GOVERNANCE

· Food Aid Programme: 73 soup kitchens

· Printing and distribution of Municipal Gazette: eZasegagasini

· Ward Committees Stipend

· Repairs & maintenance – buildings : Sizakala Centres & City Hall

· External Security services for councillor’s offices

· Grant in Aid – non-profit organisations

· SALGA Subscriptions

· Advertising

· Mayoral Imbizos

· Extended Public Works Programme (EPWP) expenditure

· EPWP integrated Grant: Income

· Youth Development Programmes

· Vulnerable Groups

· Senior Citizens Programme: Special Event recognizing our Senior Citizens

97.1 14.0 13.0 11.4 10.3 5.3 15.8 12.6 6.2 80.2 79.2 16.3 3.5 22.0

1.6.3.5 OFFICE OF THE CITY MANAGER

· Legal Fees: Litigation

· Sale of Broadband: Income

· Cost of Excess Capacity iro Sale of Broadband

· Maintenance, Management and Monitoring of the Municipality’s IT Network

· Programming: Applications and Systems Software

· IT Consultants and Professional services

· Licensing Fees: Software

· Area Based Management-Operational Projects

25.5 (11.9) 21.2 37.3 36.4 92.7 85.4 7.3

69

1.6.3.6 COMMUNITY AND EMERGENCY SERVICES

· Fleet maintenance for Fire & Emergency unit

· Maintenance of Fire specialised equipment

· Fire uniforms and protective clothing

· Specialised fire fighting support vehicles

· Disaster management operations

· CCTV repairs and maintenance to existing cameras

· CCTV new installation at crime hot-spot areas

· Installation of Emergency Services System

· Implementation of Safer Cities Plan

· Security Management land invasion section

· External security for safeguarding of council assets

· Air pollution monitoring and specialised equipment within EMA

· Maintenance of Air quality equipment

· Provision for HIV/AIDS services

· Medical requisites for clinics

· Maintenance to clinics

· Renovations and alterations to clinics

· Grass cutting and weed control: contractors

· Provision of Shark Nets along the coastline

5.2 3.9 10.0 10.0 3.9 6.7 9.5 1.8 10.0 1.8 2.0 10.5 111.6 2.0 1.9 2.5 5.3 4.1 5.4 24.7 115.0 15.8

·

1.6.3.7 FINANCE

· Rennie House Building Foyer Entrance Upgrade

· New SCM Office Construction

· 3rd Party Commission/Transaction Fees

· Building Operating Leases

· Postage/Stamp Costs

· Vehicle & Bus Fleet Replacement Programme

· Vehicle Tracking

· Vehicle and Bus Licencing and Registration

· Maintenance of Equipment

· Tyre and Tyre Consumables

· Fuel (City Fleet and Bus Operations)

· External Security

3.5 50.2 26.4 36.3 225.7 13.0 32.3 209.2 52.0 24.8 25.3

70 1.7 ANNUAL BUDGET TABLES

The following pages present the main budget tables as required in terms of section 8 of the Municipal Budget and Reporting Regulations. These tables set out the municipality’s 2020/21 budget and MTREF. Each table is

accompanied by explanatory notes.

71

Description 2016/17 2017/18 2018/19

R thousands Audited

Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2020/21

Budget Year +1 2021/22

Budget Year +2 2022/23 Financial Performance

Property rates 6 570 118 7 673 349 8 321 425 8 200 000 8 325 950 8 741 000 9 345 000 9 989 805 10 679 102 Serv ice charges 16 534 904 17 151 090 17 906 730 21 751 776 21 751 776 20 647 068 21 554 738 24 303 105 26 304 314 Inv estment rev enue 664 334 598 038 1 011 432 510 324 515 733 378 470 324 478 343 693 389 715 Transfers recognised - operational 2 716 460 5 333 730 3 420 707 6 417 208 3 942 071 3 875 356 4 090 547 4 426 642 4 773 342 Other ow n rev enue 4 085 357 2 303 186 4 126 697 2 398 200 4 959 788 4 976 116 5 229 768 5 573 976 5 908 284 Total Revenue (excluding capital transfers and

contributions)

30 571 173

33 059 393 34 786 991 39 277 508 39 495 318 38 618 010 40 544 531 44 637 221 48 054 756 Employ ee costs 8 863 471 10 081 933 10 475 361 11 544 075 11 602 225 10 882 041 10 751 492 11 470 070 12 274 128 Remuneration of councillors 110 934 119 344 126 495 134 127 134 127 129 435 139 858 145 538 151 451 Depreciation & asset impairment 2 188 667 2 311 697 2 418 638 2 700 663 2 754 442 2 744 265 2 958 028 2 838 528 2 701 385 Finance charges 897 959 852 320 857 834 974 356 974 356 967 121 845 099 875 304 914 197 Materials and bulk purchases 10 232 765 11 458 536 12 630 686 14 143 557 14 150 037 13 917 382 14 629 799 16 491 219 17 681 627 Transfers and grants 282 815 397 901 461 311 506 730 540 391 529 299 568 253 605 511 646 130 Other ex penditure 8 768 169 8 512 279 8 123 753 8 725 385 8 982 106 9 247 588 10 269 367 11 113 702 11 949 897 Total Expenditure 31 344 779 33 734 010 35 094 078 38 728 895 39 137 684 38 417 132 40 161 896 43 539 872 46 318 814 Surplus/(Deficit) (773 607) (674 617) (307 087) 548 614 357 634 200 878 382 635 1 097 349 1 735 943

Transfers and subsidies - capital (monetary

allocations) (National / Prov incial and District) 2 968 039 2 640 456 2 459 928 3 494 707 3 588 449 3 597 070 3 528 323 3 547 210 3 675 520 Transfers and subsidies - capital (monetary

allocations) (National / Prov incial Departmental

Agencies, Households, Non-profit Institutions, – – – – – – – – – Surplus/(Deficit) after capital transfers &

contributions

2 194 432

1 965 839 2 152 841 4 043 321 3 946 083 3 797 948 3 910 958 4 644 559 5 411 463 Share of surplus/ (deficit) of associate – – – – – – – – – Surplus/(Deficit) for the year 2 194 432 1 965 839 2 152 841 4 043 321 3 946 083 3 797 948 3 910 958 4 644 559 5 411 463 Capital expenditure & funds sources

Capital expenditure 5 466 428 4 808 427 5 372 555 7 854 604 7 756 718 4 876 130 4 792 769 5 098 905 5 583 392 Transfers recognised - capital 2 968 039 2 640 456 2 459 928 3 494 707 3 588 449 3 597 070 3 528 323 3 547 210 3 675 520 Borrow ing 171 914 199 499 1 000 000 1 654 597 1 592 000 1 002 960 1 023 498 1 000 000 1 000 000 Internally generated funds 2 326 475 1 968 472 1 912 627 2 705 300 2 576 269 276 101 240 947 551 694 907 872 Total sources of capital funds 5 466 428 4 808 427 5 372 555 7 854 604 7 756 718 4 876 130 4 792 769 5 098 904 5 583 392 Financial position

Total current assets 14 315 463 14 654 308 16 319 064 14 675 968 14 582 338 13 970 633 14 844 202 15 984 368 17 185 202 Total non current assets 48 301 228 50 327 879 52 768 692 60 671 612 58 856 606 55 796 878 57 633 361 59 915 795 62 821 161 Total current liabilities 11 300 859 12 191 331 13 377 767 11 912 301 11 894 902 12 101 485 12 287 790 12 439 909 12 577 039 Total non current liabilities 12 197 749 11 943 581 12 951 647 13 270 901 13 770 022 13 570 339 13 823 694 13 656 626 13 485 196 Community w ealth/Equity 39 118 083 40 847 274 42 758 342 50 164 376 47 774 020 44 095 686 46 366 081 49 803 628 53 944 127 Cash flows

Net cash from (used) operating 5 119 974 5 175 791 4 371 206 7 070 414 6 706 352 3 220 144 5 144 042 5 613 639 6 087 509 Net cash from (used) inv esting (5 338 579) (4 701 407) (5 090 964) (7 854 786) (7 756 900) (4 912 708) (4 779 961) (5 086 196) (5 571 483) Net cash from (used) financing (400 374) (674 885) 1 258 815 550 658 552 343 (466 781) 229 645 254 553 255 111 Cash/cash equivalents at the year end 6 597 350 6 386 707 6 925 906 6 152 993 5 888 503 4 766 561 5 360 286 6 142 282 6 913 419 Cash backing/surplus reconciliation

Cash and inv estments av ailable 6 597 350 6 386 707 6 925 906 6 152 993 5 888 502 4 766 560 5 360 286 6 142 282 6 913 419 Application of cash and inv estments 5 936 331 5 505 499 6 702 046 4 453 106 4 150 871 3 988 669 4 118 831 4 337 445 4 297 547 Balance - surplus (shortfall) 661 019 881 208 223 860 1 699 887 1 737 631 777 891 1 241 456 1 804 837 2 615 872 Asset management

Asset register summary (WDV) 54 406 805 50 000 957 52 682 746 59 370 669 57 025 876 56 579 086 58 967 385 59 273 489 59 757 975 Depreciation 2 188 667 2 311 697 2 418 638 2 700 663 2 754 442 2 744 265 2 958 028 2 838 528 2 701 385 Renew al and Upgrading of Ex isting Assets 3 626 648 2 114 892 2 066 656 3 144 765 2 932 431 1 759 459 1 984 746 1 801 475 2 130 049 Repairs and Maintenance 2 487 235 4 099 913 3 337 629 4 087 976 4 124 060 4 074 532 4 035 460 4 524 254 4 761 121 Free services

Cost of Free Basic Serv ices prov ided 1 622 756 1 762 791 1 983 715 1 490 220 1 490 220 1 490 219 1 975 018 2 176 186 2 401 195 Rev enue cost of free serv ices prov ided 2 360 547 2 343 758 2 759 382 5 801 490 5 801 490 6 456 341 7 001 979 7 535 891 8 116 675 Households below minimum service level

Water: 128 152 193 125 125 166 122 122 143 Sanitation/sew erage: 189 154 151 136 136 271 140 144 248 Energy : 399 447 420 415 414 414 410 410 397 Refuse: – – – – – – – – –

2020/21 Medium Term Revenue &

Expenditure Framework Current Year 2019/20

ETH eThekwini - Table A1 Consolidated Budget Summary

72 EXPLANATORY NOTES TO MBRR TABLE A1 – BUDGET SUMMARY

Table A1 represents a high level summation 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 is positive over the MTREF

b. The Capital budget 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.

The City's cash backing / surplus reconciliation over the medium-term budget shows a positive outcome, which is an indication that the City will be able to afford its commitments over the next three 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.

73

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

Table A2 is an overview of the budgeted financial performance in relation to revenue and expenditure per standard classification. The standard classification divides the municipal services into 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.

ETH eThekwini - Table A2 Consolidated Budgeted Financial Performance (revenue and expenditure by functional classification) Functional Classification Description Ref 2016/17 2017/18 2018/19

R thousand 1 Audited

Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2020/21

Budget Year +1 2021/22

Budget Year +2 2022/23 Revenue - Functional

Governance and administration 10 985 780 11 870 791 13 068 431 13 752 846 13 749 293 14 029 251 15 157 591 16 210 899 17 220 072 Ex ecutiv e and council 104 448 68 184 87 218 311 561 180 536 181 322 347 084 347 428 292 745 Finance and administration 10 881 332 11 802 543 12 981 197 13 441 285 13 568 758 13 847 908 14 810 507 15 863 471 16 927 327 Internal audit – 64 16 – – 20 – – – Community and public safety 1 456 485 2 032 898 1 928 596 2 558 430 2 848 549 2 820 545 2 330 791 2 308 610 2 548 977

Community and social serv ices 75 354 279 063 276 947 434 183 403 808 397 103 357 963 391 835 422 308 Sport and recreation 141 081 391 006 367 268 477 444 434 662 407 253 418 921 370 576 407 020 Public safety 72 686 450 390 183 794 99 169 89 969 135 712 87 177 91 284 91 965 Housing 1 078 835 670 008 881 107 1 310 237 1 689 913 1 650 250 1 223 424 1 190 465 1 347 371 Health 88 529 242 431 219 480 237 396 230 196 230 226 243 305 264 450 280 314 Economic and environmental services 1 766 082 1 365 620 1 040 324 1 813 340 1 708 977 1 581 956 1 483 114 1 623 896 1 683 305 Planning and dev elopment 307 421 200 393 157 649 276 089 274 456 261 136 238 255 251 650 256 015 Road transport 1 457 380 1 157 978 881 216 1 533 881 1 431 180 1 317 559 1 242 316 1 368 416 1 424 778 Env ironmental protection 1 281 7 249 1 459 3 371 3 341 3 261 2 543 3 830 2 512 Trading services 18 742 673 20 292 304 21 082 002 24 481 752 24 596 610 23 598 782 24 939 451 27 892 668 30 102 711 Energy sources 12 125 435 12 992 108 13 001 530 15 127 952 14 965 478 13 823 724 14 419 210 16 457 889 17 718 553 Water management 3 857 027 4 523 398 4 932 227 6 322 136 6 293 922 6 373 625 7 141 490 7 819 307 8 493 101 Waste w ater management 1 847 533 1 656 592 1 979 127 1 785 471 2 106 844 2 171 176 1 940 524 2 053 830 2 284 985 Waste management 912 678 1 120 207 1 169 118 1 246 192 1 230 367 1 230 257 1 438 226 1 561 643 1 606 072 Other 4 588 192 138 235 127 566 165 850 180 338 184 546 161 908 148 358 175 213 Total Revenue - Functional 2 33 539 212 35 699 849 37 246 919 42 772 217 43 083 767 42 215 080 44 072 854 48 184 432 51 730 278 Expenditure - Functional

Governance and administration 5 448 263 6 131 104 5 500 672 6 206 678 6 445 940 6 468 722 7 740 718 8 111 656 8 685 320 Ex ecutiv e and council 386 725 974 129 1 115 924 928 660 1 031 364 1 050 827 863 937 899 586 940 356 Finance and administration 4 975 401 5 071 235 4 294 114 5 168 479 5 305 066 5 342 205 6 773 057 7 101 575 7 627 091 Internal audit 86 137 85 740 90 634 109 539 109 509 75 690 103 724 110 495 117 873 Community and public safety 4 967 307 5 623 558 5 636 648 6 103 388 6 241 744 6 112 367 5 734 568 6 100 494 6 426 272 Community and social serv ices 1 085 553 810 026 968 335 1 038 687 1 118 513 1 083 451 962 701 1 097 629 1 161 222 Sport and recreation 1 191 899 1 659 648 1 826 157 1 822 522 1 809 154 1 948 788 1 852 992 1 918 844 1 996 918 Public safety 1 561 344 2 202 012 1 817 570 1 989 101 1 985 228 1 784 125 1 708 743 1 809 849 1 928 499 Housing 689 547 453 845 484 992 627 578 705 376 737 355 644 013 675 818 701 837 Health 438 964 498 028 539 593 625 501 623 473 558 647 566 119 598 354 637 795 Economic and environmental services 3 055 489 3 070 742 3 236 992 3 941 802 3 944 346 3 663 372 3 826 485 4 028 715 4 328 348 Planning and dev elopment 1 006 401 633 035 677 141 854 094 839 895 751 374 784 322 814 324 855 217 Road transport 1 909 456 2 219 176 2 335 017 2 820 052 2 821 684 2 652 105 2 781 105 2 936 659 3 177 980 Env ironmental protection 139 632 218 531 224 834 267 656 282 767 259 894 261 058 277 732 295 151 Trading services 17 099 302 18 680 120 20 427 969 22 194 397 22 223 000 21 838 578 22 560 874 24 988 085 26 552 487 Energy sources 10 696 591 10 835 782 11 646 592 13 546 319 13 546 205 12 962 019 13 338 143 15 242 071 16 272 729 Water management 4 027 082 5 157 388 5 936 422 5 563 360 5 617 368 5 754 191 6 082 786 6 446 354 6 828 405 Waste w ater management 1 219 740 1 522 643 1 607 356 1 742 429 1 696 139 1 810 098 1 803 781 1 879 487 1 962 863 Waste management 1 155 889 1 164 306 1 237 599 1 342 288 1 363 288 1 312 270 1 336 164 1 420 173 1 488 491 Other 4 774 418 228 920 291 798 282 629 282 654 334 093 299 250 310 922 326 386 Total Expenditure - Functional 3 31 344 779 33 734 445 35 094 079 38 728 894 39 137 683 38 417 132 40 161 895 43 539 872 46 318 813 Surplus/(Deficit) for the year 2 194 432 1 965 404 2 152 840 4 043 323 3 946 083 3 797 949 3 910 959 4 644 559 5 411 465

Current Year 2019/20 2020/21 Medium Term Revenue &

Expenditure Framework

74

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

Table A3 shows 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.

In document ET ET ET ET ET ET ET ET ET ET ET ET ET ET ET ET ET ET (Page 88-94)