WSDP: MODULE 3
10.
Financial Profile
10.1
Capital Funding
TOPIC 10: FINANCIAL PROFILE
10.1.1 Capital Income for Water and Sanitation
The CoCT is faced with the challenge of continuing to deliver a high level of service to its
citizens with ever increasing cost to produce a reliable source of clean water. These
increased cost related to capital project cost as well as operation and maintenance costs.
The impact of the rapid increase in the cost of electricity will be particular significant in the
increased cost of maintaining Blue and Green Drop Certification.
All internal policies, procedures and monitoring systems are in place to ensure that financial
risks are limited. There has been a huge investment in the SAP electronic system to improve
planning, monitoring, revenue collection, asset management and financial risk management.
Table 1: Future Sources of Capital Budget for the Water and Sanitation Services
Funder
USDG
2011/12 Budget
234.0
2013/14
2012/13
206.0
169.4
CMIP
DWA
AFF (now CRR)
33.0
32.6
36.0
BICL (now CRR - DC)
13.3
4.5
3.1
648.7
801.2
1153.4
16.0
12.0
12.0
944.9
1056.3
1373.9
EFF
Other
TOTAL
3.67
10.1.1.1 Future trends and goals (capital budget)
The future budget is expected to grow R 1373.9 Million.
Table 2: Projected Capital Budget of Water and Sanitation Services
2013/14 (Budget)
2014/15
2015/16
Area (R'million)
98.4
190.2
241.2
396.6
316.1
361.6
188.1
205.3
316.6
57.6
54.0
54.0
65.2
34.7
34.3
22.0
23.0
23.0
90.0
147.0
222.2
6.0
5.0
6.0
0.0
1.0
2.0
5.5
4.0
4.0
15.5
76.1
109.0
944.9
1056.3
1373.9
Bulk Water
Reticulation
Wastewater Treatment
Water Demand management
EAMS
Informal Settlements
Meter Replacement
Information Technology
Technical Operation Centre
Master planning
Other
TOTAL
Source: Water and Sanitation – Capital Projects
Investment in reticulation, wastewater treatment and bulk water infrastructure is still
expected to dominate Water and Sanitation’s budget going forward – at levels of 72.3% and
67.4% in 2013/14 and 2014/15 respectively. This increase in bulk is as a result of the growth
of the city, increased development and densification within the urban edge. The high
expenditure on reticulation can be seen as a strategic need for pipe refurbishment and pipe
replacement. However, the budget has provision have increase since the 2012/13 budget
review (within the 2011/12 financial year). The revised projected budget has increased by
10% in the 2013/14 financial (previous projection was R 859.0 million)
10.1.1.2 Capital expenditure (budget): water
See Module 2 Topic 10
10.1.1.3 Capital expenditure (budget): sanitation
See Module 2 Topic 10
3.68
10.1.1.4
Implementation strategies (capital funds)

Optimisation of Grant funding

Increasing the CRR via income and expenditure interventions to make provision for
future infrastructure.
The strategic motivation for the split in capital expenditure was determined through a budget
prioritisation process that was determined by the Water and Sanitation Master Plan, The
Bulk Water, Bulk Waste Water, Reticulation and Water Demand section priorities.
10.2
Operating cost and income
10.2.1 Situation assessment (operating costs and income)
A steady increase in operating costs is expected into the future. As pipe refurbishment and
pipe replacement programme develops the maintenance cost should come down.
10.2.2 Operating income: tariff
The income from service charge of water supply and sanitation services is expected to be
more than 10%.
Table 3: The Projected Income of Water and Sanitation Services
(R'000)
Service charges *
Finance income *
Government grants (Operating) *
Government grants (Capital) *
Other
2012/13
3 287 343
200 000
197 200
138 721
2013/14
3 702 700
211 200
239 000
27 143
2014/15
4 023 813
221 760
206 000
150 396
Add: Inter-Departmental Charges
3 823 264
1 664 491
4 180 042
1 885 238
4 601 969
1 903 063
5 487 755
6 065 281
6 505 032
Source: Water and Sanitation; MTREF
10.2.3
Future trends and goals (operating cost and income)
10.2.3.1 Operating costs: water and sanitation
The operating budget for water sanitation supply services is just above 10.5% in 2012/13.
The escalation rate per annum is not expected to be more than 12%, thereafter.
3.69
Table 4: Projected Operating Costs of Water and Sanitation Services
(R'000)
Puchase of bulk water*
Production costs (raw water + treatment system)
Operating costs
Salaries and wages
Maintenance and repairs
Depreciation
Finance charges
Other
2012/13
334 673
1 044 406
279 467
287 269
1 962 448
2013/14
391 911
1 139 521
299 030
317 975
2 231 219
2014/15
393 631
1 235 131
365 301
327 170
2 350 467
Total costs
Add: Inter-Departmental Charges
3 908 263
1 604 301
4 379 656
1 712 616
4 671 700
1 833 332
TOTAL COSTS
5 512 564
6 092 272
6 505 032
Source: Water and Sanitation; MTREF
10.2.3.2 Operating Income: Tariff
The income from service charge of water supply and sanitation services is expected to be
more than 10%. See Table 3.
3.70
10.2.3.3 Strategic gap analysis (operating cost and income)
10.2.3.3.1 Capital budget: The high requirement for necessary infrastructure is driven
largely by growth and economic development as well as the refurbishment of current
infrastructure which places severe pressure on the City’s Capital Budget.
10.2.3.3.2 Operating budget: It is difficult to reach optimum levels of staff, maintain
acceptable levels of infrastructure maintenance and carry the impact of the capital
programme within the financial constraints during difficult economic conditions.
10.2.3.3.3 Implementation strategies (operating cost and income)
To achieve the required Capital Budget, it is necessary to maximise the use of Grant
funding and to make optimal use of the Capital Replacement Reserve (CRR) within the
financial constraints.
The pressure on the operating budget needs to be addressed via above-inflation tariff
increases and initiatives to ensure that money due to the City is collected. There is a benefit
envisaged from metering efficiency gains and data purification exercises.
General strategies:

Making adequate provision for the poor by maintaining a stepped tariff crosssubsidising the shortfall in the free basic service.

Further relief to the poor via assistance to indigent customers.

Investigation and debate into the use of Prepayment meters.

Escalated focus on the collection of debt by increasing the capacity.

Escalated focus on revenue protection and metering efficiency.

Ensuring that adequate cash reserves are maintained to cover legislated funds.
3.71
10.3. Tariff and charges
10.3.1. Future trends and goals (tariff and charges)
Table 5: Proposed Tariffs for Water Services Consumption (10%)
TARIFFS 2012/13
Domestic Full
0 ≤ 6 kl
Water that is used predominantly for domestic > 6 ≤ 10.5 kl
purposes and supplied to single residential
properties.
> 10.5 ≤ 20 kl
> 20 ≤ 35 kl
> 35 ≤ 50 kl
> 50 kl
Domestic Cluster – Bulk metered flats, cluster developments including single title and
sectional title units. An allowance of 6 Kl per unit per month at zero cost upon
submission of affidavits stating the number of units. 0 ≤ 6 kl
> 6 ≤ 20 kl
> 20 kl
R 0.00
R 5.83
R 10.60
R 15.70
R 19.40
R 25.58
R 0.00
R 9.07
R 17.55
Source: Water and Sanitation Billing.
Table 6: Proposed Tariffs for Sanitation Services
TARIFFS 2012/13
Domestic Full - Single residential properties.
0 < 4.2kl
>4.2 < 7.35kl
70% of water consumption to a maximum of 35 kl >7.35 < 14kl
of sewage per month (70% of 50 kl water equals
35 kl of sewage)
>14<24.5kl
>24.5< 35kl
Domestic Cluster - Bulk metered flats, cluster developments. Including sectional and
single title units. 0 < 4.2kl
>4.2<14kl
>14< 35kl
R 0.00
R 5.81
R 12.38
R 13.53
R14.21
R0.00
R 9.05
R15.04
Source: Water and Sanitation Billing.
10.3.2 Implementation strategies (tariff and charges)
Implementation Strategies are outlined below:

Request to increase the tariffs in line with MTREF modeling to meet increasing
requirements.

Monitor reduction in consumption and income and adjust tariffs accordingly.
3.72
The tariffs are modelled every year and changes in consumption patterns are factored into
the annual adjustments. Increasing expenditure will require increasing tariffs. As the pattern
of usage changes the block tariff structure changes, with an increased savings there is a
need structure tariffs so as not to penalize those who are saving. There will be on-going
analysis of the changing water consumption and wastewater discharge patterns to ensure
that income will be sufficient.
As the city grows and the extent of the infrastructure grows maintenance cost increases. It is
therefore expected that tariff increases could be expected to be higher than inflation.
There is also increased need to focus on large users and poor payers. The rollout of the
demand management devise will help to resolve the situation of those constantly in arrears.
Over the period income from user charges are projected to increase.
This assumes a city growth of 1.0% per annum (of revenue generating sales), annual
increase in water demand (low water demand curve), an inflation rate of 5.6% and that the
10% restriction will continue for the next 5 years.
The reduction in revenue generating demand as a result of the WC&DM Strategy will result
in higher increases in the average tariff although not a high average cost to the consumer. In
other words the projected income from the user charges will remain the same but because of
the lower water consumption the average tariff will increase.
3.73
10.4 Free Basic Water
10.4.1 Free Basic Water Policy
The first 6 kilolitres of water supplied to all residential dwellings in the municipal area and
the first 4.2 kilolitres of sewage removed from all residential dwellings in the municipal area
is free. Fixed charges do not apply to dwellings occupied by domestic households.
A R42 Indigent Grant is applicable to the water and sanitation tariff for qualifying
households. The net result is that an Indigent household can consume an additional 4.5kl
water per month and can discharge an additional 3.15 kilolitres wastewater per month (with
sewerage disposal 70% of water consumption) without attracting any charges.
10.4.2 Subsidy Target for Free Basic Water
No changes in providing free water are planned. The number of basic service protests
happening around the country at the moment will make it difficult to change this in the near
future
10.4.3 Subsidy Target for Free Basic Sanitation
As in the case of water no changes in providing free sanitation is planned.
10.4.4 The Need to Address Extensive Leaks
Although provision of free basic water and sanitation is in place as well as an additional
allowance for indigent households there will be a constant monitoring of the quality of
plumbing being provided in low cost housing developments. Failure to check for leaks will
lead to high water consumption and high sewer flows.
3.74
10.5
Future trends and goals (charges and block tariffs)
10.5.1 Fixed charges and block tariffs: industrial for water
Table 7: Proposed Tariff Commercial and Industrial Water
TARIFFS 2012/ 2013
Commercial – Water supplied to premises
predominantly of a commercial nature
Industrial - Water which is used in
manufacturing, generating electricity, landbased transport, construction or any related
purpose.
R 11.42
R 11.42
Source: Water and Sanitation Billing.
Above inflation increases can be expected in line with the average tariff.
10.5.2. Fixed charges and block tariffs: industrial for sanitation
Table 9 inflation increases for tariffs can be expected in line with the average tariff increases.
10.5.3. Fixed charges and block tariffs: commercial for water
No changes to the structure are planned for the future.
Table 8: Proposed Tariff Commercial and Industrial Sanitation
TARIFFS 2012/ 2013
Industrial and Commercial - Schools, hospitals,
Government: National / Provincial and any
other – 95% of water consumption (* see note)
R 8.78
Source: Water and Sanitation Billing.
Above inflation increases can be expected in line with the average tariff.
10.6 Sales arrangements
The billing system is integrated with the SAP computer software. The Water and Sanitation
account is sent monthly with the rates and other services accounts. The City is divided into
20 billing / meter reading areas. Bills are sent out daily in order to cover the whole city in one
month.
Payment for municipal accounts can be easily made at any municipal office, through third
party payments (supermarkets, etc.) and electronic funds transfers (EFTs) or stop orders
through banks.
3.75
Table 9: Future trends and goals (income and sales)
Rands (R’000)
Total income (billed income and subsidies)
Total expenditure
Surplus/(deficit)
2012/13
5 487 755
5 512 564
2013/14
6 065 281
6 092 272
2014/15
6 505 032
6 505 032
(24 809)
(26 991)
0
Source: Water and Sanitation Billing.
This assumes a city growth of 1.0% per annum (of revenue generating sales), a 2% annual
increase in water demand (low water demand curve), an inflation rate of 5.6% and that the
10% restriction will continue for the foreseeable future.
10.6.1. Implementation strategies (income and sales)

The focus of the leaks project is to assist such indigent households. These households
are also encouraged to make arrangements (reasonable terms) with Council on arrears
in order to get the current accounts paid.

Internal teams appointed to increase debt management actions.

Programme in place to regularly update these properties and to ensure inclusion in
future debt processes. Programme to standardise the meters in the long term. Reports
are being put in place to identify tampered meters and take corrective action.
10.7 Metering, Billing and Income
It is important for the CoCT that the bulk meters are read regularly and that bulk meters and
meter chamber are maintained and inspected regularly for vandalism. There appears to be a
high incidence of vandalism in industrial areas where there is also a concentration of a large
number of large meters. The city has conducted a pilot on the use of AMR in an industrial
area which proved relatively successful. There is an in principle decisions to install AMR in
areas of good concentration of high consumption users.
Meter reading is also contracted out in large areas of the city
The city has by- laws in place to limit financial loss due to none payment and has an active
credit control and debt collection policy.
3.76
The following strategies will be implemented:
 Increase number meter reading contracts.

Focus of problematic meters hidden by building rubble or built over.
Invest in a
programme to systematically move meters to the outside of the properties

Put a programme in place to identify zero consumption meters as well as "low reads" as
part of meter replacement programme.

On-going program to clean up customer data, this is particular important if there is a
change in the use of billing software.

Incorporate the loading of meters into the process and ensure that Developer is billed in
the interim period.
Table 10 represents the objectives and outcomes, in order to achieve financial viability,
aligned to the IDP Strategic Focus Areas.
3.77
Table 10: Financial Viability (Strategic Intention)
IDP SFA
IDP OUTCOMES/OBJECTIVES
MAJOR OBJECTIVES
INTERVENTIONS
Increase number of to debt action
Decentralise teams to areas
Increase WMD (alternative
technology) installation rate
(a) Ensure a transparent and
corruption-free government
Correct settings of WMD
A WellRun City
Revenue Collection ratio to
be 95% by June 2015
(b) Establish an efficient and
productive administration that
prioritises delivery
OUTCOME
Improve cash position
and liquidity
Operational Efficiency
Reduction of Debt book
and address Water
Conservation
Reduction of Debt book
and address Water
Conservation
RESPONSIBLE
F&C
F&C
Reticulation
Reticulation
Timely write-off of Debt
Communication of previous debt
write-off to communities in liaison
with Corporate Finance
Operational process of WMD no
water complaints to be refined (e.g.
TOC / WMD on system)
Reduction of Debt book
F&C
To improve payment
from customers
F&C / Corporate
Operational Efficiency
Reticulation
Focus on Top Debtors
Reduction of Debt book
F&C
Reduction of Debt book
Reticulation
Reduction of Debt book
F&C / Corporate
Implementation of prepayment
meters subject to decision taken via
pilot project Redefine indigent category and
measures to address debt (soft and
punitive)
3.78
IDP SFA
IDP Outcomes/Objectives
MAJOR OBJECTIVES
(a) Ensure a transparent and
corruption-free government
National Intervention
Debt Managementimproving willingness to
pay
A WellRun City
(b) Establish an efficient and
productive administration
that prioritises delivery
Reduce bad debts by
50% by June 2014
IDP SFA
IDP OUTCOMES/OBJECTIVES
INTERVENTIONS
MAJOR OBJECTIVES
OUTCOME
To create civic
awareness re willing to
pay and to ensure
inter-governmental
Buy-in
RESPONSIBLE
Mayco member /
ED / Director
Link "willingness to pay"
communication with water
campaign with emphasis to new
generation (Schools / Children)
Creating awareness of
need to pay
WDM
Incentives
Creating awareness of
need to pay
WDM / Corporate
Refer Collection Ratio
Refer Collection Ratio
Refer Collection
Ratio
INTERVENTIONS
INDICATOR
OUTCOME
RESPONSIBLE
3.79
Accessibility: Movement of
meters to outside of property
Accessibility: Phone-in readings,
Internet Portal e-services as
interim measure till meter is
moved;
Accessibility: Consider Flat Rate
for certain areas with option to
have meter read
(a) Ensure a transparent and
corruption-free government
Accessibility: Raise and box
meters
Accessibility; Replacement with
additional meter without removing
old meter
Meter reading
estimations per
month to be ≤3% by
June 2013
A WellRun
City
(b) Establish an efficient and
productive administration
that prioritises delivery
Accessibility: Implement AMR in
problematic areas
Data: Improvement in Processes
when meters are changed and
not updated due to insufficient
information
Data: Dedicated teams to
address control readings
Data: New handhelds and meter
reading equipment with additional
camera facilities
Data: Meter Reading
performance sheet to performing
comparison
Faulty Meters: Ceased meter
replacement programme
Faulty Meters: Service orders for
skew / broken / broken glass, etc.
200 Per month
Decrease Estimations
Reticulation
Considered interim
measure (ongoing)
Decrease Estimations
F&C
June 2013
Decrease Estimations
F&C in
consultation
with Political /
Civic
To be determined
To be determined
Improve readability
and protect meters
Improve readability
and reduce
estimations
F&C
Reticulation
In line with Smart
metering process
Decrease Estimations
Reticulation
subject to
legality on
remote
readings
To be determined
Decrease Estimations
F&C /
Reticulation
To be determined
Decrease Estimations
F&C
October 2012
Decrease Estimations,
control readings and
fix locality
F&C
Comparison with
fellow employees
Determine meter
reader performance
F&C
300 Per month
Decrease Estimations
Reticulation
455 Per month
Decrease Estimations
Reticulation
Contractors
3.80
IDP SFA
IDP OUTCOMES/OBJECTIVES
MAJOR OBJECTIVES
(a) Ensure a transparent and
corruption-free government
All consumers are
metered by June
2014
INTERVENTIONS
(b) Establish an efficient and
productive administration
that prioritises delivery
% of valid
applications for
water meters at any
one time to be < 1%
of total meters by
June 13
OUTCOME
RESPONSIBLE
Standardisation of New Connection
Processes in all areas
December 2012
Ensure verification of
application and payment
before installation
Reticulation /
F&C
Service Level Agreement with Housing
re New Connections
June 2013
Ensure verification of
application and payment
before installation
WDM / F&C /
Reticulation
Corporate process to include verification
of water meter when building
inspections are done
Comparisons by
December 2012
Ensure verification of
application and payment
before installation
WDM Bus Dev /
Planning Dept
Sufficient capacity for administrative
verification processes
June 2013
Ensure verification of
application and payment
before installation
WDM / F&C /
Reticulation
No unbilled customers
WDM / F&C
No unbilled customers
F&C
No straight connections
Reticulation
June 2013
No unbilled customers
F&C /
Reticulation
June 2014
Identify problem area to
focus
WDM /
Reticulation
December 2012
Verification of application
and payment before
installation
Reticulation /
F&C
Service Level Agreement with Housing
by June 2013 by WDM Business
Development
June 2013 (As above)
Ensure verification of
application and payment
before installation (as
above)
WDM / F&C /
Reticulation (as
above)
Proper administrative verification
processes and capacity to implement
No valid application
longer than 1 month
(unless specifically
requested)
Timeous implementation of
applications
Reticulation
GIS Overlay Comparisons
A Well-Run
City
INDICATOR
Identification / Comparison of
"improvement valuation" without meter
Validation of meter replacement process
(Specifically after hours)
Dedicated teams to focus on unbilled
consumers
Zone balancing by WDM and
Reticulation to identify problematic
areas by June 2014
Standardisation of New Connection
Processes in all areas to ensure
verification of application and payment
before installation by December 2012by
Reticulation and F&C
Comparisons by
December 2012
Comparisons by
December 2012
Process by December
2012
3.81
IDP SFA
IDP OUTCOMES/OBJECTIVES
MAJOR OBJECTIVES
INTERVENTIONS
Real Losses: Leak Repairs, Pressure
management, Pipe replacement
Real Losses: Leak detection on bulk
infrastructure
Real Losses: Reduction in response
times via implementation of First level
response
(a) Ensure a transparent and
corruption-free government
Real Losses: Valve maintenance
Real Losses: Recharge of the system
procedure after bursts to prevent
consequential bursts
Perceived Losses: Meter Inaccuracies meter replacement programme
Reduction in Non
Revenue Water <
15%
A Well-Run
City
(b) Establish an efficient and
productive administration
that prioritises delivery
INDICATOR
OUTCOME
RESPONSIBLE
Per WDM Strategy
Reduction of water loss
WDM / F&C /
Reticulation
Per WDM Strategy
Reduction of water loss
WDM / BW
Response times less than
??? Hours
Reduction of water loss
Reticulation
Maintenance per ???
Months
Reduction of water loss
Reticulation
Standardise system
procedure by ???
Reduction of water loss
Reticulation
Refer above
Reduction of water loss
Reticulation
Reduction of water loss /
and Revenue
Enhancements
Reduction of water loss /
and Revenue
Enhancements
Perceived Losses: Age analysis with
high volumes
To be determined
Perceived Losses: Appropriate meter
technology for specific purpose
Reference document
Perceived Losses: Specific projects
identified for implementation
Municipal Buildings and
Schools projects to be
finalised by 30 June 2013
Reduction of perceived
losses
Reticulation
June 2013
Reduction of perceived
losses
BW
(Refer not all customers
metered)
Reduction of perceived
losses
Reticulation
Subject to current
investigation
Reduction of perceived
losses
Reticulation
Tampering cases per
month / Pending
corporate system
changes
Reduction of perceived
losses
F&C /
Reticulation /
Corporate
Initiate specific projects by
June 2013
Reduction of perceived
losses
F&C /
Reticulation /
Corporate
Perceived Losses: Bulk Supply Meter
Audit
Perceived - Avoidable: Not all
customers metered (including straight
connections)
Perceived - Avoidable: Measuring of
informal settlements
Perceived - Avoidable: Unauthorised
use and tampering via tampering report
and corporate comparative exercise on
possible under measuring based on EL
usage
Other: Fire hydrants, Mobile internal
standpipes (e.g. Roads), External
Standpipes
Reticulation
Reticulation
3.82
IDP SFA
IDP OUTCOMES/OBJECTIVES
(a) Ensure a transparent and
corruption-free government
MAJOR OBJECTIVES
Revenue Protection
and enhancement
Grow revenue in real
terms (not from tariff
increase) by 3% per
annum
A WellRun
City
(b) Establish an efficient and
productive administration
that prioritises delivery
Increase revenue
base
INTERVENTIONS
Meter Replacement
Programme
INDICATOR
Refer above
OUTCOME
To optimise
Revenue
To optimise
Revenue
To optimise
Revenue
RESPONSIBLE
Reticulation
Oversized meters
Refer above
Data purification
Refer above
Large User Focus
Establishing of
posts / Develop
of strategy /
Establishing of
Forum by June
2013
To optimise
Revenue
Reticulation
Meter Replacement
Programme
Refer above
To increase
revenue base
Reticulation
Refer Getting all
customers metered
Refer above
To increase
revenue base
WDM /
Reticulation /
F&C
Large User Focus
Refer above
Alignment of Tariffs
(anomalies)
June 2014
Waste to Energy exercise
Subject to
Corporate
exercise
Water Conveyance Cost
for DWA
June 2013
Expansion of Treated
Effluent Network
Per Master Plan
Investigate or revisit
Green and Brown Field
Development
Contributions (specifically
Brown Field)
June 2013
To increase
revenue base
To increase
revenue base
To increase
revenue base
To generate
additional
Revenue
To generate
additional
Revenue (may
have negative
impact)
To generate
additional
Revenue
Reticulation
Reticulation
Reticulation
F&C
Reticulation /
WW
BW
WDM / WW
F&C /
Reticulation
3.83
IDP SFA
IDP OUTCOMES/OBJECTIVES
MAJOR OBJECTIVES
INTERVENTIONS
Determine the level of risk
for full cost recovery
(a) Ensure a transparent and
corruption-free government
Ensuring full cost
recovery and
acceptability of the
tariffs by the
consumers
Determination of CRR
levels by F&C by June
2013
Benchmarking cost of water
with other metros or
products by F&C and WDM
by December 2012
Communications / Branding
/ Marketing / Education shortage of water and
understand billing
Continued Service delivery
A WellRun
City
Effective Asset
management by all
Operational Branches
Asset Life Cycle
Management
(b) Establish an efficient and
productive administration
that prioritises delivery
Improve solvency
ratio (total assets:
total liabilities) by
40% by 2017/18
Co-ordination of obtaining
new infrastructure
Transfer of Skills by Asset
Management Group
Timeous capitalisation of
assets
OUTCOME
INDICATOR
RESPONSIBLE
June 2013
To ensure Full cost recovery
F&C / Executive
June 2013
To ensure Full cost recovery for
future infrastructure
F&C
June 2013
To ensure acceptability of tariffs
F&C / WDM
June 2013
To ensure acceptability of tariffs
WDM / F&C
To ensure acceptability of tariffs
All
Per Service
Charter
Refer Asset
Management
Group
Refer Asset
Management
Group
Refer Asset
Management
Group
Refer Asset
Management
Group
All projects to be
capitalised within
one months of
completion
(including portions
where applicable)
To improve solvency ratio
``
To improve solvency ratio
To improve solvency ratio
To improve solvency ratio
All Project
managers
3.84
IDP SFA
IDP OUTCOMES/OBJECTIVES
MAJOR OBJECTIVES
(a) Ensure a transparent and
corruption-free government
Reduce running
costs (water and
wastewater) as a
function of
authorised
cosumption by 5%
per annum by 2014 /
Cost reduction focus
areas
A WellRun
City
(b) Establish an efficient and
productive administration
that prioritises delivery
OUTCOME
To ensure
operational
efficiency
To ensure
operational
efficiency and
reduce overtime
To ensure
operational
efficiency and
reduce R&M
To ensure
operational
efficiency
To ensure
operational
efficiency /
Reduction of
Electricity Costs
To ensure
operational
efficiency
To ensure
operational
efficiency
RESPONSIBLE
WDM Bus Dev
with all
branches
June 2012
To reduce
operating costs
Operational
Branches
Monthly Reports
/ Yearly reports
To reduce
operating costs
EAM / Affected
branches
Stormwater Ingress
Per Current
intervention
Appropriate technology
for Informal Settlements
December 2014
To reduce
operating costs
To reduce
operating costs
INTERVENTIONS
INDICATOR
Work study to perform
resource loading
To be
determined
Staggered start and
Shift system by
Reticulation per current
LLF intervention
Per Current
intervention
Proper asset
management
Per Current
intervention
Appropriate new
technology with proven
pay-back
To be
determined
Waste to Energy
technology
Subject to
Corporate
exercise
Reduction of sludge
removal by Wastewater
To be
determined
Standardise efficient
operating procedures
To be
determined
Challenging security
tariffs by Operational
Branches
Effective Vehicle
monitoring (Condition +
Utilisation)
Mainly
Reticulation
All
All
Reticulation /
WW
WW
Operational
Branches
Reticulation
Reticulation
3.85