DR PIXLEY KA ISAKA SEME MUNICIPALITY TARIFFS
8.7 M UNICIPAL F INANCIAL V IABILITY
The tables below reflect the financial viability of the municipality and the capacity it has in order to ensure proper and effective service delivery.
The main focus of the investments will be:
• To address community needs
• To meet the millennium targets
• To create jobs
• To improve service delivery
• To improve communication and community participation
Table 39 – A1 Budget Summary
MP304 Pixley Ka Seme (MP) - Table A1 Budget Summary
Description 2009/10 2010/11 2011/12 Current Year 2012/13 2013/14 Medium Term Revenue & Expenditure
Framework
R thousands Audited
Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Pre-audit outcome
Budget Year 2013/14
Budget Year +1 2014/15
Budget Year +2 2015/16
Financial Performance
Property rates 13 723 14 622 13 769 14 593 16 308 15 963 15 963 17 889 19 753 21 728
Service charges 50 136 64 072 61 520 63 618 67 618 77 713 77 713 70 682 83 224 91 547
Investment revenue 1 421 1 922 1 129 720 1 720 2 519 2 519 2 375 2 686 2 954
Transfers recognised - operational 53 837 110 466 110 866 86 403 86 403 103 696 103 696 91 143 90 453 93 711
Other own revenue 10 061 30 475 14 061 31 147 15 412 15 848 15 848 15 748 17 812 19 594
Total Revenue (excluding capital transfers and contributions)
129 178 221 557 201 344 196 481 187 461 215 738 215 738 197 838 213 928 229 534
Employee costs 50 944 61 871 58 900 62 636 59 650 60 631 60 631 69 514 76 051 83 657
Remuneration of councillors 5 350 5 408 5 536 6 686 6 686 7 257 7 257 7 850 8 906 9 796 Depreciation & asset impairment 219 865 218 626 127 000 14 598 14 598 – – 15 506 17 537 19 291 Finance charges 60 35 8 – – – – 657 – – Materials and bulk purchases 20 173 22 666 35 319 42 346 42 346 32 139 32 139 45 829 51 239 56 363
Transfers and grants 253 15 363 4 413 15 425 15 425 5 483 4 569 19 960 15 893 17 482
Other expenditure 35 737 67 560 60 406 97 331 86 219 47 675 47 675 82 705 101 454 111 600
Total Expenditure 332 381 391 529 291 582 239 022 224 924 153 185 152 271 242 021 271 080 298 189
Surplus/(Deficit) (203 204) (169 971) (90 238)
(42
542) (37 463) 62 552 63 466 (44 184) (57 152) (68 655) Transfers recognised - capital – – 27 688 32 237 38 967 – – 29 331 25 233 – Contributions recognised - capital &
contributed assets – – – – – – – – – – Surplus/(Deficit) after capital transfers &
contributions
(203 204) (169 971) (62 550) (10 305)
1 504 62 552 63 466 (14 853) (31 919) (68 655)
Share of surplus/ (deficit) of associate – – – – – – – – – – Surplus/(Deficit) for the year (203 204) (169 971) (62 550)
(10
305) 1 504 62 552 63 466 (14 853) (31 919) (68 655)
Capital expenditure & funds sources
Capital expenditure 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 – Transfers recognised - capital 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 – Public contributions & donations – – – – – – – – – – Borrowing – – – – – – – – – –
Internally generated funds – – – – – – – – – – Total sources of capital funds 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 –
Financial position
Total current assets 129 878 116 984 154 997 123 853 123 853 228 147 199 781 228 843 242 574 257 128
Total non current assets 917 103 721 192 782 512 801 483 801 483 – – 849 572 900 546 954 579
Total current liabilities 79 545 40 911 67 739 54 778 54 778 63 121 63 121 82 374 87 316 92 555 Total non current liabilities 214 14 2 460 – – – – – – –
Community wealth/Equity 967 223 797 250 867 309 870 559 870 559 165 026 136 660 996 041 1 055 804 1 119 152
Cash flows
Net cash from (used) operating 36 605 7 872 12 120 20 795 49 529 73 735 73 735 (9 529) 3 796 (29 369)
Net cash from (used) investing 860 (24 081) (16 914)
(30
625) (37 019) – – (27 864) (23 971) – Net cash from (used) financing (2 173) (348) (200) – – – – – – – Cash/cash equivalents at the year end 45 159 28 602 23 608 13 778 22 018 73 735 83 243 (37 393) (57 568) (86 936)
Cash backing/surplus reconciliation
Cash and investments available 45 160 28 602 23 977 13 647 13 647 57 507 57 507 57 507 60 958 64 615 Application of cash and investments (10 755) (24 580) (76 830)
(69
419) (69 936) (113 171) (84 805) (46 253) (102 281) (108 416)
Balance - surplus (shortfall) 55 915 53 182 100 807 83 066 83 583 170 678 142 312 103 760 163 239 173 031
Asset management
Asset register summary (WDV) 917 087 721 192 782 512 801 483 801 483 – 849 572 849 572 900 546 954 579
Depreciation & asset impairment 219 865 218 626 127 000 14 598 14 598 – 15 506 15 506 17 537 19 291 Renewal of Existing Assets – – – – – – – – – – Repairs and Maintenance 5 413 6 446 7 342 13 324 – – – – – –
Free services
Cost of Free Basic Services provided – – – – – – – – – – Revenue cost of free services provided – – – – – – – – – –
Households below minimum service level
Water: – – – – – – – – – – Sanitation/sewerage: – – – – – – – – – – Energy: – – – – – – – – – – Refuse: – – – – – – – – – –
Table 40 – A4 Budgeted Financial Performance (Revenue and Expenditure)
MP304 Pixley Ka Seme (MP) - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description Ref 2009/10 2010/11 2011/12 Current Year 2012/13 2013/14 Medium Term Revenue & Expenditure
Framework
R thousand 1 Audited
Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Pre-audit outcome
Budget Year 2013/14
Budget Year +1 2014/15
Budget Year +2 2015/16
Revenue By Source
Property rates 2 13 723 14 622 13 769 14 593 16 308 15 963 15 963 17 889 19 753 21 728
Property rates - penalties & collection charges – – – – – – – – – – Service charges - electricity revenue 2 24 564 22 658 34 674 37 786 37 786 38 939 38 939 40 742 47 128 51 840 Service charges - water revenue 2 9 468 23 102 11 310 9 367 11 867 18 639 18 639 12 698 14 359 15 795 Service charges - sanitation revenue 2 7 398 11 566 9 675 10 256 10 256 10 375 10 375 10 974 12 410 13 651 Service charges - refuse revenue 2 8 705 6 745 5 861 6 209 7 709 9 760 9 760 6 269 9 328 10 261 Service charges - other – – – – – – – – – – Rental of facilities and equipment 274 571 575 269 269 592 592 428 486 535 Interest earned - external investments 1 421 1 922 1 129 720 1 720 2 519 2 519 2 375 2 686 2 954 Interest earned - outstanding debtors 6 625 7 460 10 028 11 257 9 757 9 300 9 300 10 440 11 807 12 989 Dividends received – – – – – – – – – – Fines 192 421 307 108 152 317 317 206 186 204 Licences and permits – – – – – – – 1 – – Agency services 2 704 2 970 3 042 3 710 2 810 5 033 5 033 3 006 3 400 3 740 Transfers recognised - operational 53 837 110 466 110 866 86 403 86 403 103 696 103 696 91 143 90 453 93 711 Other revenue 2 266 19 053 108 15 803 2 424 607 607 1 656 1 933 2 126 Gains on disposal of PPE – – – – – – – 11 – – Total Revenue (excluding capital transfers and
contributions)
129 178 221 557 201 344 196 481 187 461 215 738 215 738 197 838 213 928 229 534
Expenditure By Type
Employee related costs 2 50 944 61 871 58 900 62 636 59 650 60 631 60 631 69 514 76 051 83 657 Remuneration of councillors 5 350 5 408 5 536 6 686 6 686 7 257 7 257 7 850 8 906 9 796 Debt impairment 3 – 24 506 8 617 27 759 27 759 444 444 27 259 29 985 32 984 Depreciation & asset impairment 2 219 865 218 626 127 000 14 598 14 598 – – 15 506 17 537 19 291 Finance charges 60 35 8 – – – – 657 – –
Bulk purchases 2 20 173 22 666 35 319 42 346 42 346 32 139 32 139 45 806 51 239 56 363
Other materials 8 – – – – – – – 23 – – Contracted services 2 849 2 598 6 550 – – 4 089 4 089 8 451 7 194 7 914 Transfers and grants 253 15 363 4 413 15 425 15 425 5 483 4 569 19 960 15 893 17 482
Other expenditure 4, 5 32 888 40 456 45 239 69 572 58 460 43 143 43 143 46 995 64 275 70 702
Loss on disposal of PPE – – – – – – – – – – Total Expenditure 332 381 391 529 291 582 239 022 224 924 153 185 152 271 242 021 271 080 298 189
Surplus/(Deficit)
(203 204)
(169
971) (90 238) (42 542)
(37
463) 62 552 63 466 (44 184) (57 152) (68 655)
Transfers recognised - capital 27 688 32 237 38 967 29 331 25 233
Contributions recognised - capital 6 – – – – – – – – – –
Contributed assets
Surplus/(Deficit) after capital transfers &
contributions
(203 204)
(169 971)
(62 550) (10 305) 1 504 62 552 63 466 (14 853) (31 919) (68 655)
Taxation
Surplus/(Deficit) after taxation
(203 204)
(169
971) (62 550) (10 305) 1 504 62 552 63 466 (14 853) (31 919) (68 655)
Attributable to minorities
Surplus/(Deficit) attributable to municipality
(203 204)
(169 971)
(62 550) (10 305) 1 504 62 552 63 466 (14 853) (31 919) (68 655)
Share of surplus/ (deficit) of associate 7
Surplus/(Deficit) for the year
(203 204)
(169
971) (62 550) (10 305) 1 504 62 552 63 466 (14 853) (31 919) (68 655) References
1. Classifications are revenue sources and expenditure type 2. Detail to be provided in Table SA1
3. Previously described as 'bad or doubtful debts' - amounts shown should reflect the change in the provision for debt impairment
4. Expenditure type components previously shown under repairs and maintenance should be allocated back to the originating expenditure group/item; e.g. employee costs 5. Repairs & maintenance detailed in Table A9 and Table SA34c
6. Contributions are funds provided by external organisations to assist with infrastructure development; e.g. developer contributions (detail to be provided in Table SA1) 7. Equity method
8. All materials not part of 'bulk' e.g road making materials, pipe, cable etc.
Table 41 – A5 Capex
MP304 Pixley Ka Seme (MP) - Table A5 Budgeted Capital Expenditure by vote, standard classification and funding
Vote Description Ref 2009/10 2010/11 2011/12 Current Year 2012/13 2013/14 Medium Term Revenue & Expenditure Framework
R thousand 1 Audited
Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Pre-audit outcome
Budget Year 2013/14
Budget Year +1 2014/15
Budget Year +2 2015/16
Capital expenditure - Vote
Multi-year expenditure to be appropriated 2
Vote 1 - Executive Council 2 199 – 229 – – – – – – – Vote 2 - Budget & Treasury – 243 162 – – – – – – – Vote 3 - Corparate Services – 686 – – – – – – – – Vote 4 - Planning and Development – – 43 – – – – – – – Vote 5 - Community & Social Services 92 – 129 – – – – – – – Vote 6 - Housing – – – – 1 600 – – – – – Vote 7 - Public Safety – 3 887 851 – – – – – – – Vote 8 - Sport and Recreation 267 – – – – – – – – – Vote 9 - Roads & Technical Services 5 568 8 688 14 965 5 551 5 551 6 126 6 126 – – – Vote 10 - Waste Management – 14 2 713 – – – – – – – Vote 11 - Waste Water Management 8 221 6 355 1 772 8 150 9 721 1 822 1 822 14 217 10 033 –
Vote 12 - Water 2 336 48 6 600 15 736 16 965 1 688 1 688 10 617 8 600 –
Vote 13 - Electricity 95 3 785 226 2 800 6 729 189 189 4 497 6 600 – Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – Capital multi-year expenditure sub-total 7 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 –
Single-year expenditure to be appropriated 2
Vote 1 - Executive Council – – – – – – – – – – Vote 2 - Budget & Treasury – – – – – – – – – – Vote 3 - Corparate Services – – – – – – – – – – Vote 4 - Planning and Development – – – – – – – – – – Vote 5 - Community & Social Services – – – – – – – – – – Vote 6 - Housing – – – – – – – – – – Vote 7 - Public Safety – – – – – – – – – – Vote 8 - Sport and Recreation – – – – – – – – – – Vote 9 - Roads & Technical Services – – – – – – – – – – Vote 10 - Waste Management – – – – – – – – – – Vote 11 - Waste Water Management – – – – – – – – – – Vote 12 - Water – – – – – – – – – –
Vote 13 - Electricity – – – – – – – – – – Vote 14 - [NAME OF VOTE 14] – – – – – – – – – – Vote 15 - [NAME OF VOTE 15] – – – – – – – – – – Capital single-year expenditure sub-total – – – – – – – – – – Total Capital Expenditure - Vote 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 –
Capital Expenditure - Standard
Governance and administration 2 199 929 391 – – – – – – – Executive and council 2 199 – 229 – – – – – – – Budget and treasury office – 243 162 – – – – – – –
Corporate services – 686 –
Community and public safety 359 3 887 980 – 1 600 – – – – –
Community and social services 92 – 129
Sport and recreation 267 – – – – – – – – –
Public safety – 3 887 851
Housing – – 1 600 – – – – –
Health
Economic and environmental services 5 568 8 688 15 008 5 551 5 551 6 126 6 126 – – –
Planning and development 43
Road transport 5 568 8 688 14 965 5 551 5 551 6 126 6 126 – – –
Environmental protection
Trading services 10 651 10 202 11 310 26 686 33 415 3 699 3 699 29 331 25 233 – Electricity 95 3 785 226 2 800 6 729 189 189 4 497 6 600 –
Water 2 336 48 6 600 15 736 16 965 1 688 1 688 10 617 8 600 –
Waste water management 8 221 6 355 1 772 8 150 9 721 1 822 1 822 14 217 10 033 – Waste management – 14 2 713 – – – – – – –
Other
Total Capital Expenditure - Standard 3 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 –
Funded by:
National Government 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233
Provincial Government
District Municipality
Other transfers and grants
Transfers recognised - capital 4 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 –
Public contributions & donations 5
Borrowing 6
Internally generated funds
Total Capital Funding 7 18 778 23 706 27 688 32 237 40 566 9 825 9 825 29 331 25 233 – References
1. Municipalities may choose to appropriate for capital expenditure for three years or for one year (if one year appropriation projected expenditure required for yr2 and yr3).
2. Include capital component of PPP unitary payment. Note that capital transfers are only appropriated to municipalities for the budget year 3. Capital expenditure by standard classification must reconcile to the appropriations by vote
4. Must reconcile to supporting table SA20 and to Budgeted Financial Performance (revenue and expenditure) 5. Must reconcile to Budgeted Financial Performance (revenue and expenditure)
6. Include finance leases and PPP capital funding component of unitary payment - total borrowing/repayments to reconcile to changes in Table SA17 7. Total Capital Funding must balance with Total Capital Expenditure
8. Include any capitalised interest (MFMA section 46) as part of relevant capital budget
Table 42 – SA1 Supporting Table
MP304 Pixley Ka Seme (MP) - Supporting Table SA1 Supportinging detail to 'Budgeted Financial Performance'
Description Ref
2009/10 2010/11 2011/12 Current Year 2012/13 2013/14 Medium Term Revenue & Expenditure
Framework Audited
Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Pre-audit outcome
Budget Year 2013/14
Budget Year +1 2014/15
Budget Year +2 2015/16
R thousand
REVENUE ITEMS:
Property rates 6
Total Property Rates 13 723 14 622 13 769 14 593 16 308 15 963 15 963 17 889 19 753 21 728
less Revenue Foregone
Net Property Rates 13 723 14 622 13 769 14 593 16 308 15 963 15 963 17 889 19 753 21 728
Service charges - electricity revenue 6
Total Service charges - electricity revenue 26 220 22 658 34 674 37 786 37 786 38 939 38 939 40 742 47 128 51 840
less Revenue Foregone 1 656
Net Service charges - electricity revenue 24 564 22 658 34 674 37 786 37 786 38 939 38 939 40 742 47 128 51 840
Service charges - water revenue 6
Total Service charges - water revenue 10 107 23 102 11 310 9 367 11 867 18 639 18 639 12 698 14 359 15 795
less Revenue Foregone 638
Net Service charges - water revenue 9 468 23 102 11 310 9 367 11 867 18 639 18 639 12 698 14 359 15 795
Service charges - sanitation revenue
Total Service charges - sanitation revenue 7 897 11 566 9 675 10 256 10 256 10 375 10 375 10 974 12 410 13 651
less Revenue Foregone 499
Net Service charges - sanitation revenue 7 398 11 566 9 675 10 256 10 256 10 375 10 375 10 974 12 410 13 651
Service charges - refuse revenue 6
Total refuse removal revenue 9 292 6 745 5 861 6 209 7 709 9 760 9 760 6 269 9 328 10 261
Total landfill revenue
less Revenue Foregone 587
Net Service charges - refuse revenue 8 705 6 745 5 861 6 209 7 709 9 760 9 760 6 269 9 328 10 261
Other Revenue by source
Building fees, Re-Issue ED Cards & Membership fees 266 19 053 108 15 803 2 424 607 607 45 1 933 2 126
Connections 116
Valuation, Clearance Certificates 2
Print of Building Plans, Building Plan Fees & Tender Deposits 83
Testing of Meters 2
Town Planning & Cemetery Fees 72
Surplus Cash 0
Lost & Damaged Books 0
Gravel Sales 10
Electric Connections New Serv Stands 36
PMU Income 1 279
Swimming Pool Fees 3 10
Total 'Other' Revenue 1 266 19 053 108 15 803 2 424 607 607 1 656 1 933 2 126
EXPENDITURE ITEMS:
Employee related costs
Basic Salaries and Wages 2 34 196 39 221 42 635 44 135 40 945 60 631 60 631 50 003 50 155 55 171
Pension and UIF Contributions 9 735 10 136 10 383 8 881 9 014 9 485 10 731 11 805
Medical Aid Contributions 2 542 2 542 2 566 2 904 3 194
Overtime 3 339 5 049 4 036 3 815 4 540 4 640 5 461 6 008
Performance Bonus 2 088 2 616 – 4 285 4 713
Motor Vehicle Allowance 846 1 710 1 327 2 099 1 419 1 570 1 778 1 955
Cellphone Allowance
Housing Allowances 739 115 520 182 182 206 234 257
Other benefits and allowances 3 023 982 1 008 1 044 503 554
Payments in lieu of leave
Long service awards
Post-retirement benefit obligations 4
sub-total 5 50 944 61 871 58 900 62 636 59 650 60 631 60 631 69 514 76 051 83 657
Less: Employees costs capitalised to PPE
Total Employee related costs 1 50 944 61 871 58 900 62 636 59 650 60 631 60 631 69 514 76 051 83 657
Contributions recognised - capital
List contributions by contract
Total Contributions recognised - capital – – – – – – – – – –
Depreciation & asset impairment
Depreciation of Property, Plant & Equipment 219 865 218 626 127 000 14 598 14 598 15 506 17 537 19 291
Lease amortisation
Capital asset impairment
Depreciation resulting from revaluation of PPE 10
Total Depreciation & asset impairment 1 219 865 218 626 127 000 14 598 14 598 – – 15 506 17 537 19 291
Bulk purchases
Electricity Bulk Purchases 18 822 21 059 32 298 38 741 38 741 32 139 32 139 41 840 46 877 51 564
Water Bulk Purchases 1 351 1 607 3 021 3 605 3 605 3 966 4 362 4 799
Total bulk purchases 1 20 173 22 666 35 319 42 346 42 346 32 139 32 139 45 806 51 239 56 363
Transfers and grants
Cash transfers and grants 253 15 363 4 413 15 425 15 425 5 483 4 569 19 960 15 893 17 482 Non-cash transfers and grants – – – – – – – – – – Total transfers and grants 1 253 15 363 4 413 15 425 15 425 5 483 4 569 19 960 15 893 17 482
Contracted services
List services provided by contract 2 849 2 598 6 550 4 089 4 089 – 7 194 7 914
Internal Audit
Security 4 510
Service Contract Acc No 008036630000 110
Service Contract Acc No 011236630000 21
Service Contract Acc No 012136630000 56
Service Contract Acc No 025136630000 371
Service Contract Acc No 026236630000 365
Service Contract Acc No 00503663000 3 018
sub-total 1 2 849 2 598 6 550 – – 4 089 4 089 8 451 7 194 7 914
Allocations to organs of state:
Electricity
Water
Sanitation
Other Total contracted services 2 849 2 598 6 550 – – 4 089 4 089 8 451 7 194 7 914
Other Expenditure By Type
Collection costs
Contributions to 'other' provisions 3 534 1 060 1 060
Consultant fees
Audit fees 2 198 1 760 2 338 2 895
General expenses 3 24 596 32 250 32 025 55 188 44 076 32 136 32 136 30 926 48 998 53 897
List Other Expenditure by Type
R&M 5 413 6 446 7 342 13 324 13 324 11 007 11 007 13 174 15 277 16 805
681
Total 'Other' Expenditure 1 32 888 40 456 45 239 69 572 58 460 43 143 43 143 46 995 64 275 70 702
Repairs and Maintenance
by Expenditure Item 8
Employee related costs
Other materials
Contracted Services
Other Expenditure 5 413 6 446 7 342 13 324
Total Repairs and Maintenance Expenditure 9 5 413 6 446 7 342 13 324 – – – – – – 1. Must reconcile with 'Budgeted Financial Performance
(Revenue and Expenditure)
2. Must reconcile to supporting documentation on staff salaries 3. Insert other categories where revenue or expenditure is of a material nature (list separate items until 'General expenses' is not > 10% of Total Expenditure)
4. Expenditure to meet any 'unfunded obligations'
5 This sub-total must agree with the total on SA22, but excluding councillor and board member items
6. Include a note for each revenue item that is affected by 'revenue foregone'
7. Special consideration may have to be given to including 'goodwill arising' or 'joint venture' budgets where circumstances require this (include separately under relevant notes)
8. Repairs and Maintenance is not a GRAP item. However to facilitate transparency, municipalities must provide a breakdown of the amounts included in the relevant GRAP items that will be spent on Repairs and Maintenance.
9. Must reconcile with Repairs and Maintenance by Asset Class (Total Repairs and Maintenance) on Table SA34c.
10. Only applicable to municipalities that have adopted the 'revaluation method' in GRAP 17. The aim is to prevent overstating 'depreciation and asset impairment'