It is home to the busiest container port in Africa, a global conference and tourism destination. People have spoken to us and said they want to take advantage of the city's economic opportunities. In summary, National Treasury reached the following conclusion: "The budget is therefore credible, reliable, funded and sustainable in relation to the MTREF within the meaning of section 18 of the MFMA."
COUNCIL RESOLUTIONS 1
- BUDGET RELATED RESOLUTIONS
- ESTIMATES OF INCOME AND EXPENDITURE
- RECAPITULATION: VALUATION OF RATEABLE PROPERTY
- DETERMINATION OF RATES
- EXEMPTIONS, REBATES AND REDUCTIONS
- RESIDENTIAL PROPERTY
- PUBLIC BENEFIT ORGANISATIONS
- SCHOOLS NOT FOR GAIN
- BED AND BREAKFAST UNDERTAKINGS
- GUEST HOUSE UNDERTAKINGS
- BACK – PACKER LODGES, HOLIDAY ACCOMODATION AND STUDENT ACCOMMODATION
- NATURAL AND OTHER DISASTERS
- VACANT LAND
- MUNICIPAL PROPERTIES
- NATURE RESERVES AND CONSERVATION AREAS
- ECONOMIC DEVELOPMENT
- SPECIAL RATING AREAS
- CONSULATES
- PHASING IN OF RATES
- FLAT SERVICE CHARGE RATE FOR FORMAL PROPERTIES VALUED BELOW R 185 000 AND INFORMAL SETTLEMENTS WHERE WATER AND ABLUTION FACILITIES HAVE BEEN PROVIDED
- DATE OF OPERATION OF DETERMINATION OF RATES That this determination comes into operation on 1 July 2017
- FINAL DATE FOR PAYMENT OF RATES
- ADMINISTRATION CHARGE ON ARREAR RATES
- OTHER TARIFFS AND CHARGES
- SURCHARGE ON WATER CONSUMPTION AND SEWER USER CHARGE
- DOMESTIC WATER DEBT RELIEF PROGRAM
- BUDGET RELATED POLICIES (i) RATES POLICY
- CAPITAL EXPENDITURE ESTIMATE
- BORROWINGS TO FINANCE THE CAPITAL BUDGET
- HOUSING/HOSTELS DEFICIT
- NEW FUNCTIONS/ SERVICES
- MEASURABLE PERFORMANCE OBJECTIVES
- INTEGRATED DEVELOPMENT PLAN (IDP)
- PARTICULARS OF INVESTMENTS
- REMUNERATION OF COUNCILLORS AND SENIOR OFFICIALS
- UNFUNDED MANDATES
- IMPACT OF HOUSING EXPENDITURE ON THE CASH RESERVES
- FREE BASIC SERVICES
- OFF BALANCE SHEET FINANCING
- CATALYTIC PROJECTS
- FOOD AID PROGRAM (SOUP KITCHENS)
- DESTINATION MARKETING PROGRAMS
That the following reductions in the market value of the property and discounts in the rates payable be granted and granted in accordance with the rates policy. This authority is given to the city manager to enter into contracts with the owners regarding the investment of the partnership.
ANNEXURE B
EXECUTIVE SUMMARY 1
- INTRODUCTION
- OVERVIEW OF THE 2017/18 MTREF
- STRATEGIC PRIORITIES FOR THE 2017/2018 YEAR
- KEY ISSUES
- PERFOMANCE, ACHIEVEMENTS AND CHALLENGES .1 SERVICE DELIVERY
- SERVICE DELIVERY STANDARDS, LEVELS OF SERVICES, OUTCOMES, TIMETABLE FOR ACHIEVEMENTS AND FINANCIAL IMPLICATIONS
- FINANCIAL PERFORMANCE (2015/16 AND 2016/17): PARENT MUNICIPALITY
- OPERATING BUDGET
- CAPITAL BUDGET
- ALIGNMENT WITH NATIONAL AND PROVINCIAL PRIORITIES
- FINANCIAL STRATEGY, ONGOING VIABILITY AND SUSTAINABILITY
- FINANCIAL STRATEGY
- BUILT ENVIRONMENT PERFORMANCE PLAN ( BEPPS )
- OPERATING REVENUE FRAMEWORK 1
The strong financial position of the municipality is proof of the sustainability and resilience of the municipality. The council's depreciation policy is in accordance with the requirements of the Standards of General Recognized Accounting Practice (GRAP).
SOURCES OF FUNDING
Furthermore, in the 12 years of its existence, uShaka has contributed approximately R 2 billion to the local GDP and created just under 15 000 jobs (directly and indirectly). uShaka Marine World has always aimed at the public - both young and old, international and local. In accordance with the Municipal Financial Management Act, both municipal entities submitted their budgets and business plans for consideration by the Municipality.
OPERATING EXPENDITURE FRAMEWORK 1
CAPITAL EXPENDITURE 1
CAPITAL BUDGET
Travel and Tourism Trade Show : R 16 m Durban Business Fair & Regional Shows: R 32.6 m Bid Support & Promotions : R 4.6 m Durban Tourism Events : R 38.5 m Durban Tourism Brand Advertising &.
ECONOMIC DEVELOPMENT TRENDS
ELECTRICITY TRENDS
ETA TRENDS
HOUSING TRENDS
Provision for maintenance costs: R 129 m Sludge disposal initiatives: R 41.2 m Security costs for the protection of assets: R 48 m Provision for cleaning VIP pit toilets: R 44 m Water consumption in ablution facilities : R 176 m.
REFUSE REMOVAL TRENDS
SANITATION TRENDS
WATER TRENDS
ROAD TRENDS
- HUMAN SETTLEMENTS, ENGINEERING, TRANSPORT AND INFRASTRUCTURE
- CORPORATE AND HUMAN RESOURCES
- SUSTAINABLE DEVELOPMENT AND CITY ENTERPRISES
- GOVERNANCE
- ANNUAL BUDGET TABLES
- OVERVIEW OF THE ANNUAL BUDGET PROCESS 2
The ten primary budget tables as required in accordance with § 8 of the Municipalities' budget and reporting regulations follow. The table provides an overview of the amounts that must be approved for operating results, as well as the municipality's obligation to eliminate the backlog in basic services. This requires a simultaneous assessment of financial performance, financial position and cash flow budgets alongside the capital budget.
Internally generated funds are financed from a combination of current operating surplus and accumulated cash-backed surpluses from previous years. Although the council places great emphasis on the financial sustainability of the municipality, this does not come at the expense of services for the poor. This table makes it easy to see the planned operational performance in relation to the organizational structure of the city.
The reason is that the ownership and the municipality's net assets belong to the community. For example, the collection rate assumption will affect the municipality's liquidity and subsequently inform about the level of cash and cash equivalents at the end of the year. It shows the expected level of cash in-flow versus cash out-flow that is likely to result from the implementation of the budget.
- OVERVIEW
- POLITICAL OVERSIGHT OF THE BUDGET PROCESS
- PROCESS FOR CONSULTATIONS WITH EACH GROUP OF STAKEHOLDERS AND OUTCOMES
- SCHEDULE OF KEY DEADLINES RELATING TO THE BUDGET PROCESS
- OVERVIEW OF ALIGNMENT OF BUDGET WITH IDP 2
The mechanism by which the needs of the municipality are identified and prioritized is the Integrated Development Plan (IDP). There was a review of capital borrowing and capital expenditure as the trend in capital borrowing is not sustainable given the increased financial charges and the impact on rates. Both the operating and capital budgets have been evaluated through a prioritization mechanism that ensures alignment with the municipality's development strategy.
MFMA section 53, subsection 1, letter a, states that a municipality's mayor must provide political guidance on the budget process and the priorities that must guide the preparation of the budget. Political oversight of the budget process gives the government, and especially the municipality, the opportunity to manage the tension between competing political priorities and fiscal realities. The key to strengthening the link between priorities and spending plans lies in strengthening political oversight of the budget process.
Therefore, the presentation of the budget proposal in the city council on 30 March 2017 was followed by extensive publication of the budget documentation in the municipality's newspaper, Metro eZasegagasini. In accordance with the Municipal Systems Act and in conjunction with the Municipal Financial Management Act, departmental hearings on the budgets of all departments in the eThekwini area were held in April and May 2017. The table below provides an extract of the most important deadlines in connection with the budget process.
- KEY NATIONAL AND PROVINCIAL GUIDING DOCUMENTS
- DEVELOPMENT CHALLENGES
- MUNICIPAL STRATEGIC PRIORITY AREAS
- POLITICAL PRIORITIES AND LINKAGES TO THE IDP
- IDP OVERVIEW AND KEY AMENDMENTS
- IDP REVIEW PROCESS AND STAKEHOLDER PARTICPATION
- LINK BETWEEN THE IDP AND THE BUDGET
- MEASURABLE PERFORMANCE OBJECTIVES AND INDICATORS 2
- KEY FINANCIAL RATIOS / INDICATORS
- FREE AND SUBSIDISED BASIC SERVICES
- DRINKING WATER QUALITY AND WASTE WATER MANAGEMENT
- OVERVIEW OF BUDGET RELATED POLICIES 2
The above priorities as well as the strategic priority areas of the PDGS provide a framework for development within the province. The PGDS is currently under review to ensure that the plan meets the objectives of the National Planning Commission as well as the SDGs. It is also the primary spatial response to the development context, needs and development of the Municipality.
Given the strategic framework that has been outlined, it is clear that the city's budget should be a pro-growth budget that meets basic needs and builds on existing skills and technology. The municipality's delivery plan is organized into eight separate but linked plans. These priorities lead to the creation of structures that support, house and accompany other actions and activities – the building blocks around which actions and prioritization take place. All operational and capital programs in the 2017/18 mid-term budget have been assessed through a prioritization mechanism that has been developed to ensure alignment with the municipality's development strategy.
The IDP was the foundation of the priorities defined in the strategic plan, and all resources are directed towards achieving the priorities. The municipality is committed to addressing people's needs and values community and stakeholder input. The development of a new five-year plan in 2017/18 would provide an additional opportunity for citizens to actively participate in the development of the IDP.
- ASSESSMENT RATES POLICY
- TARIFF POLICY
- WATER POLICY
- SUPPLY CHAIN MANAGEMENT POLICIES
- INVESTMENT / CASH MANAGEMENT AND BORROWING POLICIES
- VIREMENTS BUDGET POLICY
- INFRASTRUCTURE ASSET MANAGEMENT POLICY
- ACCOUNTING POLICY
- FUNDING AND RESERVES POLICY
- BUDGET POLICY
- OVERVIEW OF BUDGET ASSUMPTIONS2
EThekwini Water Services acts as the water supply authority while Umgeni Water is the water supply provider for the municipal area. The primary objective of this policy is to ensure that all funds owed and payable to the municipality for services are collected efficiently and promptly. As required by Section 97 of the Public Utilities Act, the Credit Control and Debt Collection Policy for the 2017/18 financial year has been reviewed and amended and is to be adopted with the current budget.
The policy reflects and represents the context of a specific government policy which finds expression within the provisions of the Municipal Financial Management Act 56 of 2003. The main objectives of the policy are to provide, promote and promote theoretical guidelines, management processes and procedures within implement. the supply chain management. Highlights of the policy include a contract register which ensures procurement plans are in place before any work is issued.
As required by the Municipal Finance Management Law, and in accordance with the Municipal Cash Management Regulations, the Investment Framework Policy and Guidelines have been revised and no changes have been made to the revised policy approved by the Council on 2013-08- 28. To ensure compliance with Article 28 of the MFMA, and with the Municipal Budget and Reporting Regulation, procedures have been formulated regarding the transfer of funds and the reporting of the adjusted budget. There were no changes in the budget policy which was approved by the council on February 23, 2011.
- KEY FINANCIAL ASSUMPTIONS
- CREDIT RATING OUTLOOK
- BORROWING AND INVESTMENT OF FUNDS
- PRICE MOVEMENTS ON SPECIFICS
- TIMING OF REVENUE COLLECTION
- AVERAGE SALARY INCREASES
- CHANGING DEMAND CHARACTERISTICS (DEMAND FOR SERVICES)
- ABILITY OF THE MUNICIPALITY TO SPEND AND DELIVER ON THE PROGRAMS
- OVERVIEW OF BUDGET FUNDING 2
The capital expenditure of the parent municipality was financed by a mixture of state transfers, internally generated funds and external loans. The 2017/18 capital budget of R7.2 billion is funded by R3.8 billion in government grants, R2.4 billion in internally generated funds and R1.0 billion in external borrowing. The graph below shows the total capital budget as of 2011 and shows its funding sources. The predominance of annuity loans in eThekwini's loan portfolio is largely due to the city's ability to obtain competitive interest rates from financial institutions.
Each of the two DFIs provided debt of R 350 million, resulting in a total new loan of R 700.0 million. The graphs indicate that the city will not breach any of the precautionary conditions during the MTREF period. Cash and investments are expected to be around R 7.1 billion. at the end of the current financial year.
As the city is the economic center of the province, water needs are increasing rapidly. In this regard, it is estimated that spending on capital projects in 2016/17 will progress to a level of 103% of the capital budget. Over the past few years, the functions that the eThekwini Municipality is expected to perform have increased according to the needs of the community.
- LOAN DEBT AND INVESTMENTS
- SOURCES OF FUNDING
- SAVINGS AND EFFICIENCIES
- INVESTMENTS – CASH BACKED
- COLLECTION RATES FOR EACH REVENUE SOURCE
- LEVELS OF RATES, SERVICE CHARGES AND OTHER FEES AND CHARGES
The main objective of this project is the analysis of expenditure and price trends that will be included in the SCM price catalog of the municipality. Human Settlements are one of the main contributors to the capital budget spend/allocation within the Council. After documenting and assisting in the implementation of business processes, the Internal Control Unit has continuously performed reviews and verifications of controls within the Human Settlements Unit.
Of the total debtor amount illustrated above, R3, 9 billion (approximately 46%) amounts to doubtful debts provided for in the provision for bad debts. The debts in respect of the mentioned categories except DRP have proved difficult to collect. This does not form part of the Ingonyama Trust Debt as listed on the Government Schedule below, but rather a separate matter.
The determination of the effective property tax rate is therefore an integral part of the municipality's budgeting process. In accordance with the provisions of the Municipal Property Tax Act (MPRA), the eThekwini Municipality has undertaken a general valuation of all properties across the Metro. A general valuation must be undertaken at least once every four years in terms of the Municipal Property Tax Act.
ANALYSIS OF THE NEW VALUATION ROLL
GRANT ALLOCATIONS 2
LEGISLATION COMPLIANCE STATUS 2
SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN (SDBIP) 2
STATISTICAL INFORMATION ST
STST
CONSOLIDATED BUDGET
DETAILED
BUDGET SUPPORTING TABLES
ETH eThekwini - Support Table SA16 Investment data by term Investment by term Investment term Capital guarantee (yes/no) Variable or fixed interest rate Interest rate ᶟCommission paid (Rands)Commission Recipient Initial balance Interest to be realized Partial / early withdrawal (4). ETH eThekwini - Support Table SA22 Councilor and Employee Benefits Summary of Employee and Councilor. ETH eThekwini - Support Table SA23 Salaries, Allowances and Benefits (Political Office Holders/Council Members/Senior Managers).
ETH eThekwini - Supporting table SA34b Consolidated capital expenditure for renewal of existing assets by asset class.
