CEDERBERG LOCAL MUNICIPALITY
GRAP 1 2018) GRAP 21 (2018)
16.3 Other Pension Benefits Defined Benefit Plans
Council contributes to the following defined benefit plans:
LA Retirement Fund (Former Cape Joint Pension Fund) 91 674 84 247
Consolidated Retirement Fund (Former Cape Retirement Fund) 8 081 601 7 008 625
Total 8 173 275 7 092 873
Defined Contribution Plans
National Funds for Municipal Workers 684 086 641 932
SAMWU National Provident Fund 1 127 874 1 058 814
Municipal Councillors Pension Fund 519 268 502 169
Total 2 331 228 2 202 914
The contribution rate payable is 9% by members and 18% by Council. The last actuarial valuation performed for the year ended 30 June 2017 revealed that the fund is in a sound financial position with a funding level of 100.3% (30 June 2016 - 100.6%).
The contribution rate payable is 9% by members and 18% by Council. The last actuarial valuation performed for the year ended 30 June 2018 revealed that the fund is in an sound financial position with a funding level of 103.7% (30 June 2017 - 102.6%).
Therefore, although the LA Retirement Fund and Consolidated Retirement Fund are Multi- employer funds defined as defined benefit plan, it will be accounted for as defined contribution plan due to sufficient information not being available.
As part of the Municipality’s process to value the defined benefit liabilities, the Municipality requested pensioner data from the fund administrator. The fund administrator claim that the pensioner data to be confidential and were not willing to share the information with the Municipality. Without detailed pensioner data the Municipality was unable to calculate a reliable estimate of the accrued liability in respect of pensioners who qualify for a defined benefit pension.
Both the LA Retirement Fund and Consolidated Retirement Fund are multi-employer plans.
Multiple local authorities participate in these multi-employer funds. Multi-employer plans are defined as defined benefit plans. When sufficient information is not available to use defined benefit accounting for a multi-employer plan, an entity will account for the plan as if it were a defined contribution plan.
The Municipality requested detailed employee and pensioner information as well as information on theMunicipality’sshare of the RetirementFunds’assets from the fund administrator. The fund administrator confirmed that assets of the Retirement Funds are not split per participating employer. Therefore, the Municipality is unable to determine the value of the plan assets as defined in GRAP 25.
Council contributes to the following defined contribution plans:
The retirement benefit funds are subject to the Pension Fund Act, 1956, with pension being calculated on the pensionable remuneration paid. Current contributions by Council are charged against expenditure on the basis of current service costs.
Figures in Rand 2019 2018
CEDERBERG LOCAL MUNICIPALITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2019
17 NON-CURRENT PROVISIONS
Provision for Rehabilitation of Landfill-sites 33 717 227 29 702 048
As previously reported 41 917 210
Correction of error restatement - note 39.4 (12 215 162)
Restated balance 29 702 048
Opening Balance 29 702 048 29 445 011
Contribution during the year 4 015 178 257 037
Increase/(Decrease) in estimate 1 140 020 (2 628 574)
Interest Cost 2 875 158 2 885 611
Total 33 717 226 29 702 048
Location Site Dimensions
Cost of Rehabilitation
Cost of Rehabilitation
Clanwilliam 23 616m² 2024 10 891 368 9 617 292
Lambert's Bay 17 580m² 2024 9 035 923 7 993 498
Citrusdal 26 505m² 2036 8 079 908 6 981 825
Graafwater 3 000m² 2024 2 549 508 2 379 948
Elands Bay 4 263m² 2024 3 160 520 2 729 485
Total 33 717 226 29 702 048
Total cost and estimated date of decommission of the sites are as follows:
Location
Cost of Rehabilitation
Cost of Rehabilitation
Clanwilliam 2024 17 679 457 17 023 473
Lambert's Bay 2024 14 667 599 14 149 212
Citrusdal 2036 41 948 892 34 462 225
Graafwater 2024 4 138 499 4 212 722
Elands Bay 2024 5 130 327 4 831 434
Total 83 564 774 74 679 066
18 PROPERTY RATES
Rateable Land and Buildings 42 146 144 41 372 155
Total 42 146 144 41 372 155
Property rate levied are based on the following rateable valuations:
Residential 2 966 661 458 2 697 009 395
Business 441 627 000 478 272 729
State-owned 165 409 000 187 474 742
Agricultural 2 600 672 412 2 716 536 096
Total Valuation 6 174 369 870 6 079 292 962
Rate that is applicable to the valuations above:
Residential 1.222c/R 1.153c/R
Business and Agricultural 1.580c/R 1.490c/R
Estimated Decommission Date The movement in Rehabilitation Provision - Landfill Sites are reconciled as follows:
A retrospective calculation of time value of money, based on an average weighted investment rate of prime less 4%, was used. This rate used is also within the inflation target range of the South African Reserve Bank of between 3% to 6%.
Estimated Decommission Date The calculation for the rehabilitation of the landfill site provision was compiled by an independent qualified engineer in order to determine the present value to rehabilitate the landfill sites at the end of its useful life. The total obligation at year-end can be attributed to the following sites:
Figures in Rand 2019 2018
CEDERBERG LOCAL MUNICIPALITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2019
18 PROPERTY RATES (CONTINUED)
19 GOVERNMENT GRANTS AND SUBSIDIES
Unconditional Grants - National Government 45 080 030 40 873 657
Equitable Share 45 080 030 40 873 657
Conditional Grants - National Government 32 653 526 31 992 860
Municipal Infrastructure Grant (MIG) 9 634 000 19 509 148
Financial Management Grant (FMG) 1 620 000 1 550 000
Integrated National Electrification Programme (INEP) 8 000 000 4 000 000
Expanded Public Works Program (EPWP) 1 819 000 1 807 000
Water Service Infrastructure Grant (WSIG) 6 681 486 2 063 752
Municipal Disaster Grant 4 899 040 3 062 960
Conditional Grants - Provincial Government 89 522 137 18 794 671
Human Settlement Development Grant 66 143 093 7 618 103
Library Services MRF 4 466 451 4 156 549
Municipal Drought Support Grant 5 129 471 699 466
Financial Management Support Grant 966 118 1 554 370
Municipal Capacity Building Grant 92 164 1 572 076
Acceleration of Housing Delivery 11 722 678 3 006 495
Other Provincial Allocations 1 002 162 187 611
Total 167 255 693 91 661 189
Disclosed as:
Government Grants and Subsidies - Operating 84 329 819 57 682 108
Government Grants and Subsidies - Capital 82 925 874 33 979 081
Total 167 255 693 91 661 189
Grants per Vote (MFMA Sec 123 (c)):
Equitable share 45 080 030 40 873 657
Office of the Municipal Manager 39 513 107 212
Executive and Council 79 252 119 032
Financial Services 1 620 000 2 084 650
Community Development Services 7 098 876 13 610 753
Corporate and Strategic Services 92 164 469 509
Engineering and Planning Services 113 245 858 34 396 376
Total 167 255 693 91 661 189
Rebates can be defined as any income that the Municipality is entitled by law to levy, but in terms of Council's own policy opted not to collect it.
Valuations on land and buildings are performed every five years. The last valuation came into effect on 1 July 2016. Interim valuations are processed on an annual basis to include changes in property values and subdivisions.
The first R 15 000 of the valuation on properties used only for residential purposes are exempted from property rates in terms of the Property Rates Act.
Rates are levied monthly and annually. Monthly rates are payable by the end of the month in which the amount was levied and annual rates are payable before 30 September. Interest is levied at the prime rate plus 1% on outstanding monthly rates.
An additional rebate of R35 000 of the valuation on properties used only for residential purposes are exempted from property rates in terms of the Municipality's policy.
Figures in Rand 2019 2018
CEDERBERG LOCAL MUNICIPALITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2019
19 GOVERNMENT GRANTS AND SUBSIDIES (CONTINUED) The movements per grant can be summarised as follows: