1.3 EXECUTIVE SUMMARY 1
1.3.5 PERFOMANCE, ACHIEVEMENTS AND CHALLENGES
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To make sure that illegal connections are eradicated in the targeted areas, operations are carried out at least once a week. Other interventions include optimal network configuration, effective network maintenance and network loading, and installation of anti-theft technologies at substations. There are also customer awareness and educational programmes around safety, reporting theft of electricity and the consequences of connecting electricity illegally.
DURBAN TRANSPORT
A review of the institutional arrangement of Durban Transport including the existing operator model has been undertaken and the Municipal Systems Act Section 78 investigation completed to determine the most appropriate option for the operation of the city’s bus service looking at feasibility, funding and financial implications. The recommendation on whether to operate Durban’s transport service as council unit, a municipal entity or contracted service will be determined by Council after considering the Section 78 investigation as well as Section 84 of the MFMA. Currently, the City’s bus service is operated on a month-to-month basis by Tansnat Africa. The future operational model for the Durban Transport bus service is still under Council consideration, with the mostly favoured option being an external mechanism as it would cost less and offer greater control, governance and insight to the municipality. However, the full impact of the bus services including the capital cost of the Bus Replacement Programme and the operating losses which will need to be borne by the Rate and General Services has still to be quantified. In this regard further engagements will need to be held with National Treasury and the Department of Transport which will include the subsidy and vat implications. The proposed assignment of the transport function to municipalities will impact on the costs to the City as the PRASA and bus subsidies are not adequate and this could severely impact on Local Government Finance.
HOUSING / HOSTELS
Increasing urbanization due to a growing number of people moving into the municipal area for better opportunities together with land invasion is creating a challenge for the municipality and increases the housing backlogs. Limited developable well located land is also a challenge because if it is identified, the municipality has to compete with industrial or environmental land users. At times when the land is available it is steep or unstable and cannot be developed. The issue of land invasion also impacts negatively on the human settlements plan. Furthermore, the cost of servicing housing sites (infrastructure) has increased substantially. Consideration is being given to land banking for future affordable housing. Although the municipality has gained level two accreditation, the long awaited assignment of the Human Settlements function from Province has been deferred.
The increasing deficit anticipated for the operation of the hostels is cause for serious concern. The current deficit amounts to approximately R 309 million and engagements with provincial Human Settlements are ongoing in order to alleviate the burden of these costs on ratepayers
With over 75 % of residents having access to basic services, the municipality has one of the best service delivery programmes in Africa. Nationally, our municipality is used as a financial model for financial governance and we are making great strides environmentally. The municipality has maintained its proud record of always receiving unqualified audit reports. In addition, the two municipal entities have received clean audit outcomes for the 2013/14 financial year. The municipality has received a glowing report from the provincial COGTA regarding the implementation of the 2014/15 IDP. The municipality was commended on progress made in addressing the transformation and institutional development indicators, basic service delivery, sound financial management, good governance and public participation. Despite the introduction of fiscal austerity measures, the City has remained resilient and still rates among the best-run and financially strongest local government in Africa. The city was given a credit rating of AA- with positive outlook by Global Credit Rating Agency.
The City also takes cognizance of the many global and regional issues affecting its citizens in real time – climate change, the euro financial crisis, political instability, labor unrest, youth unemployment and the constant fear of further oil price shocks. The Municipality, through its cutting edge research is always striving to identify and address some of these challenges at a local level through the establishment of many initiatives and/or focus areas such as the Energy Office, Innovation Precinct, and the Green Economy. The region was also identified as one of the ‘Resilient cities’ by the Rockefeller Foundation and it is looking forward to sharing innovative ideas on building sufficient capacity to absorb future shocks and stresses to our social, technical and economic systems from the impacts of climate- and population changes as well as energy scarcity.
In recognition of the service delivery progress, the municipality has received the following awards:
· 2014 Stockholm Industry Water Award:
o For transformation and inclusive approach in providing water and sanitation services.
· KZN Municipal Excellence Awards : o Best Implemented IDP o Best Community Project
· Mercer 2015 Quality of Life survey
o City with the highest quality of life in SA – New York Times.
· New York Times Travel Magazine Award
o Top 10 in the list of “52 cities to visit in 2015”
· KZN Top Business Award
o Durban Green Corridor - eco and adventure tourism
· Komoso Award
o Outstanding performance in the implementation of the Expanded Public Works Programme (EPWP)
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Notwithstanding that National Treasury has indicated that the municipality is financially sound, the following challenges need to be acknowledged:
o Sustainability of housing provision from current financing sources o Infrastructure and service delivery backlogs
o Costs of bulk purchases o Potential impact of the IRPTN.
o Unaccounted for Water and theft of Electricity
o Minimal level of growth and costs to unblock development
1.3.5.2 INSTITUTIONAL TRANSFORMATION
As part of the Institutional transformation and in an endeavour to strengthen and build an efficient administration, alternate delivery mechanisms are reviewed in order to ensure improved services to communities. The municipality will be rolling out its community based planning (CBP) initiative to all wards. Problems specific to a ward will be identified and workable solutions will be developed to be implemented within three years. This CBP process would feed into the city’s integrated development plan and budgeting process. The process is designed to help municipal wards develop plans to stimulate active citizenship and allows communities to assist municipalities develop credible development plans based on the views of the people. The municipality is also implementing the Urban Management Zone model which focuses on departments coming together to work effectively according to performance management standards. The City Planning Commission has been appointed to align the long-term City Growth and Development Strategy with National and Provincial Government.
1.3.5.3 SERVICE DELIVERY STANDARDS, LEVELS OF SERVICES, OUTCOMES, TIMETABLE FOR ACHIEVEMENTS AND FINANCIAL IMPLICATIONS
The backlogs in local government are huge. Limited funding and exponential growth in the municipality has increased the level of backlogs. Eradicating backlogs in basic services and housing as well as improving the provision of services by local government are government’s most important goals. The city faces development pressures emanating from backlogs in access to basic services and housing, the need to rehabilitate or replace existing infrastructure, and the need to expand infrastructure services to support economic growth. Urbanisation trends are also pushing the addressing of backlogs even further.
The municipality has been robustly tackling service delivery backlogs and even though great strides have been made in recent years the backlogs are huge. The City is justifiably proud of its excellence in infrastructure delivery and the exceptional expenditure performance record. This record has been achieved through careful, dedicated management of its project pipeline. This ensures that projects are identified early, designed effectively, approved expeditiously and ready to proceed by the time funds are approved in the annual budget.
As part of its infrastructure planning, the municipality has documented the nature and extent of backlogs in service delivery across the metropolitan area. The following table is a summary of the backlogs of the municipality.
Basic Service Existing Backlog (households)
Housing 393 926
Water 73 447
Sanitation 171 844
Electricity 368 000
Roads 1 098.6 (km’s)
The municipality is committed to ensuring that backlogs in the provision of infrastructure are removed and as such has embarked on a Municipal Infrastructure Investment Framework. Emphasis is given to the eradication of rural basic service backlogs especially water and sanitation. In urban areas, the primary intervention is the eradication of informal settlements through the provision of housing and a package of household services as well as the provision of interim services to improve living conditions in the settlements. The municipality has continued to fast-track the delivery of houses despite some of the compliance challenges that have been encountered in the past.
The Informal Settlement Programme is the major focus of eThekwini Housing. The principle intention is to upgrade informal settlements wherever possible and to only relocate residents if upgrading is impossible for health, safety or technical reasons. The expected results are that the municipality will be able to accelerate its informal settlement and upgrading programmes by adopting new and innovative, integrated, sustainable planning, participating and financing approaches for informal settlements. In view of the large housing backlog, a rapid accelerated delivery mechanism is required by the city in addressing the housing needs that will provide larger housing delivery outputs. In line with the strategy of accelerating delivery incorporated in the Governments vision for sustainable Human Settlements, a pilot project using alternate building technology is underway to fast-track the general housing backlog within the city.
The municipality acknowledges that it will take many years to eradicate the housing backlog. However, to offer some improvement to the quality of life in informal settlements in the short term, interim measures such as ablution blocks, refuse removal services, pedestrian paths with storm water channels, limited road access for emergency and solid waste vehicles, fire breaks, and a labour-based maintenance programme are being rolled-out to informal settlements. From a quality of life perspective and in line with its vision of being the most caring city, the municipality aims to rapidly up-scale the delivery of interim services to informal settlements over the next few years. The provision of interim services as opposed to the provision of low income subsidized houses with services is highly cost-effective. With the high backlogs in basic service provision and the severe impact on households that do not have basic services, a programme that leads to rapid delivery of these services will have significant social justice benefits.
As part of the municipality’s programme to unlock backlogs in the provision of basic services and provide interim services to informal settlements and transit camps, containerised sanitation facilities are being rolled out. The project has already benefitted about 200 000 people with access to proper sanitation and ablution facilities. In addition, there is an increased budget allocation for the acceleration of the provision of ablution facilities in informal Settlements over the medium term. The municipality is working with the Department of Energy to provide electricity to about 300 000 informal dwellings in the municipal area as part of the Integrated National Electrification Programme. In a bid to streamline and fast track the delivery of electricity to informal settlements, the municipality has waived the deposit fee required for electricity to be connected to an informal dwelling.