2021/22-2023/24 MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK REPORT

(1)

2021/22-2023/24 MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK REPORT

1. PURPOSE

To table to Council the MTREF report for 2021/22 and two outer years 2022/23 and 2023/24 for consideration and approval before start of the 2021/2022 financial year.

2. BACKGROUND AND REASONING

The Final estimates for the 2021/2022 financial year and Medium Term Revenue and Expenditure Framework (MTREF) was drafted under extremely difficult circumstances as the municipality still finds itself in a difficult financial position and service delivery demands are increasing on a daily basis.

The application of prudent financial management principles for the compilation of Intsika Yethu Municipality’s Revenue Enhancement is of essence to ensure that the Municipality becomes financially viable and that municipal services are provided sustainably, economically and equitably to all communities.

The new 5 year IDP informs the draft budget and serves to aide in the review of the service delivery priorities as an integral part of this year’s planning and budgeting process.

The annual budget serves to address crucial service delivery needs and to ensure compliance with legislative requirements and to meet service delivery obligations. The current year budget and revised budgets together with the Revenue Enhancement Strategy laid the foundation for financial recovery and the annual budget continues to support the principles of financial viability and sustainability.

To aide in the financial recovery Intsika Yethu Municipality is busy with the compilation of a revenue enhancement strategy to ensure that all revenue sources are optimized and that all amounts due to the municipality are correctly billed and collected.

National Treasury’s MFMA Circular No. 107 were used to guide the compilation of the

2021/22 MTREF.

(2)

The main challenges experienced during the compilation of the 2020/21 MTREF can be summarized as follows:

 The dismal financial position that the municipality finds itself in and the fact that the municipality would need to further burden the ratepayers and consumers in difficult economic circumstances to navigate out of the financial crises.

 The prolonged recovery from the economic downturn that is still hampering growth and development not only locally but provincially and nationally.

 Very little own funding is available to fund much needed infrastructure, refurbishment or renewals.

 The huge backlog and limited funding to address the access roads backlog is placing a strain on infrastructure, financial and other resources.

 Wage increases for municipal staff that continue to exceed consumer inflation, as well as the need to fill critical vacancies.

The following annual budget principles and guidelines directly informed the compilation of the 2021/22 MTREF: •

 The 2020/21 Adjustments Budgets set the base line for the new draft budget of 2021/2022 where appropriate and funding is sufficient a zero base approached has been used.

 Cost cutting and austerity measures have been applied in all expenditure categories and value for money considerations are made in all expenditure incurred.

 Tariff and property rate increases should be affordable and should generally not exceed inflation as measured by the CPI, except where there are price increases in the input of services that are beyond the control of the municipality, for instance the continued escalation in the fuel price.

 In addition, tariffs need to move towards being cost reflective, and should take into account the need to address infrastructure backlogs.

 The development & execution of the Revenue Enhancement Strategy and the continued effort to move the municipality from the brink of unfunded budget to a position of financial sustainability.

 Recovery from preceding years of operating deficits as a result of not budgeting for non-cash items, the repayment of overdue creditors and the strict application of prudent financial management principles.

 Realistic anticipated revenues

(3)

 Reserves

BUDGET PROCESS PLAN

IDP and Budget process plan as required by section 21 of the MFMA was submitted and approved by Council to ensure that municipality does not fail to prepare and approve its credible budget within the legislated time frames. Engagements with management during the budget preparation process were conducted and the budget Steering Committee has been appointed and is functional. The committee sat on the 05

^th

March 2021 to scrutinise and add inputs on the budget preparation.

ALIGNMENT OF BUDGET TO IDP

The reviewed IDP has been used by the municipality to inform the Draft budget for 2021/22 to 2023/24 (MTERF) for consideration. The tabled annual budget was prepared after taken into consideration the comments and suggestions by stakeholders and public through IDP/Budget outreach.

3. LEGAL IMPLICATIONS

 Municipal Finance Management Act 56 of 2003, Chapter 4.

 Municipal System Act 32 of 2000 (as amended).

 National Treasury Regulations and Guidelines.

 Municipal Budget and Reporting Regulations (reg 21, 22, 23, 24, 25, 26 and 27).

 Municipal Standard Chart of Accounts (mSCOA).

4. FINANCIAL IMPLICATIONS

None

(4)

ANNUAL BUDGET 2021/22 – 2023/24

TOTAL BUDGET- SUMMARY OF REVENUE & EXPENDITURE 2021/22-2023/24 BUDGET PERFORMANCE (GRANTS SUBSIDIES AND INTERNAL REVENUE)

DESCRIPTION CURRENT YEAR 2020/21 2021/22 MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK

Original Budget Adjustment

Budget

Budget Year 2021/22

Budget Year 2022/23

Budget Year 2023/24 Grant & Subsidies 233 707 000 270 476 316 230 778 000 242 823 760 236 982 109

Own Revenue 44 639 554 39 252 766 47 296 475 49 377 519 58 922 930

TOTAL 278 346 554 309 729 082 278 074 475 292 201 279 295 905 039

BUDGET PERFORMANCE (OPERATIONAL AND CAPITAL EXPENDITURE) DESCRIPTION CURRENT YEAR 2020/21 2021/22 MEDIUM TERM REVENUE AND

EXPENDITURE FRAMEWORK

Original Budget Adjustment

Budget

Budget Year 2021/22

Budget Year 2022/23

Budget Year 2023/24 Operating Expenditure 220 320 854 237 888 133 233 779 124 242 228 690 254 774 073 Capital Expenditure 58 025 700 71 840 949 44 295 350 57 392 590 1 424 586 TOTAL 278 346 554 309 729 082 278 074 474 292 201 280 248 331 459

Remarks.

The budget has decreased from prior year by R 31, 7 million, the municipality’s budget still indicates grant dependency. It encouraged that revenue collection needs to be prioritised to change the current status and also new revenue streams must be explored.

Budgeted Financial Performance (revenue)

BUDGET ITEM

FINAL BUDGET 2020/21

FINAL ADJUSTMENT BUDGET 2020/21

MTREF BUDGET 2021/22

MTREF BUDGET 2022/23

MTREF BUDGET 2023/24 REVENUE

EQUITABLE SHARE 168 126 000 198 770 000 173 443 000 180 243 000 174 227 000

MIG 52 746 000 61 079 333 45 353 000 48 873 000 50 975 000

FMG 2 000 000 2 000 000 2 100 000 2 100 000 2 100 000

EPWP 2 271 000 2 271 000 2 042 000 - -

INEP 7 317 000 4 817 000 6 300 000 10 000 000 8 000 000

LIBRARY AND ARCHIVES - 888 003 500 000 522 000 545 490

OWN REVENUE 32 339 554 30 452 766 38 064 473 39 739 310 41 527 579

PROPERTY RATES 9 700 000 7 700 000 8 015 700 8 368 391 16 068 391

SERVICE CHARGES 2 600 000 1 100 000 1 145 100 1 195 484 1 249 281

LG SETA - 68 397 71 201 74 334 77 679

CHDM GRANT 800 000 1 040 000 1 040 000 1 085 760 1 134 619

MUNICIPAL DISASTER RELIEF GRANT 447 000 498 983 - - -

GRAND TOTAL REVENUE 278 346 554 310 685 482 278 074 475 292 201 279 295 905 039

Remarks;

(5)

 The revenue is anticipated to be R278 074 475 in the 2021/22 financial year. The adjusted budget for 2020/21 was R310 685 482. This is a decrease of R32 611 007 from the current adjustment budget. Revenue budget for the indicative years 2022/23 and 2023/24 is anticipated to be R292 201 279and R295 905 039 respectively.

 The property rates amount is calculated from the current valuation roll as implemented from 01st July 2021.

 The Annual Tariffs for 2021/22 has informed the operational budget.

 It should be noted that transfers and subsidies from capital has decreased due to reduced grants allocation for the integrated national electrification grant and Municipal Infrastructure Grant.

Budgeted Financial Performance (operating expenditure)

BUDGET ITEM

FINAL BUDGET 2020/21

FINAL ADJUSTMENT BUDGET 2020/21

MTREF BUDGET 2021/22

MTREF BUDGET 2022/23

MTREF BUDGET 2023/24

PAYROLL EXPENDITURE

SALARIES 145 759 068 145 759 068 154 504 612 163 774 889 173 601 382

-

TOTAL PAYROLL 145 759 068 145 759 068 154 504 612 163 774 889 173 601 382

GENERAL EXPENDITURE

TOTAL GENERAL EXPENSES 74 561 786 92 129 065 79 274 512 78 453 801 81 170 691

OPERATIONAL EXPENDITURE 220 320 854 237 888 133 233 779 124 242 228 690 254 772 073

Remarks;

 The annual operating expenditure is anticipated to be R233 779 124 in the 2021/2022 financial year. The adjusted budget for 2020/21 was R237 888 133. This a decrease of R4 109 009 from the current adjustment budget. For the two outer years 2022/23 and 2023/24 the operating expenditure budget is R242 228 690 and R254 772 073 respectively.

 An increase of 6% has been effected on employee related costs as per salary and wage collective agreement. Also included in the employee costs is the 2.5% of progression

% for employees who have completed over a year of their service.

(6)

Budgeted Capital Expenditure

BUDGET ITEM

FINAL BUDGET 2020/21

FINAL ADJUSTMENT BUDGET 2020/21

MTREF BUDGET 2021/22

MTREF BUDGET 2022/23

MTREF BUDGET 2023/24

CAPITAL PROJECTS

COMPUTER EQUIPMENT - 300 000 370 000 342 320 357 724

BRANDING AND MARKETING EQUIPMENT - - -

WEBSITE EQUIPMENT 150 000 156 600 163 647

MOTOR VEHICLE 600 000 1 360 000 - - -

FURNITURE AND OFFICE EQUIPMENT - - 380 000 342 320 357 724

MACHINERY AND EQUIPMENT - 5 824 000 - - -

ABLUSSION FACILITY - - - -

CONSTRUCTION OF POUND- Toilet and Fencing - 605 000 500 000 522 000 545 490

CONSTRUCTION OF KHAYAMNANDI BRIDGE - 1 724 000 - - -

CONSTRUCTION OF TSOMO TAXI RANK- SHELTER - - -

PUBLIC TOILETS - 1 705 000 - - -

COFIMVABA LANDFILL SITE - 718 502 - - -

COFIMVABA STADIUM( Wellness Centre) - 4 258 241 310 000 - -

BILATYE ACCESS ROAD 5 100 000 5 100 000 - - -

MIYA ACCESS ROAD 5 950 000 5 950 000 - - -

MCAMBALALA ACCESS ROAD 5 950 000 5 950 000 - - -

MTETUVUMILE ACCESS ROAD 4 250 000 4 250 000 - - -

MNYANGULE TO MFIHLWENI ACCESS ROAD 6 409 450 6 409 450 - - -

MBULUKWEZA ACCESS ROAD(CLINIC TO J.S.S) 3 400 000 3 400 000 - - -

NOMADAMBE ACCESS ROAD 5 100 000 5 100 000 - - -

UPGRADING OF GRAVEL TO SURFACE ROADS

EXTENTION 1 AND PHASE 2 3 949 250 1 869 756 - - -

MAGWALA STADIUM 10 000 000 10 000 000 - -

NYANISWENI,JOE SLOVO AND MZOMHLE PAVING - - 3 437 772 - -

MTYAMDE(MAHLATHINI) ACCESS ROAD - - 3 472 222 - -

LUPHINDWENI ACCESS ROAD - - 4 422 222 - -

R61 TO DIBA ACCESS ROAD - - 5 572 222 - -

LOWER NQOLOSA ACCESS ROAD - - 4 272 222 - -

MANGWENI 2 ACCESS ROAD - - 3 242 022 - -

KUYASA DANTRASHA ACCESS ROAD - - 4 222 222 - -

BHOLITYE TO NOMFENAZA ACCESS ROAD - - 5 222 222 - -

MAHLATHINI ACCESS ROAD - - 2 222 222 - -

BOLOKODLELA TO NTSHINGENI - - - 5 100 000 -

NGCACA ACCESS ROAD - - - 4 250 000 -

CENYU,KHALIMASHE TO KOMKHULU ACCESS ROAD - - - 11 900 000 -

MKWINTI ACCESS ROAD - - - 4 250 000 -

PRESCHOOL HALALANE TO EPHIKWENI ACCESS ROAD - - - 3 400 000 -

QUTSA RIVER TO MANGUBOMVU ACCESS ROAD - - - 6 479 350 -

NOMAMPONDO TO NONGQONGQWANA ACCESS

ROAD - - - 5 000 000 -

HANGANE TO NTWASHINI ACCESS ROAD - - - 6 050 000 -

TAIWAN Electrification 900 000 900 000 - - -

MTETUVUMILE 540 000 540 000 - - -

MBULUKWEZA 558 000 558 000 - - -

SIGUBUDWINI 108 000 108 000 - - -

MBULU VILLAGE 324 000 324 000 - - -

NGCACA 558 000 558 000 - - -

GCIBHALA VILLAGE 108 000 108 000 - - -

QOLWENI 756 000 756 000 - - -

CAMAMA PHINDELA 1 080 000 1 080 000 - - -

XENI - - 450 000 - -

SENTILE - - 324 000 - -

(7)

TYELERHA - - 648 000 - -

LALINI - - 450 000 - -

FAMINI BHANTI(QAQANE) - - 378 000 - -

FAMINI BHANTI(PHELANDABA) - - 432 000 - -

DECKETS HILL - - 138 000 - -

DALIWONGA - - 666 000 - -

ENQUBENI - - 630 000 - -

TOMSOPHETHE - - 702 000 - -

SHWENI - - 324 000 - -

KOMKHULU - - 670 000 - -

TSHATSHU LOWER QITSI - - 688 000 - -

ELECTRIFICATION WARD 13 - - - 1 260 000 -

MADIKENI - - - 360 000 -

QOLWENI - - - 660 000 -

SKOBENI - - - 252 000 -

KWEZANA MISSION - - - 882 000 -

MOYENI - - - 612 000 -

MADAKENI - - - 306 000 -

TSHATSHU - - - 882 000 -

DAMANE - - - 480 000 -

LUBISI,MATHA,BUKWANA - - - 1 836 000 -

ELECTRIFICATION WARD 13 - - - 2 070 000 -

±5km CAMAMA PHINDELA LINK LINE 2 385 000 2 385 000 - - -

TOTAL CAPITAL EXPENDITURE BUDGET 58 025 700 71 840 949 44 295 350 57 392 590 1 424 586

Remarks;

Capital expenditure is the expenditure appropriated for items to be utilised over a period of time longer than 12 months to generate future income and derive economic benefit for the municipality.

The capital expenditure is anticipated to be R 44 295 350 in the 2021/22 financial year. The adjusted budget for 2020/21 was R71 850 949 million. It must be noted that there is a decrease of R27 555 599 from the adjustment budget due to the following:

 Increase in INEP from R4 817 000 to R 6 300 000

 Decrease of MIG from R52 746 000 to R45 353 000 Transfers and grant receipts

BUDGET ITEM

FINAL BUDGET 2020/21

SPECIAL ADJUSTMENT COVID-19 2020/21

FINAL ADJUSTMENT BUDGET 2020/21

MTREF BUDGET 2021/22

MTREF BUDGET 2022/23

MTREF BUDGET 2023/24

EQUITABLE SHARE 168 126 000 198 770 000 198 770 000 173 443 000 180 243 000 174 227 000

MIG 52 746 000 52 746 000 61 079 333 45 353 000 48 873 000 50 975 000

FMG 2 000 000 2 000 000 2 000 000 2 100 000 2 100 000 2 100 000

EPWP 2 271 000 2 271 000 2 271 000 2 042 000 - -

INEP 7 317 000 4 817 000 4 817 000 6 300 000 10 000 000 8 000 000

LIBRARY AND ARCHIVES - - 888 003 500 000 522 000 545 490

CHDM GRANT 800 000 800 000 1 040 000 1 040 000 1 085 760 1 134 619

MUNICIPAL DISASTER RELIEF GRANT 447 000 447 000 498 983 - - -

GRAND TOTAL GRANTS AND SUBSIDIES 278 346 554 301 165 212 310 685 482 230 778 000 283 797 760 287 122 994

(8)

Remarks;

 The municipality will receive both conditional and unconditional grants of R230 778 000 million, (a decrease from R310 685 482 million from 2020/21) from the allocations as gazetted on Division of Revenue Act (DoRA).

 The equitable share allocation is appropriated to fund municipal delivery of services through day to day operations and strategic social development programs.

 Conditional capital grants (MIG & INEP) are appropriated to fund capital expenditure of roads construction and electrification projects.

 Conditional operational grants (EPWP & FMG) are appropriated to fund expenditures relate to EPWP programs and financial reforms respectively as per grants stipulated conditions.

 A grant Provincial Gazette relates to DSRAC for libraries, the gazette has not been issued yet however the municipality anticipates to receive an allocation as previously allocated.

 The CHDM has allocated an amount of R1 040 000, 00 to LED, this is decrease if compared to other years however it is also anticipated that they might allocate more resources during the year and the budget will be adjusted as and when the money is received.

TARIFF INCREASES AND BUDGET ASSUMPTIONS

The current tariffs are proposed to be increased by 4.1% as proposed in the MFMA Circular 107 from Treasury.

BUDGET RELATED POLICIES

Budget related policies have been reviewed for the 2021/22 budget, with the no amendment;

(9)

NATIONAL TREASURY BUDGET TABLES Table A1- Budget Summary

Description 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term

Revenue & Expenditure Framework

R thousands Audited

Outcome Audited

Outcome Original

Budget Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

Financial Performance

Property rates 8 560 5 563 10 286 9 700 7 700 7 700 7 700 8 016 8 368 8 745

Service charges 2 141 907 1 126 2 590 1 090 1 089 1 100 1 136 1 185 1 239

Investment revenue 2 864 3 619 3 102 3 710 3 710 3 710 (1 202) 3 862 4 032 4 213

Transfers recognised - operational 161 908 163 851 165 705 173 644 204 288 204 288 (163 487) 179 196 184 025 178 085

Other own revenue 13 401 6 839 7 078 23 252 20 320 20 320 (12 473) 34 202 35 706 37 304

Total Revenue (excluding capital transfers and contributions)

188 873 180 779 187 297 212 897 237 108 237 107 (168 362) 226 411 233 317 229 586

Employee costs 120 740 110 929 113 831 128 429 128 429 128 429 85 186 135 563 142 512 152 724

Remuneration of councillors 14 880 16 564 17 577 17 330 17 330 17 330 (11 431) 18 943 19 776 20 666

Depreciation & asset impairment 26 646 27 517 27 432 28 215 25 212 25 212 – 28 000 28 000 29 260

Finance charges 0 – – – – – – – – –

Inventory consumed and bulk purchases (21) (161) (125) – – – (125) – – –

Transfers and grants 2 721 4 184 5 313 4 596 5 096 5 096 4 156 5 000 5 000 5 225

Other expenditure 48 737 55 671 43 171 39 128 53 153 53 153 23 378 46 274 46 939 46 897

Total Expenditure 213 704 214 705 207 199 217 699 229 221 229 221 101 164 233 779 242 228 254 772

Surplus/(Deficit) (24 831) (33 926) (19 902) (4 802) 7 886 7 886 (269 526) (7 368) (8 910) (25 186)

Transfers and subsidies - capital (monetary

allocations) (National / Provincial and District) 51 578 57 016 46 719 60 063 57 563 57 563 (47 951) 51 653 58 873 58 975

Transfers and subsidies - capital (monetary kind - all) – (2 664) – – – – – – – –

Surplus/(Deficit) after capital transfers &

contributions 26 748 20 426 26 818 55 261 65 449 65 449 (317 477) 44 285 49 963 33 789

Share of surplus/ (deficit) of associate – – – – – – – – – –

Surplus/(Deficit) for the year 26 748 20 426 26 818 55 261 65 449 65 449 (317 477) 44 285 49 963 33 789

Capital expenditure & funds sources

Capital expenditure (47 025) (43 324) 37 453 58 026 75 906 75 906 75 906 51 945 58 491 2 570

Transfers recognised - capital (60 233) (46 119) 40 110 55 032 64 128 64 128 64 128 50 485 56 969 982

Borrowing – – – – – – – – – –

Internally generated funds 13 208 2 795 (2 657) 2 994 11 778 11 778 11 778 1 460 1 522 1 588

Total sources of capital funds (47 025) (43 324) 37 453 58 026 75 906 75 906 75 906 51 945 58 491 2 570

Financial position

Total current assets 64 001 66 621 91 628 175 804 160 068 160 068 132 044 70 125 19 738 75 569

Total non current assets 519 126 595 069 608 286 652 170 670 170 670 170 1 174 457 679 552 711 829 682 694

Total current liabilities 24 269 14 191 25 478 12 516 12 516 12 516 (7 929) (92 692) (102

273) (101

671)

Total non current liabilities 6 045 7 756 13 684 12 057 12 057 12 057 (13 684) 13 684 14 245 14 829

Community wealth/Equity 482 732 520 589 518 778 812 260 814 284 814 284 (880 684) 779 938 765 140 1 153

397

Cash flows

Net cash from (used) operating 14 333 9 666 17 099 242 767 270 911 270 911 (11 268) 218 493 231 994 226 266

Net cash from (used) investing – – – – – – – (51 945) (58 491) (2 570)

Net cash from (used) financing – – – – – – – – – –

Cash/cash equivalents at the year end 14 333 9 666 17 099 242 767 270 911 270 911 (11 268) 166 548 340 050 563 747

Cash backing/surplus reconciliation

Cash and investments available 26 514 19 318 34 344 116 194 100 459 100 459 86 754 33 456 (1 308) 40 038

Application of cash and investments 23 848 23 157 31 284 9 390 8 880 8 879 (33 745) (79 488) (78 167) (87 373)

Balance - surplus (shortfall) 2 666 (3 839) 3 059 106 804 91 579 91 580 120 498 112 944 76 859 127 411

Asset management

Asset register summary (WDV) 519 126 595 069 600 035 652 170 670 170 670 170 670 170 679 552 711 829 682 694

Depreciation 26 646 27 517 27 432 28 215 25 212 25 212 25 212 28 000 28 000 29 260

Renewal and Upgrading of Existing Assets – – – – – – – – – –

Repairs and Maintenance 20 801 1 275 3 520 4 413 4 413 4 413 3 450 3 314 3 463

Free services

(10)

Cost of Free Basic Services provided – – – – – – – – – –

Revenue cost of free services provided – – – 658 724 796 658 658 724 796

Households below minimum service level

Water: – – – – – – – – – –

Sanitation/sewerage: – – – – – – – – – –

Energy: – – – – – – – – – –

Refuse: – – – – – – – – – –

Table A2: Budgeted Financial Performance (Expenditure by standard classification)

Functional Classification Description Ref 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term Revenue &

Expenditure Framework

R thousand 1 Audited

Budget Adjusted

Budget Full Year Forecast

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

Revenue - Functional

Governance and administration 231 074 218 641 230 891 266 731 290 642 290 642 264 045 277 554 273 276

Executive and council – – – 13 – – – – –

Finance and administration 231 074 218 641 230 891 266 718 290 642 290 642 264 045 277 554 273 276

Internal audit – – – – – – – – –

Community and public safety 379 525 725 1 011 811 811 879 917 959

Community and social services 300 450 136 34 34 34 535 559 584

Sport and recreation – – – – – – – – –

Public safety 79 75 196 530 330 330 344 359 375

Housing – – – – – – – – –

Health – – 393 447 447 447 – – –

Economic and environmental services – 6 765 1 275 2 628 2 128 2 128 2 839 2 964 3 097

Planning and development – 6 765 1 275 1 568 1 568 1 568 1 839 1 920 2 006

Road transport – – – 1 060 560 560 1 000 1 044 1 091

Environmental protection – – – – – – – – –

Trading services 12 072 9 201 1 126 2 600 1 100 1 100 1 145 1 195 1 249

Energy sources 6 980 5 396 – – – – – – –

Water management – – – – – – – – –

Waste water management – – – – – – – – –

Waste management 5 092 3 805 1 126 2 600 1 100 1 100 1 145 1 195 1 249

Other 4 – – – – – – – – –

Total Revenue - Functional 2 243 525 235 131 234 017 272 969 294 681 294 681 268 908 282 631 278 581

Expenditure - Functional

Governance and administration 119 757 129 388 119 183 141 113 148 171 148 171 147 878 151 137 157 849

Executive and council 23 752 38 380 38 402 26 199 28 754 28 754 27 427 27 714 28 996

Finance and administration 96 005 91 008 80 718 110 304 114 806 114 806 115 335 118 050 123 244

Internal audit – – 63 4 611 4 611 4 611 5 117 5 372 5 609

Community and public safety 7 804 20 609 43 468 38 016 40 168 40 168 41 096 42 889 44 792

Community and social services 7 727 20 424 42 804 14 292 16 044 16 044 14 715 15 194 15 863

Sport and recreation 46 166 77 66 66 66 80 84 87

Public safety 30 2 236 17 276 17 676 17 676 20 028 21 026 21 951

Housing – – 0 5 435 5 435 5 435 6 093 6 398 6 694

Health 1 17 350 947 947 947 180 188 196

Economic and environmental services 59 159 53 213 34 133 31 924 35 264 35 264 36 057 37 524 39 177

Planning and development 12 160 23 502 11 094 15 365 16 954 16 954 17 880 18 748 19 572

Road transport 46 998 29 711 23 039 16 558 18 310 18 310 18 177 18 776 19 604

Environmental protection – – – – – – – – –

Trading services 31 821 15 318 14 313 8 710 9 834 9 834 8 162 8 556 8 934

Energy sources 26 065 9 691 10 463 – 300 300 300 313 327

Water management – – – – – – – – –

Waste water management – – – – – – – – –

Waste management 5 756 5 627 3 849 8 710 9 534 9 534 7 862 8 243 8 607

Other 4 323 256 261 1 121 1 121 1 121 1 409 1 476 1 542

Total Expenditure - Functional 3 218 864 218 784 211 357 220 884 234 559 234 559 234 601 241 582 252 294

Surplus/(Deficit) for the year 24 661 16 347 22 659 52 085 60 122 60 122 34 307 41 049 26 287

(11)

Table A3: Budgeted Financial Performance (expenditure by municipal vote)

Vote Description Ref 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term Revenue &

R thousand Audited

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

Revenue by Vote 1

Vote 1 - Executive and Council – – – 13 – – – – –

Vote 2 - Finance and Administration 231 074 218 641 230 891 266 718 290 642 290 642 264 045 277 554 273 276

Vote 3 - Community and Social Services 300 450 136 34 34 34 535 559 584

Vote 4 - Internal Audit – – – – – – – – –

Vote 5 - Planning and Development – 6 765 1 275 1 568 1 568 1 568 1 839 1 920 2 006

Vote 6 - Public Safety 79 75 196 530 330 330 344 359 375

Vote 7 - Road Transport – – – 1 060 560 560 1 000 1 044 1 091

Vote 8 - Energy Sources 6 980 5 396 – – – – – – –

Vote 9 - Waste Management 5 092 3 805 1 126 2 600 1 100 1 100 1 145 1 195 1 249

Vote 10 - Sport and Recreation – – – – – – – – –

Vote 11 - Housing – – – – – – – – –

Vote 12 - Health – – 393 447 447 447 – – –

Vote 13 - Water Management – – – – – – – – –

Vote 14 - Waste Water Management – – – – – – – – –

Vote 15 - Other – – – – – – – – –

Total Revenue by Vote 2 243 525 235 131 234 017 272 969 294 681 294 681 268 908 282 631 278 581

Expenditure by Vote to be appropriated 1

Vote 1 - Executive and Council 23 879 38 380 38 560 34 666 37 221 37 221 36 340 37 073 38 704

Vote 2 - Finance and Administration 93 441 80 288 80 560 100 104 104 607 104 607 104 798 106 987 111 694

Vote 3 - Community and Social Services 7 727 20 424 42 804 14 292 16 044 16 044 14 715 15 194 15 863

Vote 4 - Internal Audit – – 63 4 611 4 611 4 611 5 117 5 372 5 609

Vote 5 - Planning and Development 12 160 23 502 11 094 15 365 16 954 16 954 17 880 18 748 19 572

Vote 6 - Public Safety 30 2 236 17 276 17 676 17 676 20 028 21 026 21 951

Vote 7 - Road Transport 46 998 29 711 23 039 16 558 18 310 18 310 18 177 18 776 19 603

Vote 8 - Energy Sources 26 065 9 691 10 463 – 300 300 300 313 327

Vote 9 - Waste Management 5 756 5 627 3 849 8 710 9 534 9 534 7 862 8 243 8 606

Vote 10 - Sport and Recreation 46 166 77 66 66 66 80 84 87

Vote 11 - Housing – – 0 5 435 5 435 5 435 6 093 6 398 6 679

Vote 12 - Health 1 17 350 947 947 947 180 188 196

Vote 13 - Water Management – – – – – – – – –

Vote 14 - Waste Water Management – – – – – – – – –

Vote 15 - Other 323 256 261 1 121 1 121 1 121 1 409 1 476 1 541

Total Expenditure by Vote 2 216 427 208 064 211 357 219 152 232 826 232 826 232 977 239 877 250 433

Surplus/(Deficit) for the year 2 27 098 27 067 22 659 53 817 61 854 61 854 35 931 42 754 28 148

(12)

Table A4: Budgeted Financial Performance (revenue by source)

Description Ref 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term

Budget Full Year

Forecast Pre-audit outcome

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

Revenue By Source

Property rates 2 8 560 5 563 10 286 9 700 7 700 7 700 7 700 8 016 8 368 8 745

Service charges - electricity revenue 2 – – – – – – – – – –

Service charges - water revenue 2 – – – – – – – – – –

Service charges - sanitation revenue 2 – – – – – – – – – –

Service charges - refuse revenue 2 2 141 907 1 126 2 590 1 090 1 089 1 100 1 136 1 185 1 239

Rental of facilities and equipment 7 866 1 566 1 146 1 867 1 067 1 067 (871) 1 111 1 160 1 212

Interest earned - external investments 2 864 3 619 3 102 3 710 3 710 3 710 (1 202) 3 862 4 032 4 213

Interest earned - outstanding debtors 1 069 1 725 2 457 1 060 760 760 (1 462) 791 826 863

Dividends received – – – – – – – – – –

Fines, penalties and forfeits 79 636 634 936 736 736 (56) 545 569 595

Licences and permits 2 006 2 335 1 767 3 710 2 710 2 710 (1 825) 3 459 3 611 3 774

Agency services 1 955 983 875 1 060 1 060 1 060 (930) 1 800 1 879 1 964

Transfers and subsidies 161 908 163 851 165 705 173 644 204 288 204 288 (163 487) 179 196 184 025 178 085

Other revenue 2 426 276 200 14 379 13 867 13 867 (7 330) 26 370 27 531 28 760

Gains – (683) – 240 120 120 – 125 130 136

Total Revenue (excluding capital transfers

and contributions) 188 873 180 779 187 297 212 897 237 108 237 107 (168 362) 226 411 233 317 229 586

Expenditure By Type

Employee related costs 2 120 740 110 929 113 831 128 429 128 429 128 429 85 186 135 563 142 512 152 724

Remuneration of councillors 14 880 16 564 17 577 17 330 17 330 17 330 (11 431) 18 943 19 776 20 666

Debt impairment 3 8 734 1 699 1 086 755 3 000 3 000 – 1 500 800 836

Depreciation & asset impairment 2 26 646 27 517 27 432 28 215 25 212 25 212 – 28 000 28 000 29 260

Finance charges 0 – – – – – – – – –

Bulk purchases - electricity 2 – – – – – – – – – –

Inventory consumed 8 (21) (161) (125) – – – (125) – – –

Contracted services 14 363 7 081 6 633 12 394 17 019 17 019 7 092 13 366 13 666 14 281

Transfers and subsidies 2 721 4 184 5 313 4 596 5 096 5 096 4 156 5 000 5 000 5 225

Other expenditure 4, 5 28 184 45 731 35 359 25 980 33 135 33 135 16 285 31 408 32 473 31 780

Losses (2 544) 1 160 94 – – – – – – –

Total Expenditure 213 704 214 705 207 199 217 699 229 221 229 221 101 164 233 779 242 228 254 772

Surplus/(Deficit) (24 831) (33 926) (19 902) (4 802) 7 886 7 886 (269 526) (7 368) (8 910) (25 186) Transfers and subsidies - capital (monetary

allocations) (National / Provincial and District) 51 578 57 016 46 719 60 063 57 563 57 563 (47 951) 51 653 58 873 58 975 Transfers and subsidies - capital (monetary

allocations) (National / Provincial Departmental Agencies, Households, Non-profit Institutions, Private Enterprises, Public Corporatons,

Higher Educational Institutions) 6 – (2 664) – – – – – – – –

Transfers and subsidies - capital (in-kind -

all) – – – – – – – – – –

Surplus/(Deficit) after capital transfers &

contributions 26 748 20 426 26 818 55 261 65 449 65 449 (317 477) 44 285 49 963 33 789

Taxation – – – – – – – – – –

Surplus/(Deficit) after taxation 26 748 20 426 26 818 55 261 65 449 65 449 (317 477) 44 285 49 963 33 789

Attributable to minorities – – – – – – – – – –

Surplus/(Deficit) attributable to municipality 26 748 20 426 26 818 55 261 65 449 65 449 (317 477) 44 285 49 963 33 789

Share of surplus/ (deficit) of associate 7 – – – – – – – – – –

Surplus/(Deficit) for the year 26 748 20 426 26 818 55 261 65 449 65 449 (317 477) 44 285 49 963 33 789

(13)

Table A5: Budgeted Capital Expenditure for both multi-year and single year by vote, standard classification and funding

Vote Description Ref 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term

Pre- audit outcome

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

Capital expenditure - Vote

Single-year expenditure to be appropriated 2

Vote 1 - Executive and Council – – – – – – – – – –

Vote 2 - Finance and Administration 11 024 3 009 6 732 600 560 560 7 205 560 582 606

Vote 3 - Community and Social Services – – 694 – – – 694 – – –

Vote 4 - Internal Audit – – – – – – – – – –

Vote 5 - Planning and Development – – 23 722 – – – 23 722 – – –

Vote 6 - Public Safety 2 184 – 737 – – – 737 – – –

Vote 7 - Road Transport 60 900 46 333 14 240 40 109 53 245 53 245 49 210 43 885 47 265 873

Vote 8 - Energy Sources 666 – – 7 317 6 500 6 500 2 510 6 500 9 600 –

Vote 9 - Waste Management – – 3 599 – – – 3 853 – – –

Vote 10 - Sport and Recreation – – 2 766 10 000 9 353 9 353 8 629 – – –

Vote 11 - Housing – – – – – – – – – –

Vote 12 - Health – – – – – – – – – –

Vote 13 - Water Management – – – – – – – – – –

Vote 14 - Waste Water Management – – – – 1 000 1 000 1 417 1 000 1 044 1 091

Vote 15 - Other – – – – – – – – – –

Capital single-year expenditure sub-total 74 774 49 341 52 489 58 026 70 658 70 658 97 977 51 945 58 491 2 570 Total Capital Expenditure - Vote 74 774 49 341 52 489 58 026 70 658 70 658 97 977 51 945 58 491 2 570

Capital Expenditure - Functional

Governance and administration 11 024 3 009 2 774 600 560 560 560 560 582 606

Executive and council – – – – – – – – – –

Finance and administration 11 024 3 009 2 774 600 560 560 560 560 582 606

Internal audit – – – – – – – – – –

Community and public safety 2 184 – 4 197 10 000 9 353 9 353 9 353 – – –

Community and social services – – 694 – – – – – – –

Sport and recreation – – 2 766 10 000 9 353 9 353 9 353 – – –

Public safety 2 184 – 737 – – – – – – –

Housing – – – – – – – – – –

Health – – – – – – – – – –

Economic and environmental services 60 900 46 333 37 962 40 109 53 245 53 245 53 245 43 885 47 265 873

Planning and development – – 23 722 – – – – – – –

Road transport 60 900 46 333 14 240 40 109 53 245 53 245 53 245 43 885 47 265 873

Environmental protection – – – – – – – – – –

Trading services 666 – 3 599 7 317 7 500 7 500 7 500 7 500 10 644 1 091

Energy sources 666 – – 7 317 6 500 6 500 6 500 6 500 9 600 –

Water management – – – – – – – – – –

Waste water management – – – – 1 000 1 000 1 000 1 000 1 044 1 091

Waste management – – 3 599 – – – – – – –

Other – – – – – – – – – –

Total Capital Expenditure - Functional 3 74 774 49 341 48 531 58 026 70 658 70 658 70 658 51 945 58 491 2 570

Funded by:

National Government 60 233 46 119 40 110 55 032 69 198 69 198 69 198 50 485 56 969 982

Provincial Government – – – – – – – – – –

District Municipality – – – – – – – – – –

Transfers recognised - capital 4 60 233 46 119 40 110 55 032 69 198 69 198 69 198 50 485 56 969 982

Borrowing 6 – – – – – – – – – –

Internally generated funds 14 541 3 223 8 421 2 994 1 460 1 460 1 460 1 460 1 522 1 588

Total Capital Funding 7 74 774 49 341 48 531 58 026 70 658 70 658 70 658 51 945 58 491 2 570

(14)

Table A6: Budgeted Financial Position

audit Pre- outcome

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

ASSETS

Current assets

Cash 26 514 19 318 34 344 107 194 198 218 198 218 86 754 33 456 (1 308) 40 038

Call investment deposits 1 – – – 9 000 – – – – – –

Consumer debtors 1 (12 078) 7 521 13 556 427 – – – (2 775) (17

945) (2 989)

Other debtors (631) (10 575) (6 754) 8 700 – – (5 743) 2 017 2 100 2 186

Current portion of long-term receivables – – – – – – – – – –

Inventory 2 50 196 50 358 50 482 50 482 50 482 50 482 50 607 50 482 50 482 50 482

Total current assets 64 001 66 621 91 628 175 804 248 701 248 701 131 617 83 180 33 328 89 717

Non current assets

Long-term receivables – – – – – – – – – –

Investments – – – – – – – – – –

Investment property 68 365 67 512 19 220 67 512 – – 19 220 19 220 20 008 20 828

Investment in Associate – – – – – – – – – –

Property, plant and equipment 3 450 761 527 558 589 066 584 658 70 258 70 258 1 155

237 660 233 691 717 661 757

Biological – – – – – – – – – –

Intangible – – – – 100 100 – 100 104 109

Other non-current assets – – – – – – – – – –

Total non current assets 519 126 595 069 608 286 652 170 70 358 70 358 1 174

457 679 552 711 829 682 694

TOTAL ASSETS 583 127 661 690 699 914 827 974 319 058 319 058 1 306

074 762 733 745 158 772 411

LIABILITIES

Current liabilities

Bank overdraft 1 – – – – – – – – – –

Borrowing 4 – – – – – – – – – –

Consumer deposits 4 910 5 255 5 546 – – – 5 569 5 546 5 773 6 010

Trade and other payables 4 17 629 7 127 18 085 11 732 – – (14 636) 22 596 23 522 24 486

Provisions 1 729 1 809 1 848 784 – – 1 848 1 848 1 924 2 002

Total current liabilities 24 269 14 191 25 478 12 516 – – (7 218) 29 989 31 219 32 499

Non current liabilities

Borrowing – – – – – – – – – –

Provisions 6 045 7 756 13 684 12 057 – – (13 684) 13 684 14 245 14 829

Total non current liabilities 6 045 7 756 13 684 12 057 – – (13 684) 13 684 14 245 14 829

TOTAL LIABILITIES 30 313 21 947 39 162 24 573 – – (20 902) 43 673 45 464 47 328

NET ASSETS 5 552 814 639 743 660 752 803 401 319 058 319 058 1 326

976 719 060 699 694 725 083

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 552 814 639 743 660 752 797 340 308 678 308 678 1 326

976 708 680 688 857 713 759

Reserves 4 – – – 6 061 10 380 10 380 – 10 380 10 837 11 324

TOTAL COMMUNITY WEALTH/EQUITY 5 552 814 639 743 660 752 803 401 319 058 319 058 1 326

976 719 060 699 694 725 083

(15)

Table A7: Budgeted Cash Flows

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24 CASH FLOW FROM OPERATING

ACTIVITIES

Receipts

Property rates – – – 7 760 7 760 7 760 – 5 611 5 858 6 121

Service charges – – – 1 300 1 300 1 300 – 802 837 874

Other revenue – – (0) – – – (0) 23 335 24 361 25 458

Transfers and Subsidies - Operational 1 9 589 2 093 11 670 173 644 204 288 204 288 704 185 627 193 951 186 007

Transfers and Subsidies - Capital 1 – – – 60 063 57 563 57 563 – 45 353 48 873 50 975

Interest – – – – – – – – – –

Dividends – – – – – – – – – –

Payments

Suppliers and employees 4 744 7 572 5 429 – – – (11 972) (42 234) (41 886) (43 169)

Finance charges – – – – – – – – – –

Transfers and Grants 1 – – – – – – – – – –

NET CASH FROM/(USED) OPERATING

ACTIVITIES 14 333 9 666 17 099 242 767 270 911 270 911 (11 268) 218 493 231 994 226 266

CASH FLOWS FROM INVESTING

ACTIVITIES

Receipts

Proceeds on disposal of PPE – – – – – – – – – –

Decrease (increase) in non-current

receivables – – –

Decrease (increase) in non-current

investments – – –

Payments

Capital assets – – – – – – – (51 945) (58 491) (2 570)

NET CASH FROM/(USED) INVESTING

ACTIVITIES – – – – – – – (51 945) (58 491) (2 570)

CASH FLOWS FROM FINANCING

ACTIVITIES

Receipts

Short term loans – – – – – – – – – –

Borrowing long term/refinancing – – – – – – – – – –

Increase (decrease) in consumer deposits – – – – – – – – – –

Payments

Repayment of borrowing – – – – – – – – – –

NET CASH FROM/(USED) FINANCING

ACTIVITIES – – – – – – – – – –

NET INCREASE/ (DECREASE) IN CASH

HELD 14 333 9 666 17 099 242 767 270 911 270 911 (11 268) 166 548 173 503 223 696

Cash/cash equivalents at the year begin: 2 – – – – – – – – 166 548 340 050

Cash/cash equivalents at the year end: 2 14 333 9 666 17 099 242 767 270 911 270 911 (11 268) 166 548 340 050 563 747

(16)

Table A8: Cash Backed Reserve /Accumulated surplus reconciliation

Description Ref 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term Revenue

& Expenditure Framework

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24 Cash and investments available

Cash/cash equivalents at the year end 1 14 333 9 666 17 099 242 767 270 911 270 911 (11 268) 166 548 340 050 563 747

Other current investments > 90 days 12 181 9 652 17 244 (126

573) (170 452) (170 452) 98 022 (133

092) (341

359) (523

709)

Non current assets - Investments 1 – – – – – – – – – –

Cash and investments available: 26 514 19 318 34 344 116 194 100 459 100 459 86 754 33 456 (1 308) 40 038

Application of cash and investments

Unspent conditional transfers 8 679 – 8 776 – – – (710) (111

590) (121

946) (122

150)

Unspent borrowing – – – – – – – – –

Statutory requirements 2

Other working capital requirements 3 15 170 23 157 22 508 9 390 8 880 8 879 (33 034) 32 102 43 779 34 777

Other provisions

Long term investments committed 4 – – – – – – – – – –

Reserves to be backed by cash/investments 5

Total Application of cash and investments: 23 848 23 157 31 284 9 390 8 880 8 879 (33 745) (79 488) (78 167) (87 373)

Surplus(shortfall) 2 666 (3 839) 3 059 106 804 91 579 91 580 120 498 112 944 76 859 127 411

`

Table A9: Asset Management

Description Ref 2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term Revenue &

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

ASSET REGISTER SUMMARY - PPE (WDV) 5 519 126 595 069 600 035 652 170 670 170 670 170 679 552 711 829 682 694

Roads Infrastructure 295 560 365 934 362 871 50 109 52 780 52 780 651 773 680 073 659 623

Storm water Infrastructure – – – – – – – – –

Electrical Infrastructure 14 631 13 879 13 106 7 317 7 317 7 317 6 500 9 600 –

Water Supply Infrastructure – – – – – – – – –

Sanitation Infrastructure 250 226 – – 100 100 1 000 1 044 1 091

Solid Waste Infrastructure 1 793 1 729 4 964 – 719 719 – – –

Rail Infrastructure – – – – – – – – –

Coastal Infrastructure – – – – – – – – –

Information and Communication

Infrastructure – – – – – – – – –

Infrastructure 312 234 381 767 380 941 57 426 60 915 60 915 659 273 690 717 660 714

Community Assets 32 672 53 039 55 344 53 039 59 545 59 545 800 835 873

Heritage Assets – – – – – – – – –

Investment properties 68 365 67 512 19 220 67 512 67 512 67 512 19 220 20 008 20 828

Other Assets 65 748 66 702 113 420 66 702 66 702 66 702 (200) (209) (218)

Biological or Cultivated Assets – – – – – – – – –

Intangible Assets – – – – – – 100 104 109

Computer Equipment 8 917 2 365 3 205 – – – 310 321 334

Furniture and Office Equipment 2 040 1 472 1 535 – – – 50 52 55

Machinery and Equipment 21 615 15 267 637 (120) 7 124 7 124 – – –

Transport Assets 7 535 6 945 25 732 407 611 408 371 408 371 – – –

Land – – – – – – – – –

Zoo's, Marine and Non-biological Animals – – – – – – – – –

TOTAL ASSET REGISTER SUMMARY - PPE

(WDV) 5 519 126 595 069 600 035 652 170 670 170 670 170 679 552 711 829 682 694

(17)

EXPENDITURE OTHER ITEMS 26 666 28 319 28 706 31 735 29 625 29 625 31 450 31 314 32 723

Depreciation 7 26 646 27 517 27 432 28 215 25 212 25 212 28 000 28 000 29 260

Repairs and Maintenance by Asset Class 3 20 801 1 275 3 520 4 413 4 413 3 450 3 314 3 463

Roads Infrastructure – – – – – – – – –

Storm water Infrastructure – – – – – – – – –

Electrical Infrastructure – – – – – – – – –

Water Supply Infrastructure – – – – – – – – –

Sanitation Infrastructure – – – – – – – – –

Solid Waste Infrastructure – – 27 110 110 110 100 104 109

Rail Infrastructure – – – – – – – – –

Coastal Infrastructure – – – – – – – – –

Information and Communication

Infrastructure – – – – – – – – –

Infrastructure – – 27 110 110 110 100 104 109

Community Facilities – – 74 310 500 500 200 209 218

Sport and Recreation Facilities – – – – – – – – –

Community Assets – – 74 310 500 500 200 209 218

Heritage Assets – – – – – – – – –

Revenue Generating – – – – – – – – –

Non-revenue Generating – – – – – – – – –

Investment properties – – – – – – – – –

Operational Buildings 20 801 761 1 000 1 300 1 300 300 313 327

Housing – – – – – – – – –

Other Assets 20 801 761 1 000 1 300 1 300 300 313 327

Biological or Cultivated Assets – – – – – – – – –

Servitudes – – – – – – – – –

Licences and Rights – – – – – – – – –

Intangible Assets – – – – – – – – –

Computer Equipment – – – – – – – – –

Furniture and Office Equipment – – – – – – – – –

Machinery and Equipment – – 412 2 100 2 503 2 503 2 850 2 687 2 808

Transport Assets – – – – – – – – –

Land – – – – – – – – –

Zoo's, Marine and Non-biological Animals – – – – – – – – –

TOTAL EXPENDITURE OTHER ITEMS 26 666 28 319 28 706 31 735 29 625 29 625 31 450 31 314 32 723

Renewal and upgrading of Existing Assets as %

of total capex 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Renewal and upgrading of Existing Assets as %

of deprecn 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

R&M as a % of PPE 0.0% 0.2% 0.2% 0.6% 0.7% 0.7% 0.5% 0.5% 0.5%

Renewal and upgrading and R&M as a % of PPE 0.0% 0.0% 0.0% 1.0% 1.0% 1.0% 1.0% 0.0% 1.0%

Table A10: Basic Service Delivery Management

Description Ref

2017/18 2018/19 2019/20 Current Year 2020/21 2021/22 Medium Term Revenue &

Expenditure Framework Outcome Outcome Outcome Original

Budget Year 2021/22

Budget Year +1 2022/23

Budget Year +2 2023/24

Household service targets 1

Water:

Piped water inside dwelling – – – – – – – – –

Piped water inside yard (but not in dwelling) – – – – – – – – –

Using public tap (at least min.service level) 2 – – – – – – – – –

Other water supply (at least min.service level) 4 – – – – – – – – –

Minimum Service Level and Above sub-total – – – – – – – – –

Using public tap (< min.service level) 3 – – – – – – – – –

Other water supply (< min.service level) 4 – – – – – – – – –

No water supply – – – – – – – – –

Below Minimum Service Level sub-total – – – – – – – – –

Total number of households 5 – – – – – – – – –

Sanitation/sewerage:

Flush toilet (connected to sewerage) – – – – – – – – –

Flush toilet (with septic tank) – – – – – – – – –

Chemical toilet – – – – – – – – –

Pit toilet (ventilated) – – – – – – – – –

(18)

Other toilet provisions (> min.service level) – – – – – – – – –

Bucket toilet – – – – – – – – –

Other toilet provisions (< min.service level) – – – – – – – – –

No toilet provisions – – – – – – – – –

Energy:

Electricity (at least min.service level) – – – – – – – – –

Electricity - prepaid (min.service level) – – – – – – – – –

Electricity (< min.service level) – – – – – – – – –

Electricity - prepaid (< min. service level) – – – – – – – – –

Other energy sources – – – – – – – – –

Refuse:

Removed at least once a week – – – – – – – – –

Removed less frequently than once a week – – – – – – – – –

Using communal refuse dump – – – – – – – – –

Using own refuse dump – – – – – – – – –

Other rubbish disposal – – – – – – – – –

No rubbish disposal – – – – – – – – –

Households receiving Free Basic Service 7

Water (6 kilolitres per household per month) – – – – – – – – –

Sanitation (free minimum level service) – – – – – – – – –

Electricity/other energy (50kwh per household per

month) – – – – – – – – –

Refuse (removed at least once a week) – – – – – – – – –

Cost of Free Basic Services provided - Formal

Settlements (R'000) 8

Water (6 kilolitres per indigent household per month) – – – – – – – – –

Sanitation (free sanitation service to indigent

households) – – – – – – – – –

Electricity/other energy (50kwh per indigent

household per month) – – – – – – – – –

Refuse (removed once a week for indigent

households) – – – – – – – – –

Cost of Free Basic Services provided - Informal

Formal Settlements (R'000) – – – – – – – – –

Total cost of FBS provided – – – – – – – – –

Highest level of free service provided per

household

Property rates (R value threshold)

Water (kilolitres per household per month) Sanitation (kilolitres per household per month) Sanitation (Rand per household per month) Electricity (kwh per household per month)

Refuse (average litres per week)

Revenue cost of subsidised services provided

(R'000) 9

Property rates (tariff adjustment) ( impermissable

values per section 17 of MPRA)

Property rates exemptions, reductions and rebates and impermissable values in excess of section 17 of

MPRA) – – – 648 714 786 648 714 786

Water (in excess of 6 kilolitres per indigent

household per month) – – – – – – – – –

Sanitation (in excess of free sanitation service to

indigent households) – – – – – – – – –

Electricity/other energy (in excess of 50 kwh per

indigent household per month) – – – – – – – – –

Refuse (in excess of one removal a week for

indigent households) – – – 10 10 11 10 10 11

Municipal Housing - rental rebates

Housing - top structure subsidies 6

Other

Total revenue cost of subsidised services provided – – – 658 724 796 658 724 796