ANNUAL DRAFT BUDGET OF
NKANGALA DISTRICT MUNICIPALITY
(DC31)
2018/19 TO 2020/21
MEDIUM TERM REVENUE AND EXPENDITURE FORECASTS
Copies of this document can be viewed:
• At the Records section in the District municipal building
• At the head public libraries at local municipalities within the District
• At www.nkangaladm.gov.za
Table of Contents
PART 1-ANNUAL BUDGET ... .
1.1 MAYOR'S REPORT ... 1
1.2 COUNCIL RESOLUTIONS ... 2
1.3 EXECUTIVE SUMMARY ... 3
1.4 Operating Revenue Framework ... S 1.5 OPERATING EXPENDITURE FRAMEWORK ... ? 1.6 CAPITAL EXPENDITURE ... 12
1.7 ANNUAL BUDGET TABLES ... 13
PART2-SUPPORTING DOCUMENTATION ... 32
2.1 OVERVIEW OF THE ANNUAL BUDGET PROCESS ... 32
2.2 OVERVIEW OF ALIGNMENT OF ANNUAL BUDGET WITH IDP ... 35
2.3 MEASURABLE PERFORMANCE OBJECTIVES AND INDICATORS ... 40
2.4 OVERVIEW OF BUDGET RELATED-POLICIES ... .47
2.5 OVERVIEW OF BUDGET ASSUMPTIONS ... , ... 51
2.6 OVERVIEW OF BUDGET FUNDING ... 57
2.7 EXPENDITURE ON GRANTS AND RECONCILIATIONS OF UNSPENT FUNDS ... 81
2.8 COUNCILLOR AND EMPLOYEE BENEFITS ... 84
2.9 MONTHLY TARGETS FOR REVENUE, EXPENDITURE AND CASH FLOW ... 88
List of Tables
Table 1 Consolidated Overview of the 2018/19 MTREF ... .4Table 2 Summary of revenue classified by main revenue source ... 5
Table 3 Percentage growth in revenue by main revenue source ... 6
Table 4 Operating Transfers and Grant Receipts ... 7
Table 5 Summary of operating expenditure by standard classification item ... 8
Table 6 Breakdown of the main expenditure categories per Local Municipality ... 11
Table 7 Operational repairs and maintenance ... 12
Table 8 2018/19 Medium-term capital budget per asset class ... 12
Table 9 MBRR Table A1-Budget Summary ... 14
Table 10 Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification) ... 16
Table 11 MBRR Table A3 -Budgeted Financial Performance (revenue and expenditure by municipal vote) ... 18
Table 12 MBRR Table A4-Budgeted Financial Performance (revenue and expenditure) ... 20
Table 13 Contributions to Local Municipalities per municipality ... 22
Table 14 MBRR Table AS-Budgeted Capital Expenditure by vote, standard classification and funding source ... 23
Table 15 MBRR Table A6-Budgeted Financial Position ... 26
Table 16 MBRR Table A7- Budgeted Cash Flow Statement ... 28
Table 17 MBRR Table A8-Cash Backed Reserves/Accumulated Surplus Reconciliation ... 29
Table 18 MBRR Table A9 -Asset Management.. ... 30
Table 19 MBRR Table SA4- Reconciliation between the IDP strategic objectives and budgeted revenue ... 39
Table 20 MBRR Table SAS - Reconciliation between the IDP strategic objectives and budgeted operating expenditure ... 39
Table 21 MBRR Table SA6-Reconciliation between the lOP strategic objectives and budgeted
operating expenditure... . ... 40
Table 22 MBRR Table SA7- Measurable performance objectives (replaced witn QUARTERLY PROJECTIONS OF SERVICE DELIVERY TARGETS AND PERFORMANCE INDICATORS AS PER APPROVED SDBIP) ... 43
Table 23 MBRR Table SA8-Performance indicators and benchmarks ... 45
Table 24 Credit rating outlook ... 55
Table 25 Breakdown of the operating revenue over the medium-term ... 57
Table 26 MBRR SAlS- Detail Investment Information ... 58
Table 27 MBRR SA16 - Investment particulars by maturity ... 58
Table 28 MBRR Table SA 17- Detail of borrowings ... 59
Table 29 MBRR Table SA 18- Capital transfers and grant receipts ... 60
Table 30 MBRR Table A7-Budget cash flow statement.. ... 61
Table 31 MBRR Table A8- Cash backed reserves/accumulated surplus reconciliation ... 62
Table 32 MBRR SAlO- Funding compliance measurement ... 64
Table 33 MBRR SA19-Expenditure on transfers and grant programmes ... 67
Table 34 MBRR SA 20-Reconciliation between of transfers, grant receipts and unspent funds ... 68
Table 35 MBRR SA22- Summary of councillor and staff benefits ... 69
Table 36 MBRR SA23-Salaries, allowances and benefits (political office bearers/councillors/ senior managers) ... 70
Table 37 MBRR SA24- Summary of personnel numbers ... 71
Table 38 MBRR SA25-Budgeted monthly revenue by source and expenditure by type ... 72
Table 39 MBRR SA26-Budgeted monthly revenue and expenditure (municipal vote) ... 73
Table 40 MBRR SA27- Budgeted monthly revenue and expenditure (standard classification) ... 74
Table 41 MBRR SA28- Budgeted monthly capital expenditure (municipal vote) ... 75
Table 42 MBRR SA29-Budgeted monthly capital expenditure (standard classification) ... 76
Table 43 MBRR SA30-Budgeted monthly cash flow ... 77
Table 44 MBRR SA34a- Capital expenditure on new assets by class ... 78
Table 45 MBRR SA34c-Repairs & Maintenance by asset class ... 79
Table 46 MBRR SA34d- Depreciation by asset class ... 80
Table 47 MBRR SA35-Future financial implications capital budget... ... 81
Table 48 MBRR SAl- Supporting detail to budgeted financial performance ... 82
Table 49 MBRR SA2- Matrix Financial Performance Budget (revenue source/expenditure type and dept.) ... 83
Table SO MBRR SA3- Supporting detail to Budgeted Financial Position ... 84
Table 51 MBRR SA6- Reconciliation of lOP strategic objectives and budget (capital exp) ... 85
Table 52 MBRR SA21-Transfers & grants made by the municipality ... 86
Municipal Manager's Quality Certificate ... 87
Transfer & subsidies project lists ... 88
Service Standards ... 92
Budget Timetable 2018/2019 ... 94
Proposed Sundry Tariffs for the 2017/18Financial year ... 95
MBRR A-schedule ... 104
List of Figures
Figure 1 Main operational expenditure categories for the 2018/19 financia I year ... 9
Figure 2 Expenditure by major type ... 21
Figure 3 Planning, budgeting and reporting cycle ... 41
Figure 4 Definition of Performance information concepts ... .42
Figure 5 Breakdown operating revenue over the 2018/19 MTREF of ... 57
Figure 6 Decline in outstanding borrowing (long-term liabilities) ... 60
Figure 7 Cash and cash equivalents /Cash backed reserves and accumulated funds ... 63
