Recreation Facilities 164 7,941 2,956 8,500 1,519 1,367 35,264 10,620 5,397 Community Assets 244,143 909,344 1,344,213 992,074 973,120 958,403 322,338 519,728 346,939 Heritage Assets 5,073 – – – – – – – –

Operational Buildings 116,887 174,063 107,337 184,012 266,220 239,598 22,918 24,485 38,700 Housing 2,245 262,505 10,950 97,700 447,700 435,191 1,223,775 908,969 1,084,001 Other Assets 119,132 436,568 118,287 281,712 713,920 674,789 1,246,693 933,454 1,122,701 Biological or Cultivated Assets – – – – – – – – –

Serv itudes – – – – – – 1,350 – 1,800 Licences and Rights 4,496 3,457 3,848 2,155 25,648 23,083 51,435 44,405 61,967 Intangible Assets 4,496 3,457 3,848 2,155 25,648 23,083 52,785 44,405 63,767 Computer Equipment 36,487 18,013 38,777 21,147 65,448 58,903 103,422 72,821 135,765 Furniture and Office Equipment 72,785 56,062 – 25,314 27,454 24,709 102,182 92,455 69,556 Machinery and Equipment – – 58,915 12,646 18,185 16,366 76,001 78,210 196,328 Transport Assets 167,517 49,153 68,801 92,947 73,968 78,631 230,989 187,850 173,617 Total Renewal of Existing Assets 1,243,962 1,457,116 1,506,606 3,117,212 2,729,197 2,524,567 1,027,257 1,118,051 1,086,383 Roads Infrastructure 456,318 293,248 290,795 246,024 348,382 313,544 606,694 597,558 558,154 Storm water Infrastructure 92,502 9,828 20,777 9,828 11,468 10,321 – – – Electrical Infrastructure 196,998 144,177 72,169 144,177 144,177 144,177 40,860 84,330 56,250 Water Supply Infrastructure 67,666 116,049 108,435 122,665 93,001 93,001 – – – Sanitation Infrastructure 19,278 14,659 14,765 4,791 4,791 4,791 – – – Solid Waste Infrastructure 5,392 429 437 24,363 24,363 24,363 26,210 41,150 56,200 Coastal Infrastructure – – – 182,000 177,645 159,880 69,528 216,978 213,065 Infrastructure 838,154 578,390 507,377 733,847 803,827 750,077 743,292 940,016 883,669 Community Facilities 117,305 135,189 212,528 633,910 939,672 845,705 75,598 60,457 78,514 Sport and Recreation Facilities 1,855 4,003 14,689 16,625 20,339 18,305 – – – Community Assets 119,160 139,192 227,217 650,535 960,011 864,010 75,598 60,457 78,514 Heritage Assets 3,199 – – – – – – – –

Operational Buildings 218,093 276,201 463,453 592,734 590,779 538,910 191,501 106,111 104,699 Housing 62,439 426,744 286,496 1,121,230 344,480 344,480 3,600 3,600 3,600 Other Assets 280,532 702,945 749,948 1,713,964 935,259 883,390 195,101 109,711 108,299 Licences and Rights 2,918 36,588 22,064 18,866 30,100 27,090 13,267 4,267 6,591 Intangible Assets 2,918 36,588 22,064 18,866 30,100 27,090 13,267 4,267 6,591 Machinery and Equipment – – – – – – – 3,600 9,311 Total Upgrading of Existing Assets 387,620 273,216 261,193 371,277 544,999 501,463 2,289,747 2,362,041 2,592,141 Roads Infrastructure 195,565 125,678 124,626 105,439 149,307 134,376 258,935 267,871 274,235 Storm water Infrastructure 39,644 4,212 8,904 4,212 4,915 4,423 80,310 86,154 89,720 Electrical Infrastructure 84,428 61,790 30,930 61,790 61,790 61,790 89,915 114,133 187,110 Water Supply Infrastructure 29,000 49,735 35,813 48,062 35,349 35,349 115,755 99,934 93,550 Sanitation Infrastructure 8,262 1 6,328 2,053 2,053 2,053 142,791 224,400 266,818 Solid Waste Infrastructure – 184 187 88,441 86,575 78,961 11,764 7,240 10,850 Infrastructure 356,898 241,599 206,788 309,997 339,988 316,953 699,469 799,731 922,283 Community Facilities 29,471 15,937 44,948 53,194 192,111 172,900 1,412,456 1,367,008 1,479,788 Sport and Recreation Facilities – – – – – – 64,059 104,230 88,885 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework

Heritage Assets – – – – – – 17,000 4,000 – Operational Buildings – – – – – – 13,415 450 5,501 Housing – – – – – – 62,000 77,000 80,000 Other Assets – – – – – – 75,415 77,450 85,501 Licences and Rights 1,250 15,681 9,456 8,086 12,900 11,610 21,349 9,622 15,684 Intangible Assets 1,250 15,681 9,456 8,086 12,900 11,610 21,349 9,622 15,684 Total Capital Expenditure

Roads Infrastructure 857,597 495,388 552,639 480,063 626,290 563,661 1,002,713 1,014,962 1,059,043 Storm water Infrastructure 132,146 14,040 89,003 88,052 90,396 81,356 130,310 136,154 139,720 Electrical Infrastructure 563,893 402,228 507,608 591,794 591,794 591,794 743,901 751,374 805,264 Water Supply Infrastructure 651,796 802,992 541,391 820,525 577,207 577,207 705,360 723,263 758,903 Sanitation Infrastructure 816,250 579,900 502,391 548,946 463,096 463,096 598,645 621,657 673,034 Solid Waste Infrastructure 93,776 39,016 23,419 141,047 139,180 131,545 80,974 91,390 120,050 Coastal Infrastructure – – – 182,000 177,645 159,880 69,528 216,978 213,065 Infrastructure 3,115,458 2,333,564 2,216,450 2,852,428 2,665,608 2,568,540 3,331,430 3,555,777 3,769,078 Community Facilities 390,756 1,052,529 1,598,733 1,670,678 2,103,384 1,975,641 1,775,128 1,936,573 1,899,844 Sport and Recreation Facilities 2,019 11,944 17,645 25,125 21,858 19,672 99,323 114,850 94,282 Community Assets 392,775 1,064,473 1,616,378 1,695,803 2,125,242 1,995,313 1,874,450 2,051,423 1,994,126 Heritage Assets 8,272 – – – – – 17,000 4,000 –

Operational Buildings 334,980 450,264 570,789 776,746 856,999 778,508 227,833 131,046 148,900 Housing 64,684 689,249 297,446 1,218,930 792,180 779,671 1,289,375 989,569 1,167,601 Other Assets 399,664 1,139,513 868,235 1,995,676 1,649,180 1,558,179 1,517,208 1,120,615 1,316,501 Serv itudes – – – – – – 1,350 – 1,800 Licences and Rights 8,664 55,726 35,368 29,107 68,648 61,783 86,051 58,294 84,242 Intangible Assets 8,664 55,726 35,368 29,107 68,648 61,783 87,401 58,294 86,042 Computer Equipment 36,487 18,013 38,777 21,147 65,448 58,903 103,422 72,821 135,765 Furniture and Office Equipment 72,785 56,062 – 25,314 27,454 24,709 102,182 92,455 69,556 Machinery and Equipment – – 58,915 12,646 18,185 16,366 76,001 81,810 205,639 Transport Assets 167,517 49,153 68,801 92,947 73,968 78,631 230,989 187,850 173,617 TOTAL CAPITAL EXPENDITURE - Asset class 4,201,622 4,716,504 4,902,924 6,725,067 6,693,732 6,362,425 7,340,084 7,225,045 7,750,324

ASSET REGISTER SUMMARY - PPE (WDV)

Roads Infrastructure 8,431,653 18,730,242 4,553,442 5,033,505 5,179,732 5,117,103 5,782,984 6,409,153 7,066,676 Storm water Infrastructure 88,052 90,396 81,356 176,296 267,578 363,378 Electrical Infrastructure 4,458,676 4,731,870 6,805,348 7,397,142 7,397,142 7,397,142 8,287,142 9,178,142 10,179,142 Water Supply Infrastructure 1,860,116 1,907,032 8,525,708 9,346,233 9,102,915 9,102,915 9,894,049 10,714,747 11,576,480 Sanitation Infrastructure 2,194,166 1,856,993 5,162,285 5,711,231 5,625,381 5,625,381 6,243,302 6,897,511 7,586,929 Solid Waste Infrastructure 8,525,444 283,170 5,134,114 5,197,161 5,197,161 5,197,139 5,342,688 5,488,215 5,641,018

Rail Infrastructure 1,364,959 1,838,016

Coastal Infrastructure 260,000 253,778 228,400 510,778 775,478 977,334 Information and Communication Infrastructure – – – – – – Infrastructure 25,470,055 27,509,307 30,180,897 34,398,283 34,684,521 32,749,437 36,237,239 39,730,824 43,390,957

Community Facilities 4,064,935 3,949,504 4,123,915 4,429,634 4,389,284 6,099,557 7,930,908 9,496,633 11,304,945 Sport and Recreation Facilities 13,084 13,486 11,258 36,383 33,116 30,930 141,925 273,225 383,650 Community Assets 4,078,019 3,962,990 4,135,174 4,466,017 4,422,399 6,130,487 8,072,832 9,769,857 11,688,594 Operational Buildings 260,958 249,827 247,329 1,024,075 1,104,328 957,794 1,171,767 1,246,361 1,342,517 Other Assets 260,958 249,827 247,329 1,024,075 1,104,328 957,794 1,171,767 1,246,361 1,342,517 Licences and Rights 771,849 853,820 858,089 887,196 926,737 919,872 965,785 999,826 1,028,466 Intangible Assets 771,849 853,820 858,089 887,196 926,737 919,872 965,785 999,826 1,028,466 Machinery and Equipment 8,645,108 9,411,436 9,586,231 9,489,369 9,078,056 8,440,473 7,958,087 7,730,399 7,471,248 TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 39,225,988 41,987,380 45,007,719 50,264,940 50,216,042 49,198,062 54,405,710 59,477,267 64,921,782

68 EXPLANATORY NOTES A9 – ASSETS MANAGEMENT

Table A9 provides an overview of municipal capital allocations to building new assets and the renewal of existing assets, as well as spending on repairs and maintenance by asset class. National Treasury has recommended that municipalities should allocate at least 40 per cent of their capital budget to the renewal of existing assets, and allocations to repairs and maintenance should be 8 per cent of PPE.

EXPENDITURE OTHER ITEMS

Depreciation 1,670,114 1,865,656 1,972,820 1,906,519 1,906,519 1,916,304 2,017,502 2,105,583 2,253,683 Repairs and Maintenance by Asset Class 2,483,348 3,010,050 2,892,428 3,527,699 3,518,403 3,644,637 3,949,554 4,276,918 4,589,925 Roads Infrastructure 336,100 445,504 420,527 504,762 504,762 422,913 567,368 594,991 624,058 Storm water Infrastructure 62,730 26,635 39,664 92,448 92,448 54,646 48,195 50,691 53,313 Electrical Infrastructure 717,789 673,327 683,945 1,009,672 1,009,672 1,082,362 1,140,426 1,200,535 1,264,658 Water Supply Infrastructure 496,809 594,530 677,487 783,645 776,645 709,081 821,858 943,695 1,043,921 Sanitation Infrastructure 208,492 256,838 300,140 302,601 302,601 330,462 340,277 382,730 440,525 Solid Waste Infrastructure 9,107 9,634 4,063 12,004 12,004 12,204 12,937 13,713 14,536 Infrastructure 1,831,027 2,006,468 2,125,825 2,705,131 2,698,131 2,611,668 2,931,060 3,186,355 3,441,011 Community Facilities 24,397 27,768 19,806 33,287 33,287 33,660 37,240 39,040 40,991 Sport and Recreation Facilities 3,414 9,337 23,293 5,193 5,193 31,568 35,042 36,481 38,308 Community Assets 27,811 37,105 43,099 38,480 38,480 65,228 72,282 75,521 79,299 Operational Buildings 330,446 321,315 333,233 471,132 468,908 603,553 582,707 618,159 652,930 Housing 66,825 391,060 83,739 83,758 83,758 86,901 62,066 76,120 77,571 Other Assets 397,272 712,375 416,972 554,889 552,666 690,454 644,772 694,279 730,501 Licences and Rights 8,132 6,535 20,420 8,252 8,252 11,012 11,837 12,433 13,053 Intangible Assets 8,132 6,535 20,420 8,252 8,252 11,012 11,837 12,433 13,053 Computer Equipment 45,669 39,076 42,574 41,557 41,557 38,675 42,106 44,139 46,093 Furniture and Office Equipment 999 – – 4,397 4,324 6,788 8,321 11,593 12,802 Machinery and Equipment 17,420 16,278 18,662 24,177 24,177 26,739 33,247 34,643 35,942 Transport Assets 155,018 192,213 224,876 150,815 150,815 194,073 205,930 217,954 231,223

TOTAL EXPENDITURE OTHER ITEMS 4,153,462 4,875,706 4,865,248 5,434,219 5,424,922 5,560,940 5,967,056 6,382,501 6,843,608

Renewal and upgrading of Existing Assets as % of total capex38.8% 36.7% 36.1% 51.9% 48.9% 47.6% 45.2% 48.2% 47.5%

Renewal and upgrading of Existing Assets as % of deprecn97.7% 92.7% 89.6% 183.0% 171.7% 157.9% 164.4% 165.3% 163.2%

R&M as a % of PPE 6.5% 7.4% 6.6% 7.2% 7.2% 7.6% 7.4% 7.3% 7.2%

Renewal and upgrading and R&M as a % of PPE 10.0% 11.0% 10.0% 14.0% 14.0% 14.0% 13.0% 13.0% 13.0%

ETH eThekwini - Table A10 Consolidated basic service delivery measurement

2013/14 2014/15 2015/16

Outcome Outcome Outcome Original

Budget

Adjusted Budget

Full Year Forecast

Budget Year 2017/18

Budget Year +1 2018/19

Budget Year +2 2019/20 Household service targets

Water:

Piped w ater inside dw elling 634,367 653,548 613,548 650,000 650,000 650,000 662,000 670,000 684,000 Piped w ater inside y ard (but not in dw elling) 72,000 78,073 50,038 50,738 50,738 50,738 51,438 52,038 57,038 Using public tap (at least min.serv ice lev el) 234,000 235,932 272,107 252,407 252,407 252,407 262,000 272,000 275,000 Other w ater supply (at least min.serv ice lev el) – – – – – – – – –

Minimum Service Level and Above sub-total 940,367 967,553 935,693 953,145 953,145 953,145 975,438 994,038 1,016,038 Using public tap (< min.serv ice lev el) – – – – – – – – – Other w ater supply (< min.serv ice lev el) 80,000 73,447 125,307 127,855 127,855 127,855 125,562 126,962 124,962 No w ater supply – – – – – – – – –

Below Minimum Service Level sub-total 80,000 73,447 125,307 127,855 127,855 127,855 125,562 126,962 124,962 Total number of households 1,020,367 1,041,000 1,061,000 1,081,000 1,081,000 1,081,000 1,101,000 1,121,000 1,141,000 Sanitation/sewerage:

Flush toilet (connected to sew erage) 504,367 519,661 449,661 540,000 540,000 540,000 555,000 570,000 580,000 Flush toilet (w ith septic tank) 112,000 125,525 107,525 112,000 112,000 112,000 122,000 145,000 160,000 Pit toilet (v entilated) 120,000 118,027 35,000 30,000 30,000 30,000 25,000 20,000 15,000 Other toilet prov isions (> min.serv ice lev el) 82,000 105,943 194,141 210,341 210,341 210,341 226,541 242,741 250,000 Minimum Service Level and Above sub-total 818,367 869,156 786,327 892,341 892,341 892,341 928,541 977,741 1,005,000 Bucket toilet – – – – – – – – – Other toilet prov isions (< min.serv ice lev el) 202,000 171,844 274,673 188,659 188,659 188,659 172,459 143,259 136,000 No toilet prov isions – – – – – – – – –

Below Minimum Service Level sub-total 202,000 171,844 274,673 188,659 188,659 188,659 172,459 143,259 136,000 Total number of households 1,020,367 1,041,000 1,061,000 1,081,000 1,081,000 1,081,000 1,101,000 1,121,000 1,141,000 Energy:

Electricity (at least min.serv ice lev el) 344,367 355,000 340,000 354,000 354,000 354,000 364,000 376,000 388,000 Electricity - prepaid (min.serv ice lev el) 313,000 318,000 327,000 328,000 328,000 328,000 332,000 335,000 338,000 Minimum Service Level and Above sub-total 657,367 673,000 667,000 682,000 682,000 682,000 696,000 711,000 726,000 Electricity (< min.serv ice lev el) – – – – – – – – – Electricity - prepaid (< min. serv ice lev el) – – – – – – – – –

Other energy sources 363,000 368,000 394,000 399,000 399,000 399,000 405,000 410,000 415,000

Below Minimum Service Level sub-total 363,000 368,000 394,000 399,000 399,000 399,000 405,000 410,000 415,000 Total number of households 1,020,367 1,041,000 1,061,000 1,081,000 1,081,000 1,081,000 1,101,000 1,121,000 1,141,000 Refuse:

Remov ed at least once a w eek 1,020,367 1,041,000 1,061,000 1,081,000 1,081,000 1,081,000 1,101,000 1,121,000 1,141,000 Minimum Service Level and Above sub-total 1,020,367 1,041,000 1,061,000 1,081,000 1,081,000 1,081,000 1,101,000 1,121,000 1,141,000 Remov ed less frequently than once a w eek – – – – – – – – – Using communal refuse dump – – – – – – – – – Using ow n refuse dump – – – – – – – – – Other rubbish disposal – – – – – – – – – No rubbish disposal – – – – – – – – – Below Minimum Service Level sub-total – – – – – – – – – Total number of households 1,020,367 1,041,000 1,061,000 1,081,000 1,081,000 1,081,000 1,101,000 1,121,000 1,141,000 Households receiving Free Basic Service

Water (6 kilolitres per household per month) 520,028 520,074 521,374 578,553 578,553 578,553 523,343 524,643 525,943 Sanitation (free minimum lev el serv ice) 338,153 370,872 386,872 381,778 381,778 381,778 375,657 391,857 408,057 Electricity /other energy (50kw h per household per month) 84,866 107,586 119,190 123,710 123,710 123,710 134,000 134,230 134,430 Refuse (remov ed at least once a w eek) 595,000 559,560 559,560 598,486 598,486 598,486 613,486 628,486 663,240 Cost of Free Basic Services provided - Formal Settlements (R'000)

Water (6 kilolitres per indigent household per month) 169,258 181,888 205,177 256,019 256,019 256,019 280,340 306,973 333,606 Sanitation (free sanitation serv ice to indigent households) 86,984 93,884 131,301 139,304 139,304 139,304 142,939 147,256 151,843 Electricity /other energy (50kw h per indigent household per month) 7,036 9,297 11,539 12,421 12,421 12,421 13,415 14,487 16,520 Refuse (remov ed once a w eek for indigent households) 170,983 191,161 202,612 215,788 215,788 215,788 245,123 277,747 309,747 Cost of Free Basic Services provided - Informal Formal Settlements (R'000) 749,426 809,834 872,880 1,031,233 1,031,233 1,031,233 817,889 907,443 1,012,409 Total cost of FBS provided 1,183,687 1,286,064 1,423,509 1,654,765 1,654,765 1,654,765 1,499,706 1,653,906 1,824,125 Highest level of free service provided per household

Property rates (R v alue threshold) 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 Water (kilolitres per household per month) 9 9 9 9 9 9 6 6 6 Sanitation (kilolitres per household per month) 9 9 9 9 9 9 6 6 6 Sanitation (Rand per household per month) 51 51 55 55 55 55 55 55 55

Electricity (kw h per household per month) 50/65kWh 50/65kWh 50/65kWh 50/65kWh 50/65kWh 50/65kWh 50/65kWh 50/65kWh 50/65kWh

Revenue cost of subsidised services provided (R'000)

Property rates (tariff adjustment) ( impermissable values per section 17 of MPRA) Property rates ex emptions, reductions and rebates and impermissable values in

excess of section 17 of MPRA) 1,585,842 1,804,000 1,939,000 1,796,000 1,796,000 1,796,000 1,728,000 1,845,000 1,975,000 Water (in excess of 6 kilolitres per indigent household per month) 412,784 443,206 500,381 624,377 624,377 624,377 330,137 370,601 418,501 Sanitation (in excess of free sanitation service to indigent households) 91,463 98,660 76,454 84,863 84,863 84,863 151,580 177,893 207,122 Electricity /other energy (in excess of 50 kwh per indigent household per month) 63,329 83,670 103,851 111,785 111,785 111,785 113,126 122,178 131,078 Refuse (in excess of one removal a week for indigent households) 181,850 184,298 192,194 210,208 210,208 210,208 223,046 236,771 255,708 Municipal Housing - rental rebates

Housing - top structure subsidies Other

Total revenue cost of subsidised services provided 2,335,267 2,613,835 2,811,880 2,827,233 2,827,233 2,827,233 2,545,890 2,752,443 2,987,410 Current Year 2016/17 2017/18 Medium Term Revenue &

Expenditure Framework Description

Dalam dokumen MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK (Halaman 68-85)