1.4 Annual Bud get Tables

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The following pages present the main budget tables as required in terms of Section 8 of the Municipal Budget and Reporting Regulations. These tables set out the municipality’s 2012/13 budget and MTB.

Table A1: Consolidated Budget Summary

Notes:

1. Table A1 is a budget summary and provides a concise overview of the City’s budget from all of the major fi nancial perspectives (operating, capital expenditure, fi nancial position, cash ﬂ ow, and MFMA funding compliance).

2. The table provides an overview of the amounts approved by Council for operating performance, resources deployed to capital expenditure, fi nancial position, cash and funding compliance.

3. The surplus for the year includes capital transfers and excludes taxation.

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Table A2: Consolidated Budgeted Financial Performance (revenue and expenditure by standard classifi cation)

Notes:

1. Table A2 is a view of the budgeted fi nancial performance in relation to revenue and expenditure per standard classifi cation. The modifi ed GFS standard classifi cation divides the municipal services into 15 functional areas. Municipal revenue, operating expenditure and capital expenditure are then classifi ed in terms of each of these functional areas which enables the National Treasury to compile ‘whole of government’ reports.

2. Note the total revenue on this table includes capital transfers and expenditure includes taxation.

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

Notes:

1. Table A3 is a view of the budgeted fi nancial performance in relation to the revenue and expenditure per municipal vote. This table facilitates the view of the budgeted operating performance in relation to the organisational structure of the City.

2. Note the total revenue on this table includes capital transfers and expenditure includes taxation and excludes internal transfers.

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graph: Expenditure by Municipal Vote

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graph: Expenditure by Municipal Vote (Trend)

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Table A4: Consolidated Budgeted Financial Performance (revenue and expenditure)

Note:

1. Table A4 is a view of the budgeted fi nancial performance in relation to the revenue and expenditure per revenue and expenditure category. The City is budgeting for a surplus (before taxation and capital transfers) of approximately R1.5 billion for 2012/13.

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graph: Revenue by Source – Major

graph: Revenue by Source – Minor

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08/09 AUD 09/10 AUD 10/11 AUD CY 11/12 ADJ CY 11/12 FCST Budget Year +1 12/13

Budget Year +2 13/14

Budget Year +2 14/15

Employee related costs 5 102 5 926 6 498 7 037 7 037 7 595 7 995 8 459

Bulk purchases 5 396 6 196 8 109 10 234 10 234 11 775 14 904 18 033

Other expenditure 3 194 3 392 3 285 3 723 3 723 3 976 4 171 4 769

Depreciation & asset impairment 801 1 221 1 488 1 589 1 589 1 801 1 921 2 066

0 5 000 10 000 15 000 20 000 25 000 30 000 35 000

Rm

Expenditure by Type - Major - Chart A7 graph: Expenditure by Type – Major

graph: Expenditure by Type – Minor

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Table A5: Consolidated Budgeted Capital Expenditure by Vote, Standard Classifi cation and Funding

Note:

1. Table A5 is a breakdown of the capital expenditure by municipal vote (multi-year and single-year appropriations); capital expenditure by standard classifi cation;

and the funding sources necessary to fund the capital budget, including information on capital transfers from national and provincial departments.

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graph: Capital Expenditure by Municipal Vote – Major

graph: Capital Expenditure by Municipal Vote – Minor

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Table A6: Consolidated Budgeted Financial Position

Notes:

Table A6 is consistent with international standards of good fi nancial management practice, and improves understandability for councilors and management of the impact of the budget on the statement of fi nancial position (balance sheet).

This format of presenting the statement of fi nancial position is aligned to GRAP1, which is generally aligned to the international version which presents Assets less Liabilities as “accounting” Community Wealth. The order of items within each group illustrates items in order of liquidity; i.e. assets readily converted to cash, or liabilities immediately required to be met from cash, appear fi rst.

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Table A7: Consolidated Budgeted Cash Flows

Notes:

1. The budgeted cash ﬂ ow statement is the fi rst measurement in determining if the budget is funded.

2. It shows the expected level of cash in-ﬂ ow versus cash out-ﬂ ow that is likely to result from the implementation of the budget.

Table A8: Consolidated Cash Backed Reserves/Accumulated Surplus Reconciliation

Notes:

1. The cash backed reserves/accumulated surplus reconciliation is aligned to the requirements of MFMA Circular 42 – Funding a Municipal Budget.

2. In essence the table evaluates the funding levels of the budget by fi rstly forecasting the cash and investments at year end and secondly reconciling the available funding to the liabilities/commitments that exist.

3. The outcome of this exercise would either be a surplus or defi cit. A defi cit would indicate that the applications exceed the cash and investments available and would be indicative of non-compliance with the MFMA requirements that the municipality’s budget must be “funded”.

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Table A9: Consolidated Asset Management

Notes:

1. Table A9 provides an overview of municipal capital allocations to building new assets and the renewal of existing assets, as well as spending on repairs and maintenance by asset class.

2. National Treasury has recommended that municipalities should allocate at least 40% of their capital budget to the renewal of existing assets and allocations to repairs and maintenance should be 8% of PPE.

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Table A10: Consolidated Basic Service delivery Measurement

Note:

1. Table A10 provides an overview of free basic services and service delivery levels, including backlogs (below minimum service level), for each of the main services.