DRAFT
BUDGET
REPORT
Index
Section Page
1. Purpose of the Report 2
2. Legal Requirements 2
3. Strategic Focus Areas and Municipal Priority Issues 2-3
4. Executive Summary on the Budgets 3
Operating Budget 4
Revenue Budget 4
Grants and Subsidies 5
Assessment Rates 5
Refuse Removal 5
Other Revenue 6
Expenditure Budget 6
Salaries and Wages 7
General Expenses 7-8
Contracted Services 8
Repairs and Maintenance 8
Property Plant Equipment 8
Capital Budget 8-10
5. Financial Strategy 9-14
6. Measurable performance objective and indicators 14
7. Overview of Budget policies 14-15
8. Allocation per “Votes” 15-16
9. Conclusion 16
9. Recommendation 17
GREATER TUBATSE MUNICIPALITY - DRAFT BUDGET REPORT
1. PURPOSE OF THE REPORT
The purpose of this report is to inform Council on the principles followed in the compilation of the 2012/2013 – 2014/2015 budget. It pays attention to national call of infrastructure investment initiative by government department which include municipalities and other agencies of government. As local municipality it is faced with challenges of non-delivery especially in relation to water and electricity the national call made by the president encourage municipalities to invest on infrastructure we hope our district municipality will also look in to the issues of water infrastructure improvement
2. LEGAL REQUIREMENTS
A comprehensive discussion of the budget process can be read in Chapter 4 of the MFMA.
The report has been compiled in accordance with the Local Government: Municipal Finance Management Act (MFMA), Act no 56 of 2003 and National Treasury Circulars as set out below.
MFMA Circular No 42 dated 30 March 2007 – Funding a Municipal Budget
MFMA Gazette No 31804 dated 23 January 2009- The Municipal Budget and Reporting Regulation
MFMA Circular no 48 dated 02 March 2009 – municipal budget
MFMA Circular no 51
MFMA Circular no 58
MFMA Circular no 59
3. STRATEGIC FOCUS AREAS AND MUNICIPAL PRIORITY ISSUES
Municipal budgets must reflect policy priorities determined by Councillors who are the representatives of the community. It is essential that the Municipality by means of the IDP planning process identify the strategic focus areas and prioritise strategic issues.
The focus will mainly look at the context of economic crisis which we need to invest in the following
Revenue management – To ensure the collection of revenues, municipalities need to ensure that billing systems are accurate, send out accounts to residents and follow up to collect revenues owed.
Collecting outstanding debts – This requires political commitment, sufficient administrative capacity, and pricing policies that ensure that bills are accurate and affordable, especially for poor households.
Pricing services correctly – The full cost of services should be reflected in the price charged to residents who can afford to pay. Many municipalities offer overly generous subsidies and rebates that result in services being run at a loss, resulting in funds being diverted away from other priorities.
Underspending on repairs and maintenance – Often seen as a way to reduce spending in the short term, underspending on maintenance can shorten the life of assets, increase long-term maintenance and refurbishment costs, and cause a deterioration in the reliability of services.
Spending on non-priorities – Many municipalities spend significant amounts on non-priority items including unnecessary travel, luxury furnishings, excessive catering and unwarranted public relations projects. Consultants are often used to perform routine tasks.
For the 2012/13 Draft Budget the municipality needs to fucus on key arrears which forms part of our IDP strategy such as the following:
Municipalities should not just employ more people without any reference to the level of staffing required to deliver effective services, and what is financially sustainable over the medium term. The municipality ought to focus on maximizing its
contribution to job creation by:
Ensuring that service delivery and capital projects use labour intensive methods wherever appropriate;
Ensuring that service providers use labour intensive approaches;
Supporting labour intensive LED projects;
Participating fully in the Extended Public Works Programme; and
Implementing interns programmes to provide young people with on-the-job training.
Municipalities also play a critical role in creating an enabling environment for investments and other activities that lead to job creation. In this regard, it is important for municipalities to pay particular attention to ensuring the timely delivery of their capital programmes (eliminate under-spending of capital budgets) and to review all by-laws and development approval processes with a view to removing any regulatory bottlenecks to investment and job creation.
4. Executive summary on the budget
The annual budget tabled by Council must be in the format outlined in National Treasury Gazzete no3814:-
A balanced operating budget containing expenditure details and realistically anticipated revenue (actual revenue collected matches actual expenditure incurred);
A balanced budget for capital expenditure that is within realistic funding already secured, together with the projected future financial implications of such capital expenditure;
Details of borrowing intentions and other liabilities that will increase the Municipality’s debt;
Audited actual results for the previous year; and
Projected budget outcomes for the current financial year, the next year’s budget and the outer two years.
The budget of the Council consists of the operational budget (revenue and expenditure) and the capital budget. The budget must, within the available resources, reflect the Council’s IDP and how it will be funded. National Treasury guidelines require that Councils provide at least a three-year operating and capital budget.
In terms of the National Medium-Term Budget it is important to note the predicted trends in the CPIX as set out below.
2010/11 2011/12 2012/13 2013/14 2014/15
Inflation Forecast (CPIX) 3.8% 5.7% 5.9% 5.3% 4.9%
OPERATING BUDGET
The operational budget is the financial plan which Council uses to effect sustainable service delivery within the guidelines of the Council and in terms of affordability. The operational budget also serves as a comprehensive detailed statement in which the municipality shows how much it intends to spend on the rendering of each service during a particular financial year.
In order to facilitate control over revenue and expenditure the development of the budget will be undertaken using the following divisions:-
Departments; Vote and sub votes
Revenue and Expenditure categories; and sources
Revenue and Expenditure line items.
Revenue and expenditure charts
It is of the utmost importance that Council ensures an in depth review of its revenue budget and the goals for each category on an annual basis and that the level of spending is limited by the availability of revenue.
Therefore, when the expenditure budget is compiled the ability of the consumers to pay must always be taken into consideration. New operations and expansion of operations on the operating budget should therefore be motivated to Council before inclusion in the operating budget. Such operations must be included in departmental
operational plans taking into consideration issue identified in the turnaround strategy.
The expenditure should also take into effect issues raised by the Auditor General during the 2010/11 audit which is informed by the action plan in addressing those issues.
Revenue Budget
The Council must determine what the total realistic revenue for the Municipality in the new financial year will be. Using actual levied revenue for the first six months of the current financial year and projecting these figures up to the end of the current financial year will determine such possible revenue. This calculation must further be based on realistic and affordable tariff increases as well as any expansion of the revenue base.
It is the policy of Council to avoid major price increases for services as it has the negative impact of reducing consumers’ disposable income. However, to be able to provide services and fulfil its responsibilities the Municipality will have to obtain additional revenue from tariff increases on the various services provided as well as assessment rates.
It is proposed that a general tariff increase equal to not more than the consumer price index on average is implemented. However the over-riding consideration must be the financial position of the Municipality. In determining the level of revenue and proposed changes to tariffs the amount of possible bad debt must also be determined and fully provided for and the income that cannot be realised (eg income forgone).
Details of any expansion to the revenue base must be recorded timeously. The revenue of the Council is derived from several sources. For budgeting purposes the revenue from the various sources is set out below with a total revenue budget of R212 million which include Grants from national.
Grants and Subsidies
This item consists of inter-governmental contributions in the form of the equitable share, municipal infrastructure grant, finance management grant, municipal systems improvement grant, electrification grant, neighbourhood development grant and others provincial and district grant as may be determined from time-to- time.
Assessment Rates
Assessment rates are levied on the market value of property in accordance with the Local Government: Municipal Property Rates Act. however, as the current tariff was on the valuation which will be coming to their last year. We envisaged to increase our yearly projection in 2012/13on a reasonable rates which will be based on inflation.
Categories Ratio in relation to residential property
Residential property 1:1
Agricultural property 1:0.25
Public service infrastructure property 1:0.25 Public benefit organization property 1:0.25 Refuse Removal
Refuse removal as an economic service should be operated to at least a point of break even. As council have embarked on a PPP study which is at final stage and the preferred bidder has already being appointed and will commence with the service by the 1st July 2012 and we hope to maximise profit on the service as compared to previous years based on the methodology the private part have put on the table and the service require the municipality to contribute almost a amount of R16.8 million as unitary fee to ensure the private partner perform according to the agreed terms.
The financial analysis model the private partner submitted to council reflect an increase in revenue stream of this services which will improve the sustainability of the municipality financially and council should ensure that the monitoring of the private partner is strengthened for purpose of the public.
Water and sewerage
In respect of water and sanitation that is rendered on an agency basis no provision is currently made in the current Service Level Agreement between the Greater Tubatse Local Municipality and Greater Sekhukhune District Municipality.
The rendering of the said service has been transferred to the district. The municipality in their budget reflects on the agency commission in the budget as GRAP 24 requires only budget that are related to the entity to be reflected in their books as such.
Other revenue
Other revenue consist of minor revenue such as building plan fee, licence fee, interest on outstanding deposits, town planning fees, traffic fines, library fees, reconnection fees and penalties
Expenditure Budget
The expenditure framework must be based on the strategic plans/ IDP, the service delivery and budget implementation plans, turnaround strategy and the revenue framework.
Where possible, the zero-based budgeting technique is applied to categories of expenditure. This will ensure that an in-depth review of revenue, expenditure and the targets for each category is undertaken during the budget process, resulting in a credible three-year budget, not merely based on an incremental approach. The zero-based type of analysis where all activities are open to review at budget time also allows an opportunity to reallocate resources and to avoid continuous growth in budgeted expenditure.
The following elements have a major impact on the formulation of the expenditure budget:-
Employee remuneration
Councillors remuneration
General Expenditure
Repairs and maintenance;
Contracted services
Interest and redemption requirements to service borrowings;
Leasing of assets
Contributions from the operating budget for capital expenditure; and
Contribution to provisions
The expenditure budget consists of operating service delivery items and provides for the following and the total budget of R 212 million
Salaries and Wages – Employee Related Costs
Salaries and wages consist of all remuneration in cash and in kind to employees in return for work performed. This includes allowances and other benefits paid as part of conditions of employment. Employer contributions into a pension fund are an example of a social contribution. Another example is contributions to a medical aid scheme.
It does not include costs of training courses (shown under General Expenses) and costs of contractors. However, the costs relating to contractors who are engaged under the Municipality’s basic conditions of service are included – these are essentially employees on fixed term contracts such as Section 57 appointments. The remuneration of Councillors, including full-time Councillors, is also not included in this category as they are not employees of the Municipality.
The proposed increase for the 2012/2013 financial year is 5%.
As council have embarked on an Organisational Development the structure proposed on the budget reflect an increase in the budget of salaries and allowances of employee to an amount of R 99 million as compared to the current
structure which reflects and amount of R 82 million and the draft budget currently looked at the current structure as the other proposed structure is not yet approved by council and we hope that after all avenues are exhausted a change in the budget will be communicated.
The costing of the proposed structure was made for council to exploit proper decision which will be informed financial and also liaising with strategic planning vision of the 2030 as proposed
For the two outer years the proposed increase is 5% per annum unless otherwise there will be changes in the bargaining council negotiation
Councillor Allowances: All the costs associated with the remuneration of Councillors, including their allowances and any other benefits paid, must be disclosed in this section as a separate expense. For the 2012/2013 budget year and the two outer years the possible increase provided for is 5% per annum unless otherwise changed by the Parliament.
Ward committee: The allocation also is made to take care of the ward committee programmes within the local municipality
General Expenses
This section must include all expenses that will be necessary for the Municipality to carry out operations or activities that are not classified under one of the other expenditure groups. Set out below are some of the common general expenditure items.
Provision for Doubtful Debts: This is the value of monies unable to be recovered. Each year an estimate should be made of the expected write-off value to be included in this item of the budget. Actual debt written off is an expense to the municipality.
Refuse.
Property Rates.
Interest on External Borrowings: Loan redemption payments have been provided for in order to service the loan that council has approved in the financial year 2007/2008 and continued with projects of 2008/09 and the loan made was for 20 years which include the historical loans which are left merely with few years remaining.
For the 2012/2013 budget year there is intention or any form of borrowing by council to finance the purchase of the municipal civic centre building and this process will unfold in a normal process in terms of MFM section 42 therefor until such process are managed and properly approved a further change in the budged may be realised. Currently the proposed amount is not taken care of in the 2012/13 proposed budget due to those process which are not met yet
Contracted services
Provision has been made for services providers who are currently contracted to the municipality to render certain services for which the municipality have got no/less capacity to run them efficiently and effectively.
Repairs and Maintenance
Expenditure that maintains an asset in good working order, to ensure asset performance and the useful life originally expected, is not capital and must be shown under this item. “Total Asset Management” requires that a schedule of programmed maintenance should be developed for all assets of the municipality.
This ensures that the asset maintains optimal performance and the municipality obtains maximum flow of economic benefits from employment of the asset over its optimum life.
PROPERTY PLANT AND EQUIPMENT
To maintain institutional arrangement looking into issues of assets that needs to be acquired like office furniture and vehicle which is made to provide resources to administration in order to ensure that their is a smooth running of the
organisation CAPITAL BUDGET
The importance of increasing the local content of capital expenditure cannot be under estimated as the allocation is a function and driver of service delivery to the community. However, based on the Municipalities current financial position any contribution to capital from local revenue will be minimal over the next three years.
And amount of R50million has been allocated for capital project which are detailed in content and Schedule A-budget Schedules which the sheet read schedule A5 Capital expenditure by GFS and it is attached for further references and approval. The R8 million allocated to electrification will be regarded as normal expenditure as council does not have licence to provide electricity and the said assets will be donated to Eskom after completion for further repairs and maintenance and also billing and collection lies with Eskom. The allocation is made to finish the projects that are currently running.
The municipality is currently engaged on a process of electricity acceleration project which will ensure that the council meet the 2014 millennium goals
Municipality will also encourage the service provider to at least use labour intensive methods approach.
See table A5 Capex for allocation.
CAPITAL PROJECTS
Project
Funding
source 2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017 Budget 42 048 571 44 361 905
Burgersfort Internal Streets MIG 3 140 000 5 000 000 7 000 000 9 000 000
Ohrigstad Internal Streets MIG 2 500 000 3 500 000
Praktiseer Internal Streets MIG 3 000 000 3 500 000 4 500 000 5 000 000
Alverton Access Bridge MIG 2 500 000
Kampeng Access Bridge MIG 2 900 000
Phiring Access Bridge MIG 3 000 000
Mahlakwena Access Bridge MIG 3 800 000
Madifahlane Access Bridge MIG 3 800 000 Thokwane/Shakung Access Bridge MIG 6 400 000
Tsatsapane Access Bridge MIG 3 800 000
Modubeng Access Bridge MIG 3 800 000
Pidima/Maakubu Access Bridge MIG 5 400 000
Ga-Maphopha Access Bridge MIG 6 400 000
Kgautswane Access Bridge MIG 5 600 000
Ga-Motshana Access Bridge MIG 5 400 000
Mpuru Access Bridge MIG 6 400 000
Madithongwana Access Bridge MIG 6 400 000
Diphala/Makhwaya Access Bridge MIG 5 400 000
Ga-Malepe Access Bridge MIG 3 800 000
Leboeng Access Bridge MIG 3 800 000
Habeng Access Bridge MIG 5 400 000
Mabocha Access Bridge MIG 5 400 000
Leboeng Access Bridge MIG 3 800 000
31 040 000
33 500 000 38 600 000 36 200 000 - Sports Facilities
Mapodile sports complex MIG 5 200 000 6 000 000 10 000 000
Burgersfort Stadium MIG 500 000 1 000 000 1 500 000 2 500 000
Ngwaabe sport complex MIG 500 000 1 000 000 2 000 000
Ohrigstad Sport Complex MIG 500 000 3 000 000 4 000 000 7 000 000
Praktiseer Sport Complex MIG 1 000 000 2 000 000
Driekop Sport Complex MIG 500 000 1 500 000
5 700 000
7 500 000 15 000 000 9 000 000 12 500 000 Liabraries
Refurbishment of Burgersfort library MIG 500 000 2 000 000 1 500 000 -
500 000 2 000 000 1 500 000 - Cemeteries
Establishment of Burgersfort cemetery MIG 2 000 000 2 000 000 Tubatse Fencing of Rural Cemeteries MIG 2 500 000
2 500 000
- 2 000 000 2 000 000 - Other Public Facilities
Burgersfort Hawkers Facilities MIG 400 000 Praktiseer Hawkers Facilities MIG 400 000
Burgersfort Landfill Site & Closure Permit MIG 2 000 000 2 500 000 3 500 000
Development of Arts and Culture Centre MIG 1 000 000 2 000 000
Establishment of Burgersfort Testing Station MIG 400 000 1 000 000 1 600 000
Upgrading of Steelpoort Road Worthy Centre MIG 1 000 000
2 800 000
2 900 000 5 500 000 2 600 000 2 000 000 Summary of funding
MIG Funding MIG 42 040 000 44 400 000
NDPG NDPG 500 000
Department of energy DoE 8 000 000 - - - - Assets from Grants & Subsudy 50 540 000 44 400 000 - - - Assets from Own fundings GTM - - - - - Total Capital Budget (according to IDP) 50 540 000 44 400 000 - - -
Roads and Access Bridges
Our intention on majority of our capital projects is to provide lobour intensive mechanism which addresses what the President have mention in the state of nation address that government need to create job opportunities although we knew that it is of a shorter period where our communities will benefit.
5. FINANCIAL STRATEGY
The purpose of the financial strategy is to identify and recognise the financial resources (revenue envelope) available for capital and operational expenditure and includes revenue strategies, operational expenditure strategies and capital financing strategies.
The operating budget must always be balanced, to ensure that operating expenditure does not exceed realistically anticipated revenue. To avoid a shortfall Council should ensure the following:-
Remuneration already constitutes a substantial percentage of the total operating budget. It should be noted that further increases may have an adverse impact on service delivery and consequential affordability for the residents of Greater Tubatse Municipality.
The ratio of personnel expenditure to operating expenditure
Is there a prescribed or recommended benchmark for the ratio of personnel expenditure to operating expenditure? The short answer is: no.
The ratio of personnel expenditure to operating expenditure is widely used as an indicator of the sustainability of municipal budgets and expenditures. This raises
important questions of exactly how the ratio should be interpreted and whether National Treasury should set a benchmark for purposes of assessing the sustainability of
municipal finances.
First, on the issue of interpreting the ratio, one needs to be aware of the factors that can influence it. These include:
The nature of the functions allocated to the municipality and types and extent of services it delivers;
The municipality’s organisational structure, particularly the ratio of management to technical and unskilled employees;
The labour intensity of the municipality’s operations versus the extent of mechanization;
The extent to which the municipality has outsourced the more labour intensive components of its operations; and
The composition of the non-personnel components of operating expenditure, particularly trends in expenditure on maintenance and payments for bulk water and electricity services.
Second, on the issue of setting a benchmark, it is clear that the interpretation of the ratio is specific to the context of each municipality. It would therefore be inappropriate for National Treasury to set a specific benchmark, consequently there is NO benchmark.
Nevertheless, should the ratio for a municipality be significantly above or below the averageratio for its peers (municipalities of similar size and functional responsibility) or if the ratio for a municipality move upward or downward, it should be treated as a warning signal and should trigger an enquiry into the factors that are driving the ratio in a
particular direction.
It is after all these underlying factors that may be threatening the financial sustainability of the municipality and not the ratio itself.
Currently, among municipalities with the electricity function, this ratio is tending to move downward despite fairly large increases in personnel spending. This is because
spending on bulk electricity purchases is increasing at a very fast rate, driving the relative share of all other expenditure categories down. In such instances the ratio tells one very little about the appropriateness of a municipality’s level of expenditure on personnel relative to the overall operating budget.
General expenses should be managed from a perspective of all activities being continuously justified in terms of their outcomes and performance goals and whether they continue to be consistent with the Council’s strategic priority targets as outlined in the Integrated Development Plan.
Departments should indicate their needs to maintain the assets of the Municipality in their repair and maintenance master plans. Departments must also indicate in their maintenance plans any deferred maintenance. The current allocation for Repairs and Maintenance in the 2010/11 proposed budget should be seen as the first step in addressing the backlog that exists on infrastructure maintenance and this level of spending should as a minimum be maintained for the two outer years.
The provision for doubtful debts must be increased to a level that reflects the amount of uncollectible debts in the books of the municipality.
An extract from section 18 of the MFMA reads as follow:
An annual budget may only be funded from-
(a) realistically anticipated revenue to be collected;
(b) cash-backed accumulated funds from previous year’s surpluses not committed for other purposes; and
(c) borrowed funds, but only for the capital budget referred to in section 17(2).
Revenue projections in the budget must be realistic, taking into account-
(a) projected revenue for the current year based on collection levels to date; and
(b) actual revenue collected in previous financial years.
It is therefore of utmost importance that credit control be enforced vigorously to avoid potential cash flow problems. The current provision for working capital should be made on the basis of the payment levels for the first six months of the current financial year.
The identification of non-core functions and the possibility of phasing them out should be considered on a continuous basis.
6. MEASUREBLA PERFORMANCE OBJECTIVE AND INDICATORS
The objective set out in the strategic plan which is incorporated in the IDP which informed the budget on what the municipality wants to achieve are also the basiss of how the budget was prepared. The IDP will also show the following as part of the measures
Revenue and expenditure by source Revenue and expenditure by Vote
Capital by vote and sources
This allocation can be found in the budget formed attached to the report which is from the following tables.
(a) Table A1 Budget Summary
(b) Table A2 Budget Financial Performance( revenue and expenditure by standard classification)
(c) Table A3 Budget Financial Performance (revenue and expenditure by municipal vote)
(d) Table A4 Budget Financial Performance (revenue and expenditure) (e) Table A5 Budgeted capital Expenditure by vote standards classification
and funding
(f) Table A6 Budget financial position (g) Table A7 Budgeted Cashfolw
(h) Table A8 cashbacked reserve/accumulated surplus reconciliation (i) Table A9 Asset management
(j) Table A10 Basic service delivary 7. Overview of Budget Policies
The following policies will be tabled with the draft budget as it gives guidance on how to utilise the budget and what the consumers should be aware of and the policies will be available in the municipality offices including all the satellite offices and also the libraries:
(a) Indigent Policy
(b) Property Rates Policy
(c) Credit Control and Debts Collection.
(d) Write off policy (e) Investment policy
(f) Water tariff policy from the district as we render the function on agency basis therefore the authority need to set up tariff and gives guidelines.
8. Allocation per municipal “Votes”
“Vote” 1: Corporate and Council
Allocation of this vote take into effect the remuneration of councillors amongst other look into issues of public participation, employee related cost within the vote.
It also look into issues of ward committee management as mandated by legislation and further carter other mayoral special projects which are the:
Children Programmes
Youth programmes
Disability
Gender
Elderly
Geographic Name Changes
HIV/AIDS
Moral regeneration Movement
Communication and advertisement process are also committed within this vote, training of councillors is allocated.
The vote also committed some allocation of the office of municipal manager which looks among other the following
Risk management and control
Internal Audit
Audit committees
Allocation of vote reflect an amount of which is earmarked for personnel and include other issues patterning to performance management systems, exco-lekgotla improvement of pour SDBIPs and management reviews process.
A further commitment is the review and preparation of our Integrated development plan and consultative process as required by legislation.
The vote allocation also take into consideration training of staff, legal function that the municipality come across. Our labour relations unit reside within this vote
‘Vote” 2: Budget and Treasury Officer
The vote look at issue patterning to Valuation Roll which needs to be done in the coming financial year as required by legislation that for a
municipality to provide the property rate service it needs to ensure that in every four years they update their valuation roll.
Other allocation made is to take care of indigent household, external audit fees, implementation of finance management grant which require
municipality to appoint interns
Issues relating to professional services which carter some it related issues which is sourced out and also allocation of this vote also look into issues like provision for bad debts, income forgone, commission on debt
collection.
“Vote’’ 3: Technical services
This vote looks specifically on issue patterning to service delivery aspects of the municipality which involves the following
Repairs and maintenance of street light, robots and Roads.
Other allocation is for the rental of the municipal civic centre and also maintenance of those building
The service delivery vote perform also the function of capital budget which is detailed in budget table
“Vote” 4: Community Services
Allocation made within this vote will be for protection services which look into issues of roads safety and traffic and licensing. The vote looks into issues of social development which include libraries, hiv/aids coordination and cemetery and parks maintenance.
“Vote” 5: Economic and land Development
The allocation to this vote is earmarked to acquire additional data for the municipality geographic information system and further finalisation of township establishment within the Tubatse A township.
Commitment made also for the city development strategy and further acquiring of a professional land surveyor for the relocation of beacons and resolution of boundaries dispute in townships.
Support on poverty alleviation programmes and projects in order to
strengthen our LED initiatives as approved by council in the LED strategy.
Improvement of our LED forums and other stakeholders relation.
9. CONCLUSION
The draft budget will be submitted to both provincial and national treasury including the department of local government and housing
As a draft budget consultative process will follow based on the time table set on community participation processes changes may be made in the final budget that will be approved during may 2012
10. RECOMMENDATION
Portfolio committee to recommend to EXCO and further to council the draft budget of 2012/2013 -2014/2015 which is tabled in the following
Council adopt the draft annual budget of Greater Tubatse municipality table
Adopt all rates, taxes and tariff for services provided by the municipality
Adoption of measurable performance objective for the draft annual budget and its outer year
Adoption of all budget related policies as set out on PART2 of the report
Adoption all capital projects identified for implementation.
