STEVE TSHWETE LOCAL MUNICIPALITY budget document … · STEVE TSHWETE LOCAL MUNICIPALITY ANNUAL BUDGET 2010/2011 – 2012/2013 INDEX Description Page Abbreviation of funding sources

STEVE TSHWETE LOCAL MUNICIPALITY

ANNUAL BUDGET 2010/2011 – 2012/2013

INDEX

Description Page

Abbreviation of funding sources 1

Functional codes 2-3

Budget Speech 5-22

Part 1 - Annual Budget 23

Report by the Executive Mayor 24-31

Resolution on approval of the Annual Budget 32-49

Executive Summary 50-56

Table A1 - Budget Summary 57

Table A2 - Budgeted financial performance by vote 58

Table A2A - Detail Budgeted financial performance by vote 59-60

Table A4 - Budgeted financial performance by revenue source & expenditure type 61

Chart 1 - Revenue by major source 62

Chart 2 - Other revenue 63

Chart 3 - Operating expenditure by type 64

Chart 4 - Operating expenditure by main vote 65

Chart 5 - Other operating expenditure 66

Table A5 - Budgeted capital expenditure by vote 67

Chart 6 - Capital expenditure by main vote 68

Chart 7 - Other capital expenditure 69

Chart 8 - Capital funding by source 70

Table A6 - Budgeted financial position 71

Chart 10 - Budgeted financial position 72

Table A7 - Budgeted cash flow 73

Table A8 - Cash back reserves / accumulated surplus reconciliation 74

Table A9 - Asset management 75

Chart 9 - Capital expenditure by class 76

Table A10 - Basic Service Delivery Measurement 77

Part 2 - Explanatory Notes on Supporting Documentation 78

Supporting Documents 79-97

Table SA1 - Supporting detail to budgeted to financial performance 98

Table SA2 - Matrix financial performance – revenue source & expenditure type 99

Table SA3 - Supporting detail to budgeted financial position 100

Table SA4 - Reconciliation of IDP strategic objectives and revenue 101

Table SA5 - Reconciliation of IDP strategic objectives & operating expenditure 102

Table SA6 - Reconciliation of IDP strategic objectives & capital expenditure 103

Description Page

Table SA7 - Measurable Performance Objectives 104

Table SA8 - Performance indicators and benchmarks 105

Table SA9 - Social, economic and demographic statistics assumptions 106

Table SA10 - Funding measurement 107

Table SA11 - Property Rates Summary 108

Table SA12 - Property Rates by category 109

Table SA14 - Household bills 110

Table SA15 - Investment particulars by type 111

Table SA16 - Investment particulars by maturity 112

Table SA17 - Borrowing 113

Table SA18 - Transfers and grant receipts 114

Table SA19 - Expenditure on transfers and grant programme 115

Table SA20 - Reconciliation of transfers, grant receipts and unspent funds 116

Table SA21 - Transfers and grants made 117

Table SA22 - Summary councillor and staff benefits 118

Table SA23 - Salaries, allowances and benefits – councillors and senior managers 119

Table SA24 - Summary of personnel numbers 120

Table SA25 - Budget monthly revenue and expenditure 121

Table SA27 - Budget monthly revenue and expenditure by classification 122

Table SA29 - Budgeted monthly capital expenditure 123

Table SA30 - Budgeted monthly cash flow 124

Table SA32 - List of external mechanism 125

Table SA33 - Contracts having future budgetary implications 126

Table SA34a - Capital expenditure on new assets 127

Table SA34b - Capital expenditure on existing assets 128

Table SA34c - Repairs and maintenance by asset class 129

Table SA35 - Future financial implications of the capital budget 130

Table SA36 - Detailed capital budget by programme 131-136

Schedule 1 - Proposed Tariffs 137-148

Schedule 2 - Proposed Sundry Tariffs 149-181

Schedule 3 - Personnel Budget 182-196

Schedule 4 - Overview of Budget Related Policies 197-201

Policies - Free Basic Services and Indigent Support Policy 169-173

- Rates Policy 202-220

Schedule 5 - Summary of Internal Departments 221

Executive & Council - Total operating summary 222

- Legal & Administration 223-228

- Property Valuations 229-230

Budget & Treasury - Finance 231-235

Corporate Services - Total operating summary 236

- Human Resources 237-240

Description Page

- Information Technology 241-244

- Municipal Building Services 245-249

- Communications 250-252

- Safety & Security 253-257

Planning & Development - Total operating summary 258

- Local Economic Development 259-260

- Integrated Development Plan 261-262

- Town Planning 263-266

Health Services - Health & Environment 267-273

Community Services - Total operating summary 274

- Education & Libraries 275-277

- Events & Facilities 278-280

- Cemeteries 281-283

- Aged Care 284

- Youth Development 285-286

- Gender & Social Development 287-289

Human Settlements - Human Settlements 290-293

Public Safety - Total operating summary 294

- Traffic 295-298

- Emergency Services 299-303

- Street Lighting 304-306

Parks & Recreation - Parks & Recreation 307-313

Solid Waste Management - Solid Waste Management 314-317

Sanitation - Sanitation 318-325

Roads Transport - Total operating summary 326

- Licensing 327-329

- Roads & Storm water 330-337

Water Services - Water Services 338-344

Electricity Services - Electricity Services 345-350

Quality Certificate 351

CFR (RO) Capital Facilities Reserve (Roll Over)

CRR Capital Replacement Reserve

CRR (Ad Hoc) Capital Replacement Reserve (Ad Hoc)

CRR (Rev) Capital Replacement Reserve (Revenue)

CRR (RO) Capital Replacement Reserve (Roll Over)

CRR (Services) Capital Replacement Reserve (Services)

CTC Cleanest Town Competition

DAC Department of Art & Culture

EFF External Financing Fund

EFF (Ad Hoc) External Financing Fund (Ad Hoc)

EFF (CF) External Financing Fund (Counter Funding)

EFF (Inyanda) External Financing Fund (Inyanda)

EFF (RO) External Financing Fund (Roll over)

EPW Expanded Public Works Programme

FMG Finance Management Grant

INEP Integrated National Electricity Program

INSURANCE Insurance Fund

MIG Municipal Infrastructure Grant

MSIG Municipal Systems Improvement Grant

NDM Nkangala District Municipality

NDM (Ad Hoc) Nkangala District Municipality (Ad Hoc)

NDM (RO) Nkangala District Municipality (Roll Over)

NDPG Neighbourhood Development Partnership Grant

NLDTF National Lottery Distribution Trust Fund

NPAG New Phased Approached Grant

Vuna Awards Vuna Awards

ABBREVIATIONS OF SOURCES OF FUNDING

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National Treasury Functions Main Sub Votes Council Functions New Main

New Sub IDP CODE

EXECUTIVE & COUNCIL EX EXEXECUTIVE & COUNCIL EX EX 100 COUNCILS GENERAL EX MC GG1

EX EX 105 MAYORAL ADMINISTRATION EX MC GG1MUNICIPAL MANAGER FA OA 108 INTERNAL AUDIT EX MM GC1

EX EX 110 MUNICIPAL MANAGER EX MM GC1FA OA 111 MANAGER PUBLIC SERVICES EX MM GC1FA OA 112 TECHNICAL AND FACILITIES MANAGER EX MM GC1FA OA 113 MANAGER CORPORATE SERVICES EX MM GC1EX EX 120 TOWN SECRETARY EX MM GC1EX EX 123 VALUATIONS EX MM GC1

BUDGET & TREASURY OFFICES BTBUDGET & TREASURY FA FI 170 ASSESSMENT RATES BT BT FV1

BT2000 PA1FA FI 200 MANAGER:FINANCE BT BT FV1

CORPORATE SERVICES FA COHUMAN RESOURCES FA HR 141 HUMAN RESOURCES CO HR GC1INFORMATION TECHNOLOGY FA IT 122 INFORMATION TECHNOLOGY CO IT GC1PROPERTY SERVICES HS HS 125 PERSONNEL HOUSING CO PY SD1

FA PY 150 MUNICIPAL BUILDINGS CO PY SD1FA PY 151 MUNICIPAL OFFICES: MHLUZI CO PY SD1FA PY 152 MUN.OFFICES:NASARET CO PY SD1FA PY 153 24 HOUR CONTROL CENTRE CO PY SD1FA PY 154 MUNICIPAL OFFICES HENDRINA/KWA CO PY SD1FA FI 171 COAL RESERVES CO PY SD1HS HS 451 HOSTELS:RENT UNITS CO PY SD1FA PY 554 SERVICE CENTRE CO PY SD1FA PY 555 FIXED PROPERTY CO PY SD1FA PY 558 SHOW GROUNDS CO PY SD1FA PY 630 SALE OF LAND MIDDELBURG TOWNLANDS CO PY SD1FA PY 651 SALE OF LAND MHLUZI EXT 2 CO PY SD1FA PY 653 SALE OF LAND MHLUZI EXT 4 CO PY SD1FA PY 654 SALE OF LAND MHLUZI EXT 5 CO PY SD1FA PY 655 SALE OF LAND MHLUZI EXT 6 CO PY SD1FA PY 657 SALE OF LAND MHLUZI EXT 8 CO PY SD1FA PY 660 SALE OF LAND MHLUZI EXT 3 CO PY SD1FA PY 662 SALE OF LAND KWAZAMOKUHLE EXT 3 CO PY SD1FA PY 663 SALE OF LAND EASTDENE CO PY SD1FA PY 664 SALE OF LAND HENDRINA TOWN CO PY SD1FA PY 665 SALE OF LAND HENDRINA EXT 1 CO PY SD1FA PY 666 SALE OF LAND MIDDELBURG EXT 11 CO PY SD1FA PY 667 SALE OF LAND MIDDELBURG EXT 24 CO PY SD1FA PY 669 SALE OF LAND AERORAND CO PY SD1FA PY 671 SALE OF LAND MIDDELBURG EXT 16 CO PY SD1FA PY 673 SALE OF LAND MIDDELBURG EXT 18 CO PY SD1FA PY 674 SALE OF LAND MIDDELBURG EXT 21 CO PY SD1FA PY 676 SALE OF LAND MIDDELBURG EXT 23 CO PY SD1FA PY 678 SALE OF LAND KWAZAMOKUHLE EXT 6 CO PY SD1FA PY 681 SALE OF LAND EASTDENE 1 CO PY SD1FA PY 683 SALE OF LAND MIDDELBURG EXT 26 CO PY SD1FA PY 690 SALE OF LAND NASARET CO PY SD1FA PY 691 SALE OF LAND NASARET EXT 1 CO PY SD1FA PY 692 SALE OF LAND KWAZA PROPER CO PY SD1FA PY 693 SALE OF LAND KWAZA EXT 5 CO PY SD1

OTHER ADMIN FA OA 118 MIG PROJECT MANAGEMENT UNIT CO OA GC1FA OA 121 COMMUNICATIONS CO OA GC1EX EX 130 GRANTS-IN-AID AND DONATIONS CO OA GC1FA FI 205 FINANCIAL DATA PROCESSING CO OA GC1FA FI 210 FINANCIAL MANAGEMENT GRANT(FMG) CO OA GC1FA FI 211 MSIG GRANT CO OA GC1CS HA 213 VUNA AWARDS CO OA GC1FA FI 215 LGTF GRANT CO OA GC1FA FI 230 STORES CO OA GC1FA FI 250 INSURANCE CO OA GC1FA OA 311 SECURITY SERVICES CO OA GC1FA OA 500 CIVIL ENGINEERING SERVICES CO OA GC1FA OA 575 WORKS TRANSPORT CO OA GC1

PLANNING & DEVELOPMENT PD PDPLANNING & DEVELOPMENT PD IP 114 INTEGRATED DEVELOPMENT PLAN (IDP) PD IL EG1

PD LD 124 LOCAL ECONOMIC DEVELOPMENT (LED) PD IL EG1PD LD 214 LED GRANT PD IL EG1

PD PL 502 TOWN PLANNING PD PL EG2

Functional Codes

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National Treasury Functions Main Sub Votes Council Functions New Main

New Sub IDP CODE

HEALTH HL HLHEALTH OTHER HL HO 400 HEALTH SERVICES HL HO SD2CLINICS HL CL 440 CLINIC:CIVIC CNTR,E/DENE,NASAR HL CL SD2

HL CL 441 CLINICS:MHLUZI,SIMUNYE,MOBILE HL CL SD2HL CL 442 CLINIC HENDRINA KWAZAMOKHULE HL CL SD2

COMMUNITY & SOCIAL SERVICES CS CSLIBRARIES & ARCHIVES CS LB 140 LIBRARY:MIDDELBURG CS LB SD3EVENTS & FACILITIES CS HA 161 FACILITY & EVENTS MANAGEMENT CS HA SD3CEMETERIES & CREMATORIUMS CS CM 505 CEMETERY CS CM SD3AGED CARE HS HS 221 RENTAL SCHEME RIVIERPARK CS AC SD3

HS HS 222 RENTAL SCHEME VERGEET-MY-NIE CS AC SD3OTHER SOCIAL FA OA 116 DEVELOPMENTAL OFFICER YOUTH CS OS SD3

FA OA 117 GENDER & SOCIAL MANAGER CS OS SD3EX EX 218 UMSOBOMVU YOUTH CENTRE CS OS SD3

HUMAN SETTLEMENT HS HSHUMAN SETTLEMENT HS HS 220 N H F LETTING SCHEME(SUB-ECON) HS HS SD3

HS HS 223 NEW SUB-ECON.SCHEME HS HS SD3HS HS 224 EASTDENE N H F LETTING SCHEME HS HS SD3HS HS 225 NASARET N H F SHOPS HS HS SD3HS HS 226 NASARET N H F CRECHE HS HS SD3HS HS 227 NASARET N H F LETTING SCHEME HS HS SD3HS HS 452 HUMAN SETTLEMENT HS HS SD3HS HS 453 RDP DEVELOPMENTS HS HS SD3HS HS 460 SQUATTER CONTROL HS HS SD3

PUBLIC SAFETY PS PSPOLICE PS TR 310 TRAFFIC PS TR SD4EMERGENCY SERVICES PS PF 515 EMERGENCY SERVICES PS PF SD4STREET LIGHTING ED SL 731 STREET LIGHTING PS SL SD4SPORT & RECREATION PK PKPARKS & RECREATION PK PK 530 SPORTS GROUNDS PK PK SD3

PK PK 533 PARKS PK PK SD3PK PK 534 BOTSHABELO NATURE RESERVE PK PK SD3PK PK 539 PARKS TRANSPORT PK PK SD3

WASTE MANAGEMENT WM WMSOLID WASTE FA FI 219 CLEANEST TOWN COMPETITION WM RR SD5

WM RR 420 CLEANSING:REFUSE REMOVAL WM RR SD5RR2000 PA5

WM RR 421 CLEANSING:REFUSE HENDRINA /KWAZA WM RR SD5WM RR 422 CLEANSING:VILLAGES/RURAL WM RR SD5WM RR 425 STREET CLEANSING WM RR SD5WM RR 430 DUMPING SITE WM RR SD5

WASTE WATER MANAGEMENT WW WWSANITATION WW SR 546 SANITATION HENDINA/KWAZAMOKUHLE WW SR SD6

WW SR 547 SANITATION: VILLAGES & RURAL WW SR SD6WW SR 550 SANITATION WW SR SD6

SR2000 PA4WW SR 551 SANITATION: CONNECTIONS WW SR SD6WW SR 552 SANITATION: PURIFICATION WW SR SD6WW SR 553 SANITATION: PURIFICATION HENDRINA WW SR SD6

PUBLIC TOILETS WW PT 410 PUBLIC TOILETS WW PT SD6ROAD TRANSPORT TP TPVEHICLE LICENSING & TESTING TP LT 300 LICENSING TP LT SD7ROADS & STORMWATER TP RD 540 ROADS & STORM WATER TP RD SD7

TP RD 541 SUNDRY PRIVATE JOBS TP RD SD7TP RD 542 ROADS & STORM WATER:HENDRINA TP RD SD7TP RD 543 ROADS & STORM WATER:VILLAGES TP RD SD7

ROADS OTHER TP RO 545 RAILWAY LINES TP RO SD7 TP RO 557 TAXI TERMINALS TP RO SD7WATER TW TWWATER DISTRIBUTION TW WD 560 WATER:GENERAL TW WD SD8

WD2000 PA3 TW WD 562 WATER:COLUMBUS & OTHER TW WD SD8

TW WD 565 WATER:CONNECTIONS TW WD SD8TW WD 566 WATER GENERAL HENDRINA/KWAZA TW WD SD8TW WD 567 WATER:VILLAGES & RURAL TW WD SD8

WATER STORAGE TW WP 561 WATER:RESERVOIRS & PURIFICATIO TW WP SD8 TW WP 563 WATER:PURIFICATION KRUGERDAM TW WP SD8

TW WP 564 WATER:BULK SUPPLY M.BURG DAM TW WP SD8TW WP 571 WATER PURIFICATION HENDRINA/KW TW WP SD8

ELECTRICITY ED EDELECTRICITY DISTRIBUTION ED ER 700 ELECTRICITY:GENERAL ED ER SD9

ER2000 PA2 ED ER 705 ELECTRICITY:SUNDRIES ED ER SD9

ED ER 710 ELECTRICITY CONNECTIONS ED ER SD9ED ER 750 ELECTRICITY TRANSPORT ED ER SD9

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STEVE TSHWETE LOCAL MUNICIPALITY

BUDGET SPEECH 2010/2011 Financial Year

By the Executive Mayor I.M.T. Mahlangu

At the mayoral function after the Special Council Meeting

on Monday, 31 May 2010

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BUDGET SPEECH 2010/2011

HONOURABLE EXECUTIVE MAYOR, CLR I.M.T MAHLANGU

CRN WANDERERS AND WALTER SISULU STREET

31 MAY 2010 Honourable Speaker, Chief whip, Members of the Mayoral Committee, Members of the Provincial Legislature, Mayors and Speakers, Fellow Councillors, Municipal Manager, Senior Managers and officials of Council, Leaders from all Political Parties, Ward Committee Members and Community Development Workers, Business fraternity, Distinguished guests, The Media, Ladies and Gentlemen, I am indeed pleased to be afforded with this opportunity to address this sitting on this important occasion, the presentation of the 2010/2011 Budget. Programme director, let me take this opportunity to send a message of condolence to the family, friends and country at large for the passing away of Sphiwe Ntshebe (well known as New Pavarotti), he was preparing for rehearsals for the opening ceremony of the World Cup next month, when he passed on. I also wished to forward a message of condolence to the entire family and the ANC Women’s League for the passing away of Comrade Sonti Gumede. Comrade Gumede was also a Proportional Representative Councillor for the ANC at Emalahleni Local Municipality. Can we all rise and observe a moment of silence… We hope that all the above families will emerge stronger from this dark hour. Programme director, we meet here today on the same day of the World Anti Tobacco Day.

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This day is celebrated around the world on May 31 each year. This annual celebration focuses on the dangers of using tobacco, the business practices of tobacco companies, what World Health Organization is doing to fight the tobacco epidemic, and what people around the world can do to protect the right to health and healthy living for themselves and for future generations. Ladies and gentleman, we meet here today on the same day of the Review Conference of the International Criminal Court which is held at Kampala, Uganda from 31 May to 11 June 2010. The conference is called to consider amendments to the treaty that founded the International Criminal Court . Programme director, today marks exactly 10 days before the moment all South Africans have been waiting for. The moment has finally arrived. Feel it; it is here!!! Our celebration of 29 days before kick off on 12 May 2010 was a culmination of the efforts of more than a decade of hard work and dedication. We thank the organizers and all stakeholders for their tenacity and distinct character in bringing this tournament here and preparing so meticulously for it. We also thank the people of South Africa for all the initiatives which they are mounting even today, towards the success of this tournament and beyond. Let us welcome 32 national teams to compete on our turf in front of hundreds of thousands of spectators from all over the world. Let’s celebrate this moment, and be good hosts Fell it, it is here!!! Today’s event takes place a week after the Green, Economy Summit at Sandton Convention Centre on 18 – 20 May 2010 under the theme “towards a resource efficient, low carbon and pro-employment growth plan”. The summit has provided a platform to elevate government’s commitment and practical implementation of a consensus on the green economy path.

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Programme director, South Africa has gone through the 4th general elections on April 22 last year. Once again the ANC got the mandate to lead the country with the majority of South Africans agreeing to join hands to do more. President Jacob Zuma managed to translate the ANC manifesto into a government programme with the 10 key priority areas. The local government’s 5 key priority areas find expression in what the President has alluded to as focal points.

Economic growth and Job Creation. Skills development and Training Rural Development and Food Security Health and Education Fighting Crime and Corruption

PROGRESS MADE DURING OUR TERM OF OFFICE

Programme director, even if one will like to mention all progress we made during our term of office but it will not be possible since much have been done but I will only cover the following progress made:

LOCAL ECONOMIC DEVELOPMENT Tourism Information Office

We established this office to assists with the creation of an enabling environment in the Steve Tshwete Municipal area, since we have grown into the third most popular tourist area in the province.

Business Linkage Centre

We have established this centre with the purpose of ensuring that emerging businesses get access to procurement information, and the relevant training.

More than 100 business owners were trained in Financial Management and Marketing last year.

The programmes for this year are computer literacy, invoicing and tender information. The estimated value of tender information that was distributed by the Business Linkage Centre was approximately R20 Million.

Investors Guide for STLM

This is the first guide of its kind in the province. Most of the cost of this guide was covered by the arrangement with GTZ. The value of the sponsorship amounted to R500 000, 00.

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A full technical document is available for potential investors who may require an in depth study.

A reader friendly marketing document was printed and is being distributed. STLM is the envy of other municipalities when they see the document.

Second Annual Career Expo

Programme director, we were able to host an annual career Expo. This year’s Expo was again a huge success and hosted approximately 3000

students. The students were assessed and then given career guidance and information

of job opportunities in the area. The CLGT Project between Leeds, eThekweni and STLM.

This project is aimed at identifying the best practices between local government and business to ensure a sustainable economy.

We had our first workshop with Leeds representatives, Steve Tshwete Local Municipality representatives, twenty corporate participated in identifying ways in which we can all participate in ensuring a sustainable local economy. This project is still ongoing.

Procurement Workshop

We had a successful procurement workshop together with all surrounding corparates and mines to ensure procurement for local SMMEs.

Women Summit

We participated in South African Woman Initiative Summit during 2009. Job Opportunities Survey Questionnaire

This questionnaire has been developed with the aim at establishing the number of job opportunities created by local business.

Crafters Forum

We were able to launch the Steve Tshwete Local Municipal Craft Forum and developed a crafters profile.

MEGA

A memorandum of agreement between the municipality and Mpumalanga Economic Growth Agency (MEGA) was developed which will serve as a strategic alliance that seeks to recruit investors to come and invest to our municipality.

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Mpumalanga Stainless Steal The Mpumalanga Stainless Initiative for New Venture Creation Skills

Development training has been coordinated. BANKSETA Workshop

A three day BANKSETA Workshop for cooperatives in the financial sector was held.

Community Garden

A second community garden was initiated and Middelburg Ext 24. About 28 beneficiaries were identified. We allocated garden portions and garden tools to them.

Ten beneficiaries attended training at Nkangala FET College as to acquire

agricultural skills.

Their training was based on how to cultivate the soil, making of bedding, transplanting and taking care of plants and harvesting.

GENDER AND SOCIAL DEVELOPMENT

We developed and adopted policy on Grants-in-Aid, which relate to the community projects for woman, youth, children, person’s living with disabilities, elderly person’s and people with HIV/AIDS.

We modify the HIV and AIDS strategy in order to address the weaknesses in the SWOT Analysis in the IDP.

The Local AIDS Council and Task Teams hold their meetings on a monthly and quarterly basis.

We established a Child Care Forum. We established a forum for persons with disabilities. We held a successful Women Summit on Business and Mining. We held a successful Children Summit on child trafficking. Through our relationship with the private sector, Mthombeni Primary School

Hall was renovated by Eskom’s Young Professionals. The following organizations have received donations from Anglo Coal:

Hope of Nations in Pullenshope Bonginhlanhla from Nasaret Mhluzi Peer Educators Ikageng Luncheon Club in Doornkop Victim Support Centre in Blinkpan Greater Middelburg Workshop Centre for the disabled. Healing Hands Ext. 24.

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We organized a five days training for 50 Home Based Carers to empower HBC. Most of them were new volunteers and did not know how to handle the cases.

YOUTH ADVISORY CENTRE Youth Advisory Centre was created in May 2006.

• ± 20 000 young people visited the Youth Advisory Offices in Middelburg and Mhluzi for advices on careers pathing, entrepreneurship development and skills development.

• Workshops on entrepreneurship and job preparation were conducted. • A Youth Development Summit was held in June 2008, • A fully fledged Youth unit was created. • A Youth development Indaba was held in June 2009, In partnership with Anglo

Coal • The Youth Advisory Centre, in partnership with Optimum Coal Community

Trust conducted Winter School Classes for Grade 12 learners. • The Youth Advisory Centre in partnership with MSI placed 20 young people on

a New Venture Creation Learnership in 2009. • A Career Expo was recently hosted by the STLM in cooperation with the

Business linkage Centre and Optimum Community Trust. • Through the Youth Advisory Centre young people in STLM participated in the

SALGA Municipal Games from 2007-2009. COMMUNICATIONS

• A Communication Department with a Communication Manager was created in March 2008

• Bi-monthly external and Internal News letters are printed and distributed. • Media breakfast were held • Regular press statements are issued. • When necessary we have participated in live radio shows • Finally a Communications Forum was created where the Media, both Local and

National meets with the communication manager on a weekly bases to receive municipal information on properly structured basis.

PUBLIC SERVICES HOUSING SERVICES Housing units completed: Housing remains a concurrent competency of National and Provincial spheres of governments respectively with a limited role for local government. Funding for

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housing development therefore goes to the Mpumalanga Provincial Department of Human Settlements who allocates subsidies to the municipality on an adhoc basis. Since 2006, the province has allocated 3088 subsidies and 2753 housing units are completed and occupied across various areas within the Municipality. The annual delivery rate is in the region of 500 housing units. Housing delivery partnerships: In realizing that government resources are insufficient to address the housing needs, the municipality has resorted to involving the private sector to assist with housing delivery. A memorandum of agreement (MOA) has been signed with Optimum Coal Holdings to deliver 100 housing units that will be allocated to beneficiaries who are on the municipal housing waiting list using a fair and equitable process. Other mining companies were approached and another MOA will be concluded with Arnot Colliery within the current financial year. These initiatives will speed up the delivery of houses to the poor. Housing Summit: As part of our process to forge partnerships with the private sector a housing summit was held on 19 May 2010. The purpose of this summit was to look into challenges and find creative ways to speed up delivery and consultation with key stakeholders. Consumer education: 133 beneficiaries in different areas including Mhluzi ext 2 and 6, Doornkop, Kwazamokuhle ext 7, Tokologo and ext 24 were trained on housing consumer education in the current (2010/11) financial year. This is an ongoing initiative that will assist beneficiaries of government housing schemes on various aspects of home ownership such as home maintenance and care, energy saving and handling title deeds. Registration of people on the housing waiting list: An additional 16500 people who are in need of housing have been registered on the municipal housing waiting list. This will ensure that future allocation processes are not delayed when subsidies are received from the province. It will further ensure that all the people are on the waiting list in order to ensure transparency and fair allocation of houses. Registration and transfer of properties to beneficiaries: The Provincial Department of Human Settlements has appointed a service provider to register properties in the deeds office in order for beneficiaries to have title

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deeds. The process is ongoing and to date, 382 applications have been lodged. It is envisaged that the title deeds will be issued before the end of July 2010. Responsibility to perform housing functions: An application for accreditation to perform housing functions was submitted to the province. This will assist the municipality to have a direct responsibility on housing delivery and to be able to fast-track delivery and account to communities. Provision of rental housing: The municipality has signed a performance agreement with the Steve Tshwete Housing Association. This agreement serves as an enabling mechanism to facilitate and intensify the provision of rental housing to low income earning households. There is a commitment on the part of the association to provide top-up funding in order to supplement government resources. The target of the agreement is to develop at least 1000 (One Thousand) units on well located land over the next 10 years.

The Steve Tshwete Housing Association: This association assists with the management of social housing units and tenancies including the allocation of the units in accordance with policy guidelines as agreed with the Municipality. The following blocks of flats are managed;

BLOCK

NUMBER OF UNITS

Hope City Chromeville

501 units 130 units

Total

631 units

Currently an additional 40 units are being constructed at Chromeville. In order to further our commitment to the provision of rental stock, the following blocks of flats will be extended through the provision of funding from the province; Reabota - 450 units Kwazamokuhle - 128 units The funding for this project should be provided from the national fiscus in line with the Community Residential Unit’s programme. Challenges The municipality has minimal control on the appointment and dismissal of contractors and this result in a number of challenges.

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Various challenges across the area include contractors who leave sites before completing all houses allocated in a project, houses not built according to specifications, payment of contractors without happy letters signed by municipal inspectors and beneficiaries, building of houses on stands not zoned for residential purposes, cracking and poor quality housing, lack of responsiveness and support by the province. These are symptomatic of the need to enhance project management, contracting strategies and contract management which by all means are a competency of the province. These challenges have been brought to the attention of the Province through continuous communication. It is hoped that with the accreditation programme that the municipality has already applied for, some level of authority will be obtained whereby most of the challenges will be addressed. Multi-Year Housing Development Plan The Provincial Department of Human Settlements has not yet confirmed the number of subsidies for the 2010/11 financial year despite the fact that a list of priority projects was submitted. LIBRARY SERVICES

We constructed a library at Ext. 7 which is fully operational. Doornkop Library has been extended and completed. A new library system called KOHA has been installed so that services are

rendered on-line. These include circulation, inter-library loans and library catalogue.

All library materials in the main library have been catalogued to the new Library system.

Library membership has been extended from 89852 to 149395 during the past five years.

HEALTH SERVICES

We were able to build a clinic in Ext 6 and Doorenkoop, which are fully equipped.

We completed the buy-back recycling centre in Ext. 5 Mhluzi which is funded by the Dept. of Environment Affairs.

We installed computer systems in our clinics as to improve the queuing for patient files.

We conducted the cleanest school competition for schools situated in the previously disadvantaged areas.

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Five air quality monitoring stations have been installed and are operational. Our patient load has increase from 574153 in 2006 844129 to currently.

TRAFFIC SECURITY AND LICENSING

The INATIS systems has been implemented A new testing track for drivers licenses was build and now operational Traffic lights throughout the municipality have been upgraded and new ones

installed to improve traffic flow at a total cost of ± R3,5million We were able to train Taxi operators on the new and amendment traffic

legislation. ± 30 speed humps were constructed to minimize accidents in our internal

roads. 32 stalls were allocated to informal traders at Van Calder Taxi Rank.

TECHNICAL AND FACILITIES CIVIL ENGINEERING Over the past five years new roads were constructed in almost all our Wards at a total cost of R132 million At the same time an amount of R49,1 million was spent on the upgrading of water purification systems. This money was obviously well spent because as we all know the STLM as a water services authority has with the latest Blue Drop evaluation obtained no less than 4 blue drops for the water services providers within the municipality. These are the most Blue Drops for any municipality within the entire country. We are now concentrating on the improvement of our waste water purification systems on which vast amounts will be spent in the current and future financial years to ensure that our Green Drop status will also be of the best in the country. TOWN PLANNING

40 industrial stands were created through subdivision of the remainder of Erf 3948 Middelburg Extension 11.

A process of establishing an industrial township to be known as Middelburg Extension 49 has been commenced with Mafube.

Bankfontein (Somaphepha) Rural Villages has been established. Rockdale Township has been established.

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Kwazamokuhle Extension 7 Township is proclaimed and is already developed with low cost houses.

A town register for Aerorand South has been opened. However proclamation will be done only after the record of decision for the EIA has been issued. Additional specialist studies are to be conducted in order for the ROD to be issued.

MUNICIPAL BUILDING The following major projects have been undertaken:

1. The construction of the Ext 7 MPCC which includes a community hall and a

library. 2. The construction of the Ext 6 Clinic 3. The new Banquet Hall which is already 20% complete. 4. The construction of the Hendrina/Kwaza MPCC at the old cosmos community

hall is being undertaken by Koornfontein Mine and Architects have already been appointed.

ELECTRICAL The electrical supply capacity has been strengthened at a cost of R114 million Networks were upgraded to the value of R36 million New street lights were installed at a cost of R4million New networks and house connections were provided to the value of R20million

SOLID WASTE

The Integrated Waste Management Plan has been reviewed in terms of the current legislation.

Transfer station and a Garden Refuse site has been established in Komati, Rietkuil and Hendrina (Ward 11, 18, 20)

Phase 2 of Middelburg landfill site has been completed. We constructed a mini waste transfer station in Mhluzi, Nasaret, Ext. 24 and

Kwazamokuhle. (Ward 4, 7, 9, 10, 17) 85 litre pendulla bins were installed in Middelburg, Mhluzi, Kwazamokuhle,

Komati, Rietkuil and Pullenshop (Ward 11, 14, 16, 18) PARKS AND RECREATION R3, 28 million was spent on the development of 16 new parks and upgrading of two more. Eight new graded soccer fields were created for R450 000

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A sport facility throughout the municipality has been upgraded at a total cost of R15million. ADMINISTRATION Over the past five years we as Councillors and Members of the Mayoral Committee have also been working very hard to ensure that necessary decisions are taken in order for the government of the municipality to run smoothly. During this period we took no less than 1498 Mayoral Committee Resolutions and 363 Council Resolutions. This is an indication that it was really required of all of us to continuously to applied our minds in a responsible manner to ensure that Resolutions are taken which can be defended at any level. COMING TO THE BUDGET ITSELF ECONOMIC OVERVIEW Programme director, the performance of the South African economy started slackening early 2009, deteriorated further in the second quarter of 2009, as GDP growth contracted by a further 3% on a quarterly basis compared to the 6.4% drop in output realized in the first quarter of 2009. The main drive behind this decline was the decline contribution by mining and manufacturing sectors. This could be explained by the lagged effect of the economic slowdown which resulted in both global and domestic demand falling sharply. The national budget review for 2010 outlines the current global economic crisis and the future economic outlook. It notes that the South African economy is slowly recovering with economic growth of 2.3% projected for 2010. Continuing public sector investment in economic infrastructure provides crucial support for the recovery of the economy. Given the current economic conditions National Treasury has advised municipalities to adopt a conservative approach when projecting revenues and cash receipts. National Treasury further said municipalities need to take very tough decisions in the course of considering the 2010/2011 budgets and medium term revenue and expenditure framework. Priority must be given to:

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Ensure that drinking water meets the required quality standards at all time.

Managing the poor from the impacts of the economic downturn. Manage revenue streams, especially debtors. Support local economic development initiatives that foster business

opportunities and job creation. Secure the health of their asset base by monitoring the spending on

repairs and maintenance. Expecting speeding on capital projects that are funded by conditional

grants Programme Director, the following provisions specifically need to be elucidated:

This Budget has been prepared as a Medium Term Economic Framework in strict compliance with the National Treasury framework through the lengthy budget schedule.

The budget is compliant with the latest budget regulations prescribed by National Treasury for the six metros and 21 secondary cities.

Also in line with national approach given the present economic crisis, this budget gives priority to the following:

Management of all revenue streams especially debtors, by making sure that our collection is maintained at 100%.

Protecting the poor from the worst impacts of the economic downturn, by

taking care of our indigent community. Supporting meaningful local economic development initiatives that foster

micro and small business opportunities and job creation. Securing the health of the assets base by increasing spending on maintenance

and upgrading of infrastructure. Expediting spending on capital projects especially those funded by conditional

grants. Ensures that drinking water meets the required quality standards at all times.

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As part of a three-year rolling budget process, the budget framework for the next three years sees total expenditure increasing from 663,0-million Rand in 2009/2010 to 982,5-million Rand in 2012/2013. The municipality’s total allocation in terms of the equitable share, which supplements own revenue to deliver free basic services, will amount to 239, 2-millon Rand over the next three years.

The bulk of operating expenditure is allocated to the infrastructure-related votes of electricity (35, 9%), water (6, 2%), and sanitation, including solid waste disposal (5, 6%), roads and storm water (11, 4%).

This accounts for just over 59, 1% of total operating expenditure. Community

safety and health and social development votes are allocated 5, 8% and 4, 9% respectively of the operating budget.

Employee costs increase by 18, 1% compared to a total of 27, and 1% of the

total operating budget.

The capital budget amounts to 288,4-million Rand which is a decrease of 67-million Rand from the previous year and for the two outer financial years expenditure is planned for 250,3-million Rand and 234,3-million Rand respectively.

Approximately 69% of the capital budget will be earmarked for infrastructure

and residential related projects over the next three years to address backlogs, rehabilitate existing infrastructure and create much needed jobs through the use of labour intensive methods wherever possible.

In general the community wealth of the municipality increases to 4, 6-billion

Rand and total liabilities in contrast only from 327, 9-million Rand to 422, 9-million Rand as a result of increased borrowing.

Program Director, I need to mention that 84% of the capital budget will be financed from the Council’s own financial sources. In the year ahead we will see greater impetus given to investment in the development of residential communities.

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Steve Tshwete is earmarked to receive a significant support from the Municipal Infrastructure Grant (MIG) and the Integrated Electrification Grant (INEP) from National Government.

The Nkangala District Municipality’s contribution for the respective three years is R21-million, R22-million and R6-million Rand.

The proposed tariff increases will yield additional revenue of 85, 1-million

Rand in the next financial year. KEY SERVICE DELIVERY TARGETS Program Director, there is an increased focus in Government on improved service delivery, value for money and quality of spending. Based on the important role of the local sphere of government in that it impacts directly and immediately on the livelihood of our people, the municipality has committed itself to the following areas of extensive capital investment in 2010/2011:

55, 0-million Rand for electricity infrastructural development

69, 1-million Rand for roads and storm water infrastructure

24, 3-million Rand for water infrastructure

43, 4-million Rand for waste water and waste management

60, 5-million Rand for community facilities and public safety

2, 3-million Rand for safety and security

33, 8-million Rand for improvement and replacement of other governance and administrative assets such as vehicles, plant and equipment, IT appliances, et cetera

15, 8% of capital expenditure will be utilized on the renewal of assets whilst

84, 2% is utilized for new infrastructure and other assets.

41, 3-million Rand is provided for the maintenance of assets and represents 5, 8% of total operating revenue.

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Programme director, as we know that youth is also covered in the entire budget but we also allocated R 882 768 for youth development programmes. APPRECIATION Programme director, I would like to send my gratitude and appreciation to the IDP Manager Ms Maleka, the Finance Team led by our CFO Mr. Naude, my office, the Municipal Manager Mr. Fouché for all his commitment at all time. All Councillors who led the public participation processes for without them, it could not have been possible. My family in particular my mother for the support and encouragement during difficult times. All Councillors and Ward committees to prepare for the implementation of these programmes and projects and set up monitoring tools for enabling all of us to do oversight. PRESENTATION OF AWARDS Programme director, as I conclude, let me present these awards received during our term of office which serve as testimony to our day-today work.

2002 Provincial Cleanest Town Champions. 2003 Vuna Award Provincial Champions. 2003 Provincial Cleanest Town Champions. 2004 Vuna Award Provincial First Runner up. 2004 Provincial Cleanest Town First Runner up. 2005 Provincial Cleanest Town First Runner up. 2005 Komanani Excellence Award. 2006 Vuna Award Provincial Champion. 2006 Provincial Cleanest Town Champions. 2006 Third place in the National Cleaners Town Competition. 2007 Provincial Cleanest Town First Runner up. 2007 National Vuna Award (Runner up). 2007 National Vuna Award (Key Performance Area/ Financial Viability). 2007 Vuna Award National Project Consolidate Champions. 2008 Vuna Award Provincial Champions. 2008 Govan Mbeki Provincial Housing Award. 2009 SALGA Clean Audit Award. 2009/10 Mpumalanga Greenest Municipality Champions.

Working together we can do more…

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Finally before I thank you for listening to me for such a long time let me congradulate one of our junior citizen for making us very proud by becoming the best student in the Province in last year’s matric exam. Just listen to these results: Subject Symbol % Afrikaans A 95% English A 88% Maths A 93% Life Orientation A 100% Business Studies A 96% Computer A 97% Accounting A 94% Additional Maths A 95% You are a truly star I thank you,

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PART 1

ANNUAL BUDGET

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REPORT BY THE EXECUTIVE MAYOR ON THE ANNUAL BUDGET FOR THE 2010/2011; 2011/2012 & 2012/2013 FINANCIAL YEARS 1. Followed the community participation process through the Integrated

Development Plan and tabled budget processes, the 2010/2011 to 2012/2013 annual budget is herewith tabled for consideration and adoption.

2. The State President in his 2010 State of the Nation Address indicated

that government needs to do more with existing resources by:

Deliver more and better services in a caring and efficient manner. Hold political office bearers and public servants accountable.

Shift resources to new priorities.

Move from debate to effective implementation and decisive action.

Work in partnership with communities, labour and business to

achieve the nation shared objectives. 3. The challenge for the municipality is to do more within its existing

resources by reprioritizing money from low-priority programmes to high-priority programmes. Municipalities play a critical role in furthering government objective of providing services to all while facilitating local economic development.

4. The National Budget Review for 2010 outlines that the South African

economy is slowly recovering, with economic growth of 2,3% projected for 2010. However, it will take some time for the economic upturn to flow through and is it consequently expected that revenues and cash flows will remain under pressure. National Treasury has advised municipalities to adopt a conservative approach when projecting revenues and cash receipts and to pay particular attention to managing revenue effectively, especially debtors.

5. Given the current constraints some very tough decisions in the course

of considering the 2010/2011 budgets and Medium Term Revenue and Expenditure Framework (MTREF) were taken. Priority must be given to:

Ensuring that drinking water meets the required quality standards.

Managing all revenue streams, especially debtors.

Protecting the poor from the inputs of the economic downturn.

Secure the health of the municipal asset base by monitoring the

spending on repairs and maintenance.

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Expediting spending on capital projects that are funded by

conditional grants. Ensure that capital budgets reflect consistent efforts to address the

backlogs in basic services and the upgrading of existing infra-structure.

6. It is important that the financial position of the municipality remains

sustainable over the medium term facing the current constraints and therefore, special attention must be given to eliminating all unnecessary spending on nice-to-have items and non-essential activities.

7. National Government has raised concerns about the quality of

municipal drinking water and failures in the management of waste water and has introduced the Blue Drop and Green Drop performance ratings. Therefore a section on “drinking water quality and waste water management” is included in the budget document and focuses on the quality of the functioning of existing services and refurbishment of existing infrastructure.

8. To support local government national transfers grow over the next

three years to accelerate the delivery of basic services to households that cannot afford them. For the 2010 government MTREF an additional R10,5-billion is allocated to local government of which R6,7-billion is for the equitable share and R3,8-billion for infrastructure transfers.

9. In terms of the Division of Revenue Act the equitable share increases

from R54,3-million to R70,4-million for the 2010/2011 financial year and is projected to increase to R88,6-million in the 2012/2013 financial year. Capital transfers increase from R29,5-million to R35,2-million and are projected to increase to R45,5-million in the 2012/2013 financial year.

10. The new valuation roll was successfully implemented from 1 July 2009.

All newly rated properties will commence paying rates from 1 July 2010 which will expand the municipality tax base.

11. To assist our communities the following social packages are included

in the 2010/2011 budget for indigent households:

10 kl free basic water at a cost of R8,2-million 50 kWh free basic electricity at a cost of R2,6-million Free sanitation service at a cost of R3,6-million Free refuse removal service at a cost of R4,2-million Free property tax at a cost of R5,1-million

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12. It is proposed that the Indigent Policy be amended to include the rural villages and areas where electricity is supplied by Eskom.

13. In compliance with section 22(b)(i) of the MFMA, the annual budget

was tabled on 25 March 2010 and was submitted to National Treasury and Provincial Treasury for inputs.

14. The publication process in terms of section 22 of the MFMA was done

as follows:

14.1 Advertisements in the local press to invite inputs until 30 April 2010.

14.2 An electronic copy of the tabled budget was available on

Council’s website and printed copies were made available at all libraries of the Council.

14.3 Both printed and electronic copies of the tabled budget

accompanied by all documentation had been submitted to the following government structures for overview, comments and inputs:

National Treasury, Pretoria Mpumalanga Provincial Treasury, Nelspruit Mpumalanga Co-operative Governance and Traditional

Affairs, Nelspruit Nkangala District Municipality South African Local Government Association, Nelspruit

15. A Budget Indaba was also held on 23 April 2010 at the Thusong

Centre, Extension 7, Mhluzi in order to provide a further opportunity for inputs on the tabled budget. The Indaba was attended by approximately 200 stakeholders and widely presented by the local press and broadcasting stations. The community members have expressed their appreciation for the considerate and responsible manner in which the tabled budget had been drafted. Some of the key remarks are as follows: Compliment the municipality on its 100% collection rate.

Appreciation for the 10 kl free water for indigent households which

is beyond the government norm.

Compliment the changes to indigent policy to allow for child headed households.

Suggestions to improve public participation process and ward committees system.

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Initial priorities in 2006 ANC Manfesto must be met by at least 80% before March 2011.

Taxation of farms whilst there are no services provided or any benefits for the farming community.

16. In order to comply with the prescriptions of chapter 4 of the MFMA, the

submissions on the budget must be considered and where necessary the tabled budget must be revised for consideration by Council. A total number of 3 written inputs were received: Agricultural Farmers Forum

Concerns were raised that farms are going to be taxed whilst no benefits are received for farming communities. They request that the tax policy be amended to a nil rate for agriculture.

Tshwenyane Secondary School

The school request that consideration be given to assist with the restoration of the school’s ablution blocks as no satisfactory response is received from the Department of Public Works.

Lindiwe Nhlapo

She requests the municipality to address problems with storm water drainage at Mhluzi Extension 2 and to facelift the park in Extension 2.

In response the following was considered and is recommended:

Property rates are instituted by the Municipal Property Rates Act, Act 6 of 2004 and is a tax to provide the municipality with the necessary sources of revenue to fulfil its developmental responsibilities. Local government as a sphere of government is also dependent on a tax as a form of main income and that tax comes in the form of property rates. Furthermore, the so-called “subsidized services” are also known as rates services and are being provided to the broader community and even people visiting or driving through the municipal area. These services include parks, streets, traffic control, sport fields, cemeteries, libraries, and clinics etc. which are available to all sectors of the community which include the farming community. Therefore the request to amend the property rates policy to exempt agricultural land from property tax cannot be adhered to.

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Unfortunately section 164 of the MFMA forbids the municipality to conduct activities otherwise than in the exercise of the powers and functions assigned to it in terms of the Constitution or national or provincial legislation of which education is one such function which is funded by national government. Therefore the municipality will not be in a position to assist with the upgrade of ablution facilities at schools.

Provision is annually made for the upgrading of storm water drainage systems according to the storm water plan of the municipality. The storm water problems in Mhluzi Extension 2 is part of the priorities already identified in terms of this plan and are gradually addressed in each financial year.

The face-lifting of the Extension 2 park was identified through the IDP process and subsequently the necessary provision is made in the 2010/2011 annual budget for this project.

17. Minor inputs were received from the administration which mostly

contains corrections and omissions from the tabled budget. Most of these requests and amendments have been accommodated by curtailing planned expenditure within budget votes or to recalculate revenue items for each service based on current trends and growth in order to cover for increased expenditure.

18. In addition amendments to the tabled budget related policies are detailed in schedule 4 except for the rates policy where the proposed amendments were significant and is the complete amended policy included for consideration.

19. After the budget was tabled, National Treasury has amended MFMA

Circular 51, mentioning that the Minister of Public Enterprises, in terms of section 42 of the MFMA, tabled in Parliament, Eskom’s amended pricing structure, indicating that bulk electricity will increase with 28,9 per cent instead of the initial announcement of 24,8 per cent. This necessitates that the proposed tariff for electricity of 19,9% as tabled, be increased to 22% to cater for the additional bulk purchases of R5,3-million.

20. It was further suggested by the Senior Manager Civil Engineering to

amend the proposed sundry tariffs for the 2010/2011 financial year by including the following tariff accidentally omitted: Page 147 - Hire of machinery Add point 2.5 - Total station survey instrument - R40,00 per hour

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21. When the tabled budget document was scrutinized by the administration it was discovered that the cleanest town programme has been provided under Public Relations whilst it is under the control of the Solid Waste Management Services and the cost thereof should be recovered through the refuse removal tariffs. This resulted in the proposed tariff for refuse removal of 9,8% as tabled be increased to 11,4% to cover the additional expenditure.

22. No amendments were necessary as far as the water and sanitation

services are concerned. 23. After all the inputs were considered additional revenue of R85,1-million

had to be sought of which R64,1-million is from service charges and R21-milion from property rates. Taking all of the above into consideration the actual increase for property rates is recommended at 13,75%.

24. The proposed tariff adjustments to come into effect on 1 July 2010 are

contained in the recommendation and represents:

An average increase in property tax revenue of 13,75%. An average increase in sewerage tariff of 15,75%.

An average increase in refuse tariff of 11,4%.

An average increase in the electricity tariff of 22%.

An average increase in the water tariff of 16,95%.

25. The annual budget herewith presented provides for total operating

revenue of R779,4-million for the 2010/2011 financial year, R922-million for the 2011/2012 financial year and R1,008,3-billion for the 2012/2013 financial year. The bulk of the revenue is derived from user charges for services and property rates of which electricity charges are the main contributing factor at 38,6%.

26. The operating budget provides for total operating expenditure for the

2010/2011 financial year of R821,7-million for the 2011/2012 financial year of R877-million and R982,5-million for 2012/2013 financial year. The main expenditure increases are as follows:

Employee related costs at 18,14%. This includes R5,2-million for

additional posts and an overall salary increase of 8,5% as per wage agreement at the Bargaining Council.

Bulk purchases at 32% which include an increased amount of R41,2-million for electricity and R6,3-million for water.

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Grants and subsidies payable increase with R29,8-million to allow for the provision of free basic services to indigent households which were in the past recognised as income foregone.

General expenditure increases with 29,7% which include a once off Eskom connection fee for the new electricity substations at an amount of R34,5-million. This connection cost will be funded from the accumulated surplus.

27. The capital budget amounts to just more than R773-million over the

next three years. Cash backed accumulated reserves will fund capital projects to the amount of R310,7-million whilst government grants will contribute R131-million. New loan funding of approximately R332-million will be taken up in equal draw-downs over the next three years.

28. R641,4-million of the proposed capital expenditure will be utilised on

new assets whilst R131,7-million be used for the replacement of assets. For infrastructural development R601-million is allocated, R87-million for community assets and the balance of R84,9-million for other assets.

29. Departmental allocations include:

R196,8-million for electricity services R50,8-million for water services R138,4-million for sewerage services R13,2-million for refuse removal services R201-million for road transport R129,6-million for community and public safety R37,3-million for governance and administration

30. The executive summary and supporting documents in the annual

budget document contain more details regarding the contents of the budgeted provisions.

31. The annual budget document was updated accordingly and it is

recommended that the following revised tables and schedules be noted and approved:

Table A1 - Budget summary Table A2 - Budgeted financial performance Table A4 - Budget financial performance by revenue source and

expenditure type Table A5 - Budgeted capital expenditure by vote Table A6 - Budgeted financial position Table A7 - Budgeted cash flows Table A8 - Cash backed reserves / accumulate surplus

reconciliation Table A9 - Asset management Table A10 - Consolidated basic service delivery measurement

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Schedule 1 - Proposed tariffs for 2010/2011 financial year Schedule 2 - Proposed sundry tariffs for 2010/2011 financial year Schedule 3 - Personnel budget (new posts) for 2010/2011 financial

year Schedule 4 - Amendments to budget related policies

32. It is recommended by the Executive Mayor that the multi-year annual

budget of capital and operating expenditure for 2010/2011 and the indicated two outer years of 2011/2012 and 2012/2013 be considered and approved.

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Your ref. Our ref. 2010/06/04

E-Mail : [email protected]

Telephone (013) 2497000 Fax (013) 2432550

P O Box 14

MIDDELBURG, MPUMALANGA 1050

www.stevetshwetelm.gov.za

TO WHOM IT MAY CONCERN

Extract from the minutes of the Special Council meeting held on 31 May 2010: CC05/05/2010 FINANCES: ANNUAL BUDGET FOR THE 2010/2011; 2011/2012 & 2012/2013 FINANCIAL YEARS RESOLVED BY COUNCIL 1. THAT the multi-year annual budget of capital and operating expenditure for

2010/2011 and the indicated two outer years of 2011/2012 and 2012/2013 be approved as set out by the following tables:

1.1 Table A1 : Budget summary 1.2 Table A2 : Budgeted financial performance 1.3 Table A4 : Budget financial performance by revenue source and

expenditure type 1.4 Table A5 : Budgeted capital expenditure by vote 1.5 Table A6 : Budgeted financial position 1.6 Table A7 : Budgeted cash flows 1.7 Table A8 : Cash backed reserves / accumulate surplus reconciliation 1.8 Table A9 : Asset management 1.9 Table A10 : Consolidated basic service delivery measurement

2. THAT the levies on issues from the stores be maintained at 15% on all issues with the maximum of R800,00 per single requisition and the levy per official order be left at R15,00.

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3. THAT in terms of Section 75A of the Local Government Municipal Systems Act, Act 32 of 2000, interest be recovered on amounts outstanding for periods longer that thirty (30) days on all debtor accounts at a rate equal to the prime bank overdraft rate from ABSA as applicable to the bank account of the Council from time to time.

4. THAT in terms of section 24 of the Local Government Municipal Property Rates

Act, Act 6 of 2004, rates differentiating among the different categories of properties determined by the actual use, the zoning and/or permitted use of properties, for property tax be levied on market value of all rateable properties within the municipal area for the financial year 1 July 2010 to 30 June 2011, provided that rebates, as indicated, on application be allowed:

4.1 Category Rate Applicable

4.1.1 Residential with the exclusion of the first R15 000 of assessed market value

0,648 cent in the Rand

4.1.2 Government owned residential with the exclusion of the first R15 000 of assessed market value


4.1.3 Residential – 2nd dwelling 0,7452 cent in the Rand 4.1.4 Government residential – 2nd dwelling 0,7452 cent in the Rand 4.1.5 Duets not subject to a sectional title

scheme 0,7452 cent in the Rand

4.1.6 Government duets not subject to sectional title scheme


4.1.7 Residential : home business 0,7452 cent in the Rand 4.1.8 Residential : vacant 0,972 cent in the Rand 4.1.9 Illegal usage 2,07 cent in the Rand 4.1.10 Privately owned sport grounds 0,648 cent in the Rand 4.1.11 Accommodation establishments 0,81 cent in the Rand 4.1.12 Business and commercial including

government owned 2,07 cent in the Rand

4.1.13 Industrial 2,07 cent in the Rand 4.1.14 Public service infrastructure with the

exemption of 30% of assessed market value


4.1.15 Farms including agricultural small holdings used for agricultural/residential purposes


4.1.16 Farms including agricultural small holdings used for eco-tourism/trading in or hunting of game


4.1.17 Farms including agricultural small holdings used for business/commercial/ industrial purposes


4.1.18 Farm including agricultural small holdings used for any other than the specified


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purposes 4.1.19 Mining 2,07 cent in the Rand 4.1.20 Public benefits organisations 0,162 cent in the Rand 4.1.21 Schools including government owned/

school hostels


4.1.22 Multiple used premises according to major use:

Residential 0,648 cent in the Rand Commercial/industrial 2,07 cent in the Rand Accommodation establishment 0,81 cent in the Rand 4.1.23 Privately owned roads/parks, subject to

the stipulations of Section 17(2)(b) of Act 6 of 2004, where applicable


4.1.24 Privately owned towns serviced by the owner


4.1.25 Pensioners who qualify 0,516 cent in the Rand 4.2 Rebates in recognition of section 15(2) of Act 6 of 2004

4.2.1 That for all indigent households enlisted under the Council’s Indigent Support and Free Basic Services Scheme property rates be fully discounted and the expenditure be recovered from the proportional Equitable Share payment to the Council by the South African National Treasury.

4.2.2 That a rebate of 0,132 cent in the Rand be allowed on

properties owned by pensioners and which are zoned as residential in terms of the Council’s Town Planning Scheme subject to the following conditions:

4.2.2.1 That the combined income of the land owned on

his/her spouse not exceed R72 000,00 per annum; 4.2.2.2 That the property is occupied by the owner; and/or 4.2.2.3 That only owners over the age of 60 years or being

the breadwinner and totally dependent on a social disability pension or any other pension comparable to social disability pension, come into consideration for the rebate.

4.2.3 That a rebate of 0,552 cent in the Rand be allowed for all

property where a single property becomes divided (through subdivision or township establishment) into 10 or more full title units and all services, inclusive of water, sewerage, electricity and roads are installed by the developer at his own cost for a period of two (2) years from the date of registration of the subdivision or the proclamation of the township or for a

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shorter period until the newly created units are sold off or improved before expiry of the two (2) years period.

4.3 A phasing-in discount granted in terms of section 21 of Act 6 of 2004

4.3.1 That property rates on all newly rated property that had not previously been assessed and rated according to any valuation roll or supplementary valuation roll that applied to any area of the municipality in terms of previous legislation be phased in as follows:

In the 2009/2010 financial year a rebate of 100%




In the 2013/2014 financial year the rate will be payable

without any rebate. 4.4 Exemptions from payment of a rate levied

4.4.1 That in terms of section 15(1)(a) of Act 6 of 2004 the following categories be exempted from payment of a rate levied on their property:

4.4.1.1 rateable property registered in the name of a

welfare organisation registered in terms of the National Welfare Act, 1978 (Act 100 of 1978);

4.4.1.2 rateable property owned by public benefit

organisation and used for any specific public benefit activity as listed in item 1, 2 and 4 of part 1 of the ninth schedule to the Income Tax Act.

4.4.1.3 museums, art galleries, libraries and botanical

gardens which are registered in the names of private persons and which are open to public, whether admission is charged or not;

4.4.1.4 national monuments including ancillary business

activities at national monuments; 4.4.1.5 rateable property registered in the name of a

trustee or trustees or any organisation which is being maintained for the welfare of war veterans as defined in Section 1 of the Social Aid Act (House of Assembly), 1989, Act 37 of 1989, and their families;

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4.4.1.6 sport grounds used for the purposes of amateur sport and any social activities which are connected with such sport;

4.4.1.7 rateable property registered in the name of Boy

Scouts, Girl Guides, Sea Scouts, Voortrekkers or any organisation which is in the opinion of the municipality similar to any rateable property let by the municipality to any such organisation;

4.4.1.8 rateable property registered in the name of a

declared institution as defined in Section 1 of the Cultural Institutions Act, 1969, Act 29 of 1969, or the Cultural Institutions Act (House of Assembly), 1989, Act 66 of 1989;

4.4.1.9 properties in the “municipal” category unless a

lease or sale agreement for such a property, or part thereof, exists;

4.4.1.10 on mineral rights within the meaning of paragraph

(b) under “property” as per section 1 of Act 6 of 2004;

4.4.1.11 on a property belonging to a land reform beneficiary

or his or her heirs, provided that this exclusion lapses ten years from the date on which such beneficiary’s title was registered in the office of the Registrar of Deeds;

4.4.1.12 on the first R15 000,00 of the market value of the

property assigned in the valuation roll of a municipality to a category determined by the municipality –

(i) for residential purposes including second

dwellings and duets not subject to a sectional title scheme;

(ii) for properties used for multiple purposes,

provided one or more components of the property and which forms the major part of the property, are used for residential purposes; or

4.4.1.13 on a property registered in the name of and used

primarily as a place of public worship by a religious community, including an official residence registered in the name of that community which is occupied by an office-bearer of that community who officiates at services at that place of worship.

4.5 That all property rates as per paragraphs 4.1.1 to 4.1.25 above be subjected to Value Added Tax at a zero rate.

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5. THAT the departmental levy on sewerage be determined at R1,97 cent per kilolitre of measured sewerage water effluent.

6. THAT the fees for drainage and sewerage as published under Notice 2/1985 in the Provincial Gazette on 31 July 1985, as amended, in terms of the stipulations of Section 75A of the Local Government Municipal Systems Act, Act 32 of 2000, be amended as follows with effect from 1 July 2010:

6.1 That all levies for drainage and sewerage as per paragraphs 6.2

below be subjected to Value Added Tax at full rate.

6.2 To have the present tariffs replaced by the following structure:

6.2.1 Monthly levy for developed residential erven: (a) with a total area of up to 995m² R 49,60 (b) with a total area exceeding 995m² up to 1500m² R108,30 (c) with a total area exceeding 1500m² R143,45

6.2.2 Monthly levy on flats

Per residential unit R 72,05

6.2.3 Monthly levy on all church erven R143,45

6.2.4 Business and Industries

R4,06 per kilolitre metered pure water consumption per

month. 6.2.5 All undeveloped erven in private possession with access to

the reticulation

An availability levy of R24,80 per erf per month.

6.2.6 Agricultural societies and sport clubs not accommodated at the central sports grounds

R3,47 per kilolitre of metered purified water consumption

per month.

6.2.7 Military basis, road camps and other similar properties

R4,06 per kilolitre of metered purified water consumption per month.

6.2.8 Industries and businesses where a great extent of the water

consumption in the opinion of the Council be taken up in the final product R1,66 cents per kilolitre of the metered purified water consumption per month.

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6.2.9 Hospitals, nursing homes under welfare care, schools and school hostels, nursery schools and day schools

Monthly levies as follows:

(a) Hospitals R143,44 for each three (3) beds or portion,

continuously available and R143,44 for each ten (10) personnel or portion, residential or not.

(b) Schools and school hostels (including nursery and

day schools) R41,45 for each fifteen (15) persons or portion

thereof. (c) Nursing and maternity homes and welfare

organisations As described by the National Welfare Act, 1978, and

institutions controlled by welfare organisations: R67,60 for each five (5) persons or portion thereof. (d) Vergeet-My-Nie Flats R33,55 per flat per month. (e) Formalised informal housing settlements with access

to biological toilets per stand: R23,80 per month.

6.2.10 That for all indigent consumers enlisted under the Council’s Indigent Support and Free Basic Services Scheme with the inclusion of all dwellings in the formalised informal housing settlements in Newtown and Doornkop, no fees be paid by the consumer and the levy in full be recovered from the Proportional Equitable Share payable to Council by the South African National Treasury.

6.2.11 For all pensioners who applied and were approved for a

rebate on assessment rates be allowed a discount of 20% on their respective levies to be recovered from the proportional Equitable Share payable to Council by the South African National Treasury:

Pensioners who qualify (residentially)

a) with a total area up to 995m² R 39,70

b) with a total area exceeding 995m² R 86,63

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up to 1500m²

c) with a total area exceeding 1500m² R114,75

7. THAT the fees for the removal of solid waste (refuse) as published under Notice No. 3/1985 in the Provincial Gazette of 31 July 1985, as amended, in terms of the stipulations of Section 75A of the Local Government Municipal Systems Act, Act 32 of 2000, further be amended as follows with effect from 1 July 2010:

7.1 That the fees for the removal of solid waste as per paragraphs 7.2

to 7.4 and 7.7 below be subjected to Value Added Tax at the standard rate.

7.2 Annexure: Tariff of charges

7.2.1 Section 1(1) occasional service For a daily service per day per refuse bin R20,85. 7.2.2 Housing refuse Erven up to 995m² and erven exceeding 995m² by substitution under item 1(1): the amount of R50,00 with R55,70 and R71,55 by R79,70. 7.2.3 Flats by substitution under item 1(2)(b)(i): the amount of R64,25 with R71,57. 7.2.4 Businesses: 1,1m³ mass container by substitution under item 1(2)(b)(iii): the amount of R1 803,05 with R2 008,60. 7.2.5 Businesses: Bins by substitution under item 1(3)(a): the amount of R172,75 with R192,45. 7.2.6 Businesses: 1,50m³ mass containers by substitution under item 1(3)(b): the amount of R1 803,05 with R2 008,60. 7.2.7 Businesses: 1,75m³ mass containers by substitution under item 1(3)(c): the amount of R2 245,25 with R2 501,20.

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7.3 That the tariff for removal of solid waste (refuse) from the Vergeet-My-Nie flats be increased from R24,36 per flat to R27,15 per flat per month.

7.4 That formalised informal housing settlements in Newtown and

Doornkop with access to limited municipal services under 1(2)(b)(v) by substitution R21,65 per stand per month with R24,12 per stand per month.

7.5 That the departmental levy for removal of solid waste (refuse) be

amended as follows: per refuse bin R 62,38

per mass container R1 024,88 7.6 That for all indigent consumers enlisted under the Council’s

Indigent Support and Free Basic Services Scheme with the inclusion of all dwellings in the formalised informal housing settlement in Newtown and Doornkop the levy in full be recovered from the proportional Equitable Share payable to Council by the South African National Treasury.

7.7 That for all pensioners who applied and were approved for a rebate

on assessment rates be allowed a discount of 20% on their respective levies to be received from the Proportional Equitable Share payable to Council by the South African National Treasury:

7.7.1 Pensioners who qualify (residentially)

a) erven up to 995m² by substitution the amount of

R40,00 with R44,55

b) erven exceeding 995m² by substitution the amount of R57,24 with R63,76

8. THAT the fees for water supply as published under Notice Number 31/1986 in the Provincial Gazette of 10 September 1986, as amended, in terms of Section 75A of the Local Government Municipal Systems Act, Act 32 of 2000, further be amended as follows with effect from 1 July 2010: 8.1 That the fees for water supply as per paragraphs 8.2.1 to 8.2.5 and

8.2.7 below be subjected to Value Added Tax at standard rate.

8.2 By replacing the present tariffs by the following tariff structure:

8.2.1 All residential, single flats, church sites and residential units in group housing complexes:

(a) Where working meters were installed for metered

purified water consumptions per month:

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For first 6 (6) kilolitres Free Above six (6) to ten (10) kilolitres R3,82 per kl Above ten (10) to forty (40) kilolitres R5,00 per kl Above forty (40) kilolitres R5,30 per kl (b) Erven without working water meters which are

developed and occupied: A monthly fixed levy of R15,35 per erf per month.

8.2.2 All undeveloped erven with access to the reticulation

network An availability levy of R19,10 per month. 8.2.3 All Businesses and Industries, School and School Hostel

sites (including nursery schools and day schools) All monthly metered consumption of purified water at R3,95

per kilolitre. 8.2.4 Supply of raw water in all cases Per metered monthly consumption at R3,78 per kilolitre. 8.2.5 Purified water outside Council’s distribution areas According to monthly metered consumption at R5,38 per

kilolitre. 8.2.6 That the departmental levy for purified water be determined

at R1,52 per kilolitre. 8.2.7 That the levy for purified effluent be determined at R1,05

cent per kilolitre.

8.3 That for all indigent residential households enlisted under the Council’s Indigent Support and Free Basic Services Scheme an additional four (4) kilolitres besides the first six (6) kilolitres of monthly consumption to a total of 10 kilolitres of monthly consumption be supplied free of charge and the total cost of the consumption between six (6) and up to ten (10) kilolitres be recovered from the proportional Equitable Share payable to Council by the South African National Treasury.

9. THAT the electricity tariffs for the 2010/2011 financial year be approved in

that the Determination of Fees for the Supply of Electricity, promulgated under Notice No. 38 of the Provincial Gazette of 26 January 1996, in terms of the stipulations of Section 75A of the Local Government Municipal Systems Act, Act 32 of 2000, be amended as follows with effect from 1 July 2010:

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9.1 That the fees levied for electricity as per paragraphs 9.2 to 9.6 and paragraphs 9.9 to 9.10 below be subjected to Value Added Tax at the standard rate.

9.2 Domestic consumers By substitution of the schedule under 1(2) by the following:

Present 2009/2010 (25%)

Proposed 2010/2011 (22%)

(i)

Group

(ii)

Type of Supply

(iii)

Fixed charge per meter

reading period or part thereof.

Minimum charge per

meter reading period

(iv)

Charge per

kilowatt-hour (unit)

(v)

Fixed rate per amperes per reading

period or part thereof.

Minimum rate per meter reading period

(vi)

Charge per


No of

phases

Current limit in amperes Per phase

R

c

R

c

(a) 1 20 - 53,60 - 65,40

(b) 1 40 - 69,00 - 84,18

(c) 1 40 6,20 34,16 7,56 41,68

(d) 1 50 6,20 34,16 7,56 41,68

(e) 1 60 7,08 34,16 8,64 41,68

(f) 1 70 7,95 34,16 9,70 41,68

(g) 1 80 7,95 34,16 9,70 41,68

(h) 3 20 7,08 34,16 8,64 41,68

(i) 3 30 7,95 34,16 9,70 41,68

(j) 3 40 9,45 34,16 11,53 41,68

(k) 3 50 9,45 34,16 11,53 41,68

(l) 3 60 9,45 34,16 11,53 41,68

(m) 3 70 9,45 34,16 11,53 41,68

(n) 3 80 9,45 34,16 11,53 41,68

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9.3 Commercial, industrial and general consumers By substitution of the schedule under 2(2) by the following:

Present 2009/2010

(25%) Proposed 2010/2011

(22%) i)

Group

(ii)

Type of Supply

(iii)



Minimum charge per


(iv)

Charge per


(v)




(vi)

Charge per


No of

phases

Current limit in amperes per phase

R

c

R

c

(a) 1 40 - 69,00 - 84,18

(b) 1 40 9,45 34,16 11,53 41,68

(c) 1 50 9,45 34,16 11,53 41,68

(d) 1 60 9,45 34,16 11,53 41,68

(e) 1 70 9,45 34,16 11,53 41,68

(f) 1 80 9,45 34,16 11,53 41,68

(g) 3 20 9,45 34,16 11,53 41,68

(h) 3 30 9,45 34,16 11,53 41,68

(i) 3 40 9,45 34,16 11,53 41,68

(j) 3 50 9,45 34,16 11,53 41,68

(k) 3 60 9,45 34,16 11,53 41,68

(l) 3 70 9,45 34,16 11,53 41,68

(m) 3 80 9,45 34,16 11,53 41,68

9.4 Bulk consumers

By implementing the following amendments:

by substitution under item 3(2): the amount of R87,00 demand charge per kVa by R106,00; and a fixed charge of R600,00 per month per bulk consumer per supply point by R732,00 per month; and 30,10 cent energy charge per kWh by 36,72 cent.

9.5 Free Basic Electricity for enlisted Indigents

By inclusion under item 2(3) the following:

(a) The maximum supply demand for enlisted indigent

households be restricted to 20 ampere.

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(b) The free supply of basic electricity to a maximum of 50 kWh per month per enlisted indigent household of which the cost at prepayment rate be recovered from the proportional Equitable Share payable to the Council by the South African National Treasury.

9.6 Temporary consumers

By substitution of the schedule under item 5(2) by the following:

Present 2009/2010 Proposed 2010/2011 (i)

Group

(ii)

Type of Supply

(iii)



Minimum charge per


(iv)

Charge per


(v)




(vi)

Charge per


No of

phases

Current limit in amperes per phase

R

C

R

C

(a) 1 50 9,45 37,55 11,53 45,81

(b) 1 80 9,45 37,55 11,53 45,81

(c) 3 20 9,45 37,55 11,53 45,81

(d) 3 50 9,45 37,55 11,53 45,81

(e) 3 80 9,45 37,55 11,53 45,81

9.7 Street light supply

By substitution under item 6(2)(i): the amount of R50,75 by R61,92; and

Under item 6(2)(ii): the amount of R101,60 by R123,95. 9.8 Departmental levies and sport clubs

By substitution under item 6(2)(i): the amount of 63,45 c/kWh by 77,41 c/kWh; and

9.9 Availability levy

By substitution under item 6(2)(i): the amount of R20,00 by R37,00. 9.10 Time of use consumers

By implementing the following additions under item 3(3):

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9.10.1 Low voltage three phase demand scale

9.10.1.1 That the tariff scale that will apply to premises situated within the municipal boundaries for electricity supplied or made available at low voltage with an annual average metered load of more than 50 kVa and load shifting be amended from 1 July 2010 and the following charges will be payable per month or part of a month:

Present

2009/2010 Proposed

2010/2011 (22%) R R i) A fixed charge whether or not electricity is consumed,

per metering point 777,00 948,00

ii) A demand charge per kVa of half hourly maximum

demand payable in peak and standard periods on weekdays and Saturdays

94,95 115,84

c/kWh c/kWh iii) An active energy charge for all kWh consumed during

peak periods since the previous meter reading 61,25 74,73

iv) An active energy charge for all kWh consumed during

standard periods since the previous meter reading 20,00 24,40

v) An active energy charge for all kWh consumed during

off-peak periods since the previous reading 16,00 19,52

9.10.1.2 The defined daily time of use periods throughout the

year will be as per the current Eskom Megaflex tariff that may be applicable to the municipality. The current Eskom Megaflex periods are:

Peak Weekdays : 07:01 – 10:00 18:01 – 20:00 Saturdays/Sundays : None Standard Weekdays : 06:01 – 07:00 10:01 – 18:00 20:01 – 22:00 Saturdays : 07:01 – 12:00 18:01 – 20:00 Sundays : None Off-Peak Weekdays : 22:01 – 06:00 Saturdays : 12:01 – 18:00 20:01 – 07:00 Sundays : 00:00 – 24:00

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9.10.1.3 That the Senior Manager Electrical Engineering Services be permitted to impose a specific minimum load requirement for qualification for this tariff scale.

9.10.2 11 kV supply scale

9.10.2.1 That the tariff scale that will apply to premises within the municipal boundaries where electrical power is supplied at 11 000 V and load shifting be amended as follows from 1 July 2010 and the following charges will be payable per month or part of a month:

Present

2009/2010 Proposed




demand payable in peak and standard periods on weekdays and Saturdays

94,20 114,92


peak periods since the previous meter reading, in: 106,65 130,11

• High demand season (June – August) • Low demand season (September – May) 34,16 41,68 vi) An active energy charge for all kWh consumed during

standard periods since the previous meter reading, in:

• High demand season (June – August) 18,35 22,39 • Low demand season (September – May) 18,00 21,96 v) An active energy charge for all kWh consumed during

off-peak periods since the previous meter reading, in

• High demand season (June – August) 15,45 18,85 • Low demand season (September – May) 13,70 16,71

9.10.2.2 The defined daily time of use periods throughout the

year will be as per the current Eskom Megaflex tariff that may be applicable to the municipality. The current Eskom Megaflex periods are:

Peak Weekdays : 07:01 – 10:00 18:01 – 20:00 Saturdays/Sundays : None Standard Weekdays : 06:01 – 07:00 10:01 – 18:00 20:01 – 22:00 Saturdays : 07:01 – 12:00 18:01 – 20:00 Sundays : None

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Off-Peak Weekdays : 22:01 – 06:00 Saturdays : 12:01 – 18:00 20:01 – 07:00 Sundays : 00:00 – 24:00

9.10.2.3 That the Senior Manager Electrical Engineering Services

be permitted to impose a specific minimum load requirement for qualification for this tariff scale.

9.10.3 88 kV supply scale

9.10.3.1 That the tariff scale that will apply to premises within the municipal boundaries where electrical power is supplied at 88 000 V be amended as follows from 1 July 2010 and the following charges will be payable per month or part of a month:

Present

2009/2010 Proposed




demand payable in peak and standard periods on weekdays and Saturdays per kVa

72,75 88,76


peak periods since the previous meter reading, in:


vi) An active energy charge for all kWh consumed during standard periods since the previous meter reading, in:


v) An active energy charge for all kWh consumed during off-peak periods since the previous meter reading, in


9.10.3.2 That the defined daily time of use periods throughout

the year will be as per the current Eskom Megaflex tariff that may be applicable to the municipality. The current Eskom Megaflex periods are:

Peak Weekdays : 07:01 – 10:00 18:01 – 20:00 Saturdays/Sundays : None

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Standard Weekdays : 06:01 – 07:00 10:01 – 18:00 20:01 – 22:00 Saturdays : 07:01 – 12:00 18:01 – 20:00 Sundays : None Off-Peak Weekdays : 22:01 – 06:00 Saturdays : 12:01 – 18:00 20:01 – 07:00 Sundays : 00:00 – 24:00

10. THAT the adjusted sundry tariffs, Value Added Tax inclusive, as reflected

in the comments of the various Heads of Departments under Schedule 3 be approved for implementation with effect from 1 July 2010.

11. THAT the following amendments to the limits on the Transport and

Subsistence Policy be approved and implemented from 1 July 2010: 11.1 Paragraph 5.2 – Accommodation expenses: by substituting under 5.2.1 the amount of R1 400,00 for bed and

breakfast with R1 500,00 and under 5.2.3 the amount of R260,00 per day with R275,00

11.2 Paragraph 5.3 – Meal Expenses: by substituting under 5.3.1 the amount of R260,00 per day with

R275,00 11.3 Paragraph 5.5 – Miscellaneous Expenses: by substituting under 5.5.1.4 the amount of R80,00 per day with

R85,00 and under 5.5.2 the amount of R260,00 per day with R275,00

12.4 Paragraph 8 – Interviews by substituting under 8.2 the amount of R400,00 per night with

R425,00 12. THAT the following policies as amended be considered for implementation

from 1 July 2010:

12.1 Policy on Free Basic Services and Indigent Support. 12.2 The Supply Chain Management Policy 12.3 The Credit Control and Debt Collection Policy 12.4 The Asset Management Policy 12.5 The Short Term Insurance and Known Risks and Liabilities Policy

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12.6 The Budget Policy 12.7 The Rates Policy

13. THAT the public inputs received on the tabled budget be noted. 14. THAT the approved Annual Budget in both printed and electronic formats

be submitted to National Treasury and relevant Provincial Treasury.

CERTIFIED A TRUE EXTRACT

EXECUTIVE MANAGER : CORPORATE SERVICES

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EXECUTIVE SUMMARY ON THE 2010/2011 to 2012/2013 MEDUIM TERM REVENUE AND EXPENDITURE FRAMEWORK (MTREF) ANNUAL BUDGET Report by the Executive Manager Finance 1. The national budget review for 2010 outlines the current global economic

crisis and the future economic outlook. It notes that the South African economy is slowly recovering with economic growth of 2,3 percent projected for 2010. Over the past year inflation pressure eased and CPI is projected to average 5,9 percent in 2010 and about 6 percent over the medium term. Continuing public sector investment in economic infrastructure provides crucial support for the recovery of the economy. Given the current economic conditions National Treasury has advised municipalities to adopt a conservative approach when projecting revenues and cash receipts. Municipalities will therefore again need to take make very tough decisions in the course of considering their 2010/2011 Budgets and Medium Term Revenue and Expenditure Framework (MTREF). Priority must be given to: - ensure that drinking water meets the required quality standards at all

times. - managing all revenue streams, especially debtors. - protecting the poor from the impacts of the economic downturn. - support local economic development initiatives that foster business

opportunities and job creation. - secure the health of their asset base by monitoring the spending on

repairs and maintenance. - expediting spending on capital projects that are funded by conditional

grants. It is important that the financial position of the municipality remains sustainable over the medium term facing the current economic constraints. Therefore special attention must be given to eliminating all unnecessary spending on nice-to-have items and non-essential activities and ensure that capital budgets reflect consistent efforts to address the backlogs in basic services and refurbishment of existing infrastructure. The annual budget consists of two (2) main parts with supporting information, charts and explanations of trends and deviations. National Treasury has further encouraged municipalities to include the draft municipal service delivery and budget implementation plan with the tabled budget document. The draft SDBIP was included under Part 3 of the tabled budget document and the final SDBIP will be submitted within 14 days after the approval of the annual budget.

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2. PART 1 – ANNUAL BUDGET This annexure contains the A1-10 tables to be approved by Council with supporting schedules, inclusive of the following: Report of the Executive Mayor Resolution for the 2010/2011, 2011/2012 and 2012/2013 annual budget Executive Summary Annual Budget Tables ∗ Table A1 : Budget summary ∗ Table A2 : Budgeted financial performance by vote ∗ Table A4 : Budget financial performance by revenue source and

expenditure type ∗ Table A5 : Budgeted capital expenditure by vote ∗ Table A6 : Budgeted financial position ∗ Table A7 : Budgeted cash flows ∗ Table A8 : Cash backed reserves / accumulate surplus reconciliation ∗ Table A9 : Asset management ∗ Table A10 : Basic service delivery measurement

3. PART 2 – SUPPORTING DOCUMENTS

This annexure contains the supporting tables with explanatory notes, inclusive of the following: Overview of the annual budget process. Overview of the alignment of the annual budget with the integrated

development plan. Measurable performance objectives and indicators. Overview of budget related policies. Overview of budget assumptions. Overview of budget funding. Funding requirements for capital expenditure. Expenditure on allocations and grant programmes. Allocations or grants made by the municipality. Councillors and board member allowances and employee benefits. Monthly targets for revenue, expenditure and cash flow. Contracts having future budgetary implications. Capital expenditure details. Legislatory compliance status.

Schedule 1 : Comparison on the imposing of assessment rates and setting

of tariffs for the 2010/2011 financial year. Schedule 2 : Recommendation on the proposed sundry tariffs for the

various services for the 2010/2011 financial year. Schedule 3 : Draft personnel budget Schedule 4 : Budget-related policies Schedule 5 : Executive summary of internal departments

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4. EXECUTIVE SUMMARY Table A1 provides a consolidated budget summary of the proposed annual budget. The combined expenditure for the MTREF is as follows:

2010/2011 2011/2012 2012/2013 Operating expenditure 821 707 000 870 035 493 982 506 125Capital expenditure 288 427 500 250 362 445 234 287 900

Total 1 110 134 500 1 127 397 938 1 216 794 026

For the first time the total annual budget of the municipality is estimated at more than R1-billion per year. Table A2 provides details on the budgeted financial performance by vote, whilst Table A4 and supporting table SA1 and SA2 provides details on the budgeted financial performance by revenue source and expenditure type. Table A4 is graphically presented in: Chart 1 Revenue by major source Chart 2 Other revenue Chart 3 Operating expenditure by type

Audit results show that the total revenue for 2008/2009 of R649,1-million realised. Based on the mid-year assessment, the budgeted revenue for 2009/2010 is revised from R617,1-million to R639,9-million. The higher revenue includes the increased revenue for service charges and property rates of R16,3-million. The annual budget herewith presented provides for total operating revenue of R779,4-million for 2010/2011 financial year, R922-million for the 2011/2012 financial year and R1,008,3-billion for the 2012/2013 financial year. This reflects an increase of 21,8% in operating revenue. Revenue from property taxes is expected to increase to R158,4-million, which is R25,6-million higher than the 2009/2010 adjusted budget and constitutes 20,3% of operating revenue. Revenue from service charges increases to R388,5-million, which is R86-million higher than the 2009/2010 adjusted budget and contributes 49,8% to operating revenue. From the service charges, electricity revenue is the largest source of revenue which contributes 35,3%. An additional R10,5-billion is nationally allocated to local government over the medium term to expand service delivery and improve the quality of services. National transfers grow by 13,4% annually and is distributed to municipalities in the Division of Revenue Act (DORA).

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Government grants (transfers) increase with R11,9-million from R63,2-million to R75,1-million and constitute 9,6% of operating revenue. The Equitable Share which is mainly used to provide relief to indigent households increases from R54,3-million to R70,4-million, which is an increase of 29,6%. The infrastructure transfers (MIG and INEP) increases from R30,6-million to R35,7-million and reflects an increase of 16,6%. Transfers to build capacity in local government has slightly increased to R1,7-million and steadily increases to R2,3-million in the 2012/2013 financial year. Government is also stepping up programmes to monitor municipal performance against grants. The DORA clearly states that any conditional allocation not spent at the end of a financial year reverts back to the national revenue fund unless proof to the satisfaction of National Treasury that unspent allocations is committed to identifiable projects. Any unspent conditional grants for the 2009/2010 financial years must be returned to National Treasury by 15 October 2010. At this stage it is envisaged that all conditional grants will be spend by 30 June 2010. The operating budget provides for total operating expenditure for the 2010/2011 financial year of R821,7-million, in the 2011/2012 financial for R877-million and R982,5-million for the 2012/2013 financial year which represents an overall increase of 23,9% against the 2009/2010 adjusted budget. Employee related costs increase with 18,2% from R188,1-million to R222,3-million and constitutes 31,3% of operating revenue. Bulk purchases increase with 32% from the adjusted budget of R148,2-million to R195,7-million and constitute 23,8% of total operating expenditure. General expenditure increases with R37,4-million but includes a once-off Eskom connection fee to the amount of R34,5-million. Should this be taken into consideration the increase is only 2,8%. Over the next three (3) years, expenditure increases with R319,5-million in relation to the 2009/2010 adjusted budget. The key operating expenditure allocations in the proposed budget for 2010/2011 financial year include: R295,2-million for electricity services R145,6-million for governance and administration R135,1-million for community and public safety R 93,4-million for roads and storm water R 92,6-million for waste and waste water management R 50,8-million for water services The operating expenditure allocations by vote are graphically presented in: Chart 4 Operating expenditure by main vote Chart 5 Other operating expenditure

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Table A5 provides details on the budgeted capital expenditure, whilst table A9 provides information on asset management. Table A5 is graphically presented in: Chart 6 Capital expenditure by main vote Chart 7 Other capital expenditure Chart 8 Capital funding by source

The proposed capital expenditure for 2010/2011 amounts to R288,4-million, R250,3-million for the 2011/2012 financial year and an amount of R234,3-million for the 2012/2013 financial year. This constitutes a total capital programme of R773-million over the next three (3) years of which R331,2-million is funded from external loans, R131-million from government grants and donations and the balance of R310,7-million from internal reserves. The funding of the capital budget is under severe pressure from the IDP objectives and needs as well as the cost of borrowing and the loss of revenue from coal which was used to fund capital expenditure. This requires that an additional external loan to the amount of R330-million will have to be secured over the next three (3) years to supplement the capital programme. The key capital expenditure in the proposed capital budget for 2010/2011 financial year is: R51,5-million for electricity infrastructural development R67,1-million for roads and storm water infrastructural development R25,3-million for water infrastructural development R44,7-million for sewerage purification and reticulation R75,7-million for community facilities and public safety R16,3-million for governance and administration The key capital expenditure is graphically presented in: Chart 9 Capital expenditure by asset class

For the maintaining of servicing the health of the municipal assets and sustaining service delivery, R41,3-million is provided for repairs and maintenance. 18,7% of capital expenditure will be utilised on the renewal of assets and represents 2% of property, plant and equipment. Table A6 and supporting table SA3 provides information on the projected budgeted financial position and table A7 provides details on the projected cash flow. Despite the projected decrease in investments from R450,0-million to R119,0-million and the depletion of accumulated cash internal reserves from R325,8-million to R81,9-million by 2012/2013 financial year, the cash flow projection indicates that the budget remain funded with projected cash equivalents of R67,5-million.

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In general the community wealth of the municipality increases to R4,477-billion. Total liabilities increase from R327,9-million to R422,8-million as a result of the increased borrowings. Total assets increase from R4,837-billion to R4,900-billion in the 2010/2011 financial year. This is graphically presented in: Chart 10 Budgeted financial position

After all inputs were considered additional revenue of R85,1-million had to be sought. The proposed tariff adjustments to come into effect on 1 July 2010 are: An average increase in the sewerage tariff of 15,75% which constitutes

revenue to the amount of R4,8-million. The main contributing factor for this increase is finance charges at a cost of R2,2-million for the upgrade of the Boskrans waste water treatment plant.

An average increase in the water tariff of 16,95% which constitutes

additional revenue to the amount of R6,1-million. The main contributing factor for this increase is bulk purchases with an additional increase of R4,8-million to purchase mine water for the Hendrina/Kwazamokuhle townships.

An average increase in the electricity tariff of 22% which constitutes

additional revenue to the amount of R49,6-million. Bulk purchases increase with R41,2-million which reflects an increase of 28,4%.

An average increase in refuse tariff of 11,4% which constitutes additional

revenue to the amount of R3,6-million. The reallocation of an amount of R1,3-million for the cleanest town programme to refuse removal contributes to the increase.

An average increase in the property tax revenue of 13,75% which

constitutes additional revenue to the amount of R21-million.

The annual budget is compiled taking into consideration the strategic goals based on the municipal priority issues, as identified through the IDP process. These strategic goals are: Poverty alleviation Good corporate governance Economic growth and development Good co-operative governance Financial viability Integrated environmental, social and economic spatial planning Cost effective and sustainable service (service delivery)

Supporting tables SA4 – SA6 provides high level details of the linkages of IDP strategic objectives to the annual budget.

Page 55 of 351

The provision of basic services remains a high priority and R39,8-million from the Equitable Share is utilised to supplement revenue. Free basic services are provided to approximately 14500 indigent households. In addition amendments to the tabled budget related policies are detailed in schedule 4 except for the rates policy where the proposed amendments are significant and are the complete amended policy included for approval.

Yours faithfully

F.J. NAUDÉ (A.I.A.C.; F.I.M.F.O.)

EXECUTIVE MANAGER FINANCE

Page 56 of 351

BUDGET SUMMARY TABLE A1

Description 2006/7 2007/8 2008/9

R thousands Audited Outcome Audited Outcome Audited Outcome Original Budget Adjusted Budget Full Year

ForecastPre-audit outcome

Budget Year 2010/11

Budget Year +1 2011/12


Financial PerformanceProperty rates 87,679,521 99,143,999 116,654,523 122,306,875 132,822,425 132,822,425 132,822,425 158,413,177 166,817,474 176,762,794 Service charges 190,442,780 199,390,785 259,665,286 296,697,647 302,507,163 302,507,163 302,507,163 388,523,736 453,258,306 530,120,098 Investment revenue 26,960,138 46,261,299 57,012,025 35,750,000 30,400,000 30,400,000 30,400,000 32,250,000 29,750,000 28,250,000 Transfers recognised - operational 36,998,627 41,893,680 57,382,978 60,825,060 63,203,212 63,203,212 63,203,212 75,081,000 86,161,000 95,164,000 Other own revenue 147,395,680 96,240,374 77,513,205 48,483,168 59,450,927 59,450,927 59,450,927 57,403,323 124,513,091 126,074,204

Total Revenue (excluding capital transfers and contributions)

489,476,746 482,930,138 568,228,017 564,062,750 588,383,727 588,383,727 588,383,727 711,671,236 860,499,871 956,371,096

Employee costs 121,965,642 137,386,708 153,828,086 185,130,917 188,191,015 188,191,015 188,191,015 222,339,505 238,659,237 255,752,464 Remuneration of councillors 9,452,422 9,415,656 10,501,226 11,692,026 11,287,832 11,287,832 11,287,832 12,220,447 13,075,885 13,860,455 Depreciation & asset impairment 47,482,193 52,021,327 145,952,037 73,243,434 147,576,325 147,576,325 147,576,325 153,376,967 157,804,053 164,095,561 Finance charges 15,236,357 17,160,253 18,502,686 20,190,070 20,190,070 20,190,070 20,190,070 22,040,849 30,056,218 37,768,201 Materials and bulk purchases 72,046,194 79,872,542 109,724,556 146,883,706 148,226,556 148,226,556 148,226,556 195,687,065 240,454,508 298,283,060 Transfers and grants 1,671,264 1,606,806 1,493,794 1,505,000 1,132,000 1,132,000 1,132,000 31,012,300 34,907,190 39,544,820 Other expenditure 90,577,862 103,877,759 146,684,307 138,097,691 146,442,214 146,442,214 146,442,214 185,029,867 162,078,402 173,201,565

Total Expenditure 358,431,934 401,341,052 586,686,692 576,742,844 663,046,012 663,046,012 663,046,012 821,707,000 877,035,493 982,506,126 Surplus/(Deficit) 131,044,812 81,589,086 (18,458,674) (12,680,094) (74,662,285) (74,662,285) (74,662,285) (110,035,764) (16,535,622) (26,135,030)

Transfers recognised - capital 12,455,942 24,126,548 19,477,068 33,010,000 31,609,770 31,609,770 31,609,770 46,073,000 39,410,000 45,587,000 Contributions recognised - capital & contributed 4,022,521 9,149,384 61,354,542 20,000,000 20,000,000 20,000,000 20,000,000 21,670,000 22,130,000 6,361,000

Surplus/(Deficit) after capital transfers & contributions

147,523,275 114,865,018 62,372,935 40,329,906 (23,052,515) (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

Share of surplus/ (deficit) of associate - - - - - - - - - - Surplus/(Deficit) for the year 147,523,275 114,865,018 62,372,935 40,329,906 (23,052,515) (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

Capital expenditure & funds sourcesCapital expenditure 83,000,141 119,026,072 194,147,784 368,084,192 355,399,382 355,399,382 355,399,382 288,427,500 250,362,445 234,287,900

Transfers recognised - capital 16,464,573 33,077,639 20,453,749 33,010,000 30,379,770 30,379,770 30,379,770 46,073,000 39,410,000 45,587,000 Public contributions & donations - 21,269 60,300,596 - - - - - - - Borrowing 8,226,724 17,935,396 29,774,122 81,701,055 58,797,299 58,797,299 58,797,299 120,541,000 112,580,000 98,115,000 Internally generated funds 58,308,844 67,991,768 83,619,317 253,373,137 266,222,313 266,222,313 266,222,313 121,813,500 98,372,445 90,585,900

Total sources of capital funds 83,000,141 119,026,072 194,147,784 368,084,192 355,399,382 355,399,382 355,399,382 288,427,500 250,362,445 234,287,900

Financial positionTotal current assets 462,458,890 534,596,506 587,010,121 487,189,962 295,488,290 295,488,290 295,488,290 201,024,426 266,383,707 325,349,852 Total non current assets 564,073,516 4,289,857,056 4,333,505,993 854,215,166 4,542,424,262 4,542,424,262 4,542,424,262 4,699,668,960 4,815,506,524 4,893,174,040 Total current liabilities 82,775,496 92,420,480 104,677,790 89,104,503 101,658,735 101,658,735 101,658,735 121,236,230 134,751,833 152,000,907 Total non current liabilities 153,072,004 168,119,252 192,037,343 229,338,175 226,325,949 226,325,949 226,325,949 301,637,924 405,967,867 491,237,450 Community wealth/Equity 790,684,906 4,563,913,830 4,623,800,981 1,022,962,450 4,509,927,868 4,509,927,868 4,509,927,868 4,477,819,232 4,541,170,531 4,575,285,535

Cash flowsNet cash from (used) operating 192,354,083 160,257,655 221,797,103 111,068,000 194,034,112 194,034,112 194,034,112 115,171,858 207,100,489 194,415,169 Net cash from (used) investing (180,503,468) (216,526,379) (237,198,550) (102,743,000) (204,632,637) (204,632,637) (204,632,637) (218,162,422) (267,039,118) (257,954,575) Net cash from (used) financing (9,232,434) 23,391,651 20,823,285 1,936,000 36,714,784 36,714,784 36,714,784 74,872,968 96,261,719 78,170,559

Cash/cash equivalents at the year end 68,251,137 35,374,064 40,795,902 61,147,964 61,490,224 61,490,224 61,490,224 33,372,628 69,695,718 84,326,871

Cash backing/surplus reconciliationCash and investments available 373,863,617 444,115,618 504,666,629 413,149,653 213,790,223 213,790,223 213,790,223 129,501,800 182,954,063 221,714,391 Application of cash and investments 321,740,738 366,337,670 358,056,450 116,893,988 126,837,286 123,899,133 123,899,133 62,025,985 87,270,122 122,344,348

Balance - surplus (shortfall) 52,122,879 77,777,948 146,610,179 296,255,665 86,952,937 89,891,090 89,891,090 67,475,815 95,683,941 99,370,043

Asset managementAsset register summary (WDV) 550,795,503 4,275,645,860 4,318,948,337 839,212,615 4,526,785,257 4,526,785,257 4,683,505,787 4,683,505,787 4,798,194,180 4,874,742,521 Depreciation & asset impairment 47,482,193 52,021,327 145,952,037 73,243,434 147,576,325 147,576,325 153,376,967 153,376,967 157,804,053 164,095,561 Renewal of Existing Assets 14,009,386 16,771,990 25,757,290 56,068,060 53,737,502 53,737,502 45,452,500 45,452,500 45,638,250 40,621,400 Repairs and Maintenance 21,797,569 27,244,763 32,673,374 38,151,202 41,406,861 41,406,861 41,311,648 41,311,648 44,808,022 48,083,521

Free servicesCost of Free Basic Services provided 8,252,183 9,167,591 12,483,003 15,807,404 15,807,404 15,807,404 18,743,493 18,743,493 21,479,397 24,700,432 Revenue cost of free services provided 26,196,154 28,571,397 33,592,305 40,069,206 31,314,179 30,689,650 39,850,920 39,850,920 44,733,119 50,099,583

Households below minimum service levelWater: - 234 700 700 700 700 700 700 700 700 Sanitation/sewerage: - - - - - - - - - - Energy: - - - - - - - - - - Refuse: - - - - - - - - - -

2010/11 Medium Term Revenue & Expenditure FrameworkCurrent Year 2009/10

STEVE TSHWETE LOCAL MUNICIPALITY - MP313

Page 57 of 351

SUMMARY OF BUDGETED FINANCIAL PERFORMANCE BY VOTE TABLE A2

Standard Classification Description Ref 2006/7 2007/8 2008/9

R thousand 1 Audited Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2010/11



Revenue - StandardGovernance and administration 259,323,639 234,819,187 260,226,979 215,894,474 233,444,106 233,444,106 266,110,775 344,528,251 358,098,352

Executive and council 9,346,411 11,802,992 17,290,391 19,679,635 30,497,342 30,497,342 38,650,700 44,276,010 47,988,280 Budget and treasury office 126,566,357 159,733,453 190,510,532 175,147,120 170,053,485 170,053,485 198,118,282 204,762,330 214,068,920 Corporate services 123,410,871 63,282,742 52,426,056 21,067,719 32,893,279 32,893,279 29,341,793 95,489,911 96,041,152

Community and public safety 11,360,720 11,044,914 15,909,728 13,995,249 12,000,164 12,000,164 23,801,552 17,973,710 20,531,904 Community and social services 1,308,665 1,123,745 1,313,339 2,463,240 2,481,511 2,481,511 6,908,349 6,117,947 3,397,722 Sport and recreation 926,110 534,380 1,978,023 1,340,925 1,384,330 1,384,330 8,618,050 4,251,320 7,186,167 Public safety 4,055,782 4,508,501 7,894,101 5,219,075 3,144,075 3,144,075 5,308,875 4,577,660 6,860,140 Housing 470,809 347,411 207,649 409,009 402,248 402,248 414,028 465,661 517,362 Health 4,599,354 4,530,876 4,516,615 4,563,000 4,588,000 4,588,000 2,552,250 2,561,122 2,570,513

Economic and environmental services 14,697,608 31,378,629 46,494,955 24,676,121 34,428,971 34,428,971 34,056,831 27,493,778 32,007,022 Planning and development 1,058,040 2,938,330 794,678 1,153,000 1,018,000 1,018,000 2,244,395 983,560 1,025,260 Road transport 13,639,568 28,440,299 45,700,277 23,523,121 33,410,971 33,410,971 31,812,436 26,510,218 30,981,762 Environmental protection – – – – – – – – –

Trading services 220,567,196 238,963,338 326,427,965 362,506,906 360,120,256 360,120,256 455,445,078 532,044,132 597,681,818 Electricity 130,810,441 154,563,643 219,331,691 232,466,217 236,932,704 236,932,704 294,782,472 347,177,057 411,598,828 Water 40,843,152 34,750,796 43,777,497 57,765,724 54,508,382 54,508,382 56,131,780 77,119,701 65,714,783 Waste water management 26,932,997 25,296,656 34,468,524 40,554,285 34,701,101 34,701,101 57,688,089 58,135,790 65,910,095 Waste management 21,980,607 24,352,243 28,850,254 31,720,680 33,978,069 33,978,069 46,842,737 49,611,584 54,458,112

Other 4 – – – – – – – – – Total Revenue - Standard 2 505,949,163 516,206,069 649,059,627 617,072,750 639,993,497 639,993,497 779,414,236 922,039,871 1,008,319,096

Expenditure - StandardGovernance and administration 95,014,995 102,196,406 124,882,064 129,617,744 131,053,500 131,053,500 145,600,896 157,560,029 168,209,455

Executive and council 29,262,491 36,374,032 44,973,535 40,198,763 41,745,966 41,745,966 47,789,425 51,190,381 53,993,120 Budget and treasury office 16,403,871 18,933,545 22,229,224 24,508,550 24,902,518 24,902,518 33,200,409 35,783,128 38,427,462 Corporate services 49,348,634 46,888,829 57,679,305 64,910,431 64,405,016 64,405,016 64,611,062 70,586,520 75,788,873

Community and public safety 64,226,610 73,600,056 94,505,251 104,059,338 116,592,473 116,592,473 135,104,974 144,026,734 153,499,009 Community and social services 6,589,582 8,131,474 12,627,951 14,658,673 17,050,380 17,050,380 19,487,231 21,006,093 22,537,988 Sport and recreation 21,955,633 23,376,108 31,537,116 31,425,862 35,830,101 35,830,101 40,861,455 43,164,570 45,478,343 Public safety 22,876,275 28,671,608 34,272,565 39,999,616 43,191,402 43,191,402 47,281,363 50,435,285 54,034,088 Housing 1,820,516 1,693,406 1,998,988 2,686,139 3,089,426 3,089,426 6,962,026 7,524,313 8,100,869 Health 10,984,605 11,727,460 14,068,631 15,289,048 17,431,164 17,431,164 20,512,899 21,896,473 23,347,721

Economic and environmental services 40,727,868 45,565,868 90,237,039 61,605,276 96,775,568 96,775,568 102,403,051 108,050,042 112,409,919 Planning and development 5,097,110 5,405,995 6,560,115 8,368,883 8,244,295 8,244,295 8,990,779 9,694,700 10,285,437 Road transport 35,630,759 40,159,874 83,676,924 53,236,393 88,531,273 88,531,273 93,412,272 98,355,342 102,124,482 Environmental protection – – – – – – – – –

Trading services 158,456,416 179,978,722 277,062,337 281,460,486 318,624,471 318,624,471 438,598,079 467,398,688 548,387,743 Electricity 99,087,231 113,917,263 181,046,657 197,453,036 210,958,563 210,958,563 295,176,344 311,395,526 375,975,086 Water 21,569,978 23,626,284 38,077,635 29,706,869 41,588,578 41,588,578 50,806,266 53,737,981 59,501,495 Waste water management 17,537,475 19,428,264 29,680,100 25,777,289 33,256,315 33,256,315 46,477,158 52,715,716 60,181,833 Waste management 20,261,733 23,006,911 28,257,945 28,523,292 32,821,015 32,821,015 46,138,311 49,549,465 52,729,329

Other 4 – – – – – – – – – Total Expenditure - Standard 3 358,425,890 401,341,052 586,686,691 576,742,844 663,046,012 663,046,012 821,707,000 877,035,493 982,506,126 Surplus/(Deficit) for the year 147,523,273 114,865,017 62,372,936 40,329,906 (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

Current Year 2009/10 2010/11 Medium Term Revenue & Expenditure Framework


Page 58 of 351

DETAILED BUDGETED FINANCIAL PERFORMANCE BY VOTE TABLE A2A



Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2010/11



Revenue - StandardMunicipal governance and administration 259,323,639 234,819,187 260,226,979 215,894,474 233,444,106 233,444,106 266,110,775 344,528,251 358,098,352

Executive and council 9,346,411 11,802,992 17,290,391 19,679,635 30,497,342 30,497,342 38,650,700 44,276,010 47,988,280 Mayor and Council 9,345,345 11,802,992 17,288,551 19,679,635 30,497,342 30,497,342 38,650,700 44,276,010 47,988,280 Municipal Manager 1,066 – 1,840 – – – – – –

Budget and treasury office 126,566,357 159,733,453 190,510,532 175,147,120 170,053,485 170,053,485 198,118,282 204,762,330 214,068,920 Corporate services 123,410,871 63,282,742 52,426,056 21,067,719 32,893,279 32,893,279 29,341,793 95,489,911 96,041,152

Human Resources 609,270 618,379 732,738 862,352 860,252 860,252 886,020 956,860 1,033,070 Information Technology 8,501 2,630 1,091 3,000 3,000 3,000 3,100 3,100 3,100 Property Services 117,373,181 55,652,330 41,219,729 12,182,918 24,422,000 24,422,000 20,681,612 85,945,785 86,300,093 Other Admin 5,419,920 7,009,404 10,472,497 8,019,449 7,608,027 7,608,027 7,771,061 8,584,166 8,704,889

Community and public safety 11,360,720 11,044,914 15,909,728 13,995,249 12,000,164 12,000,164 23,801,552 17,973,710 20,531,904 Community and social services 1,308,665 1,123,745 1,313,339 2,463,240 2,481,511 2,481,511 6,908,349 6,117,947 3,397,722

Libraries and Archives 93,780 70,782 565,778 1,379,500 1,409,621 1,409,621 808,000 776,900 517,100 Museums & Art Galleries etc – – – – – – – – – Community halls and Facilities 65,520 81,297 100,517 95,000 105,000 105,000 2,623,350 2,629,000 134,950 Cemeteries & Crematoriums 809,342 614,388 347,851 385,000 385,000 385,000 3,201,100 2,420,000 2,441,000 Child Care – – – – – – – – – Aged Care 126,129 180,250 221,929 253,740 254,330 254,330 275,899 292,047 304,672 Other Community – – – – – – – – – Other Social 213,893 177,029 77,264 350,000 327,560 327,560 – – –

Sport and recreation 926,110 534,380 1,978,023 1,340,925 1,384,330 1,384,330 8,618,050 4,251,320 7,186,167 Public safety 4,055,782 4,508,501 7,894,101 5,219,075 3,144,075 3,144,075 5,308,875 4,577,660 6,860,140

Police 3,215,123 3,595,030 4,728,130 4,991,000 3,016,000 3,016,000 4,113,100 4,372,110 4,644,310 Fire 176,685 231,849 253,844 228,075 128,075 128,075 195,775 205,550 215,830 Civil Defence – – – – – – – – – Street Lighting 663,973 681,622 2,912,127 – – – 1,000,000 – 2,000,000 Other – – – – – – – – –

Housing 470,809 347,411 207,649 409,009 402,248 402,248 414,028 465,661 517,362 Health 4,599,354 4,530,876 4,516,615 4,563,000 4,588,000 4,588,000 2,552,250 2,561,122 2,570,513

Clinics 4,593,000 4,443,000 4,443,000 4,443,000 4,443,000 4,443,000 2,400,000 2,400,000 2,400,000 Ambulance – – – – – – – – – Other 6,354 87,876 73,615 120,000 145,000 145,000 152,250 161,122 170,513

Economic and environmental services 14,697,608 31,378,629 46,494,955 24,676,121 34,428,971 34,428,971 34,056,831 27,493,778 32,007,022 Planning and development 1,058,040 2,938,330 794,678 1,153,000 1,018,000 1,018,000 2,244,395 983,560 1,025,260

Economic Development/Planning – 1,197,341 – 150,000 150,000 150,000 – – – Town Planning/Building enforcement 1,058,040 1,740,989 794,678 1,003,000 868,000 868,000 2,244,395 983,560 1,025,260 Licensing & Regulation – – – – – – – – –

Road transport 13,639,568 28,440,299 45,700,277 23,523,121 33,410,971 33,410,971 31,812,436 26,510,218 30,981,762 Roads 5,257,447 18,506,624 33,254,993 11,824,750 21,206,000 21,206,000 15,263,000 12,994,000 16,655,000 Public Buses – – – – – – – – – Parking Garages – – – – – – – – – Vehicle Licensing and Testing 8,345,515 9,897,069 12,408,677 11,661,765 12,168,365 12,168,365 12,711,000 13,475,860 14,284,386 Other 36,606 36,606 36,606 36,606 36,606 36,606 3,838,436 40,358 42,376

Environmental protection – – – – – – – – – Pollution ControlBiodiversity & LandscapeOther

Trading services 220,567,196 238,963,338 326,427,965 362,506,906 360,120,256 360,120,256 455,445,078 532,044,132 597,681,818 Electricity 130,810,441 154,563,643 219,331,691 232,466,217 236,932,704 236,932,704 294,782,472 347,177,057 411,598,828

Electricity Distribution 130,810,441 154,563,643 219,331,691 232,466,217 236,932,704 236,932,704 294,782,472 347,177,057 411,598,828 Electricity Generation – – – – – – – – –

Water 40,843,152 34,750,796 43,777,497 57,765,724 54,508,382 54,508,382 56,131,780 77,119,701 65,714,783 Water Distribution 40,837,058 34,748,107 43,742,023 57,765,724 54,508,382 54,508,382 48,131,780 55,619,701 59,714,783 Water Storage 6,094 2,689 35,474 – – – 8,000,000 21,500,000 6,000,000

Waste water management 26,932,997 25,296,656 34,468,524 40,554,285 34,701,101 34,701,101 57,688,089 58,135,790 65,910,095 Sewerage 26,932,997 25,296,656 34,468,524 40,554,285 34,701,101 34,701,101 57,688,089 58,135,790 65,910,095 Storm Water Management – – – – – – – – – Public Toilets – – – – – – – – –

Waste management 21,980,607 24,352,243 28,850,254 31,720,680 33,978,069 33,978,069 46,842,737 49,611,584 54,458,112 Solid Waste 21,980,607 24,352,243 28,850,254 31,720,680 33,978,069 33,978,069 46,842,737 49,611,584 54,458,112

Other – – – – – – – – – Air Transport – – – – – – – – Abattoirs – – – – – – – – Tourism – – – – – – – – Forestry – – – – – – – – Markets – – – – – – – –

Total Revenue - Standard 2 505,949,163 516,206,069 649,059,627 617,072,750 639,993,497 639,993,497 779,414,236 922,039,871 1,008,319,096



Page 59 of 351

DETAILED BUDGETED FINANCIAL PERFORMANCE BY VOTE TABLE A2A



Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2010/11





Expenditure - StandardMunicipal governance and administration 95,014,995 102,196,406 124,882,064 129,617,744 131,053,500 131,053,500 145,600,896 157,560,029 168,209,455

Executive and council 29,262,491 36,374,032 44,973,535 40,198,763 41,745,966 41,745,966 47,789,425 51,190,381 53,993,120 Mayor and Council 17,964,105 24,309,458 30,987,726 20,199,801 21,920,970 21,920,970 24,853,127 26,722,664 28,391,739 Municipal Manager 11,298,386 12,064,574 13,985,809 19,998,962 19,824,996 19,824,996 22,936,298 24,467,717 25,601,381

Budget and treasury office 16,403,871 18,933,545 22,229,224 24,508,550 24,902,518 24,902,518 33,200,409 35,783,128 38,427,462 Corporate services 49,348,634 46,888,829 57,679,305 64,910,431 64,405,016 64,405,016 64,611,062 70,586,520 75,788,873

Human Resources 3,786,383 3,736,829 4,457,976 6,500,603 6,656,164 6,656,164 8,244,463 8,845,759 9,760,868 Information Technology 3,932,316 4,148,890 5,143,064 7,740,612 6,669,937 6,669,937 8,129,879 9,089,747 11,262,853 Property Services 18,433,429 15,280,293 17,030,883 18,338,398 17,194,219 17,194,219 18,493,361 19,313,800 19,866,435 Other Admin 23,196,506 23,722,817 31,047,382 32,330,818 33,884,696 33,884,696 29,743,359 33,337,214 34,898,717

Community and public safety 64,226,610 73,600,056 94,505,251 104,059,338 116,592,473 116,592,473 135,104,974 144,026,734 153,499,009 Community and social services 6,589,582 8,131,474 12,627,951 14,658,673 17,050,380 17,050,380 19,487,231 21,006,093 22,537,988

Libraries and Archives 3,140,782 3,770,919 5,579,303 5,991,173 6,846,829 6,846,829 7,737,201 8,492,786 8,882,522 Museums & Art Galleries etc – – – – – – – – – Community halls and Facilities 957,882 1,134,532 2,178,191 3,185,936 4,033,391 4,033,391 4,374,610 4,736,828 5,550,300 Cemeteries & Crematoriums 2,122,676 2,360,331 3,641,510 3,208,721 4,116,397 4,116,397 4,917,124 5,141,809 5,312,056 Child Care – – – – – – – – – Aged Care 154,349 213,743 260,122 361,342 304,696 304,696 288,029 308,029 303,345 Other Community – – – – – – – – – Other Social 213,893 651,949 968,825 1,911,501 1,749,067 1,749,067 2,170,267 2,326,641 2,489,765

Sport and recreation 21,955,633 23,376,108 31,537,116 31,425,862 35,830,101 35,830,101 40,861,455 43,164,570 45,478,343 Public safety 22,876,275 28,671,608 34,272,565 39,999,616 43,191,402 43,191,402 47,281,363 50,435,285 54,034,088

Police 10,915,284 13,070,336 15,174,792 18,388,750 17,900,191 17,900,191 21,248,695 22,629,554 24,175,625 Fire 9,043,874 12,515,303 15,172,798 17,762,965 20,476,135 20,476,135 21,532,606 22,872,319 24,398,821 Civil Defence – – – – – – – – – Street Lighting 2,917,117 3,085,969 3,924,975 3,847,901 4,815,076 4,815,076 4,500,062 4,933,412 5,459,642 Other – – – – – – – – –

Housing 1,820,516 1,693,406 1,998,988 2,686,139 3,089,426 3,089,426 6,962,026 7,524,313 8,100,869 Health 10,984,605 11,727,460 14,068,631 15,289,048 17,431,164 17,431,164 20,512,899 21,896,473 23,347,721

Clinics 9,026,710 9,493,138 11,301,886 11,622,693 13,503,076 13,503,076 16,057,521 17,167,325 18,174,710 Ambulance – – – – – – – – – Other 1,957,895 2,234,323 2,766,745 3,666,355 3,928,088 3,928,088 4,455,378 4,729,148 5,173,011

Economic and environmental services 40,727,868 45,565,868 90,237,039 61,605,276 96,775,568 96,775,568 102,403,051 108,050,042 112,409,919 Planning and development 5,097,110 5,405,995 6,560,115 8,368,883 8,244,295 8,244,295 8,990,779 9,694,700 10,285,437

Economic Development/Planning 791,807 620,520 1,311,035 1,776,027 2,227,428 2,227,428 2,309,267 2,436,065 2,653,431 Town Planning/Building enforcement 4,305,303 4,785,475 5,249,080 6,592,856 6,016,867 6,016,867 6,681,512 7,258,635 7,632,006 Licensing & Regulation – – – – – – – – –

Road transport 35,630,759 40,159,874 83,676,924 53,236,393 88,531,273 88,531,273 93,412,272 98,355,342 102,124,482 Roads 30,264,983 33,244,570 75,403,505 43,330,489 78,504,834 78,504,834 81,212,530 85,210,214 88,141,370 Public Buses – – – – – – – – – Parking Garages – – – – – – – – – Vehicle Licensing and Testing 4,599,556 6,044,184 7,051,005 8,757,451 8,646,837 8,646,837 10,652,251 11,468,496 12,188,593 Other 766,220 871,120 1,222,414 1,148,453 1,379,602 1,379,602 1,547,491 1,676,632 1,794,519

Environmental protection – – – – – – – – – Pollution ControlBiodiversity & LandscapeOther

Trading services 158,456,416 179,978,722 277,062,337 281,460,486 318,624,471 318,624,471 438,598,079 467,398,688 548,387,743 Electricity 99,087,231 113,917,263 181,046,657 197,453,036 210,958,563 210,958,563 295,176,344 311,395,526 375,975,086

Electricity Distribution 99,087,231 113,917,263 181,046,657 197,453,036 210,958,563 210,958,563 295,176,344 311,395,526 375,975,086 Electricity Generation – – – – – – – – –

Water 21,569,978 23,626,284 38,077,635 29,706,869 41,588,578 41,588,578 50,806,266 53,737,981 59,501,495 Water Distribution 14,517,075 16,057,681 21,570,322 18,888,611 22,529,645 22,529,645 31,308,107 33,037,276 35,012,712 Water Storage 7,052,903 7,568,603 16,507,314 10,818,258 19,058,933 19,058,933 19,498,159 20,700,705 24,488,783

Waste water management 17,537,475 19,428,264 29,680,100 25,777,289 33,256,315 33,256,315 46,477,158 52,715,716 60,181,833 Sewerage 16,744,465 18,522,718 28,635,492 24,627,339 31,947,096 31,947,096 44,964,568 51,105,231 58,438,245 Storm Water Management – – – – – – – – – Public Toilets 793,009 905,547 1,044,607 1,149,950 1,309,219 1,309,219 1,512,590 1,610,485 1,743,588

Waste management 20,261,733 23,006,911 28,257,945 28,523,292 32,821,015 32,821,015 46,138,311 49,549,465 52,729,329 Solid Waste 20,261,733 23,006,911 28,257,945 28,523,292 32,821,015 32,821,015 46,138,311 49,549,465 52,729,329

Other – – – – – – – – – Air TransportAbattoirsTourismForestryMarkets

Total Expenditure - Standard 3 358,425,890 401,341,052 586,686,691 576,742,844 663,046,012 663,046,012 821,707,000 877,035,493 982,506,126 Surplus/(Deficit) for the year 147,523,273 114,865,017 62,372,936 40,329,906 (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

Page 60 of 351

BUDGETED FINANCIAL PERFORMANCE BY REVENE SOURCE AND EXPENDITURE TYPE TABLE A4

Description Ref 2006/7 2007/8 2008/9


Audited Outcome

Audited Outcome Original Budget Adjusted

BudgetFull Year Forecast

Pre-audit outcome

Budget Year 2010/11



Revenue By SourceProperty rates 2 87,679,521 99,143,999 116,654,523 122,306,875 132,822,425 132,822,425 132,822,425 158,413,177 166,817,474 176,762,794 Property rates - penalties & collection chargesService charges - electricity revenue 2 121,399,833 131,875,561 182,529,988 216,387,707 220,246,394 220,246,394 220,246,394 275,166,589 326,614,181 389,989,719 Service charges - water revenue 2 34,646,560 29,988,487 34,920,310 35,104,900 35,515,808 35,515,808 35,515,808 43,304,336 47,220,410 50,795,622 Service charges - sanitation revenue 2 17,606,858 19,243,332 21,164,430 23,286,425 23,435,551 23,435,551 23,435,551 35,118,589 41,932,315 49,102,732 Service charges - refuse revenue 2 16,789,529 18,283,405 21,050,558 21,918,615 23,309,410 23,309,410 23,309,410 34,934,222 37,491,400 40,232,025 Service charges - other – Rental of facilities and equipment 1,840,584 1,705,266 1,639,111 8,735,498 4,978,311 4,978,311 4,978,311 11,610,060 12,007,605 12,408,557 Interest earned - external investments 26,960,138 46,261,299 57,012,025 35,750,000 30,400,000 30,400,000 30,400,000 32,250,000 29,750,000 28,250,000 Interest earned - outstanding debtors 1,703,384 2,112,732 2,709,464 2,113,270 1,761,500 1,761,500 1,761,500 1,666,870 1,629,372 1,598,690 Dividends received – – – – – – – – – Fines 3,345,607 3,638,936 4,842,970 4,999,600 3,078,500 3,078,500 3,078,500 4,120,000 4,361,000 4,614,000 Licences and permits 3,228,248 4,240,758 5,477,018 5,066,700 5,066,700 5,066,700 5,066,700 5,117,500 5,426,185 5,751,180 Agency services 5,023,898 5,544,491 6,810,452 6,500,000 7,000,000 7,000,000 7,000,000 7,550,000 8,003,000 8,483,180 Transfers recognised - operational 36,998,627 41,893,680 57,382,978 60,825,060 63,203,212 63,203,212 63,203,212 75,081,000 86,161,000 95,164,000 Other revenue 2 132,252,460 78,605,059 55,998,128 20,818,100 37,115,916 37,115,916 37,115,916 26,866,393 92,613,429 92,746,097 Gains on disposal of PPE 1,499 393,132 36,063 250,000 450,000 450,000 450,000 472,500 472,500 472,500

Total Revenue (excluding capital transfers and contributions)

489,476,746 482,930,138 568,228,017 564,062,750 588,383,727 588,383,727 588,383,727 711,671,236 860,499,871 956,371,096

Expenditure By TypeEmployee related costs 2 121,965,642 137,386,708 153,828,086 185,130,917 188,191,015 188,191,015 188,191,015 222,339,505 238,659,237 255,752,464 Remuneration of councillors 9,452,422 9,415,656 10,501,226 11,692,026 11,287,832 11,287,832 11,287,832 12,220,447 13,075,885 13,860,455 Debt impairment 3 2,833,680 2,904,330 5,455,502 3,893,005 3,893,005 3,893,005 3,893,005 4,087,655 4,292,058 4,506,638 Depreciation & asset impairment 2 47,482,193 52,021,327 145,952,037 73,243,434 147,576,325 147,576,325 147,576,325 153,376,967 157,804,053 164,095,561 Finance charges 15,236,357 17,160,253 18,502,686 20,190,070 20,190,070 20,190,070 20,190,070 22,040,849 30,056,218 37,768,201 Bulk purchases 2 72,046,194 79,872,542 109,724,556 146,883,706 148,226,556 148,226,556 148,226,556 195,687,065 240,454,508 298,283,060 Other materials 8Contracted services 8,857,622 9,774,987 10,757,142 14,433,785 16,887,653 16,887,653 16,887,653 17,851,072 19,090,057 20,651,077 Transfers and grants 1,671,264 1,606,806 1,493,794 1,505,000 1,132,000 1,132,000 1,132,000 31,012,300 34,907,190 39,544,820 Other expenditure 4, 5 77,141,958 91,107,224 130,471,663 119,770,901 125,661,556 125,661,556 125,661,556 163,091,140 138,696,287 148,043,850 Loss on disposal of PPE 1,744,602 91,219 – – – – – – –

Total Expenditure 358,431,934 401,341,052 586,686,692 576,742,844 663,046,012 663,046,012 663,046,012 821,707,000 877,035,493 982,506,126

Surplus/(Deficit) 131,044,812 81,589,086 (18,458,674) (12,680,094) (74,662,285) (74,662,285) (74,662,285) (110,035,764) (16,535,622) (26,135,030) Transfers recognised - capital 12,455,942 24,126,548 19,477,068 33,010,000 31,609,770 31,609,770 31,609,770 46,073,000 39,410,000 45,587,000 Contributions recognised - capital 6 – – – – – – – – – – Contributed assets 4,022,521 9,149,384 61,354,542 20,000,000 20,000,000 20,000,000 20,000,000 21,670,000 22,130,000 6,361,000

Surplus/(Deficit) after capital transfers & contributions

147,523,275 114,865,018 62,372,935 40,329,906 (23,052,515) (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

TaxationSurplus/(Deficit) after taxation 147,523,275 114,865,018 62,372,935 40,329,906 (23,052,515) (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

Attributable to minoritiesSurplus/(Deficit) attributable to municipality 147,523,275 114,865,018 62,372,935 40,329,906 (23,052,515) (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

Share of surplus/ (deficit) of associate 7Surplus/(Deficit) for the year 147,523,275 114,865,018 62,372,935 40,329,906 (23,052,515) (23,052,515) (23,052,515) (42,292,764) 45,004,378 25,812,970

2010/11 Medium Term Revenue & Expenditure FrameworkCurrent Year 2009/10


Page 61 of 351

600,000,000

800,000,000

1,000,000,000

1,200,000,000

CHART 1 - REVENUE BY MAJOR SOURCE

-

200,000,000

400,000,000

06/07 Audited Actual



09/10 Original Budget

09/10 Adjusted Budget

10/11 Concept Budget

11/12 Projected

12/13 Projected

Refuse Tariffs 16,789,529 18,283,405 21,050,558 21,918,615 23,309,410 34,934,222 37,491,400 40,232,025 Sanitation Tariffs 17,606,858 19,243,332 21,164,430 23,286,425 23,435,551 35,118,589 41,932,315 49,102,732 Water tariffs 34,646,560 29,988,487 34,920,310 35,104,900 35,515,808 43,304,336 47,220,410 50,795,622 Grants & subsidies : Capital 16,478,463 33,275,932 80,831,610 53,010,000 51,609,770 57,923,000 60,910,000 51,587,000 Grants & subsidies : Operating 36,998,627 41,893,680 57,382,978 60,825,060 63,203,212 75,081,000 86,161,000 95,164,000 Other Revenue 174,355,818 142,501,673 134,525,230 84,233,168 89,850,927 89,653,323 154,263,091 154,324,204 Property rates 87,679,521 99,143,999 116,654,523 122,306,875 132,822,425 158,413,177 166,817,474 176,762,794 Electricity tariffs 121,399,833 131,875,561 182,529,988 216,387,707 220,246,394 275,166,589 326,614,181 389,989,719

Page 62 of 351

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

CHART 2 - OTHER REVENUE

-

20,000,000

40,000,000

60,000,000

80,000,000







11/12 Projected

12/13 Projected

Interest earned - Outstanding debtors 1,703,384 2,112,732 2,709,464 2,113,270 1,761,500 1,666,870 1,629,372 1,598,690 Rental of facilities and equipment 1,840,584 1,705,266 1,639,111 8,735,498 4,978,311 11,610,060 12,007,605 12,408,557 Fines 3,345,607 3,638,936 4,842,970 4,999,600 3,078,500 4,120,000 4,361,000 4,614,000 Income from agency services 5,023,898 5,544,491 6,810,452 6,500,000 7,000,000 7,550,000 8,003,000 8,483,180 Licenses and permits 3,228,248 4,240,758 5,477,018 5,066,700 5,066,700 5,117,500 5,426,185 5,751,180 Interest earned - External investments 26,960,138 46,261,299 57,012,025 35,750,000 30,400,000 32,250,000 29,750,000 28,250,000 Other income 132,253,959 78,998,191 56,034,191 21,068,100 37,565,916 27,338,893 93,085,929 93,218,597

Page 63 of 351

Bulk purchases23.81%

Contracted services2.17%

Grants and subsidies3.77% Other expenditure

19.85%

CHART 3 - OPERATING EXPENDITURE BY TYPE2010/2011

Employee related costs27.06%

Remuneration of councillors

1.49%Debt impairment0.50%

Depreciation & asset impairment

18.67%

Finance charges2.68%

Page 64 of 351

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

1,000,000,000

CHART 4 - OPERATING EXPENDITURE BY MAIN VOTE

0

100,000,000

200,000,000







11/12 Projected

12/13 Projected

Waste Water Management 17,537,475 19,428,264 29,680,100 25,777,289 33,256,315 46,477,158 52,715,716 60,181,833

Waste Management 20,261,733 23,006,911 28,257,945 28,523,292 32,821,015 46,138,311 49,549,465 52,729,329

Water 21,569,978 23,626,284 38,077,635 29,706,869 41,588,578 50,806,266 53,737,981 59,501,495

Sport and Recreation 21,955,633 23,376,108 31,537,116 31,425,862 35,830,101 40,861,455 43,164,570 45,478,343

Executive & Council 29,262,491 36,374,032 44,973,535 40,198,763 41,745,966 47,789,425 51,190,381 53,993,120

Public Safety 22,876,275 28,671,608 34,272,565 39,999,616 43,191,402 47,281,363 50,435,285 54,034,088

Road Transport 35,630,759 40,159,874 83,676,924 53,236,393 88,531,273 93,412,272 98,355,342 102,124,482

Corporate Services 49,348,634 46,888,829 57,679,305 64,910,431 64,405,016 64,611,062 70,586,520 75,788,873

Other Votes 40,895,683 45,891,880 57,484,910 65,511,293 70,717,783 89,153,344 95,904,707 102,699,477

Electricity 99,087,231 113,917,263 181,046,657 197,453,036 210,958,563 295,176,344 311,395,526 375,975,086

Page 65 of 351

60,000,000

80,000,000

100,000,000

120,000,000

CHART 5 - OTHER OPERATING EXPENDITURE

0

20,000,000

40,000,000

, ,







11/12 Projected

12/13 Projected

Human Settlements 1,820,516 1,693,406 1,998,988 2,686,139 3,089,426 6,962,026 7,524,313 8,100,869

Planning & Development 5,097,110 5,405,995 6,560,115 8,368,883 8,244,295 8,990,779 9,694,700 10,285,437

Community & Social Services 6,589,582 8,131,474 12,627,951 14,658,673 17,050,380 19,487,231 21,006,093 22,537,988

Health 10,984,605 11,727,460 14,068,631 15,289,048 17,431,164 20,512,899 21,896,473 23,347,721

Budget & Treasury Office 16,403,871 18,933,545 22,229,224 24,508,550 24,902,518 33,200,409 35,783,128 38,427,462

Page 66 of 351

BUDGETED CAPITAL EXPENDITURE BY VOTE TABLE A5

Ref 2006/7 2007/8 2008/9

1 Audited Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2010/11



Capital Expenditure - StandardGovernance and administration 3,758,929 8,212,293 11,340,256 23,119,985 25,604,675 25,604,675 25,604,675 16,249,500 14,836,650 6,223,000

Executive and council 268,722 726,761 1,409,449 2,788,000 3,188,300 3,188,300 3,188,300 680,650 580,650 770,000 Budget and treasury office 188,283 348,745 306,132 140,000 140,000 140,000 140,000 110,000 80,000 80,000 Corporate services 3,301,924 7,136,787 9,624,675 20,191,985 22,276,375 22,276,375 22,276,375 15,458,850 14,176,000 5,373,000

Community and public safety 15,359,722 18,636,101 18,945,765 81,899,152 79,565,256 79,565,256 79,565,256 75,741,500 26,310,500 27,510,000 Community and social services 7,194,734 5,712,029 3,359,980 58,710,000 56,375,293 56,375,293 56,375,293 48,698,000 7,220,000 4,182,000 Sport and recreation 2,692,808 2,728,054 5,258,657 10,963,385 10,464,876 10,464,876 10,464,876 15,065,000 9,335,000 11,840,000 Public safety 5,191,120 6,795,961 9,663,109 9,949,030 10,456,080 10,456,080 10,456,080 10,452,000 8,632,000 10,289,000 Housing - 348,006 38,913 55,000 55,000 55,000 55,000 23,500 70,000 5,000 Health 281,060 3,052,052 625,108 2,221,737 2,214,007 2,214,007 2,214,007 1,503,000 1,053,500 1,194,000

Economic and environmental services 22,121,640 47,007,247 58,280,058 56,623,300 68,677,945 68,677,945 68,677,945 69,853,000 65,004,000 71,954,500 Planning and development 676,126 2,336,983 969,861 1,300,000 1,300,000 1,300,000 1,300,000 2,700,000 1,500,000 1,500,000 Road transport 21,445,514 44,670,264 57,310,197 55,323,300 67,377,945 67,377,945 67,377,945 67,153,000 63,504,000 70,454,500 Environmental protection - - - - - - - - - -

Trading services 41,759,850 45,170,431 105,581,704 206,441,755 181,551,506 181,551,506 181,551,506 126,583,500 144,211,295 128,600,400 Electricity 23,100,873 33,934,442 75,570,929 147,633,355 130,249,539 130,249,539 130,249,539 51,552,000 81,272,845 64,056,500 Water 7,395,887 5,570,060 11,569,041 25,790,800 22,832,103 22,832,103 22,832,103 25,357,000 13,317,500 12,178,000 Waste water management 8,553,930 3,451,243 15,849,604 28,927,600 24,919,864 24,919,864 24,919,864 44,744,500 45,150,950 48,525,900 Waste management 2,709,160 2,214,686 2,592,130 4,090,000 3,550,000 3,550,000 3,550,000 4,930,000 4,470,000 3,840,000 Other - - - -

Total Capital Expenditure - Standard 3 83,000,141 119,026,072 194,147,784 368,084,192 355,399,382 355,399,382 355,399,382 288,427,500 250,362,445 234,287,900

Funded by:National Government 11,905,945 23,882,241 18,785,129 30,510,000 29,510,000 29,510,000 29,510,000 46,073,000 39,410,000 45,587,000 Provincial Government - 452,870 1,280,000 409,770 409,770 409,770 - - - District Municipality 3,388,628 8,951,086 909,955 - - - - - - - Other transfers and grants 1,170,000 244,312 305,795 1,220,000 460,000 460,000 460,000 - - -

Transfers recognised - capital 4 16,464,573 33,077,639 20,453,749 33,010,000 30,379,770 30,379,770 30,379,770 46,073,000 39,410,000 45,587,000 Public contributions & donations 5 21,269 60,300,596 - - - - - - - Borrowing 6 8,226,724 17,935,396 29,774,122 81,701,055 58,797,299 58,797,299 58,797,299 120,541,000 112,580,000 98,115,000 Internally generated funds 58,308,844 67,991,768 83,619,317 253,373,137 266,222,313 266,222,313 266,222,313 121,813,500 98,372,445 90,585,900

Total Capital Funding 7 83,000,141 119,026,072 194,147,784 368,084,192 355,399,382 355,399,382 355,399,382 288,427,500 250,362,445 234,287,900


Vote Description

2010/11 Medium Term Revenue & Expenditure Framework Current Year 2009/10

Page 67 of 351

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

CHART 6 - CAPITAL EXPENDITURE BY MAIN VOTE

-

50,000,000

100,000,000

150,000,000







11/12 Projected

12/13 Projected

Other Votes 4,123,351 9,027,232 5,941,592 10,594,737 10,447,307 9,947,150 7,754,150 7,389,000 Public Safety 5,191,120 6,795,961 9,663,109 9,949,030 10,456,080 10,452,000 8,632,000 10,289,000 Waste Water Management 8,553,930 3,451,243 15,849,604 28,927,600 24,919,864 44,744,500 45,150,950 48,525,900 Sport and Recreation 2,692,808 2,728,054 5,258,657 10,963,385 10,464,876 15,065,000 9,335,000 11,840,000 Corporate Services 3,301,924 7,136,787 9,624,675 20,191,985 22,276,375 15,458,850 14,176,000 5,373,000 Water 7,395,887 5,570,060 11,569,041 25,790,800 22,832,103 25,357,000 13,317,500 12,178,000 Community & Social Services 7,194,734 5,712,029 3,359,980 58,710,000 56,375,293 48,698,000 7,220,000 4,182,000 Road Transport 21,445,514 44,670,264 57,310,197 55,323,300 67,377,945 67,153,000 63,504,000 70,454,500 Electricity 23,100,873 33,934,442 75,570,929 147,633,355 130,249,539 51,552,000 81,272,845 64,056,500

Page 68 of 351

6,000,000

8,000,000

10,000,000

12,000,000

CHART 7 - OTHER CAPITAL EXPENDITURE

-

2,000,000

4,000,000







11/12 Projected

12/13 Projected

Human Settlements - 348,006 38,913 55,000 55,000 23,500 70,000 5,000 Budget & Treasury Office 188,283 348,745 306,132 140,000 140,000 110,000 80,000 80,000 Planning & Development 676,126 2,336,983 969,861 1,300,000 1,300,000 2,700,000 1,500,000 1,500,000 Health 281,060 3,052,052 625,108 2,221,737 2,214,007 1,503,000 1,053,500 1,194,000 Executive & Council 268,722 726,761 1,409,449 2,788,000 3,188,300 680,650 580,650 770,000 Waste Management 2,709,160 2,214,686 2,592,130 4,090,000 3,550,000 4,930,000 4,470,000 3,840,000

Page 69 of 351

150,000,000

200,000,000

250,000,000

300,000,000

CHART 8 - CAPITAL FUNDING BY SOURCE

0

50,000,000

100,000,000







11/12 Projected

12/13 Projected

Transfers recognised - capital 16,464,573 33,077,639 20,453,749 33,010,000 30,379,770 24,403,000 17,280,000 39,226,000 Public contributions & donations 21,269 60,300,596 - - 21,670,000 22,130,000 6,361,000 Borrowing 8,226,724 17,935,396 29,774,122 81,701,055 73,749,099 120,541,000 112,580,000 98,115,000 Internally generated funds 58,308,844 67,991,768 83,619,317 253,373,137 251,270,513 121,813,500 98,372,445 90,585,900

Page 70 of 351

BUDGETED FINANCIAL POSITION TABLE A6

Ref 2006/7 2007/8 2008/9

Audited Outcome Audited Outcome Audited Outcome Original Budget Adjusted Budget Full Year Forecast Pre-audit outcome Budget Year 2010/11



ASSETSCurrent assets

Cash 68,251,138 35,373,965 40,795,803 61,148,000 61,490,224 61,490,224 61,490,224 33,372,628 69,695,718 84,326,871 Call investment deposits 1 294,000,000 396,000,000 450,000,000 337,000,000 137,300,000 137,300,000 137,300,000 80,000,000 96,000,000 119,000,000 Consumer debtors 1 24,591,669 26,778,979 30,608,343 31,813,427 32,517,231 32,517,231 32,517,231 36,657,927 38,674,269 39,718,931 Other debtors 11,834,904 17,252,398 17,330,341 14,868,670 15,121,490 15,121,490 15,121,490 14,230,421 14,515,000 14,805,330 Current portion of long-term receivables 29,183,886 24,324,199 13,016,745 13,016,745 13,016,745 13,016,745 - - - Inventory 2 34,597,293 34,866,965 35,258,889 42,359,865 36,042,600 36,042,600 36,042,600 36,763,450 47,498,720 67,498,720

Total current assets 462,458,890 534,596,506 587,010,121 487,189,962 295,488,290 295,488,290 295,488,290 201,024,426 266,383,707 325,349,852

Non current assetsLong-term receivables 1,665,534 1,289,485 554,596 554,596 554,596 554,596 - - - Investments 11,612,479 12,741,653 13,870,826 15,001,653 14,999,999 14,999,999 14,999,999 16,129,172 17,258,345 18,387,520 Investment propertyInvestment in AssociateProperty, plant and equipment 3 548,811,591 4,272,426,409 4,315,783,733 837,943,513 4,523,289,301 4,523,289,301 4,523,289,301 4,679,516,338 4,794,131,724 4,871,174,080 AgriculturalBiologicalIntangible 1,983,912 3,219,451 3,164,604 1,270,000 3,495,956 3,495,956 3,495,956 3,989,450 4,062,455 3,568,440 Other non-current assets 180,058 132,234 84,410 84,410 84,410 34,000 54,000 44,000

Total non current assets 564,073,516 4,289,857,056 4,333,505,993 854,215,166 4,542,424,262 4,542,424,262 4,542,424,262 4,699,668,960 4,815,506,524 4,893,174,040 TOTAL ASSETS 1,026,532,406 4,824,453,562 4,920,516,114 1,341,405,128 4,837,912,552 4,837,912,552 4,837,912,552 4,900,693,386 5,081,890,231 5,218,523,892

LIABILITIESCurrent liabilities

Bank overdraft 1Borrowing 4 12,890,670 15,900,312 19,151,577 22,735,378 19,451,932 19,451,932 19,451,932 24,609,070 23,017,941 24,038,762 Consumer deposits 17,463,744 19,797,804 22,223,982 22,367,400 24,323,982 24,323,982 24,323,982 27,242,860 30,512,000 33,563,200 Trade and other payables 4 51,952,518 55,713,516 60,500,599 41,554,625 55,081,189 55,081,189 55,081,189 65,767,835 77,316,110 90,180,700 Provisions 468,564 1,008,848 2,801,632 2,447,100 2,801,632 2,801,632 2,801,632 3,616,465 3,905,782 4,218,245

Total current liabilities 82,775,496 92,420,480 104,677,790 89,104,503 101,658,735 101,658,735 101,658,735 121,236,230 134,751,833 152,000,907

Non current liabilitiesBorrowing 100,556,054 119,210,989 134,356,831 165,260,847 168,645,437 168,645,437 168,645,437 235,442,389 330,026,097 404,124,635 Provisions 52,515,950 48,908,263 57,680,512 64,077,328 57,680,512 57,680,512 57,680,512 66,195,535 75,941,770 87,112,815

Total non current liabilities 153,072,004 168,119,252 192,037,343 229,338,175 226,325,949 226,325,949 226,325,949 301,637,924 405,967,867 491,237,450 TOTAL LIABILITIES 235,847,500 260,539,732 296,715,133 318,442,678 327,984,684 327,984,684 327,984,684 422,874,154 540,719,700 643,238,357

NET ASSETS 5 790,684,906 4,563,913,830 4,623,800,981 1,022,962,450 4,509,927,868 4,509,927,868 4,509,927,868 4,477,819,232 4,541,170,531 4,575,285,535

COMMUNITY WEALTH/EQUITYAccumulated Surplus/(Deficit) 229,241,100 4,242,036,360 4,297,931,840 606,264,889 4,397,059,227 4,397,059,227 4,397,059,227 4,435,178,917 4,482,400,829 4,493,321,887 Reserves 4 561,443,806 321,877,470 325,869,141 416,697,561 112,868,641 112,868,641 112,868,641 42,640,315 58,769,702 81,963,648 Minorities' interests

TOTAL COMMUNITY WEALTH/EQUITY 5 790,684,906 4,563,913,830 4,623,800,981 1,022,962,450 4,509,927,868 4,509,927,868 4,509,927,868 4,477,819,232 4,541,170,531 4,575,285,535



Description

Page 71 of 351

Current assets R 201 024 426Current liabilities

R 121 236 230

Non-current liabilities R 301 637 924

CHART 10 - BUDGETED FINANCIALPOSITION 2010/2011

Non-current assets R 4 699 668 960

COMMUNITY WEALTH R 4 477 819 232

Page 72 of 351

BUDGETED CASH FLOW TABLE A7

Description Ref 2006/7 2007/8 2008/9

R thousand Audited Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2010/11



CASH FLOW FROM OPERATING ACTIVITIESReceipts

Ratepayers and other 423,848,858 400,334,460 524,447,766 495,661,000 493,019,015 493,019,015 493,019,015 602,673,366 742,959,499 831,358,406Government - operating 1 36,998,627 41,893,680 57,382,978 61,475,000 63,203,212 63,203,212 63,203,212 75,081,000 86,161,000 95,164,000Government - capital 1 12,455,942 24,126,548 19,399,804 53,010,000 51,609,770 51,609,770 51,609,770 67,743,000 61,540,000 51,948,000Interest 28,663,522 48,374,031 59,721,489 36,613,000 32,161,500 32,161,500 32,161,500 33,916,870 31,379,372 29,848,690Dividends

PaymentsSuppliers and employees (294,376,509) (337,310,811) (420,652,248) (515,501,000) (425,769,315) (425,769,315) (425,769,315) (642,201,529) (684,883,164) (776,135,726)Finance charges (15,236,357) (17,160,253) (18,502,686) (20,190,000) (20,190,070) (20,190,070) (20,190,070) (22,040,849) (30,056,218) (37,768,201)Transfers and Grants 1

NET CASH FROM/(USED) OPERATING ACTIVITIES 192,354,083 160,257,655 221,797,103 111,068,000 194,034,112 194,034,112 194,034,112 115,171,858 207,100,489 194,415,169

CASH FLOWS FROM INVESTING ACTIVITIESReceipts

Proceeds on disposal of PPE 1,499 393,132 36,063 250,000 450,000 450,000 450,000 472,500 472,500 472,500Decrease (Increase) in non-current debtors 50,410 (20,000) (10,000)Decrease (increase) other non-current receivables 5,624,348 5,235,735 12,042,344 13,016,745 13,016,745 13,016,745 13,571,341 0 0Decrease (increase) in non-current investments (103,129,174) (103,129,174) (55,129,173) 137,170,000 137,300,000 137,300,000 137,300,000 56,170,827 (17,129,173) (24,129,175)

PaymentsCapital assets (83,000,141) (119,026,072) (194,147,784) (240,163,000) (355,399,382) (355,399,382) (355,399,382) (288,427,500) (250,362,445) (234,287,900)

NET CASH FROM/(USED) INVESTING ACTIVITIES (180,503,468) (216,526,379) (237,198,550) (102,743,000) (204,632,637) (204,632,637) (204,632,637) (218,162,422) (267,039,118) (257,954,575)

CASH FLOWS FROM FINANCING ACTIVITIESReceipts

Short term loansBorrowing long term/refinancing 35,075,374 35,429,297 22,638,378 53,740,538 53,740,538 53,740,538 95,670,556 117,601,649 98,137,300Increase (decrease) in consumer deposits 2,446,334 2,334,060 2,426,178 2,033,000 2,426,178 2,426,178 2,426,178 2,918,878 3,269,140 3,051,200

PaymentsRepayment of borrowing (11,678,768) (14,017,783) (17,032,190) (22,735,378) (19,451,932) (19,451,932) (19,451,932) (23,716,466) (24,609,070) (23,017,941)

NET CASH FROM/(USED) FINANCING ACTIVITIES (9,232,434) 23,391,651 20,823,285 1,936,000 36,714,784 36,714,784 36,714,784 74,872,968 96,261,719 78,170,559

NET INCREASE/ (DECREASE) IN CASH HELD 2,618,181 (32,877,073) 5,421,838 10,261,000 26,116,259 26,116,259 26,116,259 (28,117,596) 36,323,090 14,631,153Cash/cash equivalents at the year begin: 2 65,632,956 68,251,137 35,374,064 50,886,964 35,373,965 35,373,965 35,373,965 61,490,224 33,372,628 69,695,718Cash/cash equivalents at the year end: 2 68,251,137 35,374,064 40,795,902 61,147,964 61,490,224 61,490,224 61,490,224 33,372,628 69,695,718 84,326,871



Page 73 of 351

CASH BACKED RESERVES / ACCUMULATED SURPLUS RECONCILIATION TABLE A8

Ref 2006/7 2007/8 2008/9

Audited Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2010/11



Cash and investments availableCash/cash equivalents at the year end 1 68,251,137 35,374,064 40,795,902 61,147,964 61,490,224 61,490,224 61,490,224 33,372,628 69,695,718 84,326,871 Other current investments > 90 days 294,000,001 395,999,901 449,999,901 337,000,036 137,300,000 137,300,000 137,300,000 80,000,000 96,000,000 119,000,000 Non current assets - Investments 1 11,612,479 12,741,653 13,870,826 15,001,653 14,999,999 14,999,999 14,999,999 16,129,172 17,258,345 18,387,520

Cash and investments available: 373,863,617 444,115,618 504,666,629 413,149,653 213,790,223 213,790,223 213,790,223 129,501,800 182,954,063 221,714,391

Application of cash and investmentsUnspent conditional transfers 4,435,593 11,112,769 – – – – – – – – Unspent borrowing - 18,894,400 20,609,407 2,938,153 Statutory requirements 2 2,966,381 2,811,515 3,095,303 2,277,327 3,295,303 3,295,303 3,295,303 3,624,835 3,987,310 4,386,000 Other working capital requirements 3 15,860,518 11,641,516 8,482,599 (5,904,375) 7,735,189 7,735,189 7,735,189 15,760,835 24,513,110 35,994,700 Other provisionsLong term investments committed 4 - - – – – – – – – – Reserves to be backed by cash/investments 5 298,478,246 321,877,470 325,869,141 120,521,036 112,868,641 112,868,641 112,868,641 42,640,315 58,769,702 81,963,648

Total Application of cash and investments: 321,740,738 366,337,670 358,056,450 116,893,988 126,837,286 123,899,133 123,899,133 62,025,985 87,270,122 122,344,348 Surplus(shortfall) 52,122,879 77,777,948 146,610,179 296,255,665 86,952,937 89,891,090 89,891,090 67,475,815 95,683,941 99,370,043


Description


Page 74 of 351

ASSET MANAGEMENT TABLE A9

Ref 2006/7 2007/8 2008/9

Audited Outcome Audited Outcome Audited Outcome Original Budget Adjusted Budget Full Year Forecast

Budget Year 2010/11



CAPITAL EXPENDITURETotal New Assets 1 68,990,755 102,254,082 168,390,494 312,016,132 301,661,880 301,661,880 242,975,000 204,724,195 193,666,500

Infrastructure - Road transport 21,660,025 43,423,691 56,003,179 41,710,750 54,322,138 54,322,138 60,873,000 57,748,000 64,862,000 Infrastructure - Electricity 16,930,542 28,225,955 68,025,130 124,788,460 112,622,171 112,622,171 39,205,000 70,953,145 56,345,000 Infrastructure - Water 5,459,006 3,200,402 8,928,105 20,015,000 16,465,053 16,465,053 22,295,000 10,602,500 8,870,000 Infrastructure - Sanitation 7,116,785 1,404,330 11,789,920 25,270,000 21,470,264 21,470,264 41,430,000 42,767,000 47,019,500 Infrastructure - Other 1,836,869 2,014,763 1,239,174 2,760,000 1,323,580 1,323,580 1,500,000 225,000 1,725,000 Infrastructure 53,003,227 78,269,141 145,985,508 214,544,210 206,203,206 206,203,206 165,303,000 182,295,645 178,821,500 Community 7,628,549 7,482,422 7,327,144 64,491,425 62,882,538 62,882,538 56,905,000 7,045,000 5,125,000 Heritage assets - - - - - - - - - Investment properties - - - - - - - - - Other assets 6 7,770,516 15,732,444 15,077,842 30,410,497 31,328,136 31,328,136 19,047,000 14,033,550 9,135,000 Agricultural Assets - - - - - - - - - Biological assets - - - - - - - - - Intangibles 588,463 770,075 - 2,570,000 1,248,000 1,248,000 1,720,000 1,350,000 585,000

Total Renewal of Existing Assets 2 14,009,386 16,771,990 25,757,290 56,068,060 53,737,502 53,737,502 45,452,500 45,638,250 40,621,400 Infrastructure - Road transport 1,029,153 2,065,622 2,678,418 10,691,300 10,658,314 10,658,314 8,260,000 7,980,000 8,030,000 Infrastructure - Electricity 6,502,456 6,021,985 9,796,161 22,947,075 17,401,678 17,401,678 15,781,000 13,440,000 13,770,000 Infrastructure - Water 1,364,343 1,617,171 1,668,892 2,065,000 2,096,450 2,096,450 1,956,000 1,925,000 1,965,000 Infrastructure - Sanitation 488,768 1,851,777 3,857,321 853,000 845,000 845,000 475,000 504,000 522,000 Infrastructure - Other 276,750 - - - - - - - - Infrastructure 9,661,470 11,556,555 18,000,792 36,556,375 31,001,442 31,001,442 26,472,000 23,849,000 24,287,000 Community 1,124,541 1,412,489 875,504 2,480,000 2,475,300 2,475,300 3,567,000 6,670,000 7,772,500 Heritage assets - - - - - - - - - Investment properties - - - - - - - - - Other assets 6 3,223,375 3,802,946 6,880,994 17,031,685 20,260,760 20,260,760 15,413,500 15,119,250 8,561,900 Agricultural Assets - - - - - - - - - Biological assets - - - - - - - - - Intangibles - - - - - - - - -

Total Capital Expenditure 4 Infrastructure - Road transport 22,689,178 45,489,313 58,681,597 52,402,050 64,980,452 64,980,452 69,133,000 65,728,000 72,892,000 Infrastructure - Electricity 23,432,998 34,247,940 77,821,291 147,735,535 130,023,849 130,023,849 54,986,000 84,393,145 70,115,000 Infrastructure - Water 6,823,349 4,817,573 10,596,997 22,080,000 18,561,503 18,561,503 24,251,000 12,527,500 10,835,000 Infrastructure - Sanitation 7,605,553 3,256,107 15,647,241 26,123,000 22,315,264 22,315,264 41,905,000 43,271,000 47,541,500 Infrastructure - Other 2,113,619 2,014,763 1,239,174 2,760,000 1,323,580 1,323,580 1,500,000 225,000 1,725,000 Infrastructure 62,664,697 89,825,696 163,986,300 251,100,585 237,204,648 237,204,648 191,775,000 206,144,645 203,108,500 Community 8,753,090 8,894,911 8,202,648 66,971,425 65,357,838 65,357,838 60,472,000 13,715,000 12,897,500 Heritage assets - - - - - - - - - Investment properties - - - - - - - - - Other assets 10,993,891 19,535,390 21,958,836 47,442,182 51,588,896 51,588,896 34,460,500 29,152,800 17,696,900 Agricultural Assets - - - - - - - - - Biological assets - - - - - - - - - Intangibles 588,463 770,075 - 2,570,000 1,248,000 1,248,000 1,720,000 1,350,000 585,000

TOTAL CAPITAL EXPENDITURE - Asset class 2 83,000,141 119,026,072 194,147,784 368,084,192 355,399,382 355,399,382 288,427,500 250,362,445 234,287,900

ASSET REGISTER SUMMARY - PPE (WDV) 5 Infrastructure - Road transport 133,776,968 808,593,402 809,149,106 199,618,269 815,232,745 815,232,745 824,673,238 829,976,612 843,349,796 Infrastructure - Electricity 127,123,191 526,639,523 578,556,201 227,076,216 686,344,815 686,344,815 718,346,970 778,893,836 822,971,168 Infrastructure - Water 61,822,395 539,576,646 532,472,131 77,422,462 532,639,693 532,639,693 546,190,576 561,153,260 555,362,539 Infrastructure - Sanitation 49,332,337 357,670,851 361,845,866 75,848,801 375,128,187 375,128,187 418,760,293 450,692,619 485,850,702 Infrastructure - Other 13,922,775 36,419,042 34,059,764 14,206,475 33,999,689 33,999,689 30,896,089 27,467,881 25,852,766

Infrastructure 385,977,666 2,268,899,464 2,316,083,068 594,172,223 2,443,345,129 2,443,345,129 2,538,867,166 2,648,184,209 2,733,386,971 Community 27,085,353 444,091,459 440,508,391 69,028,577 492,597,598 492,597,598 539,656,184 539,559,712 538,125,032 Heritage assets 8,842 8,842 - 8,842 8,842 8,842 8,842 8,842 Investment properties - - - - - - - - - Other assets 135,748,572 1,559,426,644 1,559,183,432 174,741,815 1,587,337,732 1,587,337,732 1,600,984,145 1,606,378,962 1,599,653,236 Agricultural Assets - - - - - - - - - Biological assets - - - - - - - - - Intangibles 1,983,912 3,219,451 3,164,604 1,270,000 3,495,956 3,495,956 3,989,450 4,062,455 3,568,440

TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 5 550,795,503 4,275,645,860 4,318,948,337 839,212,615 4,526,785,257 4,526,785,257 4,683,505,787 4,798,194,180 4,874,742,521

EXPENDITURE OTHER ITEMSDepreciation & asset impairment 47,482,193 52,021,327 145,952,037 73,243,434 147,576,325 147,576,325 153,376,967 157,804,053 164,095,561 Repairs and Maintenance by Asset Class 3 21,797,569 27,244,763 32,673,374 38,151,202 41,406,861 41,406,861 41,311,648 44,808,022 48,083,521

Infrastructure - Road transport 3,640,803 4,475,323 4,180,932 4,991,018 5,021,018 5,021,018 5,021,500 5,635,300 6,135,600 Infrastructure - Electricity 4,804,530 7,322,228 10,874,234 12,443,059 12,643,059 12,643,059 12,755,664 14,139,820 15,329,628 Infrastructure - Water 661,612 819,078 747,473 942,500 959,500 959,500 1,045,900 1,155,680 1,235,460 Infrastructure - Sanitation 322,442 347,658 473,379 601,600 684,000 684,000 671,200 710,800 752,060 Infrastructure - Other - 58,030 74,531 75,000 200,000 200,000 562,000 596,000 643,260 Infrastructure 9,429,387 13,022,317 16,350,549 19,053,177 19,507,577 19,507,577 20,056,264 22,237,600 24,096,008 Community 1,017,004 904,682 1,074,680 1,268,550 1,374,310 1,374,310 1,331,830 1,448,000 1,594,800 Heritage assets - - - - - - - - - Investment properties - - - - - - - - - Other assets 6, 7 11,351,177 13,317,763 15,248,146 17,829,475 20,524,974 20,524,974 19,923,554 21,122,422 22,392,713

TOTAL EXPENDITURE OTHER ITEMS 69,279,762 79,266,090 178,625,411 111,394,636 188,983,186 188,983,186 194,688,615 202,612,075 212,179,082

% of capital exp on renewal of assets 0 0 15.3% 18.0% 17.8% 17.8% 18.7% 22.3% 21.0%Renewal of Existing Assets as % of deprecn" 0 0 17.6% 76.6% 36.4% 36.4% 29.6% 28.9% 24.8%R&M as a % of PPE 0 0 0.8% 4.6% 0.9% 0.9% 0.9% 0.9% 1.0%Renewal and R&M as a % of PPE 0 0 1.0% 11.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Current Year 2009/10 2010/11 Medium Term Revenue & Expenditure F k


Description

Page 75 of 351

Land & Buildings R 6 855 000 (2.38%)

Parks & Gardens R3 095 000 (1.07%)

Vehicles R 5 825 000 (2.02%)

Electricity R 50 036 000 (17.35%)

Budget 2010/11 Capital Expenditure

R 288 427 500

Clinics R 800 000 (0.28%)

Office Equipment R 1 088 850 (0.38%)

Cemeteries R 3 400 000 (1.18%)

IT Equipment & Software R 9 780 000 (3.39%)

Street Lighting R 5 025 000 (1.74%)

CHART 9 - CAPITAL EXPENDITURE BY ASSET CLASS

Plant & Equipment R 12 931 650 (4.48%)

Community Halls R 42 500 000 (14.74%)

Swimming Pool R 750 000 (0.26%)

Safety & Security R 2 317 000 (0.80%)

Sportsfields & Stadia R 7 235 000 (2.51%)

Water R 24 251 000 (8.41%)

Sanitation R 41 905 000 (14.53%)

Waste Management R 1 500 000 (0.52%)

Roads & Stormwater R 69 133 000 (23.97%)

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BASIC SERVICE DELIVERY MEASUREMENT TABLE A10

2006/7 2007/8 2008/9

Outcome Outcome Outcome Original Budget

Adjusted Budget

Full Year Forecast

Budget Year 2010/11



Household service targets (000) 1Water:

Piped water inside dwelling 25,568 28,664 29,777 30,369 30,369 30,369 31,085 31,535 32,785 Piped water inside yard (but not in dwelling)Using public tap (at least min.service level) 2 3,791 4,456 4,673 4,873 4,873 4,873 4,996 5,119 5,247 Other water supply (at least min.service level) 4

Minimum Service Level and Above sub-total 29,359 33,120 34,450 35,242 35,242 35,242 36,081 36,654 38,032 Using public tap (< min.service level) 3 - 234 700 700 700 700 700 700 700 Other water supply (< min.service level) 4No water supply

Below Minimum Service Level sub-total - 234 700 700 700 700 700 700 700 Total number of households 5 29,359 33,354 35,150 35,942 35,942 35,942 36,781 37,354 38,732

Sanitation/sewerage:Flush toilet (connected to sewerage) 28,958 30,858 32,191 32,746 32,746 32,746 33,406 33,856 35,106 Flush toilet (with septic tank) 8 10 10 10 10 - - - Chemical toilet 2,620 2,720 1,095 1,447 1,447 1,447 1,647 1,697 1,747 Pit toilet (ventilated) 176 20 20 20 20 25 25 25 Other toilet provisions (> min.service level)

Minimum Service Level and Above sub-total 31,578 33,762 33,316 34,223 34,223 34,223 35,078 35,578 36,878 Bucket toiletOther toilet provisions (< min.service level)No toilet provisions

Below Minimum Service Level sub-total - - - - - - - - - Total number of households 5 31,578 33,762 33,316 34,223 34,223 34,223 35,078 35,578 36,878

Energy:Electricity (at least min.service level) 5,205 5,044 4,959 4,898 4,898 4,898 4,837 4,776 4,717 Electricity - prepaid (min.service level) 26,628 28,144 29,958 30,586 30,586 30,586 31,667 32,615 33,395

Minimum Service Level and Above sub-total 31,833 33,188 34,917 35,484 35,484 35,484 36,504 37,391 38,112 Electricity (< min.service level)Electricity - prepaid (< min. service level)Other energy sources


Refuse:Removed at least once a week 40,109 40,928 41,763 42,615 42,615 42,615 43,530 43,930 45,090

Minimum Service Level and Above sub-total 40,109 40,928 41,763 42,615 42,615 42,615 43,530 43,930 45,090 Removed less frequently than once a weekUsing communal refuse dumpUsing own refuse dumpOther rubbish disposalNo rubbish disposal


Households receiving Free Basic Service 7Water (6 kilolitres per household per month) 29,359 28,664 29,777 30,369 30,369 30,369 31,085 31,535 32,785 Sanitation (free minimum level service) 12,248 12,787 14,003 14,483 14,483 14,483 15,000 15,500 16,000 Electricity/other energy (50kwh per household per month 8,600 10,341 9,691 9,980 9,980 9,980 10,080 10,181 10,282 Refuse (removed at least once a week) 12,248 12,787 14,003 14,483 14,483 14,483 15,000 15,500 16,000

Cost of Free Basic Services provided (R'000) 8Water (6 kilolitres per household per month) 3,342,026 3,556,044 4,617,790 5,083,525 5,083,525 5,083,525 8,246,433 9,095,554 10,132,768 Sanitation (free sanitation service) 1,525,023 1,606,866 2,929,204 4,896,876 4,896,876 4,896,876 3,617,280 4,349,424 5,156,352 Electricity/other energy (50kwh per household per month 1,047,480 1,333,989 1,616,459 2,080,830 2,080,830 2,080,830 2,630,880 3,321,551 4,195,056 Refuse (removed once a week) 2,337,653 2,670,693 3,319,551 3,746,173 3,746,173 3,746,173 4,248,900 4,712,868 5,216,256

Total cost of FBS provided (minimum social package) 8,252,183 9,167,591 12,483,003 15,807,404 15,807,404 15,807,404 18,743,493 21,479,397 24,700,432

Highest level of free service providedProperty rates (R'000 value threshold) 100% 100% 100% 15,000 15,000 15,000 15,000 15,000 15,000 Water (kilolitres per household per month) 10 kℓ 10 kℓ 10 kℓ 10 kℓ 10 kℓ 10 kℓ 10 kℓ 10 kℓ 10 kℓSanitation (kilolitres per household per month) 6 kℓ 6 kℓ 6 kℓ 6 kℓ 6 kℓ 6 kℓ 6 kℓ 6 kℓ 6 kℓSanitation (Rand per household per month) 16 17 18 21 21 21 24 24 24 Electricity (kwh per household per month) 50 kwh 50 kwh 50 kwh 50 kwh 50 kwh 50 kwh 50 kwh 50 kwh 50 kwhRefuse (average litres per week) 85ℓ 85ℓ 85ℓ 85ℓ 85ℓ 85ℓ 85ℓ 85ℓ 85ℓ

Revenue cost of free services provided (R'000) 9Property rates (R15 000 threshold rebate)Property rates (other exemptions, reductions and rebates 9,799,259 11,750,816 14,027,540 14,580,000 4,439,950 4,439,950 5,084,800 5,847,500 6,724,650 Water 9,688,470 8,943,168 10,433,861 7,925,781 8,374,379 7,749,850 11,071,120 12,122,869 13,149,963 Sanitation 2,322,221 2,608,548 3,083,461 6,413,640 6,750,000 6,750,000 9,045,000 10,401,750 11,962,000 Electricity/other energy 2,034,588 2,583,595 2,711,929 3,323,100 4,000,000 4,000,000 4,600,000 5,356,000 6,212,970 Refuse 2,351,616 2,685,270 3,335,515 7,826,685 7,749,850 7,749,850 10,050,000 11,005,000 12,050,000 Municipal Housing - rental rebatesHousing - top structure subsidies 6Other

Total revenue cost of free services provided (total social package) 26,196,154 28,571,397 33,592,305 40,069,206 31,314,179 30,689,650 39,850,920 44,733,119 50,099,583 NOTE: The statistics used to complete this form, is based on billing data


Description Ref


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