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ANNUAL BUDGET OF 


RICHMOND 

MUNICIPALITY 



2015/2016 TO 2017/2018 

MEDIUM TERM REVENUE AND 
EXPENDITURE FORECASTS 


Copies of this document can be viewed: 

• In the foyers of all municipal buildings 

• All public libraries within the municipality 

• www.richmond.gov.za 




Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Table of Contents 

PART 1 - ANNUAL BUDGET 

1.1 MAYOR’S REPORT 

1.2 COUNCIL RESOLUTIONS 

1 .3 EXECUTIVE SUMMARY 

1.4 OPERATING REVENUE FRAMEWORK 

1.5 OPERATING EXPENDITURE FRAMEWORK 

1.6 CAPITAL EXPENDITURE 

1.7 ANNUAL BUDGET 

PART 2 - SUPPORTING DOCUMENTATION 

2.1 OVERVIEW OF THE ANNUAL BUDGET PROCESS 

2.2 OVERVIEW OF ALIGNMENT OF ANNUAL BUDGET WITH IDP 

2.3 MEASURABLE PERFORMANCE OBJECTIVES AND INDICATORS 

2.4 OVERVIEW OF BUDGET RELATED-POLICIES 

2.5 OVERVIEW OF BUDGET ASSUMPTIONS 

2.6 OVERVIEW OF BUDGET FUNDING 

2.7 EXPENDITURE ON GRANTS AND RECONCILIATIONS OF UNSPENT FUNDS 

2.8 COUNCILLOR AND EMPLOYEE BENEFITS 

2.9 MONTHLY TARGETS FOR REVENUE, EXPENDITURE AND CASH FLOW 

2.10 ANNUAL BUDGETS AND SDBIPS - INTERNAL DEPARTMENTS 

2.11 CONTRACTS HAVING FUTURE BUDGETARY IMPLICATIONS 

2.12 CAPITAL EXPENDITURE DETAILS 

2.13 LEGISLATION COMPLIANCE STATUS 

2.14 OTHER SUPPORTING DOCUMENTS 

2.1 5 MUNICIPAL MANAGER'S QUALITY CERTIFICATE 


List of Tables 

Table 1 Consolidated Overview of the 2015/16 MTREF 

Table 2 Summary of the 2015/16 MTREF (classified by main revenue source) 

Table 3 Percentage growth in revenue by main revenue source 

Table 4 Comparison of the proposed rates to be levied for the 201 5/201 6 Financial 
Year 

Table 5 Comparison between current refuse removal fees and increases 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Table 6 High Level summary of 2015/16 budget (Classified per main type of operating 
expense) 

Table 7 Medium Term Capital Budget per vote 


Abbreviations and Acronyms 


ASGISA 

BPC 

CFO 

CPI 

CRRF 

DBSA 

DoRA 

FBS 

GAMAP 

GRAP 

HR 

I DP 

IT 

km 

KPA 

KPI 

LED 

MFMA 

MIG 

MM 

MPRA 

MSA 

MTEF 

MTREF 

NGO 

NKPIs 

OHS 

PBO 

PMS 

PPE 

SALGA 

SDBIP 

SMME 


Accelerated and Shared Growth Initiative 
Budget Planning Committee 
Chief Financial Officer 
Consumer Price Index 
Capital Replacement Reserve Fund 
Development Bank of South Africa 
Division of Revenue Act 
Free basic services 

Generally Accepted Municipal Accounting Practice 

General Recognised Accounting Practice 

Human Resources 

Integrated Development Strategy 

Information Technology 

kilometre 

Key Performance Area 

Key Performance Indicator 

Local Economic Development 

Municipal Financial Management Act 

Municipal Infrastructure Grant 

Municipal Manager 

Municipal Properties Rates Act 

Municipal Systems Act 

Medium-term Expenditure Framework 

Medium-term Revenue and Expenditure Framework 

Non-Governmental organisations 

National Key Performance Indicators 

Occupational Health and Safety 

Public Benefit Organisations 

Performance Management System 

Property Plant and Equipment 

South African Local Government Association 

Service Delivery Budget Implementation Plan 

Small Micro and Medium Enterprises 



Richmond Municipality 


2015/2016 Annua! Budget and MTREF 


Part 1 - Annual Budget 

1.1 Mayor’s Report 
Mayors Budget Speech 2015/2016 


Vision 

“Access to quality social infrastructural development and sustainable economic 
opportunities” 

Mission 

To improve the livelihood of its citizens, through innovative mechanisms and 
dedicated resources, undertakes to deliver services in a sustainable approach. 


It pleases me, in terms of Section 24(21 ) of the MFMA, Act 56 of 2003, to present the 
2015/2016 Draft Budget Report. 

As has become the norm in terms of existing regulations, councillors and officials have 
undertaken the rigorous process of public participation with regards to the IDP review and 
ensured that prioritisation has taken place, involving the Ward Committees and the 
community. 

We have found the interaction with the community very interesting and invigorating as 
members have become familiar with the processes involved. We are faced with the 
challenge of using scarce resources to maintain and lift our ability to continue to ensure 
service delivery remains a priority to uplift the living conditions of our people. 

We are confident that our Budget 2015/2016 will address, to a large extent, the concerns of 
our people as it goes a long way to try and implement the projects as identified in our IDP 
and the National Development Plan. 

In spite of the austerity measures that have become the norm throughout the world and 
especially in SA, we have attempted to cater for the needs of the people and improving our 
service delivery. 

In all 7 wards, we attempted to hold meetings to review our (DP and align it to the Budget. It 
was interesting to find that majority of our community have learnt the processes which we 
adopt and contributed well to the process. 

However, we must accept that it is almost impossible to address all the needs of the people 
and that implementation of projects will continue to be slow in some areas as we strive to 
secure sufficient funds to succeed. 

We’ve had to move some projects to the outer 3 years for prioritisation. We wish to convey 
our sincere thanks and appreciation to our councillors, Ward Committee members and the 
community for their wonderful response for suggestions and input. 

Some still remain critical as they feel that they are being neglected and that they should 
receive more in their areas. People must understand that finance and the low income of the 
Municipality is a serious factor that restricts us. 





Richmond Municipality 


2015/2016 Annual Budget and MTREF 


We will need to improve our income and ensure that people pay for services so that we can 
provide more in terms of infrastructure and renewal and maintenance of equipment. 

We have also adopted a conservative approach when projecting expected revenues and 
cash receipts. 

Presently, we are faced with a very serious situation whereby almost 47% of our Budget 
(Municipal Income) is paid for personnel salaries and related costs. The norm should be 
35%. It is absolutely difficult to stay within the norms as we require more personnel to ensure 
better service delivery. 

In terms of job creation and the implementation of the EPWP programme, we have made 
good strides and hope to ensure that our programme of so-operative is successful and 
continue to provide more employment in our community. 

The Driver’s Testing Centre is expected to commence operations as from 1 July 2015. 
Income and expenditure has been conservatively budgeted for against this vote. 

The expenditure on the Capital Budget has been decreased to R 25.850.650 with 
R 17,244,400 funded by MIG and R260.000 f unded by Municipal Systems Improvement 
Grant. 

It has been quite a juggling act to peg the rates increase to a minimum and hopefully we will 
be able to increase our rates base to include presently unrated properties which are valued 
at over R50, 000.00. 

We will remain committed to service delivery excellence. At the same time, we urge 
residents to be patient as we explore ways to speed up delivery for the benefit of all. 

WE KNOW THAT TOGETHER WE CAN DO IT! 




Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.2 Council Resolutions 

On 28 May 2015 the Council of Richmond Municipality met in the Council Chamber to 
consider the draft annual budget of the municipality for the financial year 2015/16. The 
Council approved and adopted the following resolutions: 

1. The Council of Richmond Municipality, acting in terms of section 24 of the Municipal 
Finance Management Act, (Act 56 of 2003) approves and adopts: 

1.1. The annual budget of the municipality for the financial year 201 5/16 and the multi-year 
and single-year capital appropriations as set out in the following tables: 

1.1.1. Budgeted Financial Performance (revenue and expenditure by standard 
classification) as contained in Table A2; 

1.1.2. Budgeted Financial Performance (revenue and expenditure by municipal vote) 
as contained in Table A3; 

1.1.3. Budgeted Financial Performance (revenue by source and expenditure by type) 
as contained in Table A4; and 

1.1.4. Multi-year and single-year capital appropriations by municipal vote and 
standard classification and associated funding by source as contained in Table A5. 

1.2. The financial position, cash flow budget, cash-backed reserve/accumulated surplus, 
asset management and basic service delivery targets are approved as set out in the 
following tables: 

1.2.1. Budgeted Financial Position as contained in Table A6; 

1.2.2. Budgeted Cash Flows as contained in Table AT; 

1.2.3. Cash backed reserves and accumulated surplus reconciliation as contained in 
Table A8; 

1.2.4. Asset management as contained in Table A9; and 

1.2.5. Basic service delivery measurement as contained in Table A10. 


2. The Council of Richmond Municipality, acting in terms of section 75A of the Local 
Government: Municipal Systems Act (Act 32 of 2000) approves and adopts with effect from 1 
July 2015: 

2.1 . the tariffs for property rates - as set out in Annexure A1 , 

2.2 the tariffs for solid waste services - as set out in Annexure A3 

3. The Council of Richmond Municipality, acting in terms of 75A of the Local Government: 
Municipal Systems Act (Act 32 of 2000) approves and adopts with effect from 1 July 2015 
the tariffs for other services, as set out in Annexure A1 to A5 respectively. 

4. To give proper effect to the municipality’s annual budget, the Council of Richmond 
Municipality approves: 

4.1. That cash backing is implemented through the utilisation of a portion of the 
revenue generated from property rates to ensure that all capital reserves and 
provisions, unspent long-term loans and unspent conditional grants are cash backed 
as required in terms of the municipality’s funding and reserves policy as prescribed 
by section 8 of the Municipal Budget and Reporting Regulations. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


5. That in terms of section 24(2)©(iii) of the Municipal Finance Management Act, 56 of 2003, 
the measurable performance objectives for capital and operating expenditure by vote for 
each year of the medium term revenue and expenditure framework as set out in Supporting 
Table SA7 are approved. 

6. That in terms of section 24(2)©(iv) of the Municipal Finance Management Act, 56 of 2003, 
the amendments to the integrated development plan as set out in Budget Chapter 17 are 
approved. 

7. That in terms of section 24(2 )©{v) of the Municipal Finance Management Act, 56 of 2003, 
the budget related policies, including any amendments are approved for the budget year 
2015/16. 

8. That in terms of sections 22(2)(b) of the Municipal Finance Management Act read together 
with section 23(3) of the Municipal Budget and Reporting Regulations, council approves an 
application to National Treasury for the roll-over of any unspent balances (if applicable) of 
the 2014/2015 Financial Management Grant, Municipal Systems Improvement Grant and 
Municipal Infrastructure Grant (MIG). 

(NB: All unspent 2014/2015 funds are committed) 

9. Council notes the Service Delivery and Budget Implementation Plan (SDBIP) with the 
budget for subsequent approval by the mayor. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.3 Executive Summary 

The application of sound financial management principles for the compilation of the 
municipality’s financial plan is essential and critical to ensure that the municipality remains 
financially viable and that municipal services are provided sustainably, economically and 
equitably to all communities. 

The municipality’s business and service delivery priorities were reviewed as part of this 
year’s planning and budget process. Where appropriate, funds were transferred from low- to 
high-priority programmes so as to maintain sound financial stewardship. A critical review 
was also undertaken of expenditures on noncore and „nice to have" items. 

The Municipality will embark on implementing a range of revenue collection strategies to 
optimize the collection of debt owed by consumers by implementing the debt collection and 
credit control policy as well as the implementation of the approved revenue enhancement 
strategy. 

National Treasury’s MFMA Circular No. 51,54, 55,57,58,59,66,67,70,72, 74 and 75 were 
used to guide the compilation of the 2014/15 MTREF. 

The main challenges experienced during the compilation of the 2015/16 MTREF can be 
summarised as follows: 

• The ongoing difficulties in the national and local economy; 

• Aging and poorly maintained roads and other infrastructure assets; 

• The need to reprioritise projects and expenditure within the existing resource envelope 
given the available sources of funding; 

• Wage increases for municipal staff that continue to exceed consumer inflation, as well as 
the need to fill critical vacancies which makes it difficult to maintain the salaries budget within 
the acceptable norm as a percentage of the total operating budget; and 

• Affordability of capital projects - original allocations had to be reduced and the operational 
expenditure associated with prior year’s capital investments needed to be factored into the 
budget as part of the 2015/16 MTREF process. 

The following budget principles and guidelines directly informed the compilation of the 
2015/16 MTREF: 

• The 2014/15 Adjustments Budget priorities and targets; 

• Intermediate service level standards were used to inform the measurable objectives, 
targets and backlog eradication goals; 

• Tariff and property rate increases should be affordable and should generally not exceed 
inflation as measured by the CPI. In addition, tariffs need to remain or move towards being 
cost reflective, and should take into account the need to address infrastructure backlogs; 

• There will be no budget allocated to national and provincial funded projects unless the 
necessary grants to the municipality are reflected in the national and provincial budget and 
have been gazetted as required by the annual Division of Revenue Act; 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


• Local Government budget and Financial reforms : Regulation of a “Standard Chart of 
Accounts’ (SCOA) for local government; 

In view of the aforementioned, the following table is a consolidated overview of the proposed 
2015/16 Medium-term Revenue and Expenditure Framework: 


Table 1: Consolidated Overview of the 2015/16 

MTREF 

R thousand 

Adjustment Budget 
2014/15 

Budget Year 
2015/16 

Budget Year+1 
2015/16 

Budget Year+2 
2016/17 

Total Operating Revenue 

98 933 703 

105 705 130 

107 138 819 

109120 402 

Total Operating Expenditure 

74 222 812 

89 596 772 

94 625 009 

99 874 1 25 

Surplus / (Deficit) for the 
year 

24 710 890 

16 108 358 

12513810 

9 246 277 

Total Capital Expenditure 

34 091 788 

25 850 650 

17 650 050 

18 449 950 


Total operating revenue has increased by 7 per cent or R6,7 million for the 2015/16 financial 
year when compared to the 2014/15 Adjustments Budget. For the two outer years, 
operational revenue will increase by 1 and 2 per cent respectively, equating to a total 
revenue growth of R6.7 million over the MTREF when compared to the 2014/15 financial 
year. 

Total operating expenditure for the 2015/16 financial year has been appropriated at R89.5 
million and translates into a budgeted surplus of R16.1 million. When compared to the 
2014/15 Adjustments Budget, operational expenditure has increased by 20 per cent in the 
201 5/16 budget and increased by 6 per cent for each of the respective outer years of the 
MTREF. The operating surplus for the two outer years increases to R12.5 million for the 
2016/2017 financial year and steadily decreases to R9.2 million for the 2017/2018 financial 
year. These surpluses will be used to fund capital expenditure and to further ensure cash 
backing of reserves and funds. 

The capital budget of R 25.8 million for 201 5/1 6 is 24 per cent less when compared to the 
2014/15 Adjustment Budget. The reduction is due to various projects being finalised in the 
previous financial year. The capital programme decreases to R 17.6 million in the 2016/17 
financial year and increases to R18.4 million in the 2017/2018 financial year. A substantial 
portion of the capital budget will be funded from government grants. The balance will be 
funded from internally generated funds. 

1.4 Operating Revenue Framework 

The municipality’s revenue strategy is built around the following key components; 

• National Treasury’s guidelines and macroeconomic policy; 

• Efficient revenue management which aims to aims to ensure a 90% percent annual 
collection rate for rates and other service charges; 

• The municipality’s Property Rates Policy approved in terms of the Municipal Property 
rates Act, 2004 (Act 6 of 2004)(MPRA); 

• Increase ability to extend new services and recovers costs; 

• The municipality’s Indigent Policy and rendering of Free Basic Services; 

• The Tariff Policy of the municipality; and 

• The establishment of a Drivers Testing Licence Centre. 






Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Management have further adopted a conservative approach when projecting revenue and 
cash receipts. Council has also carefully considered the affordability of tariff increases, 
especially as it relates to domestic consumers whilst considering the level of service versus 
the associated cost Particular attention was paid to managing revenue effectively and 
evaluating all spending decisions. 


Table 2: The following table is a summary of the 2015/16 MTREF (classified by main 
revenue source): ~ 


Description 

Adjustment 

Budget 

2014/15 

Budget Year 
2015/16 

Budget 

Year+1 

2015/16 

Budget 

Year+2 

2016/17 

Property rates 

9 952 000 

10 100 000 

10 500 000 

11 025 000 

Property rates- penalties and collection 
charges 

550 000 

300 000 

318 000 

337 080 

Service charges- refuse revenue 

400 000 

450 000 

450 000 

450 000 

Rental of facilities and equipment 

4 765 270 

2 771 500 

2 937 790 

3114 057 

Interest earned - external investments 

3 000 000 

2 500 000 

2 650 000 

2 800 000 

Interest earned - outstanding debtors 

128 000 

105 000 

111 300 

117 980 

Fines 

52 750 

52 500 

52 500 

52 500 

Licences and permits 

400 500 

685 500 

726 630 

770 228 

Income from agency services 

517 000 

568 700 

625 570 

688 127 

Government Grants and Subsidies 

47 340 035 

69 229 000 

70 808 949 

71 252 050 

Other income 

1 155 032 

1 189 930 

308 030 

63 430 

TOTAL OPERATING REVENUE(excluding 
capital transfers and contributions) 

68 260 587 

87 952130 

89 488 769 

90 670 452 


































































Richmond Municipality 


2015/2016 Annua! Budget and MTREF 


Table 3: Percentage growth in revenue by main revenue source 


Description 

Adjusted 

2014/2015 Budget 

% 

Budget Year 
2015/2016 

% 

REVNUE BY SOURCE 





Property Rates 

9 952 000,00 

0,15 

10 100 000,00 

0,11 

Property rates - Interest 

550 000,00 

0,01 

300 000,00 

0,00 

Service Charges - refuse removal 

400 000,00 

0,01 

450 000,00 

l 0,01 

Rental of facilities and equipment 

4 765 270,00 

0,07 

2 771 500,00 

0,03 

Interest earned - external investments 

3 000 000,00 

0,04 

2 500 000,00 

0,03 

Interest earned - outstanding debtors 

128 000,00 

0,00 

105 000,00 

0,00 

Fines 

52 750,00 

0,00 

52 500,00 

0,00 

Licences and Permits 

400 500,00 

0,01 

685 500,00 

0,01 

Income from Agency Services 

517 000,00 

0,01 

568 700,00 

0,01 

Government Grants and Subsidies 

47 340 034,70 

0,69 

69 229 000,00 

0,79 

Other income 

1 155 032,09 

0,02 

1 189 930,00 

0,01 

Total Revenue (excluding capital 
transfers and contributions) 

68 260 586,79 

1,00 

87 952 130,00 

HI 

Total revenue from rates and service 
charges 

10 902 000,00 

15,97 

10 850 000,00 

12,34 


In line with the formats prescribed by the Municipal Budget and Reporting regulations, 
capital transfers and contributions are excluded from the operating statement, as inclusion of 
these revenue sources would distort the calculation of the operating surplus / deficit. 

Revenue generated from rates and service charges forms 11% of the revenue basket of the 
municipality. Operating grants and transfers totals R 69,2 million. 

Tariff-setting is a pivotal and strategic part of the compilation of any budget. When rates, 
tariffs and other charges were revised, local economic conditions, input costs and the 
affordability of services were taken into account to ensure the financial sustainability of the 
municipality. National Treasury continues to encourage municipalities to keep increases in 
rates, tariffs and other charges as low as possible. The municipality has provisionally 
increased rates and domestic refuse charges by 4% and all other service charges by 6%. 
Commercial refuse charges have been increased in line with the guidelines to ensure that 
the refuse tariff is cost effective. 







































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.4.1 Property Rates 

In accordance with Section 32 (1 ) of the Municipal Property rates Act No. 6 of 2004, the 
municipality had compiled a new valuation roll effective 1 July 2012. One supplementary has 
been approved and advertised in the 2014/2015 financial year. This would therefore be the 
fourth year of implementation of the current valuation roll. 

Property rates contribute towards covering the costs of the provision of general services. 
National Treasury’s MFMA Circular No. 51 deals, inter alia with the implementation of the 
MPRA, with the regulations issued by the Department of Co-operative Governance. 

These regulations came into effect on 1 July 2009 and prescribe the rate ratio for the non 
residential categories, public service infrastructure and agricultural properties relative to 
residential properties to be 0,25:1 . The implementation of these regulations was done in the 
previous budget process and the Property Rates Policy of the municipality has been 
amended accordingly. 

The tariffs have increased by 4%, however the rand value show an increase of R148 
thousand. The municipality has amended the Property Rates Policy in accordance with the 
gazetted amendments. Categories have increased which would have an impact on the rates 
income. 

The following stipulations in the Property Rates Policy are highlighted: 

• The first R 15 000 of the market value of a residential property is excluded from the 
rateable value (Section 17h of the MPRA). In addition to this rebate, a further 

R 35 000 reduction on the market value of a residential property will be granted in 
terms of the municipality's property rates policy; 

• Rebates will be granted to registered indigents in terms of the Indigent Policy; 

• For the aged a maximum rebate of 100 per cent will be granted to the owners of 
residential rateable property. In this regard the following stipulations are relevant: 

- The rateable property concerned must be occupied only by the applicant and 

his/her spouse, if any. 

• The municipality may grant a 100 per cent grant-in-aid on the assessment rates of 
rateable properties of certain classes such as registered welfare organisations 
provided they are registered and comply with the requirements as referred to in the 
Property rates Policy. 



Richmond Municipality 2015/2016 Annual Budget and MTREF 


Table 4 : Comparison of the proposed rates to be levied for the 2015/2016 financial 
year 


Category 

Current 
Tariff (1 
July 
2014) 

Proposed 

Tariff 
(from 1 
July 
2015) 

% 

Increase 

Rate 

Ratio 


c 

c 



RESIDENTIAL 

0.0065897 

0.0068533 

4% 

1 

BUSINESS, COMMERCIAL AND 
INDUSTRIAL 

0.0133038 

0.0138360 

4% 

2 

AGRICULTURAL 

0.0016932 

0.0017610 

4% 

0.25 

VACANT LAND 


0,0205599 

New 

category 

1:3 

PUBLIC SERVICE PURPOSES 

0.0133038 

0.0138360 

4% 

2 

PUBLIC SERVICE INFRASTRUCTURE 

0.0016932 

0.0017610 

4% 

0.25 

PUBLIC BENEFIT ORGANISATION 

0.0016932 

0.0017610 

4% 

0.25 

UNAUTHORISED USE 


0,0205599 

New 

category 

1:3 

MIXED USE PROPERTY 


0.0068533 

New 

category 

1 

OTHER 

0.0038632 

0.0040177 

4% 

0.52 


1.4.2 Refuse Removal 

Currently waste removal is operating at a deficit. A portion of the Equitable share will be 
used to fund this deficit. It is widely accepted that the rendering of this service should at least 
break even, which is currently not the case. The municipality will have to implement a solid 
waste strategy to ensure that this service can be rendered in a sustainable manner over the 
medium to long term. The municipality has therefore reviewed the tariffs in respect of 
commercial users and attempted to apply an increase that would address this issue. Further 
to the above the tariff charge will be raised per unit and not per property. 

A 6% increase in the waste removal tariff for domestic and commercial users is proposed 
from 1 July 2015. Currently indigent residential consumers are subsided in full for refuse 
removal. 

Although the municipality has affected a 6% increase on the refuse tariff, the income has 
increased by 12,5% for 2014/2015 to 2015/2016. This is largely due the municipality 
expecting to extend the service (other than Wardl). 


Table 5: Comparison between current refuse removal fees and increases 



























































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.4,3 Transfers Recognised- operational 

The Transfers recognised-operationai contributes 79% to the total operating income of the 
municipality. 

The municipality has investigated other sources of revenue with the adoption of a Revenue 
enhancement strategy. Some of the strategies were implemented ( e.g. improvement in debt 
collection). Raising income continues to be a challenge for the municipality as we do not 
render services such as water/sanitation or electricity. 

The municipality has also taken cognisance of the fact that its tariffs are not cost reflective 
and would need to align tariffs accordingly. 


1.4.3 Other income 

Other income has been increased per the request of department heads and has been 
aligned to the 2014/2015 forecast. 

1.5 Operating Expenditure Framework 

The municipality's expenditure framework for the 2015/16 budget and MTREF is informed by 
the following; 

• The asset management plan; 

• Balanced budget constraint (operating expenditure should not exceed operating 
revenue) unless there are existing uncommitted cash backed reserves to fund any 
deficit; 

• Funding of the budget over the medium term as informed by Section 1 8 and 1 9 of the 
MFMA. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Table 6 : The following table is a high level summary of the 2015/16 budget (classified 
per main type of operating expenditure); 


Description 

Adjusted 

2014/2015 

Budget 

% 

Budget Year 
2015/2016 

% 

Expenditure bv Type 





Employee related costs 

30 672 957,50 

0,41 

38 734 834,00 

0,43 

Remuneration of Councillors 

4 214 061,00 

0,06 

4 472 943,00 

0,05 

Debt impairment 

900 000,00 

0,01 

1 085 000,00 

0,01 

Collection costs 

40 000,00 

0,00 

40 000,00 

0,00 

Depreciation 

7 180 940,50 

0,10 

7 899 034,55 

0,09 

Interest expense 

118 030,00 

1 

175 000,00 

0,00 

Contracted services 

10 304 877,00 

0,14 

21 437 200,00 

0,24 

Grants and subsidies paid 

655 000,00 

0,01 

545 300,00 

0,01 

General expenses 

20 136 945,50 

0,27 

15 207 460,00 

0,17 

Total Expenditure 

74 222 811,50 

EH 

89 596 771,55 

n 


1.5.1 Employee Related Costs 

The budgeted allocation for employee related costs for the 2015/16 financial year totals 
R 38,7 million, which equals 43 per cent of the total operating expenditure. Salary increases 
have been factored into this budget at a percentage increase of 6 per cent for the 2015/16 
financial year. An annual increase of 6.1 percent has been included for the 2016/2017 
financial year and 5.8 per cent for the 2016/2017 financial year. The budget has also been 
drawn up taking into account the budgeting for applicable annual notch increases. 

As part of the municipality’s reprioritization and cash management strategy only posts that 
are critical and strategically important have been included in the 2015/2016 budget. These 
include the following:- 

> 1 x Budget and Reporting Clerk 

> 1 x SCM Practitioner 

> 1 x Public Participation officer 

> 1 x Senior T raffic officer 

> 1 x Receptionist ( inhlazuka Thusong Centre) 

> 1 x Secretary - SM: Technical Services 

> 1 x Authority Officer (SPLUMA) 

In addition expenditure against overtime was significantly reduced, with provisions against 
this budget item only being provided for emergency services and other critical functions. 




















































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Essential services departments are expected to introduce the “Shift System” to curb 
overtime and ensure compliance with relevant legislation. 

Expenditure against the following grants has also been included under salaries:- 

> Expanded Public Works Programme (EPWP) - employment of temp staff; and 

> Financial Management Grant - Financial Interns x 5 and an Asset Clerk 

The budgeted salaries for Senior Managers have increases when compared to the 
2014/2015 financial year. This is mainiy due to the following position being vacant during the 
2014/2015 financial year:- 

- Chief Financial Officer { awaiting finalisation of the HR Processes) 

All Senior Management positions have been budgeted fora full year in 2015/2016. Further to 
the above and analysing the trend and historical performance it is evident that performance 
bonuses had not been paid out to any senior manager for the past 3 years. Performance 
bonuses have been budgeted in terms of the Local Government Municipal Performance 
regulations; however affordability would be assessed during the adjustment process as 
required by regulation 32. 

The municipality understands that sustainable job creation remains a national priority and in 
drafting the 2015/2016 budget and MTREFs, the municipality has explored opportunities to 
promote labour intensive approaches to delivering services, and more particularly to 
participate fully in the Expanded Public Works Programme. 

1.5.2 Remuneration of Councillors 

The cost associated with the remuneration of councillors is determined by the Minister of Co- 
operative Governance and Traditional Affairs in accordance with the Remuneration of Public 
Office Bearers Act, 1998 (Act 20 of 1998). A 6 per cent increase has been factored into the 
budget for the 2015/16 financial year. 

1.5.3 Depreciation 

Provision for depreciation and asset impairment has been informed by the Municipality’s 
Asset Management Policy. Depreciation is widely considered a proxy for the measurement 
of the rate asset consumption. Budget appropriations in this regard total R7,8 million for the 
201 5/16 financial year and equates to 9 per cent of the total operating expenditure. 

1 .5.4 Finance Charges 

The finance charges budgeted for under Table A4 relates to bank charges and finance 
charges on the lease of the Switchboard and Photocopiers. 


1 .5.5 Debt Impairment 

The municipality has budgeted for a collection rate of 90 per cent. An additional provision of 
Rl, 085, 000 has been made towards debt impairment. This provision would be reviewed 
during the adjustment budget. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.5.6 Contracted Services 

In the 2015/16 financial year, contracted services totals R21.4 million and has escalated by 
108 per cent. This is due in the main to annual increases by service providers as well as the 
introduction of operational costs arising from previous year’s infrastructure projects. 

The following major contract service has been re-allocated to contracted services in 
accordance with mSCOA:- 

> INEP Grant : R 1 0,000,000 - appointment of Project Manager and Contractor for the 
implementation of the electrification project; 

Further details relating to contracted services can be seen in SA1. 

1.5.7 General Expenditure 

General expenditure comprises various line items relating to the daily operations of the 
municipality. This group of expenditure has been identified as an area in which cost savings 
and efficiencies can be achieved. General expenditure totals R15.2 million in the 2015/16 
financial year and has decreased by 24 per cent. 

This is largely due to the re-allocation of expenditure as per mSCOA. 

A detailed breakdown can be seen in the Consolidated Budget summary annexed hereto. 


1.5.8 Repairs and Maintenance 

In terms of the Municipal Budget and Reporting Regulations, operational repairs and 
maintenance is not considered a direct expenditure driver but an outcome of certain other 
expenditures, such as remuneration, purchases of materials and contracted services. During 
the compilation of the 2015/2016 MTREF operational repairs and maintenance was 
identified as a strategic imperative owing to the aging of the Municipality’s infrastructure. 
Repairs and Maintenance has increased by 1 per cent in the 2015/2016 financial year. 

The level of budgeted Repairs and Maintenance expenditure, expressed as a percentage of 
the asset values is 2.5 per cent. This is below the norm of 8 per cent as required by MFMA 
circular 55. The municipality however budgets as per the maintenance plans and is confident 
that the budget would adequately secure the on-going health of the municipalities’ 
infrastructure and assets. 


1 .5.9 Municipal Standard Chart of Accounts (mSCOA) 

The Municipal Standard Chart of Accounts (mSCOA) is the biggest reform to be 
implemented in local government since the introduction of the MFMA. 

Richmond Municipality has been recognised as a pilot site for the implementation of 
mSCOA. The service provider being FUJITSU and the financial programme being 
ABAKUS2. 

The amendment of the Standard Chart of Accounts has been completed, both on operating 
and balance sheet items. The database is currently being uploaded into the new system to 
test. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Costing for this project has been funded by the following g rants 

> MSIG; and 

> FMG 

Estimated cost for piloting is R 1,027,600 (exclu. VAT) . 

The municipality is expected to purchase new hardware, however for the interim we would 
be utilising the service providers equipment. 

1.5.10 Operating Budget Surplus / Deficit 

The municipality has budgeted for an Operating deficit of R2,1 million in 2015/2016 and 
deficits of R5,1 million and R9,2 million in the two respective outer years. MFMA circular 
No. 72 requires all municipalities to adopt a surplus position. The deficit for all years is lower 
than the non-cash items expenditure reflected on the budgets (e.g. Depreciation). The deficit 
would be funded from accumulated funds. Every endeavour would be made to ensure that 
the deficits in the two outer years is eradicated going forward. 

This may indicate that the tariffs and rates are insufficient to ensure that the community is 
making a sufficient contribution towards the economic benefits they are consuming over the 
medium term budget period. 

During the following years budget review tariffs and rates would be reviewed simultaneously 
with a reduction in expenditure to improve this result. 


1.5.11 Free Basic Services: Basic Social Services Package 

The social package assists households that are poor or face other circumstances that limit 
their ability to pay for services. To receive these free services households are required to 
register in terms of the Municipality Indigent Policy. The municipality has in the 2015/2016 
year undertaken to register all indigents and thereby create an updated indigent register. 
The cost of the social package of the registered indigent households is largely financed by 
national government through the local government equitable share received in terms of the 
annual Division of Revenue Act. 

The amount under transfers and grants made by municipalities includes ; 

> Free basic electricity; 

> Free Basic Refuse; 

> Rebates on Rates offers to indigent 

> Rebates on Rates offered to Pensioners 




Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.6 Capital expenditure 

Table 7 : The following table provides a breakdown of budgeted capital expenditure 
per vote: 



Adjustment 


Budget 

Budget 


Budget 

Budget Year 

Year+1 

Year+2 

Vote 

2014/15 

2015/16 

2016/17 

2017/18 

Executive and Council 

250 000 

100 000 



Finance and Administration 

501 000 

343 000 



Planning and Development 
Community & Social 

241 000 

120 000 



Services 

1 254 690 

591 000 



Public Safety 

8 389 000 

635 500 



Sport & Recreation 

138 400 

1 354 400 

1 255 600 


Waste Management 

1 427 782 

300 000 



Road Transport 

21 889 916 

22 406 750 

16 394 450 

18 449 950 

Total Capital Budget 

34 091 788 

25 850 650 

17 650 050 

18 449 950 1 


For 201 5/16 an amount of R23,8 million has been appropriated for the development of 
infrastructure which represents 92 per cent of the total capital budget. Roads receives the 
highest allocation of R22,4 million. 

Management acknowledges that capital programmes needs a balanced funding structure 
addressing not only backlogs in services but also investment in new infrastructure as well as 
the renewing of current infrastructure. 

Total new assets represents 60 per cent or R15.4 million of the total capital budget while 
asset renewal equates to 40 per cent or R 1 0.4 million. Further detail relating to asset 
classes and proposed capital expenditure is contained in table A9 (Asset Management). In 
addition to the MBRR table A9, MBRR table SA34a, b and c provides a detailed breakdown 
of the capital programme relating to new asset construction, capital asset renewal as well as 
operational repairs and maintenance by asset class. 


Description 

R thousand 

Current Year 2014/15 

2015/16 Medium Term Revenue & 
Expenditure Framework 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

m 

Budget 
Year +1 
2016/17 

Budget 

Year +2 
2017/18 

Renewal of Existing Assets as % of total capex 

9,3% 

12,0% 

12,0% 

40,2% 

0,0% 

0,0% 

Renewal of Existing Assete as % of deprecn " 

32,5% 

57,1% 

57,1% 

131,7% 

0,0% 

0,0% 

R&Masa%ofPPE 

2,8% 

2,7% 

2,7% 

2,5% 

2,4% 

2,3% 

Renewal and R&M as a % of PPE 

4,0% 

6,0% 

6,0% 

8,0% 

2,0% 

1,0% 

Some of salient projects to be undertaken over the medium-t 

erm indue 

es, amongst others: 


- Grader, R2.700, 000.00; 

- Tipper truck , R 700,000.00; 

- Storm water upgrade Ward 1, R 2,400,000.00; 

- Resurfacing of residential roads Ward 1 , R 4,000,000.00; 

- Tarring of internal roads Ward 3, R4, 000,000; 

- Tarring of internal roads Ward 4, R4,000,000.00; and 

- Construction of sidewalks Ward 2, R 4,000,000.00. 























Richmond Municipality 


2015/2016 Annual Budget and MTREF 


1.6.1 Transfers recognised- Capital 

Transfers recognised capital contributes to 67 per cent or R17,4 million to the total capital 
expenditure. The municipality is highly dependent on grants for the delivery of capital 
projects. 

The own funding of R7.6 million is considerably high when compared to previous years. This 
is largely due to council’s intention to deliver on “Back to Basics”. Every endeavour would 
be made to maximise own funding going forward. 

As an alternative source of funding, the municipality has gone out to tenders for service 
providers to source alternate funding for the municipality. 

1.7 Cash Flow 

As per table A8, all statutory requirements (PAYE, Pension, Medical Aid etc.) are met at 
month end. 

The following provisions have been accounted for> 

• Housing Development Fund 

The DBSA loan will be paid off at the end of 2014/2015. The disclosure on the 2014/2015 
adjustment budget is incorrect and will be amended accordingly. 

The budget will be funded from cash back accumulated reserves. 

Part of the Cash and Cash equivalents includes investments less than three months which 
are captured under call investments in Table A6. 


1.8 Annual Budget Tables - Parent Municipality 

The following pages present the main budget as required: 





Municipal annual budgets 

and MTREF 


Version 2.7.1 


Accountability 


Information & 
service delivery 


national treasury 

Department: 

National Treasury 

REPUBLIC OF SOUTH AFRICA 


Click for Instructions 


ElsabS Rossouw 
National Treasun/ 

Tel: (012) 315-5534 
Electronic submissions: 


lgdocuments@treasury.gov.za 



Preparation Instructions 



MBRR Budget Formats Guide 





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KZN227 Richmond - Contact Information 


A. GENERAL INFORMATION 
[Municipality 


KZN227 Richmond 


3| ) Gratfe interns g( f/w Rmunemlhn of Public Office Ses/ere Act. 


KZN KWAZULU-NATAL 


Web Address www.rcihm 

e-mai! Address sibusiso.si: 

B. CONTACT INFORMATION 

Postal address: 

P.O. Sox P/Bag 1028 

CBy/Town RICHMOND 

Postal Code 3780 


Street address 

Building 

Slreel No. & Name 

City /Town 

Posial Code 


MEMORIAL HALL 
57 SHEPSTONE STREET 

RICHMOND 

3780 


General Contacts 

Telephone number 
Fax number 


033 2122155 
033 212 4668 


C. POLITICAL LEADERSHIP 


Name 


Telephone number 


Cell number 


Fax number 


E-mail address 


Secretary/PA to the Speaker: 


Name 


[Telephone number 


Cell number 


Fax number 


E-mail address 


Mavor/Executive Mayor: 


Name 


Telephone number 


Cell number 


Fax number 


E-mai! address 


MR A RAGAVALOO 


033 2122155 


082493 8698 


0332124668 


j Secretary/PA to the Mayor/Executive Mayor. 


Name MSLCH1YA 


[Telephone number 033 212 2155 


Cell number 072 8066028 


Fax number 033 212 4666 


E-mai! address 


Deputy Mayor/Executive Mayor 


Name Ms P Ngcobo 


Telephone number 033 212 2155 


Cell number 082 303 8644 


Fax number 033 212 4668 


E-mail address 


ISecretary/PA to the Deputy Mayor/Executive Mayor: 


Name 


Telephone number 


Call number 


Fax number 


E-mail address 


D. MANAGEMENT LEADERSHIP 


Municipal Manager 


Name N 


Telephone number 0 


Cel! number 0 


Fax number 0 


E-mail address s 


MrESSilhole 


033212 2155 


072 1396510 


033 212 4663 


I Secretary/PA to the Municipal Manager: 


Name Ms M Mlioa 


Telephone number 033 212 2155 


Cell number 082 754 4625 


Fax number 033 21 2 4568 


E-mail address 


Chief Financial Officer 


Name 


Telephone number 


Ceil number 


Fax number 


E-maii address 


033 2122155 


083 271 9941 


033 2124668 


ISecretary/PA to the Chief Financial Officer 


Name 


ne number 


[Coll number 


[Fax number 


[E-rnaii address 


Official responsiblefor submitting financial information 


Name H Osman 


Telephone number 033212 2155 


Cell number 0832719941 


Fax number 033 21 2 4668 


hmond.oov.za 


HffiHPSuTib.'lr M 
















































KZN227 Richmond * Table A1 Budget Summary 


Description 


Property rates 
Service charges 
Investment revenue 
Transfers recognised - operational 
Other own revenue 

Total Revenue (excluding capita! transfers and 
contributions) 

Employee costs 
Remuneration of councillors 
Depreciation & asset impairment 
Finance charges 
Materials and bulk purchases 
Transfers and grams 
Other expenditure 
Total Expenditure 
3urplus/(Deficit) 

Transfers recognised - capital 
Conlributions recognised - capital & contributed assei 
Surp!us/(Def!cii) after capital transfers & 
contributions 

Share of surplus/ (deficit) of associate 
Surplus/(Oeficit) for the year 




Capital expenditure 

Transfers recognised - capital 
Public contributions & donations 
Borrowing 

Internally generated funds 
Total sources of capital funds 


Total current asseis 
Total non current assets 
Total current liabilities 
Total non current liabilities 
Community wealth/Equity 


Cashflows 

Net cash from (used) operating 
Net cash from (used) investing 
Net cash from (used) financing 
Cash/caah equivalents at the year end 




Cash and investments available 
Appficalion of cash and investment 
Balance - surplus (shortfall) 


ement 


Asset register summary (WD V) 
Depreciation & asset impaiimenl 
Renewal of Existing Assets 
Repairs and Maintenance 


Cost of Free Basic Services provided 
Revenue cost of free services provided 
Households below minimum service level 


Waler: 

Santfatiorvsewerage: 

Energy: 

Refuse: 


























































































KZN227 Richmond - Table A2 Budgeted Financial Performance (revenue and expenditure by standard classification) 


Standard Classification Description 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2314/1 5 

2015/16 Medium Term Revenue & Expenditure 
Framework 

R thousand 

1 

Audited 

Outcome 

Audited 

Outcome 

i Audited 
Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year* 1 
2016/17 

(Budget Year +2 
2017/18 

Revenue • Standard 











Governance and administration 


36665 

42 824 

47 816 

55470 

57 782 

57702 

66 426 

65 502 

64 986 

Executive and council 


066 

1744 

2197 

2 553 

3153 

3153 

4 545 

4752 

4963 

Budget and treasuiy office 


35 372 

41 010 

44 656 

51 892 

53 567 

53567 

60 89 1 

59 701 

58 911 

Corporate services 


308 

70 

963 

1034 

1062 

1062 

990 

1049 

1 112 

Community and public safety 


. 4 009 

7 635 

8 510 

5855 

7 495 

7 495 

5 205 

5 517 

5 848 

Community and social services 


1496 

1631 

2 000 

2 331 

2 469 

2 469 

2 368 

2 510 

2 661 

Sport and recreation 


836 

396 

4 552 

2 658 

4184 

4184 

2107 

2233 

2 367 

Public safety 


453 

586 

598 

868 

493 

493 

730 

774 

820 

Housing 


1223 

5019 

1 361 

- 

348 

348 

- 

- 

- 

Health 


- 

- 

- 

- 

- 


- 

- 

- 

Economic and environmental services 


12 079 

20316 

24 269 

19347 

33 027 

33 027 

30 525 

32357 

34296 

Planning and devalopment 


11652 

19 868 

23 777 

18 830 

32 510 

32 513 

29 957 

31 754 

33 659 

Road transport 


42B 

447 

492 

517 

517 

517 

569 

603 

639 

Environmental protection 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Trading services 


570 

373 

1209 

642 

933 

930 

3 548 

3 761 

3 967 

Electricity 


- 

- 

- 

- 

- 

- 

_ 

- 

- 

Water 


- 

- 

~ 

- 

- 

~ 

_ 

- 

- 

Wasta water management 


- 

- 

- 

- 


- 

- 

- 

- 

Waste management 


57C 

373 

1209 

642 

930 

930 

3 548 

3761 

3 987 

Other 

4 

- 

- 

- 

- 


- 

- 

- 

- 

Total Revenue - Standard 

2 

53 324 

71 147 

81 804 

81 322 

99 233 

99233 

105 705 

107 138 

109 120 

Expenditure - Standard 











Governance and administration 


18 738 

21 709 

22 011 

26190 

26 656 

26 656 

30 610 

32 398 

34 245 

Executive and council 


5476 

6414 

7 537 

8 958 

9 225 

9 225 

10 340 

10 961 

11618 

Budget and treasury olftce 


8 906 

10626 

8 810 

10 037 

10 720 

10720 

12S27 

13 54S 

14 264 

Corporate slices 


4 356 

4 670 

5 663 

7 295 

6 710 

6 710 

7 443 

7889 

6 363 

Community and public safety 


13 251 

21 755 

19716 

17660 

22162 

22182 

25116 

26 623 

28220 

Community and social services 


8226 

142S4 

10 624 

10 639 

11425 

11425 

13144 

13 933 

14 769 

Sport and recreation 


1461 

33B1 

4 564 

1601 

5 266 

5266 

5224 

5 537 

5 669 

Public safety 


3 564 

4080 

4 528 

5 420 

5142 

5142 

6 748 

7153 

7 582 

Housing 


- 

- 

- 

- 

348 

348 

- 

- 

- 

Health 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Economic and environmental services 


9 833 

11141 

17 478 

19 206 

22 770 

22770 

30322 

31843 

33 422 

Planning and development 


4311 

5149 

8447 

9 471 

12213 

12 213 

19 903 

20 798 

21 715 

Road transport 


5 521 

5 991 

9 031 

9 735 

10 557 

10 557 

10419 

11045 

11 707 

Environmental protection 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Trading services 


2242 

2214 

3 093 

3 206 

2 964 

2964 

3543 

3 761 

3 987 

Electricity 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Water 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Waste water management 


- 

- 

_ 

- 

- 

- 

- 

- 

- 

Waste .management 


2 242 

2214 

3093 

3 200 

2 954 

2 904 

3548 

3 761 

3 987 

Other 

4 

- 

- 

_ 

- 

- 

- 

- 

_ 

- 

Total Expenditure ■ Standard 

3 

44 064 

56 819 

62 298 

66 257 ' 

74571 

74 571 

89 597 

94 625 

99 874 

Surplus/(DefioIt) for the year 


9 260 

14 328 

19507 

15 065 ; 

24 662 

24 662 

16 108 | 

12 513 

9245 


References 

1. Government Finance Statistics Functions and Sub-functions are standardised to assist the compilation of national and international accounts for comparison purposes 

2. Total Revenue by standard classification must reconcile to Total Operating Revenue shown in Budgeted Financial Performance (revenue and expenditure) 

3. Total Expenditure by Standard G'asslfication must reconcile to Total Operating Expendllura shorn in Budgeted Financial Performance (revenue and expenditure) 

4. All amounts must be classified under a standard classification (modified GFS). The GPS function ’Other' is only for Abbatoirs, Air Transpoti, Markets and Tourism - and if used must be supported hy footnotes. Nothing else 
my be placed under 'Other'. Assign associate share to relevant classification 




KZN227 Richmond - Table A2 Budgeted Financial Performance (revenue and expenditure by standard classificati' 


Standard Classification Description 


Current Year 2014/ 


R thousand 


{Revenue -Stand 


Municipal governance and administration 


36665 

42824 

Executive and council 


986 

1744 

Mayor and Council 


986 

1 744 

Municipal Manager 


- 

- 

Budget and treasury office 


35372 

41 010 

Corporate services 


308 ‘ 

70 -1 


Human Resources 
Information Technology 
Property Services 
Other Admin 

Community and public safety 
Community and social services 
Libraries and Archives 
Museums & Art Galleries etc 
Community halls and Facilities 
Cemeteries & Crematoriums 
Child Care 
Aged Care 
Other Community 
Other Social 
Sport and recreation 
Public safety 
Police 
Fire 

Civil Defence 
Street Lighting 
Other 
Housing 
Health 
Clinics 
Ambulance 
Other 

Economic and environmental services 

Planning and development 
Economic Development/Planning 
Town Planning/Building enforcement 
Licensing & Regulation 
Road transport 
Roads 
Public Buses 
Parking Garages 
Vehicle Licensing and Testing 
Other 

Environmental protection 
Pollution Control 
Biodiversity & Landscape 
Other 

Trading services 
Electricity 

Electricity Distribution 
Electricity Generation 
Water 

Water Distribution 
Water Storage 
Waste water management 
Sewerage 



300 

1 — - 

70 

4 009 

7 635 

1496 

1 631 

207 

l 

416 

1 

774 

865 

515 

350 

836 

398 

453 

686 

453 

586 


12079 

20 316 

11652 


11 601 

19421 

I 

“• i 

286 

51 

161 

428 

447 
























Water 


_ 

- 

- 

- 

- 

Water Distribution 

Water Storage 







Waste water management 


- 

- 

- 

- 

- 

Sewerage 

Storm Water Management 

Public Toilets 







Waste management 


2242 

2 214 

3 093 

3 200 

2 964 

Solid Waste 


2242 

2 214 

3 093 

3 200 

2 964 

Other 


- 

- 

- 

- 

- 

Air Transport 

Abattoirs 

Tourism 

Forestry 

Markets 







Total Expenditure - Standard 

3 

44064 

56 819 

62 298 

66 257 

74 571 

Surplus/(Deficit) for the year 


9 260 

14 328 

19 507 

15 065 

24 662 


References 

1. Government Finance Statistics Functions and Sub-functions are standardised to assist national and international accounts and comparison 

2. Total Revenue by Standard Classification must reconcile to total operating revenue shown in Financial Performance (revenue and expenditure) 

3. Total Expenditure by Standard Classification must reconcile to total operating expenditure shown in Financial Performance (revenue and expenditun 

4. All amounts must be classified under a Standard (modified GFS) classification. The GFS function ' Other 1 is only for Abbatoirs, Air Transport, Markets 
else may be placed under ‘Other 1 . Assign associate share to relevant classification 


check oprev balance 

-1 770 371 

-60065 

-0 

- 

-86435 

check opexp balance 

- 790 050 

-260478 

0 

- 

-37991 



























KZN227 Richmond - Tabie A3 Budgeted Financial Performance (revenue and expenditure by municipal vote) 


Vote Description 

Ref 

2011/12 

2012/13 

r 

2013/14 

Current Year 201 4/1 5 

2015/16 Medium Term Revenue S Expenditure 
Framework 

R thousand 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Fult Year 
Forecast 

Budget Year 

2015/16 

Budget Year tl 

2015/17 

WMM 

Revenue bv Vote 

Vote 1 - Executive 4 Counci! 

1 

986 

1 744 

2197 

2 553 

2853 

2 853 

4 545 

4 752 

4963 

Vote 2 - Finance & Admin 


35 673 

41 080 

45 619 

52 926 

54 629 

54629 

61 881 



Vote 3 - Planning 4 Development 


11652 

19868 

23 777 

18830 

32 510 

32510 

29 957 

31 754 

33 659 

Vote 4 - Community & Social Sen/ices 


1496 

1631 

2 000 

2 331 

2469 

2 469 

2 368 


2 661 

Vote 5 - Community & Social Services 


1 223 

5 023 

1361 

- 

348 

348 


- 

- 

Vote 6 - Public Safety 


453 

586 

598 

366 

493 

493 

730 

774 

620 

Vote 7 - Sport & Recreation 


836 

398 

4552 

2 658' 

4184 

4164 

2107 

2233 

2367 

Vote 8 - Waste Management 


570 

373 

1209 

642 

930 

930 

3 548 

3 761 

3987 

Vote 9 • Roads Transport 


428 

447 

492 

517 

517 

517 

569 


639 

Vote 10- 


- 

- 

- 

- 

- 

- 

- 


- 

Vote 11- 


- 


- 

- 

- 

- 

- 


- 

Vote 12 -[NAME OF VOTE 12J 


- 


- 

_ 

- 

- 

- 


- 

Vote 13 -[NAME OF VOTE 131 



- 

- 

- 

- 

- 

- 

- 

- 

Vote 14 - [NAME OF VOTE 14} 



- 


- 


- 

- 


- 

Vote 15 -(NAME OF VOTE 15] 


- 

- 


- 

- 

- 

- 

- 

- 

Total Revenue by Vote 

2 

53 324 

71 151 

81804 


98 933 

98933 

105 705 

107 138 

109120 

Expenditure bv Vote to beaovroDriated 

Vole 1 - Executive 4 Council 

1 

5 476 

6414 

7 537 

8858 

9226 

9225 

10 340 

10 861 

11618 

Vote 2 - Finance 4 Admin 


13262 

15295 

14 474 

17332 

17431 

17 431 

20 270 

21 437 

22 626 

Vote 3 - Planring & Development 


4 311 

5149 

8 447 

9471 

12213 

12213 


20 798 

21715 

Vole 4 - Community & Social Services 


6 731 

8 663 

8432 

9 462 

9 921 

9 921 


12 507 

1325S 

Vote 5 - Community & Social Services 


1495 

5 431 

2192 

1177 

1504 

1504 


1420 

1511 

Vole 6 - Public Safety 


3 584 

4 080 

4 520 

5 420 

5142 

5142 

6 748 

7153 

7 582 

Vote 7 - Sport & Recreation 


1461 

3381 

4 564 

1601 

5266 

5266 

5224 

5 537 

5969 

Vote 8 - Waste Management 


2242 

2 214 



2 964 

2 964 

3 548 

3 761 

3 987 

Vote 9 • Roads Transport 


5 521 

5991 

9 031 

9 735 

10557 

10 557 

10 419 

11045 

11 707 

Vote 10- 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 11 - 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 12 -[NAME OF VOTE 12) 


- 

- 

- 

- 

- 

- 

- 

_ 

- 

Vote 13 -[NAME OF VOTE 13] 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 14 -[NAME OF VOTE 14] 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 15 - [NAME OF VOTE 15j 


- 

- 

~ 

- 

- 

- 

- 

- 

- 


jli 

44064 

56 819 

62 298 

66257 

74223 

74 223 

89 597~T 

94 625 + 

99 874 

Surplu8/(Deficit) tor the year ! 

2 1 

9 260 

14332 

19507 

15 065 

24710 

24710 

16108 

12513 

9245 


References 

). Inserl 'Vole'; e.g. department, if different to standard classification structure 

2. Must reconcile to Budgeted Financial Performance (revenue and expenditure) 

3. Assign share in 'associate' to relevant Vole 



































KZN227 Richmond - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote; 



Vote 1 - Executive & Council 

Municipal Manager 1020 
Council 1 010 


Vote 2 - Finance & Admin 

Budget & Treasury15C5 
Corporate Service$1530 


Vote 3 • Planning & Development 

Planning 30! 0 
Technical Services 3020 
Local Economic Dev 3033 


Vote 4 - Community & Social Services 

Administration: SM 2505 
Cemetery 2510 
Library 2520 

Community Hate - Inhlazulra 2530 
Community Hate - Kcpawal 2540 
Community Halls • Magcda2553 
Community Hals • Nkumane 2555 
Other (Buildings) 2590 
Community Halls • fnctaleni 2570 
Community Halls - Smazomeni 25B0 

Vote 5 - Community & Social Services 

Community Hails - Pattieni 2590 
Community Hals • Slyathuthuka 2595 
Housing 2515 

Community Halls ■ Mzinoloyu 2556 
Community Halls - Malizyo Spo/tstield 


Vote 6 • Public Safety 

Pofca 351 0 
Security 3520 
Learners Licence 3540 


Vote 7 - Sport & Recreation 

Grass Cutting 4540 













KZN227 Richmond - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)A 


Vote Description 

R thousand 

Ref 

2011/12 

2012/13 

— 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year +1 
2076/17 

Budget Year +2 
2017/18 


Vote 14 -{NAME OF VOTE H] 


. 



. 

. 

. 

. 


. 


14.1 - (Name of sub-vote] 












Vote 15 - (NAME OF VOTE 15] 











| 

{ 

15.1 - (Name o! sub-vots] 











1 

] 

TotaJ Revenue by Vote 

2 

53 324 

71 151 

91804 

81322 

96933 

93 933 

1 0S 705 

107138 

109120 

| 










KZN227 Richmond - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)A 


Vote Description 


Vote 8 - Waste Management 

8,1 - Solid Waste 5510 
8,2 -Street Cleaning 5520 
8,3 - Landiii site 5530 


Vote 9 - Roads T rensport 

9,1 - Amlnistration 4001 

9,2 -Reads 4010 

9.3 - Vehicle Licensing 4020 


Vote 10- 

10.1 - [Name ot sub-vote] 


Vote 11- 

11.1 - [Name of subvote] 


Vote 12 -[NAME OF VOTE 12] 

12.1 - [Name of sub-vote] 


Vote 13 -[NAME OF VOTE 13) 

13.1 - [Name of sub-vote) 


Ref ] 2011/12 

j Audited 
Outcome 


Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure j 
Framework 


Audited { Original Adjusted Full Year Budget Year I Budget Year +1 [Budget Year +2 
Outcome ! Budget Budget Forecast 2015/16 [ 2016/17 j 2017/18 






KZN227 Richmond - Table A4 Budgeted Financial Performance (revenue and expenditure) 


Revenue Bv Source 
Property rates 

Property rales ■ penalties & collection charges 
Service charges - electricity revenue 
Service charges - water revenue 
Service charges - sanitation revenue 
Service charges - refuse revenue 
Service charges - other 
Rental of facilities and equipment 
Interest earned - externa! investment 
Interest earned • outstanding debtors 
Dividends received 
Finas 

licences and permits 
Agency services 

Transfers recognised - operational 
Other revenue 

Gains on disposal ot PPE 

Total Revenue (excluding capital transfers and 
contributions) 


Empioyee related costs 
Remuneration of couwiliors 
Debt impairment 
Depreciation & asset impairment 
Finance charges 
Sulk pure, bases 
Other materials 
Contracted services 
Transfers and grans 
Other expenditure 
Loss on disposal ol PPE 


Total Expenditure 


Surplus/fDeflcit) 

Transfers recognised - capital 
Contributions recognised - capital 
Contributed assets 

Surplus/(Deficlt) after capita! transfers & 
contributions 
Taxation 

SurpluslfDeticItj after taxation 
Attributable to minorities 
Surp!us/(Deflc/t) attributable to municipality 
Share of surplus/ (deficit) of associate 


Surpius/(Deflclt) tor the year 



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 shorn should reflect the change in the provision lor debt impairment 

4. Expenditure type components previously shown under repairs and maintenance should be allocated bach to the originating expenditure g roup/item; e.g. employee costs 

5. Repairs S maintenance detailed in Table A9 and Table $A34c 


6. Contributions are hinds provided by external organisations to assist with infrastructure development,- e.g. developer contributions (detail to be provided in Table SA 1) 

7. Equity method 







































KZN227 Richmond - Table A5 Budgeted Capital Expenditure by vote, standard classification and fundin 



Wlulii-vear expenditure tobeaparaoriatefS 

! 2 

i 


1 

Vote 1 ■ Executive A Council 


- 

- 

“ 

Vote 2 - Franca 8 Admin 


- 

- 

- 

Vote 3 • Planning & Development 


- 

- 

- 

Vtote 4 - Community & Social Services 


- 

- 

- 

Vole 5 - Communily & Social Services 


- 

- 

- 

Vote 6 -Put*: Safety 


- 

- 

- 

Vole 7- Spon 8 Recreation 


- 

- 

- 

Vole B - Waste Manage marl 


- 

- 

- 

Vote 9 - Roads Tranepoit 


- 

- 

- 

Vote 10- 


- 

- 

- 

Vote 11- 


- 

- 

~ 

Vote 12- (NAME OF VOTE 12) 


- 

- 


Vole 13 - jNAME OF VOTE 13) 


- 

- 

- 

Vote 14 (NAME OFVOTE 14] 


- 

- 


Vote 15 -(NAME OF VOTE 15j 


- 

- 


Capital multi-year expenditure sub-total 

7 

- 

- 

- 

Single-year expenditure to be appropriated 

2 




Votel -Executive 8 Council 


15464 

21207 

21 140 

Vote 2 - Finance 4 Admit 


- 


- 

Vote 3 - Planning 8 Development 


- 

_ 

- 

Vote 4 - Community A Social Services 


- 

_ 

- 

Vote 5 - Community 8 Social Services 


- 

- 

- 

Vote 6 - Public Safety 


- 

- 

- 

Vote 7 • Sport 8 Recreation 


- 

- 

- 

Vote a - Waste Management 


- 


- 

Vote 9- Roads Transport 


- 


- 

Vote 10- 


- 

- 

- 

Vote 11 • 


- 

- 

- 

Vote 12 -(NAME OF VOTE 12) 


- 

- 

- 

Vole 13- (NAME OF VOTE 13] 


~ 

- 

- 

Vote 14 -(NAME OF VOTE 14] 


- 

- 

- 

Veto 15- (NAME OF VOTE 15) 

Capital single-year expenditure sufi-toial 

Total Capita 1 Expenditure - Vote 



15469* 

15464 

21207 

21207 

21 140 

21140 




Governance and adtnktmalwn 
Executive and courei! 

Budget and ireasuy office 
Corporate services 
Community and public safety 
Community and social services 
Spon and recreation 
PiijDc safety 
Housing 
Health 

Economic and environmental services 
Planning and davetapmenl 
Road transport 
Environmental protedbn 
Trading services 


Waste water management 
Waste management 


Total Capital Expenditure - Standard 


Funded by: 

National Government 
PnjvindaJ Govemmefe 
Disirict Municipality 
Olhsr transfer and granls 
Transters recognised - caortsl 
Public contributions & donations 
Borrowing 

Internally generated fends 



ns 




26 31 

21 140 I 21 499 


I. Municipalities may choose to appropna te lor capital expenditure lor three years or lor one year (it one year appropriation projected expertise required loryr2andyi3) 
2 Indude capital ronywrienr ft' PPP unitary payment. Note that capSa/ transfers are only appropriated to murodpainies lor the budget year 

3. Capital expenditure ty standard dBssrfication mist reconcile to the appropriations by vole 

4. Must rKoncie to supporting ladle SA2Q and to Budgeted Financial Performance (revenue ana expert, lur?) 

5. Must isconcle lo Budgeted Financial Pertormame (revenue and expenditure) 

6. Include imxe leases and PPP capital twding component at unitary payment • total baromrig/repaymenls lo reconcile to changes in Table SA17 

7. Total Capita* Fording must balance wWi Total Capital Expenditure 

3. to dude any capitalised interest (MFMA section 46) as part o! relevant capital budget 














































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KZN227 Richmond - Table A6 Budgeted Financial Position 


Description 

1 

J Ref 

T~*“" 

2011/12 

— 

2012/13 

2013/14 

CurrentYear 201 4/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

R thousand 

I 

Audited 

Audited 

Audited 

Original 

Adjusted 

1 Fuit Year 

Pre-audit 


"ifrifflSW PH 

Budget Year +2 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

outcome 


mmim 

2017/18 

ASSETS 

Current assets 











I 

Cash 


1 021 

839 

1855 

596 

595 

595 

595 


660 

726 

Call investment deposits 

1 

36 701 

42576 

43819 

73777 

30 507 




30000 

35 090 

Consumer debtors 

f 

6652 

3344 

4 847 

2298 

2298 

2298 

I 2298 

1615 

1615 

1615 

Other debtors 


1 136 

745 

686 

1312 

1312 

1312 

1312 

1391 

1474 

1563 

Current portion of tong-term receivables 


21 

23 

10 

- 

- 

- 





inventory 

2 

175 

26 

167 

166 

186 

186 

186 

125 

125 

125 

Total current assets 


45 706 

475S3 

51383 

78188 

34898 

34 898 

34898 

45 731 

33 874 

39 029 

lMoncurrantassef9 












Long-term receivables 


1951 




10 


10 

- 

- 

- 

investments 


0 


0 








Investment property 

Investment in Associate 


4 115 

4115 

4115 

4115 

4115 

4115 

4115 

4 115 

4115 

4115 

Property, piam and equipment 

Agricultural 

Biological 

3 

86 456 

102 743 

117 444 

113164 

113164 

113164 

113164 

124460 

136926 

150 62! 

Intangible 


23 

14 

52 

16 

16 

18 

18 

16 

16 

16 

Ollier non-current assets 


1241 

1674 


6598 

6 598 

6598 

6 598 




Total non current assets 


93 787 

108561 

122662 


123903 

123 903 

123 903 

128611 

141 C59 

154 752 

TOTAL ASSETS 


139 493 

155114 

174045 


158 801 

158801 

158801 

174342 

174 934 

W*IIZI1I 

LIABILITIES 

Current liabilities 












Bank overdraft 

1 











Borrowing 

Consumer deposits 

B 

391 

410 

317 

156 

156 

156 

156 

_1 

“ 


T rade and other payables 

H 

27 434 

27 909 

25 685 

22 759 

22 759 

22759 

22 759 


1545 

1591 

Provisions 

m 

153 

227 

208 








Total current liabilities 


28018 

28545 

26 210 

22915 

22 915 

22915 

22915 


1545 

1591 

Non current liabilities 












Borrowing 


153 

21 

- 

21 

21 

21 

21 

- 

- 

- 

Provisions 


7 654 

9 783 

10569 

10767 

10 767 


10 767 

12 767 

14 881 

171 22 

Total non current liabilities 





10788 

10 788 


10788 

12757 

14887 

17122 

TOTAL LIABILITIES 


35825 

38 355 

36779 

33 703 

33 70r 

33 703 

33 703 

14 267 

16426 

18 713 

NET ASSETS 

5 

103657 

117750 

137 266 

168 368 

125 098 

125 038 

125 098 


158508 

175 D6B 

COMMUNITY WEALTH/EQUITY 

■ 











Accumulated SurptLs/(Oef!cil) 

1 

103 667 

117760 

137 266 

168 388 

125 093 

125 098 

125098 

160 075 

158 5C8 

175 068 

Reserves 

Minorities' interests 


" 

“ 

” 

“ 


” 


~ 

- 

- 


m 

103667 

famEii 




125098 

125 098 

160 075 

158 508 

175088 


References 

1. Detail to be provided in Table SA3 

2. Include completed low cost housing to be transferred to beneficiaries within 12 months 

3. Include ‘Constructm-wk-ii-progress' (disclosed separately in annual firar.oei statements) 

4. Detail to be provided in Table SA3. Includes reserves to be tunded by statin e. 

5. Net assets must balance with Tots! Community Wealth/Equity 





















































































KZN227 Richmond • Table A7 Budgeted Cash Flows 


Description 

Ref 

2011/12 

2012/13 

— 

2013/14 

| Current Year 2014/1 5 


R thousand 


Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Pre-audit 

Budget Year 

[Budget Year +1 [Budget Year +2 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

outcome 

2015/16 

2016/17 

1 2017/18 

CASH FLOW FROM OPERATING ACTIVITIES 
Receipts 











( 

Property rates, penalSes 5 codecfion chafes 


4 466 

0642 

7786 

11 616 

11616 

11616 

11 616 

9360 

(0818 

10152 

Service charges 


(294) 

37 

395 

46917 

46 444 

46444 

46 444 

405 



Other revenue 


15812 

5 428 

5366 

18 865 

17 725 

17725 

17725 

4 345 

5574 

4 928 

Government • operating 

f 


55 525 

53 372 

1 BOO 

1800 



89 60$ 

69 885 

72221 

Government - capital 

1 








17376 

17 650 

18 450 

interest 


1621 

1518 

2121 





2 500 

2 761 

2 918 

Dividends 

Payments 









- 

- 

- 

Suppliers and employees 


(40678) 

(43 858) 

(52440) 

(56 992) 

(56992) 

(56992) 

(56992) 

(79 893) 

(84 547) 

(88 831) 

Finance charges 


(178) 

(184) 

(613) 

(114, 

(114) 

(114) 

(114) 

(175) 

(186) 

(197) 

Transters and Grants 

1 





(760) 

(760) 

(760) 

- 

- 

- 

NET CASH FROM/(USED) OPERATING ACT/VITiES 


16358 

27108 

21986 

21332 

19 719 

19 719 

19719 

23524 

22405 

20 092 

CASH FLOWS FROM INVESTING ACTIVfTlES 

Receipts 












Proceeds on disposal of PPE 


325 


(363) 






- 

- 

Deaease (Increase) in non-current debtors 










- 

_ 

Decrease (increase) other non-current receivables 


20 

25 

1 926 





- 


- 

Decrease (increase) in non-current investments 
Payments 









13164 


“ 

Capital assets 


(18464) 

(21 207) 

(21 140) 

(21 499) 

(34 091) 

(34 091) 

(34 091) 

(25 851) 

(17650) 

(18 450) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 


(15 120) 

(21 284) 

(19 577) 

(21 499) 

(34091) 

(34 091) 

(34091) 

(12687) 


(18450) 

CASH FLOWS FROM FINANCING ACTIVITIES 
Receipts 








■ 




Short term bans 









- 

- 

- 

Borrowing long term/relinancng 


214 

214 

- 





- 

- 

- 

Increase (decrease) In consumer deposits 

Payments 








|P 

— 

- 


Repayment of borrowing 


(117) 

(355) 

(150) 

(140) 

(140) 

Hi' 


- 

- 

- 

NET CASH FROM/(USED) FINANCING ACTIVITIES 


97 

(140) 

(150) 

(140) 

(140) 

(140) 

(140). 

- 

- 

- 

NET INCREASE! (DECREASE) IN CASH HELD 


1335 

5 684 

2259 

(307) 

(14512) 

(14 512) 


WSJ 

4 755 

1642 

CasWcash equivalents at the year begin; 

2 

K33I 

37 731 

43 415 

74 680 

45 674 

45 674 



42000 

46 755 

Casb/cash equivalents at the year end: 

2 

mmuESs 

43415 

45 674 

74373 

31162 

31162 

31 162 1 

42 000 j 

46 755 

48 397 j 


Referances 

1. Locai/Distnct municipalities to include transfers fromfo Dislrist/Local Municipalities 

2. Cash equivalents includes investments with maturities ol 3 months or less 

























































KZN227 Richmond - Table A8 Cash backed reserves/accumulated surplus reconciliation 


Description 

Ref 

— 

201 1 n 2 

2012/13 

2013/14 

Current Year 2014/1 5 

201 5/16 Medium Term Revenue & Expenditure 
Framework 

R thousand 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Pre-audit 

outcome 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 

Cash and investments available 












Cash/cash equivalents at trie year end 

1 

37 722 

43 415 

45674 

74 373 

31 162 

1 v - 

31 162 


46755 

48 397 

Other current investment > 90 days 


0 


(0) 

(1) 

(60) 


(80) 



(12671) 

Non current assets - Investments 

1 

0 

0 

0 

- 

- 


- 

- 

- 

- 

Cash and investments available: 


37 722 


45574 

74 372 

31102 

SSSKMIH 

31102 

42600 

30660 

35 726 













Unspent concStional transfers 


21765 

20182 

17364 

21357 

21357 

21 357 

21 357 

- 

- 

- 

Unspent borrowing 


- 

- 

- 

- 

- 

- 


- 


- 

Statutory requirements 










- 


Other working capita' requirements 

Other provisions 


{10894} 

3114 

4037 

(18995) 

(7131) 

(7131) 

(7 131) 

(1 114) 

(1 524) 

(1 563) 

Long term investments committed 


- 

- 

_ 

- 

- 

- 


- 


- 

Reserves to be backed by cash/investmenls 

H 



247 





256 

269 

282 

Total Application of cash and Investments: 



23296 

21648 

2 362 

14226 

14 226 

14 226 

(856) 

(1 255) 

(1 281) 

Surplus(shortfall) 


26850 

20119 


WMmmi 

16 876 

16876 

16 876 

43 456 

31915 

37 007 


References 


f . Must reconcile with Budgeted Cash Hows 

2. For example: VAT, taxation 

3. Council approval for policy required - include sufficient working capita! (e.g. allowing lora% cl current debtors > 90 days as uneoilectable) 

4. For example: sinking fund requirements tor borrowing 

5. Council approval required lor each reserve creaiod and basis of cash backing of reserves 











































K2N227 Richmond ■ Table A9 Asset Management 


Description Re! 

RthOUMtld 

I 


CAPJTALEXPENDITLIRE 


Masitiucfus ■ Road transput 
Mastneture ■ Electrify 
Mas tructun ■ Water 
tntrasirvciure - Santtaticn 
Mrasftxfwfl - Other 
tnfraatrvicJuro ' 

Community 
Heritage assefs 
Imiestmenl properties 
Other assets 
Agriculture.' Assets 
Biefogica! assets 
Intangibles 


mi/BStncture - Read transport 
tntrasirvciure - Beaiciy 
tn/mstnstm - Water 
Widsinxm ■ Sanitation 
Intrastasture ■ Otter 
Mrastfueiure 


Heritage assets 
investment properties 
Otto assets 
Agricultural Assets 
Biological assets 
IrfflngWes 


Intrasmctura - Road transport 
IrJiastvctuv ■ Electricity 
mtrasinxture ■ Water 
tirtra structure - Sanitation 
Mrastmciure ■ otter 
irirasiructure 
Commuraly 
Heritage assats 
InvestmerS proparties 
Oer assets 
Agricultural Assets 
Biological assets 
Intangibles 


TOTAL CAPITAL EXPENDITURE • Asset class 


ASSET REGISTER SUMMARY - PPE liVDV) 
irtirastmclm ■ Road transport 
intrasmxtuw ■ Electfcity 
Irrtrastnxturs - Water 
trUrastwctijn ■ Sanitation 
irfrastwdiss ■ other 
Mrastcwixe 
Community 
Heritage assets 
Investcierri properties 
Othsr assets 
Anricuaura! Assets 


Intangibles 


TOTAL ASSET REGISTER SUMMARY - PPE (WDY) 


EXPENDITURE OTHER REMS 


’J. U I !/UUU 


Inhasawhie ■ Road transport 
iniostnztuni ■ Electricity 
tnlrastructife ■ Water 
Inkastnxtuw ■ Sanitation 
tntrasinxlure - Otter 
irtrasiiucture 
Community 
Heritage assels 
Investment properties 
Other assets 


TOTAL EXPENDITURE OTHER ITEMS 


Renewal of Existing Asselsas ft ol total capex 
Renewal of Existing Assets as%ol deprecn" 
R&M as a % of PPE 
Renewal and R5M as a % of PPE 


2015/16 Medium Term Revenue & Expenditure 
Framework 



?. Dsfai ol new assets provided in Table SA34a 

2. Detail o! renewal of existing assets provided m Table SASfb 

3. Detail ol Repairs and Maintenance by Asset Cass provided in Table SA34c 

4. AAfil rwsrtiie to total capital expenditure on Budgeted Capital Expenditute 

5. MM reconcile to 'Budgeted Financial Position' (written down value) 

a Ctonated/contribJad and assets funded by finance teases to be allocated to the rejectee category 














































































KZN22? Richmond - Table AID Basic service delivery measurement 


Current Veer 2014/15 


2015(15 Medium Term Revenue & Expenditure 
Framework 



UMSiHEESISSai 


Piped water inside dwelling 
1 Pped water inside yard (but no! in dwelling) 

Using public tap (at least m'n.service level) 

Other water supply (at least min .seivice level) 
Mimnuir, Serves Level and virtue sub total 
Using public lap (< minsetvice levBlj 
Other water supply (< min.sarvice level) 

No water supply 

Below Mitmm Service tevet sub-total 
Total number of households 


Rush toilet (connected to sewerage) 

Flush toilet (with septic te nfc) 

Chemical toilet 
PH tote! (ventilated) 

Other toilet provisions (> min.sarvice leva? 

Minimum Service Level and Above subtotal 
Bucket toilet 

Other toilet provisions {< nSnservice level) 

No toilet provisions 

Below Minimum Service Level suO-totat 
Total number of households 

Energy; 

Electricity (at least min.setvice level) 

Efecfridly • prepaid (imi service lave?) 

Minimum Service Level a*f Above sub-total 
EtecMcty (< mn,servfca leva!) 

Eleciiieity - prepaid (< min. service level) 

Other energy sources 

Below Minimum Service Level sub -tore! 
Tots) number of households 

Removed at least once a week 

Minimum Service Level and Above sub-total 
Renwed Lass frscueotly than once a week 
Using communal refuse dump 
Using own refuse dump 
Oth er rubbish disposal 
No aftbishdspasai 

Betow WwOTium Service Level sib-totai 
Total number of households 


4 681 

4 681' 

4 68! 

6 749 

6749 

6749 

6713 

S 713 1 

6713 

502 

502' 

502 

18 645 

18645 j 


59 i 

] 

59 | 

59 

165 | 

165 j 

165 

224 

224, 

224 




Water (6 ftilo litres per household per month) 

Sanitation (free minimum level service) | 

Etedricitytother energy (50fcwh par household per month) 
Refuse (removed at leas? once a week) 


^SjB83^BSIi^SB9i!S85 


Water (6 kilolitres per household per month) 

Sanialion (tree sanitation service) 

Elect re ity/othar energy (SOkwfi per household per month) 
Refuse (removed once a week) I 

Tola! cost of FBS provided (minimum social package) 


Property rates (R value threshold) 

Water (ktoatres per household pa month) 
SarMon (kJtelrtres per household per month) 
Santtation (Rand per household per monih) 
Electricity (kwh pe- household per month) 
Reluse (average litres per week) 


5H5TilL'alKil lilt'll 


Property rates/RIS 000 iweshdd rebate) 
Property rates (other exemptions, reductions and 
rebates) 

Water 

Sanitation 

EleciifcHy/cIher energy 
Refuse 

Municipal Housing - renal rebates 
Housing ■ top stature subsidies 
Other 

Total revenue cost of free services provided (total 
social package) 





so ; 

50 

50 

50 

50 



1. 1 nelvde services pmvidee by another entity; e.g Eskcm 
Z Slant distance <= 2Wm from dweling 
3. Slant distance* 200m from dwelling 
4 Borehole, spring, rain-water tank etc. 

5. Must agree to total number of households in municipal area (inlormal settlements receiving senrices must be included) 

6 Incltde value ol subsidy provided by muntcipatity above provincial subsidy level 

7. Show number ol households receiving at least these levels ol services compritety tree (Inlormal setttemnnis must be included) 

8. Must/eflW the cost to the municipality of providing the Free Basic Service 























































































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KZN227 Richmond - Supporting Table SA2 Matrix Financial Performance 


Cesr'iinton 

S BwiMnd 

t 

| 

1 

I Vote 1 - 
Executive 4 
Council 

Vote 2* 
Hrurcs A 
Adirln 

Vote 3- 
Plawvrci 
Development 

Vote 4- 
Community & 
Social 
Services 

Vote 5- 
Community t 
Social 
Services 

■ 

VoleV-Spor 
4 Recreation 

Vote 8 -Waste 
Maaagemeni 

Vote 9 -Roads 
Transport 

Vote 10- 

Vote 11 - 

Vote 12- 
[NAMEOF 
VOTE 12) 

Vote 13- 
iNAMEOF 
VOTE 13) 

Vote 14- 
[NAMEOF 
VOTE 14) 

Vote 16- 
(NAME OF 
VOTE 15) 

Total 

■1 ' I'I'I 1 HI — ll'll 1 


















Property .ales 



10 ICO 














ioioo 

Prop^ Mes - penalises S coSerton cna-gas 



300 














300 

Se-rice Ofjos - etertnuif reve-ioa 

















- 

Service chaijrt - oahs revenue 

















- 

Service crtarges • saltation mre-ie 

















- 

Service ctarpes - refuse reverie 









450 








4 SO 

Service clw3*s -Oder 

















- 

l«ntal at laoSIre ml Wipnefli 



6 


665 



2100 









2T72 

Maim earner) • axWrns'inresCnms 



2 500 














2 500 

Irtrai eared - ouBtam&g 4 k4m 



80 






25 








105 

DwScndB received 

















- 

Flies 





3 


50 










a 

Ltences and cornels 




26 



660 










686 

Agency senicei 










569 







569 

OVsncwne 



102 

S8S 

173 


X 

7 

20 








1180 

Trarste recoyisBd - operator* 


*545 

48 531 

11X7 

1527 




3 053 








59 6W 

Gainj on disposal olPP£ 

















- 

Toyri Revenue (excluding capita! transfers and contributxo 

45tt 

81621 

12 840 

2 366 


730 

2107 


569' 

- 

- 

- 

- 

- 

- 

88 323 



















Employee ratals) costs 


2539 

11 7!i 

8738 

4 921 


5710 

1332 


2 950 







38 183 

Remunaiafoi d coucIIsb 


<m 







H~ H 








4 473 

Detil icpairimT! 



1095 














5 085 

Oepraialon 4 assel impart™™ 


133 

S67 

1 113 

1 703 


IK 

5 


3 M2 







7 m 

Franca cAan^s 


40 

120 


15 












175 

Bulk purchases 

















- 

Ww materia* 









pp 








- 

Contracted services 


1 031 

1713 

i05n 

3 622 


423 

328 


202 







19159 

Transfers aitl jams 

















- 

Odor OrpenfM 


2121 

5191 

1«3 

2684 


427 

3 656 

692 

3 305 







19 624 

LflBSontttpjsaloIPPE 

















- 

Total Evpei’Jitjre 


10345 

20270 

19 903 

-SiU 

H*! 

8716 

5224 


10 449 



- 

“ 

** 


“ 

83 597 

Surpius/ i 'DeHeH> 


(5798! 

4I3S» 

(7C63) 




THBriT/i 

~ 

(9 831) 

xgm 

BjHI 



ttammem 



T'ansten recogvseo - coptal 



260 

17116 

H 


HI 




B 

HI 



H 



ConlritaAiorts «ogrxs«i ■ taenia 1 







■ 

H 





^B 


■ 



Contributed assets 





JSPlH 

in;?® 

■ 




Hi 



Hj 


H 

Surplus/IOifflcm slier caprtwrl Panniers * 


(5 795); 

1 ELUf 

sLpHKTTTII 

iMfftTr, il 


15986) 

(3117) 


HU; 



- 1 

- 

- 

- 

16108 

jcontriOuelons 


— 

Hi 

HI 

Hi 

, H 



Ml 

Mi! 

HiHi 

i 1 






Pef&anCBS 

1. DepartvenW cc&ms tofie based on mvnftpai organsatton strvctui a 




































KZN227 Richmond - Supporting Table SA3 Supportinglng detail to 'Budgeted Financial Position' 


2011/12 


Balance at the beginning of the year 
Ccnlributions to the provision 
Bad debts written off 
Balance at end of year 


PPE at ccsWaluairon (ewl. finance leases) 
Leases recognised as PPE 


Total Property, plant and equipment (PPE) 


LIABILITIES 


I LtJiuiiLf i : t'j.r ’ .■i-.ni'ir'. , ii.'i' 


Short term loans {oiher than bank overdraft) 
Current portion of long-term liabilities 
Total Current liabilities - Borrowing 


III! -i* JJ . IlilX'iil . 10 \ Ji - .! 



Trade and other creditors 
Unspent conditional fransiera 
VAT 

Total Trade and other payabtes 


I JA [ 'ill 


Borrowing 

Finance leases (including PPP asset element) 
Total Non current liatiilities - Borrowing 


Retirement benefits 
List other mq'or provision items 
Refuse landfill site rehabJitafei 
Other 

Total Provisions - non-currant 


CHANGES iN NET ASSETS 


Accumulated Surpius/fOefrcit) ■ opening balance 
GRAP adjustments 
Restated balance 
Surplu&'IOeftot) 

Appropriations io Reserves 
Transfers from Reserves 
Depreciation offsets 
Other adjustments 
Accumulated Surplus/fDeficIt) 

Housing Development Fund 
Capital replacement 
Self-insurance 
Other reserves 
Revaluation 
Total Reserves 


TOTAL COMMUNITY WEALTH/EQUJTY 


Total capital expenditure includes expenditure on nationally significant priorities: 


Provision of basic services 





















































































Sbsttgic Obj dc live 

Goal 

Goat 

Code 

Re! 

2011712 


2011714 

Current Year 291415 

201 5/1 6 Medium Term Revenue 
Framework 

& Expenditure 

Audited 

Outcome 

Audited 

Outcome 

| | 


M-l. nil- W 





Base Service DeTrery and 
inlrjanjcturedevetopmeni 

Sccrai end tea! economic 
tfwefcpmert 

Good Governance and Public 
partcpatKm 

Municipal Tianstcrtsation and 
Insajtfcnaldevehpmini 

Municipal Financial Viability and 
Management 

Spatial and Environmental (Cross 
Cubing) 

To address services backus and 
tyOiis growth as well as maintain 
and upgrade aostng (nlrasItuSure 

br- 
at Pnoribse the use ol went 
capital Snanoial resources 

b) Wendly and tecMate the 
bnptimgiwton d rcauired training 
and rthls development 

c) Prepare and iroptemetil demand 
management plan 

To sfcsbaie economic 
davdopmoetto create an 
emwonnw suitable (or vigorous 
economic deveteproeni thereby 
enhancing economic and socio 
ecsnonic growth by- 

a) Rural development and land 
retain as well as private land 
owners 

b) Review LED strategy based on 
outcome ol analysis o( economy 

c) Develop and intplemaiit LED 
ppraes ara procedures 

d ! Promote LED strategtas 
mdusrve ol programmes and 
projects 

To provide sysiemsand 
mechanisms fcr aceoumab'iity and 
pubic participation in municipal 
devdopmenl alfairs by> 

а) Formulate an integrated 
development p(ac within the 
context d the f year cycle 

б) Formualle organisational 
performance management 
taMNk 

c) finable cornmunicatson strategy 

d) prevention , awareness and 
education 

e) To partner with the Department 
otSooat Development 

Provide input into lie review ot the 
current Recnttenl and retention 
strategy by- 

a) Scedhiteol critical rddOs 

To manage municipal resources lo 
ensure Imanoal suslainabKtlyand 
aRcrOabtSty by- 

a) introduce investment incerlire 
schemes 

b) incorporate previously non 
ra led areas 

To promole an elliciant and 
ccedae suaiegicand spahal 
municipal planting by.- 

ai Develop wall to wad schemes 

o) Review SOF 

c) Develop local area plans - 
hualeni, Magoda. Hopewe;; 

di Devsiop richmond SEA 
e) To improve respenss » 
disasiers 

t 

3 

a 

5 

E 


54845 

246 

38385 

200 

1760 

. 

■ 

48 

. 

29874 

_ 

49922 

200 

1760 

48 

29 974 

38753 

1 043 

2197 

BSO 

38423 

22622 

18830 

2 953 

1062 

53567 

1 689 

32 5(0 

2953 

■ 

990 

60891 

78W 

32510 

4 545 

1049 

59701 

29SS7 

4 752 

1112 

68911 

31 754 

4963 

Allocations lo otter priorities 


2 

55095 

7)207 

81604 

81322 

96933 

98 933 




Total Revenue (excluding capita! transiere and contributions) j 

55 095 

71207 

818IH 

81322 

98933 

98933 

105 705 




Reliances 

I. TM renvure mwl fa mete Id 7 s (* A< BudQeM financa/ Peitorwice (revenue end tupentMif) 














R thousand 


[Basic Service Delvery and 



To address services bacfcolgs 


infrastructure development and Ware grcwth aswaS as 
maintain and upgrade existing 
isltastrucfote by> 

a) Prioritise die use ol conent 
MP«al financial resources 


b) Identity sndlad.taB Die 
intpKfllsnMiM c! inquired 
trairxng aid s»Ss devotoomert 

c) Prepare and implement 
demand management plan 


Social and local economic To sSmiSale economic 

dnvetosment development to create an 

anvimnmen! suilable lor vigorous 
economic development thereby 
a) Rura’ development &«j land | 
reform as wos as private land i 


lb) Renew LED strateyy based on I 
I outcome of analysis oleccramy j 


c) Osvelop and imolemenl LEO 
poccies and procedures 


d) Promote LED strategies 
induOveol progommcsand 

projects 

Good Governance and Put* To ptovitte systems and 
parecipaifon mechanisms ty accourtabSity 

and pubtic padtapaftfo in 
municipal development aKairs byr- 

a) Fomwtato amntegtasd 
deuetopmert Wan within the 
context of the 5 year cycle 

b) fonnuafte organisational 
performance management 
Iramevrort 

c) Fnsias communication 
strategy 


d| Prevention . awareness and 
education 


e)Top«tner With foe 
Department ol Social 
Cevtfoprreni 

jWjnicipalTrmsfoimationsnd Provide fopui Inlc the renew ol 
Institutional dewtopment foe current Recruitment and 
retention strategy by> 

a) Seedtime o I critirei staiJs 
required 


Mjnrcipat Fmaneia! Viability and To manage municipal resources 
Kanagsmar-i to ensure fcvandai sustafoabifify 

sndattordabiHtvtv:- 

a) Introduce taHtoMt incentive 
mbemas 


b) incorporate prtWoudy non 
rated areas 


Spatial and Environmental (Cross I To ptorol* an etcient and 
Cutting) (credible strategic and spatial 

municipal pluming by:- 

a) Develop waB fo wall schemes 


clCtevelop focal area plans- 
Wateri Magoda. Hopewe,; 


] d) Deve lop jlcbmond SEA 


el To improve response to 
[disasters 


Allocations to outer priorities 


Total Expenditure 



i ToW cqlengfM mist recoedc « M* AdaudpsM raiencn’ Pwlamsnce ('revenue and mwxjlure; 





















KZN227 Sicfcnwnd - Sucoortmg Ta&lo SA6 Reconciliation of /OP strategic objectives ard bucket I 


Base Sen e* c&t+v&a to qmiws »w» Mttotgs 

irtfrasirocure devei^mew zrA Mure gnwlft » welf as 

Imawtam ana upgrade «»rAng 
[ttflMlCftptfe:- 

a'/PitortBe^usarfcurenl B 
casaflifiMnci^fWOwrces 


B)!<fcn}*yindiao’eateU* C 

«H>»enwiahoiiwieqtf«d 

lOfiticy and sWB devetopn«cni 


tcj Pn?pare arni vnpfen^M 
[(toward maoapooieftl plan 


I Sootf anti total econofcc 
dBMtopBiett 


To sterutaie ecaoDTrtc * 

tiovatopnctf to create an 
Mwonmenl sudatfe for wgofOti? 
acwiorcc dwcv ipron* »t*cty 
a) Rural d?w&topment and &m G 

retonit as wfl as p^ate bad 


b) Review UDsreipfly toatfco # 
ojjcone <a snafris ol «won* 


c) Owelopaitti iropterrenj UO 
potwa and procedures 


d) Promo* tEDsiraivgies 
PKftft w ol pfc^rawres and 
proffctt 

Good G**mance 2nd Pstfc to prcw» system and 

mxlarcns (sr aaouidaWrtf 
and pubic pa(tic*atiofl« 
ntf«wi(fe*e<ocn«nl aflans tff- 
a)Fo*roiiaieacrtegar«i 
devs©PfTCoJpan wtfJUn me 
cffiwxtourwSyearcycfe 

bfFcrnijaJtio^awsaftW’jfl j 

peformanw manapumeni 
tfanw&ort 


Wu<ik^Tfantfcrm«tooa<td 

E«Wuoonalcfc»e*QF*iie'U 


c)R^«wmrwnC3!'on 
| Wales* 


1 01 , awa^ess wfi 0 


ojTopayrerwifflJne 

DcfWrtxonlQfSocbt 

OevetopnMoT 

Provide *nput «o the «w*a of 
the CmthU Reovitnenf and 
retflrttofi strategy By> 

a) SceflMll 0! <3*eal MN 
rcQured 


Muntaptf Financial Vawty and I To rmwtao nw»Opa] n?sou ires 
Management to ftnure MmeU sasumabfity 

anaaitoafaW^rty. 


j W fraypoate pwttfi* m 
tated areas 


Spans! and Eiwornmow £ron to pnxn ote an ertoaoi aw 

Ctfl«p; aedibis sirateryc and spate! 

mum^patpianr^gtY. 

a) Devetop wal to was wiemes 


ej Dwetop fecat ares pan ■ 
Nt&tenJ. Magoda, Hopewtt 


d) Develop dtfvmjnd SEA 


je)T 0 imp»werespanGto 

IdUMOtM 


ABocaHor* lo ottw primiees 



1 Toatc£pWfiP 9 ^vrt^ 1 '&&* iis, <> 9 utyvt? 3 C&pSat£ty*fi&ufQ 

2 Ga/Voxx friffi bo used 0.1 Taue SAM 
















KZN227 Richmond - Supporting Table SA7 Measurable performance objectives 





r. Include a measurable performance objective lor each revenue source (within a relevant function) and each vole (MFMA si7(3)(b)) 

2. Include all Basic Sen/ices performance targets from Pa sic Service Detveiy'to ensure Table SA7 represents aB strategic responsibilities 

3. Only include prior year comparative inkmation lor individual measures where relevant activity occurred in that year/s 


KZN227 Richmond - Entities measureable performance objectives 


Description 

Unit of measurement 

2011/12 

20(2/13 

2013/14 

Current Year 201 4/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

f I 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year fl 
2016/17 

Budget Year t2 
2017/18 

N/A 

"• . ; v: •: 

: V,''' 


f. Include a measurable performance objective as agreed with the parent municipality (MFMA sB7(5)(d)) 

2. Only include prior yeer comparative irrtormalion for individual measures where relevant activity occurred in that year/s 



































































KZN227 Richmond - Supporting Table SA8 Performance indicators and benchmarks 




2011/T2 

2012/13 

Description of financial indicator 

Basis of calcufatlon 

Audited 

Audited 



Outcome 

Outcome 

Borrowlno Manaqemant 




CradH Raring 

Capital Charges to Operating Expertcfdure 

Interest & Principal Paid /Operating 
Expenditure 

0,7% 

0,9% 

Capaa! Charges to Own Revenue 

Finance charges & Repayment o! borrowing 
/Own Revenue 

2,2% 

3,8% 

Borrowed (unding of 'own' capital expenditure 

Borrowing/Capital expenditure exd. transfers 
and grants and contributions 

6,1% 

9,1% 

Gearing 

Long Term Borrowing! Funds & Reserves 

0,0% 

0.0% 

Liquidity 




Current Ratio 

Cuned assets/current liabilities 

t.6 

1.7 

Currant Ratio adjusted for aged debtors 

Current assets less debtors > 90 days/current 
liabilities 

1,6 

1.7 

Liquidity Ratio 

Monetary Assets/Current Liabilities 

1.3 

'• 5 

Annual Debtors Colled ton Rate (Payment Level 
%) 

Last 52 Mils Receipls/last 12 Mths Billing 


170,7% 

Current Debtors Collection Rale (Cash receipts 
% of Ratepayers. Other revenue) 


170,6% 

112,5% 

Outstanding Cebtoralo Revenue 

Toial Outstanding Debtors to Annual 

Revenue 

24.0% 

9.3% 

Longstanding Debtors Recovered 

Debtors > 12 Mths Recovered/Total Debtors 
>12 Months Oid 



Creditors Manaoement 




Creditors System Elticiency 

% of Creditors Paid Within Terms 
(within’MFMA' s 65(e)) 



Creditors to Cash and Investments 


15,2% 

17.8% 


Total Volume Losses (kW) 

0 



Total Cost of Losses (Rand ’COO) 



Electricity Distribution Losses (2) 

% Volume (units purchased and generated 
less units sofdVunits purchased and 
generated 

0 



Total Volume Losses (M) 

0 



Total Cost of Losses (Rand 000) 



Water Distribution Losses (2) 

% Volume (units purchased and generated 
ess units sold)/units purchased and 
generated 

0 


Employee cosls 

Employee costs/(Total Revenue - capital 
revenue) 

47.1% 

54,0% 

Remuneration 

Total remuneration/fTotal Revenue - capital 
revenue) 

57,6% 

62,3% 

Repairs & Maintenarxe 

R&M/(Total Revenue excluding capital 
revenue) 

3,4% 

4,0% 

Finance charges & Depreciation 

FC&D/(To1al Revenue - capital revenue) 

9,6% 

10,2% 

IDP reflation financial viability indicators 




L Debt coverage 

(Total Operating Revenue - Operating 
Grants)/Debt serves payments due wtthm 
financial year) 

7.2 

62 

n.Q/S Service Debtors to Revenue 

Total outstanding service debtors/annual 
revenue received tor services 

76,6% 

3B,6% 

iii. Cost coverage 

(Available cash + inves!ments)/month!y fixed 
operational expenditure 

14.0 

12,6 


References 

1. Consumer debtois > 12 months okt are excluded from current assets 

2. Only include if services provided by the municipality 


2013/14 

CuiTenl Year 2014/15 

201 571 6 Medium Term Revenue 6 
Expenditure Framework 

Audited 

Original 

Adjusted 

Full Year 

Pr&audtt 

Budget Year 

Budget Year 

Budget Yes’ 

Outcome 

Budget 

Budget 

Forecast 

outcome 

2015/16 

+1 2016/17 

+22017/18 

1,2% 

0.4% 

0,3% 

0,3% 

0,3% 

0,2% 

0,2% 

0,2% 

3,9% 

1,6% 

0,7% 

0,7% 

0.7% 

0.9% 

0,9% 

1,1% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

2.0 

3,4 

1,5 

1.5 

1.5 

30,5 

21,9 

24,5 

2.0 

3,4 

1,5 

1,5 

1.5 

30,5 

21.9 

24,5 

1.7 

3,2 

1,4 

1,4 

1,4 

28,4 

19,8 

22,5 

112.7% 

88,5% 

563,5% 

235,7% 

235,7% 

235,7% 

87,0% 

99,3% 

77,4% 

563,5% 

235,7% 

235,7% 

235,7% 

87,0% 

89,3% 

99.2% 

10,0% 

5.8% 

4,4% 

4,4% 

4.4% 

3,4% 

3,5% 

3,5% 

18,2% 

1,9% 

4.5% 

4,5% 

4,5% 

3,6% 

3.3% 

3,3% 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

44,6% 

49,7% 

36,1% 

36,1% 

36,1% 

42,0% 

44,3% 

46,8% 

51.7% 

64,3% 

41,2% 

41,2% 


47,1% 

49,6% 

52,3% 

4,7% 

5.1% 

3,7% 

3,7% 


3,5% 

3,7% 

3,9% 

12,6% 

10,0% 

8.9% 

8,9% 

8,9% 

9,1% 

9,9% 

10.8% 

140.1 

111,0 

111,0 

111,0 

14,1 

6,8 

6,7 

8,3 

34,9% 

30,8% 

23,0% 

23,0% 

23,0% 

22,1% 

21,6% 

22,8% 

12.5 

18,4 

7,4 

7,4 

7,4 

8,0 

8,5 

8,3 




KZN227 Richmond - Supporting Table SA9 Social, economic and demograph ic statistics and assumptions 


Description 01 economic indicator 


Current Year I 2015/16 Medium Term Revenue 




Number ol people «' nsa-jcipaJ area 
Number oi poor people in munidpai area 
Number c ( households m murtopal area 
Number ol poor househo'ds in rrunicipal area 
Definition ol poor household (R per month) 


Housing statelics 
Formal 
Informal 

Total number ol households 
Dwafrigs provided by mwidpaSiy 
Dwellings provided by province's 
Dwellings provided by pwate sector 
Total new housing dwellings 

Economic 

InllaliorVinllation outlook (CPIX) 
toierest rata - botwmg 
Into tost rats -mvesirneni 
Remuneration increases 
Coisurpiton growth (electricity) 
Consumption growth (water] 

Coll ection rales 

Property lax/service charges 
Rental ol/aciliSes 8 equipment 
Interest - external investments 
Interest - debtors 
Revenue tram agency eerfices 


Detail on the provision of municipal services for AfO 


Total municipal serviceg 





Ret. 


»grvr- 

Piped water Insid9 AwHing 

Pped water inside yard (but noi in dueling) 




































KZN227 Richmond Supporting Table SA10 Funding measurement 


Description 

MFMA 

section 


2011/12 

2012/13 

m 


2015/16 Medium Term Revenue 4 Expenditure 
Framework 

j Audited 

1 Outcome 

Audited 

Outcome 

Audited 

Outcome 


E 

■ns 


Pre-audit 

outcome 

Budget Year 
2015/16 

Budge] Year 
*1 2016/17 

Budget Year 
*22017/18 

Fundina measures 













CasfVcash equivalents at the yea; end • R'OQO 

18<1)b 

1 

37722 

43415 

45674 

74 373 

31 162 

31 162 

31 162 

42 000 

46755 

48 397 

Cash t investments el the yr end less appScalions • H'OCQ 

18(1)b 

2 

26850 

20119 

24 026 

72 010 

16 876 

16878 

16876 

43 456 

31915 

■in 

Cash year ond/monOily empkjyee/supplier payments 

18(1)b 

3 

14.0 

12,6 

12,5 

18,4 

7,4 

7,4 

7,4 

8.0 

8,5 

8,3 

Surplusi(Deficit) excluding depreciation offsets; R'000 

18(1) 

4 

10240 

14 128 

19507 

15 065 

24 710 

24 710 

24710 

16108 

12513 

9245 

Service charge rev % change - nacre CPtX target exclusive 

I8(1)a,(2) 

5 

N.A. 

28,1% 

5,3% 

(7,1%) 

(3,2%) 

(6,0%) 

(6.0%) 

(6,5%) 

(2,1%) 

(11,9%) 

Cash receipts % ot Ralepay er S Other revenue 

18(1 (a, (2) 

6 

170,8% 

112.5% 

77,4% 

563,5% 

235,7% 

235,7% 

235,7% 

87,0% 

99.3% 

992% 

Dett impairment expense as a % oJ total billable revenue 

18(1)a,(2) 

7 

6.0% 

43,4% 

11,8% 

4.7% 

4,6% 

4,6% 

4,6% 

10,0% 

5,8% 

6,1% 

Capita! payments’?, ol capita! expenditure 

18(1)c;19 

8 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 


Borrowing receipts % ol capital expendflure (exci. transfers) 

18(1)0 

9 

6.0% 

9,1% 

0.0% 

0,0% 

0,0% 

0,0% 

0.0% 

0,0% 


0,0% 

Grants % ol Govt, legisfaterfgazetled allocations 

18(1)3 

10 








0,0% 


0,0% 

Current consumer debtors % change - incr(decr) 

18(1)a 

tl 

N.A. 

(473%) 

34,B% 

(34,9%) 

0,0% 

0,0% 

E| 

(16,7%) 

2,8% 

29% 

Long term receivables % change - incr(decr) 

18(1)a 

12 

N.A. 

(99.5%) 

(100,0%) 

0,0% 


0.0% 

SSI 

(100,0%) 


0,0% 

RSM % ol Property pan & Equipment 

20(1 )(vi) 

13 

1.6% 

1,7% 

2,2% 

2,8% 


2,7% 

mm 

2,5% 

2,4% 

2,3% 

Asset renewal % cl capital budget 

20(1)W 

14 

0,0% 

0,0% 

0,0% 

9,3% 


12,0% 

ill 

403% 

0,0% 

ftO% 


References 

}. Positive cash balances indicative ol minimum compliance ■ subject to 2 

2. Deduct cash and investment applications (defined) from cash balances 

3. Indiceine of sufticieN liquidity to meet average monthly operating payments 

4. indicative ol funded opemtiona' requirements 

a. Indicative of adherence to macnxeconomic targets (prior to 2003/04 revenue not avaHahle for Ugh capacity municipalities and later for other capacity classifications) 

6 Peafrstic average cash cotfecUcn forecasts as % Of annua', billed revenue 
7. Realistic average increase in asW impairment (doubtful debt) provision 

5. Indicative of planned capital expenditure level S cash payment timing 

9 ItxfcaWe of compliance *4h borrowing 'only' for the capital budget - shotM ml exceed 100 % lejfess refinancing 

10. Substantiation of NationaUPrcvince allocations included in budget 

1 1. Indicative of realistic current arrear debtor cofloctiot i targets (prior to 2(03/04 revenue no! available lor high capacity mmicipa/ities and later tor other capacity classifications) 

12 Indicative of reatstic brig tens anear debtor collection targets (prior to 2Q03M revenue not available tor high capacity municipalities and later tor ether capacity cfassiticatioai) 

13 Indicative ol a crerffle attovr a te for repairs & maintenance of assets ■ functioning assets revenue protection 

14 Indicative of a credible allowance for asset renewal (requires analysis d asset renewal projects as % of tolaicapital projects -detailed capital plan) -functioning assets revenue protection 















I 


K2N227 Richmond - Supporting Table SA11 Property rates summary 



Dale of valuation: 

Financial year valuation used 
Municipal by-laws s6 in place? (Y/N) 
Municipal/assistant valuer appointed? (Y/N) 
Municipal partnership s38 used? (Y/N) 

No. of assistant valuers (FTE) 

No. ol data coftectors (FTE) 

No. of interna! valuers (FTE) 

No. of external valuers (FTE) 

No. of additional valuers (FTE) 

Valuation acpeal board establish? (Y/N) 

implementation lime of new valuation roll (mths) 

No. of properties 

No. of sectional title values 

No. of unreasonably difficult properties $7(2) 

No. of suppiementaiy valuations 
No. of valuation roll amendments 
No. of objections by rate payers 
No. of appeals by rate payers 
No. of successful objections 
No. of successful abjections > 10% 
Supplementary valuation 
Public service infrastructure value (Rm) 
Municipality owned property value (Rm) 


Valuation reductions-pubilc infrastructure (Rm) 
Valuation reductions-nature reserves/park (Hm) 
Valuation reductions-minsral rights (Rm) 
Valuation reductions- R 1 5,000 threshold (Rm) 
Valuation mckrtjorw-public worship (Rm) 
Valuation reductions-other(Rm) 

Total valuation reductions: 

Tote! value used for rating (Rm) 

Totalised value (Rm) 

Total value of improvements (Hm) 

Totel market value (Rm) 


31/07/2007 

2Q1(Y201f 


Audited 

Outcome 


01/07/201 1 
2011/2012 
Yes 
Yes 
No 


Audited 

Outcome 


Current Year 2014/15 


Adjusted | 
Budget 1 


2015/16 Medium Term Revenue & Expenditure 
Framework 


Full Year 
Forecast 



01/07/2011 01/07/2011 

2012/2013 2014/3014 


Yes Yes 

36 36 ; 

2 700 2 700 ' 

21 21 



Rating: 



Residential rale used lo determine rate tor other 



categories? (Y/N) 


Yes 

Differential rales used? (Y/N) 

5 

Yes 

Limit on annual rate increase (s20)? (Y/N) 


NO 

Spaciai rating area used? (Y/N) 


NO 

Phasing-in properties s2l (number) 

j 

NO 

Rates policy accompanying budget? (Y/N) 


Yes 

Fixed amount minimum value (R'OOO) 


15 

Non-residential prescribed ratio si 9? (%) 


Yes 

Rate revenue budget (H '000) 

6 


Rate revenue expected to collect (R'000) 

6 


Expected cash collection rate (%) 



Special rating areas (fl'000) 

7 


Rebates, exampfons - indigent (R'OOO) 


1 

Rebetes, exemptions - pensioners (R'OOO) 


j 

Rebates, exemptions - bona tide farm. (R'OOO) 



Rebates, exemptions - ofher {R'000) 



Phase-in reducSons/dscounfs (R'OOO) 



Total rebates, exemptns.reductns, discs (R'OOO) 


| 

,1 


1. All numbers to be expressed as w! to/e numbers except FT£s and Rates in the Rand 

2. To give effect to rates policy 

3. Full Time Equivalent (FTE) should be expressed to one decimal place and takes into account tuf/ time and part time staff 

4. Required to implement new system (FTE) 

5. Provide relevant inlormation for histodcal comparisons. Must reconcile to the total of Table SA12 

6. Current and budget year must reconcile (o Tabia A4 Budgeted Financial Performance (revenue and expenditure) 

7. included in rate revenue budget 

8. In favour ol the rate-payer 
























































































KZN227 Richmond - Supporting Table SA14 Household bills 


Description 


Rand/cent 


Monthly Account for Houseftt 
Range' 

Rates and services charges: 
Property rates 
Eiectritfty: Basic levy 
Electricity: Consumption 
Water: Basic tevy 
Water: Consumption 
Sanitation 
Refuse removal 
Other 

VAT on Services 
Total large household bid: 

% fncreaseZ-decrease 


eirold 


[Rates and services charges: 
Property rates 
Electricity: Basic levy 
Eiectricity: Consumption 
Water: Basic levy 
Water: Consumption 
Sanitation 
Refuse removal 
Other 

VAT on Services 
Total small household bill: 

% increasez-decrease 


Rates and services charges: 

Property rates 
Electricity: Basic levy 
Electricity: Consumption 
Water; Basic tevy 
Water: Consumption 
Sanitation 
Refuse ramova) 

Other 

VAT on Services 
Total smalt household bill: 

% increase/'dacreese 


Id - ‘Middle Income 



?. Use as basis property value ot R70O 000, 1 000 kWh electricity and 30kl water 

2. Use as basis property value of R500 OOO and R 700 000, 500 kW i elecbidty and 25k! wafer 

3. Use as basis property value ot Ft 300 000, 350kWh electricity and 20kt water (50 kWh electricity and 6 kl water tree) 





























KZN227 Richmond ■ Supporting Table SA15 Investment particulars by type 

. . | r- 


Investment type 

R thousand 

| 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 

2015/16 

Budget Year +1 

2016/17 


Parent municipality 

SecUfides - National Government 

Listed Corporate Bonds 

Deposits - Bank 

Deposits - Public Investmeni Commissioners 

Deposits - Corporation for Public Deposits 

Bankers Acceptance Certificates 

Negotiable Certificates of Deposit - Banks 

Guaranteed Endowment Policies (sinking) 

Repurchase Agreements - Banks 

Municipal Bonds 

Municipality sub-total 

Entities 

Securities - Natiocal Government 

Listed Corporate Bonds 

Deposits - Bank 

Deposits - Public Investment Commissioners 

Deposits - Corporation for Public Deposits 

Bankers Acceptance Certificates 

Negotiable Certificates of Deposit - Banks 

Guaranteed Endowment Policies (sinking) 

Repurchase Agreements - Banks 

Entities sub-total 

1 

36 701 

42 576 

43819 

73 777 

’ 

30 507 

30 5D7 

42 000 


35 000 

36 701 

42 576 

43 819 

73 777" 

30 507 

30507 

42 000 

47 000 

35000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Consolidated total: 



36701 

42 576 

43 619 

73 777 

30507 

30 507 j 42 000 ; 

47 000 

35000 


References 

1. Tefal investments must reconcile to Budgeted Financial Position ('current' call investment deposits plus Tien-cmenf investments) 



































KZN227 Richmond - Supporting Table SA17 Borrowing 


Borrowing • Categorised by type 
B thousand 


Long-Ter/n Loans (annuity/reducing balance) 
Long-Tern Loans (non-annuity) 

Local registered stock 
Instalment Credit 
Financial Leases 
PPP liabilities 

finance Granted By Cap Equipment Supplier 
Marketable Bonds 
Mon-Marketable Bonds 
Bankers Acceptances 
Financial derivatives 
Other Securities 
Municipality sub-total 

Entities 

Long-Term Loans (annuity/reducing balance) 
Long-Term Loans (non-annuity) 

Local registered stock 
instalment Credit 
financial Leases 
PPP liabilities 

Finance Granted By Cap Equipment Supplier 
Marketable Bonds 
Non-, Marketable Bonds 
Bankers Acceptances 
Financial derivatives 
Other Securities 
Entitles sub-total 

Total Borrowing 


Unspent Borrowing • Categorised by type 


Long-Term Loans (annuity/reducing balance) 
Long-Term Loans (non-annuity) 

Local registered stock 
Instalment Credit 
Financial Leases 
PPP liabilities 

Finance Granted By Cap Equipment Supplier 
Marketable Bonds 
Non-Marketable Bonds 
Bankers Acceptances 
Financial derivatives 
Other Securities 
Municipality sub-totai 

Entitles 

Long-Term Loans (annuity/reducing balance) 
Long-Term Loans (non-annuity) 

Local registered stock 
Instalment Credit 
Financial Leases 
PPP liabilities 

Finance Granted By Cap Equipment Supplier 
Marketable Bonds 
Non-Marketable Bonds 
Bankers Acceptances 
Financial derivatives 
Other Securities 
Entities sub-total 


Total Unspent Borrowing 



Current Year 201 4/1 5 

2015/16 Medium Term Revenue 4 Expenditure 
Framework 

Original 

Budget 

Adjusted 

Budget 

j Full Year : 
Forecast 

Budget Year ! Budget Year +1 j Budget Year +2 
2015/18 j 2016/17 2017/18 



References 

1. Total borrowing must reconcile to Budgeted Financial Position (Borrowing - non-curteni) 











KZN227 Richmond - Supporting Table SA18 Transfers and grant receipts 


Description 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 201 4/15 

201 5/1 6 Medium Term Revenue & Expenditure 
Framework 

R thousand 


Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

i Budget Year +1 

Budget Year +2 

1 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

! 2016/17 

2017/18 

RECEIPTS; 

1,2 








■I 


Operatina Transfers and Grants 











National Government: 


_ 

_ 

_ 

45 232 

45 094 

45 094 


l 

72 221 

Local Government Equitable Share 





41243 

41243 

41243 

54162 

56 174 

56317 

Finance Management 





1 800 

1775 

1775 

1000 

1025 

1900 

Municipal Systems Improvement 





934 

821 

821 

670 

957 

1033 

EPWP Incentive 





1255 

1255 

1255 

1043 



INEP 





— 



10000 

10000 

12 000 

MIG-PMU 








901 

929 

971 

Provincial Government; 


- 

- 

- 

811 

1350 

1350 

1027 

- 

- 

Provinciaiisalion of Libraries 





635 

685 

685 




Community library services grant 





126 

126 

126 

170 



Sport and Recreation 






116 

116 

150 



Housing 






348 

348 




Scholar Patrol Grant 






75 

75 




District Municipality: 


_ 

_ 

- 

- 

- 

_ 

- 

- 

_ 

[insert description! 











Other grant providers: 


_ 


_ 


_ 


_ 

- 

- 

/insert descriptor,' 











Total Operating Transfers and Grants 

5 

- 


- 

46 043 

46444 

46 444 

69 606 

69 885 

72 221 

Caoital Transfers and Grants 











National Government: 


- 

- 

_ 

17 493 

17 631 

17631 

17370 

17 650 


Municipal Infrastructure Grant (MIG) 





17493 


17493 

17116 

17 650 

18450 

Finance Management 






MB 

25 




Municipal Systems Improvement 






113 

113 

260 

” 

" 

Other capita! iransfersfgranls [insert descj 











Provincial Government: 


- 

- 

- 

2250 

34 

34 

- 

- 

- 

Sports and recreetion 





2250 

34 





District Municipality: 


_ 

- 

_ 

- 

mm 


- 

- 

- 

UMQM 





~ 

60 

60 




Other grant providers: 


- 

- 

- 

- 

- 

- 

- 

_ 

- 

[insert description j 











Total Capital Transfers and Grants 

5 

_ 

- 

- 

19743 

17 725 

17 725 

17 376 

17 650 

18450 

TOTAL RECEIPTS OF TRANSFERS & GRANTS 


- 

- 

- 

65 786 | 

64169 

64169 

66 982 

87 535 

90 671 


References 

1. Each transfer/grant is listed fry name as gazetted together with the name of the transferring department or municipality, donor or other organisa lion 

2. Amounts actually RECEIVED ; not revenue recognised (objective is to confirm grants transferred) 

3. Replacement of RSC levies 

4. Housing subsidies tor housing where ownership transferred lo organisations or persons outside the control o' the municipality 

5. Total transfers and grants must reconcile to Budgeted Cash Flows 

6. Motor vehicle licensing refunds to be included under ‘agenc/ services (Not Grant Receipts) 


























KZN227 Richmond - Supporting Table SA19 Expenditure on transfers and grant programme 



1. Expenditure must be separately listed for each transfer or grant received or recognised 



























































































KZN227 Richmond - Supporting Table SA20 Reconciliation of transfers, grant receipts and unspent funds 


Description 

R thousand 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
FrameworK 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 

Ooeratlna transfers and arants: 

National Government: 

Balance unspent at beginning oi the year 

Current year receipts 

Conditions met - transferred to revenue 

Commons stHI to be mat - transferred to liabilities 
Provincial Government: 

Balance unspent at beginning of Ihe year 

Current year receipts 

Conditions met- transferred to revenue 

Conditions stili to be met - transferred to liabilities 
District Municipality: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

Conditions stili to be met - transferred to liabilities 
Other grant providers: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 

1,3 










- 

- 

- 

- 

- 

- 

- 

- 

- 










- 

- 

- 

- 

- 

- 

- 

- 

- 










- 

- 

- 

- 

- 

- 

- 

- 

- 









■ 

- 

- 


- 

- 

- 

- 









■R£S£§s5E 

■ ■ 


Total operating transfers and grants revenue 


- 

- 



- 

- 

- 

- 

- 

- 

Total operating transfers and grants - CTBM 

2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Capital transfers and arants: 

National Government: 

Balance unspent a! beginning of the year 

Current year receipts 

Conditions met • transferred to revenue 

Conditions still to be me! - transferred to liabilities 
Provincial Government: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

Conditions stili to be met - transferred to liabilities 
District Municipality: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met • transferred to revenue 

Conditions still lo be met • transferred to liabilities 
Other grant providers: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

Conditions still io be met - transferred to liabilities 

1,3 










- 

- 

~ 

■immm 


- 

- 

“ 

- 










- 

- 

- 


- 

- 

- 

- 

- 











- 

- 

- 

- 

- 

- 

- 

- 

- 












rt 

- 

- 

- 

- 

- 

- 

- 

- 











Total capital transfers and grants revenue 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Total capital transfers and grants - CTBM 

2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL TRANSFERS AND GRANTS REVENUE 


- 

- 

- 

- 

MISS 

§§§H 

- 

- 

- 

TOTAL TRANSFERS AND GRANTS - CTBM 


- 

- 

- 

- 

Inii 


- 

- 

- 


1. Total capital transfers and grants revenue must reconcile to Budgeted Financial Performance and Financial Position ; total recurrent grants revenue must reconcile lo Budgeted Financial Performance 

2. CTBM = conations to be met 

3. National Treasury database wilt require this reconciliation for each transfer/grant 







KZN227 Richmond - Supporting Table SA21 Transfers and grants made by the municipality 


Description 


Ref I 2011/12 


Current Year 2014/15 

Adjusted Fuff Year Pre-audit 

Budget , Forecast outcome 


2015/16 Medium Term Revenue & Expenditure 
Framework 





TOTAL TRANSFERS AND GRANTS 


References 

1. Insert description listed by municipal name and demarcation code of recipient 

2. Insert description of eacft entity or external mechanism (an external m echanism maybe provided with resources to ensure e minimum level of service) 

3. Insert description ct each Organ ol State (e.g. transfer to electricity provider to compensate lor FBS provided) 

4. Insert description of each other organisation {e.g. charity) 

5 Insert description of each other organisation (e.g. toe aged, child-headed households) 

6. AH descriptions should separate transfers for 'capital purposes' and 'operating purposes' 





































KZN227 flichmond - Supporting Table Sfl 22 Summary councillor and stafl benefits 







- 



20l5/16Me<lfurnTwfr Revenue i Exper.<3)lurs 

Summary of Employee am Ccunefte reraunerailMi 

Ftel 

2011/12 

2012/13 

281334 



Ftamevnrti! 


R thousand 



Audited 

AoOittd 

Original 

Adjusted 

Full Ye® 

Budget Year 

Butl9eiVear 

Budget Tear 


Outcome 

Currant t> 

OufCWB 

Budget 

Budge! 

Fo/ecast 

201 SMS 

.1 2016/17 



1 

A 

B 

c 

D 

E 

F 

S 

H 

\ 

Basic salaries and Wages 

Pension and LHF CMMMm 


3390 

3477 

3 751 

4 214 

4214 

4214 

4 473 

4 741 

5 028 

Uoftal AidContnftacrB 

Mohs Vehicle Adtwarw 

CodfSicra Atouance 
leiamgAHwaneei 













3380 

3477 

3751 

4214 

4 214 

4214 

4 473 

4 741 


%inoease 

4 


2/fit 

7)1% 

12,4% 






Base Ss/aiies and Wages 


6 052 

1004 


4313 

3946 

3946 

4 459 

4737 

5021 

Pension and U(F Coniribute 











Merfasl Aid Contributes 

















” 

" 



528 






on 

552 

552 



6taur Vertex Atownce 

3 






“ 




Cefipfone ABrwarra 

3 










Hotaiig Momncts 

3 










Oder bedells and 8"seantx« 

3 










PBymiresinlievorieare 
long ssenie swards 

$ 










Sub Total • Settlor Menage's of Municipality 


3052 

2004 


4 917 

4 600 

4 50D 




%mccaM 

4 


(0*,4%) 

(100,0%) 

‘ 

(8,8%) 





Basic Salaries and Wages 


10206 

5 610 

13 332 
£ 04 1 

17613 

2467 

21 351 

2 75? 

15 647 
2126 

15547 

2126 

20438 

2969 

21837 

2543 

23 413 
2785 



/S3 

912 

665 

1264 

ton 







394 

447 

222 

171 

14f 

141 

125 





716 

969 

1053 

1 642 

1 418 

Miff 

1697 

2 478 


MotoVehMeWimaicE! 

3 

135 

70S 

**| 

756 

1 038 

1038 




CeOfts™ ASwaxe 

a 

87 

104 

ITS 

207 

192 






3 

IB 

33 

36 








3 

627 

M3 

439 

787 








703 

623 

903 

600 






Long service awards 

Postrefcement benefit otSgatiore 


up 

1447 

367 

1676 

246 

135 

200 

1100 

300 

1322 

300 

1372 

130 0 

1 $87 

mm 


16974 

72 013 

24 8E9' 

31 027 

24 918 

24 S’, 8 

31553 

33813 

7,4% 

% Inc/ esse 

4 


29,7% 

12,9% 

24,8% 

09,7%) 


296% 




23410 

27493 

26610 

40166 

33632 








17,4% 

4,1% 

40,4% 

(16,7%) 

" 



6,8% 

Board Members oi EflKttW 











Basic Salaries and Wages 

Feraton and UiF Contribute 

Motal Aid Cerate* ore 

Owrrdnw 

Pertonrarra Boms 

Molar Vehicle Aliwarte 

3 










Csfipte Ataaaxa 

3 










herding AJoviancea 

3 










Other Mnedt: and sBowarto 

Board Fees 

Payments in lieu c4 leave 

Lonj sews ante 

3 










PosHttrsmert benefit ootgatons 

Sub Total • Board Members o! Endues 









— 



- 

- 

- 


- 


_ 



litocreasa 

i 



* 



' 




Swlot Mansoets ol Entitles 











Basic Slides and Wages 

Person and t/(F Conlrftwfcons 

MecKal Aid Contribute 

Overtime 

Pedomraie Boras 

Motor VertcJo AUowarXO 

3 





1 





Cetphore Atewnce 

3 










Housing Aibvtsmm 

3 










OSiet tensfc aid aUwcnces 

Payments in Oouo! leave 

Long semes arvaros 

3 










Ptst-rtfement DeneSt obfoja’rwis 

Sub Total • Senior Managers of EoBdes 













- 

- 

- 

- 


- 

“ 

~ 

s. Increase 

4 





' 

" 




Other Staff pLEPHtlcs 











Base Salaries end Wages 

Person and UiF ConWbu&ns 

Mstfcel AidConHjuaons 

Overfaa 

Performer*® Barus 

Motor Vehicle AUmwnoe 

3 










CS4J/W* Attwance 

3 










Hc-jsiiigA5m«9rses 

3 










or.-et teneSts and akrwancue 

Payments mfcuot leave 

Longs tone® awutfc 

3 










Poshewerrent tea obsgete 

Sub Total • Other Stall ol Entitles 

6 









- -- M ,,, 


- 


■ 

- 

- 

- 

“ 

" 


% increase 

4 


“ 

" 









- 

- 

- 

* 

- 

- 

" 

“ 

“ 

TOTAL SALARY, ALLOWANCES & BENEFITS 


23416 

27493 

26610 

40 168 

33632 

33632 

41810 

44 366 

47425 

•Alncreaa* 

TOTAL MANAGERS AND STAFF 

4 

5,? 

20026 

17,4% 
24 016 

4,1% 
24 659 

40,4% 

35944 

(1M*> 

294T8 

2941B 

23,7% 

37137 

6,6% 

35625 

42 3S9 


fiBSaa^ 

i. mcfcdB loans and estwress' v.f<™ apfUeette it my reportable emutila ui» phase a comowice mil s 164 of MfilM sefr/eved 
EsSTo/ftaSyStSTOAdf 

3: M abed teneAts fe.gr prowjiiwd/ ftbigq^rteis/rt&s/w ahowtaetfie css / (681 trader raAp) If ItemwAtoaNy. eepsrta/ihereArv3rja8b>rertce 
4 B/A QH D/C. £ 1C. F/C, 0/0. HID, I/D 
i Hast apres to tf» aiMMtf Wearing on 7ntteAi (Fmptyee rasa) 
fi kvt^pmxnpaynmtBarteiriflatmmntftiitoFsviiiBfosla*} 

'.Cemci&satSOJm 


A. BMC. Auotsd actual an per dw xatotl fnancial sfilnml ir a uttteo amune an uravaSatfc. uiaulrW arrows must t» pwdW wW a no* sad® these are lesuMO 
0. The tuignei ta*9el approved 0/ counei te We budget year. 

£, 77* hustjel for the turret ye y as abated by coma I tesoMiui fi terns ol section 21 of the WFIW 

F. yuiKirraKal iinslec*J3ttimoiriio lpier/St)tix the ament ye# et the rcH 'mCrvel Offering the thK>i)ei tor me UUget yea. This say Mi from £. 

0. The arrow » fie appropriated let the (ufcef year 
H art I. The afflcaJve pfofKtat 


KZN227 Richmond - Supporting Table SA23 Salaries, allowances & benefits (political office bearers/councillors/senior managers) 

i I I CJ... 1 j! i ft 1 Ilr> 


Disclosure of Salaries, Allowances & Benefits 1. 

Rand per annum 

Ref 

No. 

! Salary 

Contribution 

1. 

Allowances 

! Performance 
Bonuses 

1 

1 

In-kind benefits 

Total Package 

2. 

Councillors 

3 


( 






Speaker 

4 


339 000 


32 452 



371 452 

Chief Whip 



231 000 


32 462 



263452 

Executive Mayor 



768 818 


32 452 



801 270 

Deputy Executive Mayor 



33S000 


32 452 



371 452 

Executive Committee 



317126 


32 452 



349578 

Tcrtat for all other councillors 



2079000 


236740 



2 315 740 

Total Councillors 

8 

- 

4073 944 

- 

399000 



4472 944 

Senior Managers of the Municipality 

5 








Municipal Manager (MM) 



1 030 077 


90 000 

144 211 


1 264288 

Chief Finance Officer 



882269 


90000 

123 518 


1 095 787 

SM: Corporate Services 



852 113 


90 000 

119296 


1 061409 

SM: Community Services 



852113 


90 000 

119 296 


1 061 409 

SM: Techncial Services 



852 113 


90000 

119 296 


1 061 409 

List ol each dfical with packages >= senior manager 









Total Senior Managers of the Municipality 

8,10 

- 

4 468 685 

- 

450 000 

625 617 


5 544 302 

A Headino for Each Entity 

6,7 








List each member of board by designation 


J. 

1 

! 





- 

Total for municipal entitles 

eucm 

“ 1 

-J 

- 

- 

- 


- 



_ n 






TOTAL COST OF COUNCILLOR, DIRECTOR and EXECUTIVE 
REMUNERATION 

10 

7 

- 1 

L 

8542 629 

_ 

849 000 

625 617 


10017 246 


References 

1. Pension and medical aid 

2. Total package must equal the total cost to the municipality 

3. Lis/ each political otiice bearer by designation. Provide a total (or all other councillors 

4. Political office bearer is defined in MFMA s 1: speaker, executive mayor, deputy executive mayor, member of executive committee, 
mayor, deputy mayor, member of mayoral committee, the councillor designated to exercise powers and duties oi mayor (MSA s 57) 

5. Also list each senior manage r reporting to MM by designation and each official with package senior manager by designation 

6. List each entity where municipality has an interest and state percentage ownership and control 

7. List each senior manager reporting to the CEO ot an Entity by designation. 

8. Must reconcile to relevant section of Table SA24 

9. Must reconcile to totals shown lor the budget year ol Table SA22 

10 . Correct as at 30 June 



KZN227 Richmond - Supporting Table SA24 Summary of personnel numbers 


Summer/ of Personnel Numbers 

Ref 

2013714 

Current Year 2014/15 

Budget Year 2015/16 

Number 


Positions 

Permanent 

employees 

Contract 

employees 

Positions 

Permanent 

employees 

Contract 

employees 

Positions 

Permanent 

employees 

Contract 

employees 

Municipal Council and Boards of Municipal Entities 











Councillors (Political Office Bearers plus Other Councillors) 

Board Members of municipal entities 

-1 

14 


14 

14 


14 



14 

Municipal employees 

5 










Municipal Manager end Senior Managers 

3 

5 


5 

5 


5 



- 5 

Other Managers 

7 

6 

6 


6 

6 


6 

6 


Professionals 


23 

23 

- 

25 

25 


31 

31 

- 

Finance 


3 

3 


3 

3 


5 

5 


Spatialhown planning 

Information Technology 


2 

2 


2 

2 


3 

3 


Roads 

Electricity 

Water 


3 

3 


3 

3 


3 

3 


Sanitation 

Refuse 

Other 


15 

15 


17 

17 


20 

20 


Tecnnicians 


35 

31 

4 

35 

31 

4 

31 

31 

- 

Finance 


9 

5 

4 

9 

5 

4 

5 

5 


SpatiaWown planning 

Information Technology 

Roads 

Electricity 

Water 

Sanitation 

Refuse 


5 

5 


5 

5 


5 

5 


Other 


21 

21 


21 

21 


21 

21 


Clerks (Clerical and administrative) 



5 

5 


10 


11 

11 


Service and sales workers 


9 


9 

9 

9 





Skilled agricultural and fishery workers 

Craft and related trades 

Plant and Machine Operators 


12 

12 


m 

14 


' 

14 

14 


Elementary Occupations 


41 

41 

■on 


43 


40 

48 


TOTAL PERSONNEL NUMBERS 

9 

155 

lilt 

37 

165 

143 

23 

isil 

mmm 

19 

% increase 


1 



7.1% 

21,2% 

(37,8%) 


5,6% 

(17,4%) 

Total municipal employees headcount 

6, 10 










Finance personnel headcount 

m 

14 

9 

5 

14 

9 

6 

14 

14 

6 

Human Resources personnel headcount ■, 

SE 

2 

2 


2 

2 


2 

2 



References 

1. Postons must be funded and aligned to the municipality's current organisational structure 

2. Full Time Equivalent (FTE). E.g. One full time person = 1FTE. A person writing half time (say 4 hours ouf of 8) = 0.5FTE. 

3. s57 of the Systems Act 

4. Include only in Consolidated Statements 

5. Include municipal entity employees in Consolidated Statements 

6. Include headccunt (number fo persons, Not FTE) of managers and staff only (exclude councillors) 

7. Managers who provide the direction of a critical technical lunction 

8. Total number ot employees working on these functions 




























KZN227 Richmond - Supporting Table SA25 Budgeted monthly revenue and expenditure 


Description 

— 

Ref 



Budget Year 2015/16 

Medium Term Revenue and Expenditure 
Framework 

R thousand 


July 

August 

Sept 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 

Property rates 

Property rates - penalties & collection charges 

Service charges - electricity revenue 

Service charges - water revenue 


25 

6 000 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

— 

444 

25 

444 

25 

100 

25 


10 500 

318 

9815 

337 

Service charges - sanitation revenue 













— 

- 

- 


Service charges - refuse revenue 

Service charges - other 


38 

38 

38 

3B 

38 

38 

38 

3B 

38 

38 

38 

38 

450 

450 

450 

Rental of facilities and equipment 

Interest earned - external investments 

Interest earned - outstancfing debtors 

Dividends received 


231 

208 

9 

231 

208 

9 

231 

208 

9 

231 

208 

9 

231 

209 

9 

231 

208 

9 

231 

208 

9 

231 

208 

9 

231 

200 

9 

231 

208 

9 

231 

208 

9 

231 

208 

9 

2 772 

2 500 
105 

3 049 

2 650 

111 

3 354 

2800 

118 

Fines 

licences and permits 

Agency services 

Transfers recognised - operational 

Other revenue 

Gains on disposal of PPE 

Total Revenue (excluding capital transfers and contrib 

ution 

57 

47 

18 882 

99 

10 

57 

47 

3 653 

99 

57 

47 

3 653 

99 

57 

47 

3 653 

39 

10 

57 

47 

11 000 

99 

57 

47 

3 653 

99 

10 

57 

47 

3 653 

99 

57 

47 

3 653 

99 

10 

57 

47 

10500 

99 

57 

47 

3653 

99 

10 

57 

47 

3 653 

S9 

3 

57 

47 

(O) 

99 

53 

686 

560 

69 608 

1 190 

53 

686 

626 

69 885 

1 161 
-I 

53 

666 

608 

72221 

149 

19596 

10 377 

4 812 

4 812 

12169 

4 812 

4 822 

4812 

11669 

4012 

4822 

815 

88 329 

89 488 

90670 

Expenditure Bv Tvoe 

















Employee related cosls 

Remuneration of councillors 

Debt impairment 

Depreciation & asset impairment 

Finance charges 

Bulk purchases 


2 794 
372 

658 

15 

2 794 

373 

658 

15 

2 794 
373 

658 

15 

2 794 

373 

653 

15 

5013 

373 

658 

15 

2 794 

373 

300 

658 

15 

2 794 

373 

658 

15 

2794 

373 

658 

15 

2794 

373 

658 

15 

2794 

373 

658 

15 

2794 

373 

350 

658 

15 

4185 

373 

435 

650 

15 

37 137 
4473 
1085 

7 899 
175 

39 625 

4 741 
650 

8 608 
186 

42 399 

5 026 

650 

9557 

197 

Other materials 















" 

“ 

Contracted services 

Transfers and grants 

Other expenditure 

Loss on disposal of PPE 


530 

45 

2 776 

580 

45 

2776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2776 

580 

45 

2776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

1 110 

46 

258 

7 489 

545 

30 794 

7 963 

554 
32 218 

8759 

640 

32 647 

Total Expenditure 


7241 

7241 

7 241 

7241 

9 460 

7 541 

7 241 

7 241 

7241 

7241 

7591 

7 079 

89 597 

94 625 

99 074 

Surptus/(DeficK) 

Transfers recognised - capital 

Contributions recognised - capital 

Contributed assets 


12 356 

1 448 

3137 

1448 

(2 429) 
1448 

(2429) 

1448 

2709 

1448 

(2729) 

1448 

(2 419) 
1448 

(2 429) 
1448 

4 428 

1448 

(2 429) 
1448 

. 

(2 769) 
1448 

(6 264) 
1448 

(1 268) 
17 376 

(5137) 

17650 

(9205) 
18 450 

_ 

Surplus/jDeficit) after capital transfers & 
contributions 

Taxation 


13 804 

4585 

(981) 

(981) 

4157 

(1281) 

(971) 

081) 

5 876 

(981) 

(1 321) 

(4815) 

16108 

12 513 

9 245 

Attributable to minorities 

■ 













” 



Share of surplus/ (deficit) of associate 

I 












- 

- 



References 

L_U 






(1 281) 

(971) 

(981) 

5 876 

(981) 


(4815) 

16108 

12 513 

S245 


1. Surplus (Deficit) must reconcile with Budgeted Financial Performance 




















KZN227 Richmond - Supporting Table SA26 Budgeted monthly revenue and expenditure (municipal vote) 


Description 

R thousand 

Ref 






— ■! 

Budget Year 2015/16 

Medium Term Revenue and Expenditure 
Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 

Vote 1 - Executive & Council 


1364 




1 818 











Vote 2 - Finance & Admin 

Vote 3 - Planning & Development 

Vote 4 - Community 4 Social Services 

Vote 5 - Community 4 Soda! Services 


25 085 

2 496 

197 

1000 

2 496 

197 

1000 

2 496 

197 

1000 

2 496 

197 

15000 

2 496 

197 

1000 

2496 

197 

1000 

2 496 
197 

1000 

2 496 

197 

15 000 

2 496 

197 

1 000 

2 496 

197 

1 000 

2 496 

197 

(1 204) 
2496 
197 

4 545 
61 881 

29957 

2 360 

4752 

60 750 
31 754 

2 510 

4 963 
60 023 

33 659 

2 661 

Vote 6 - Public Safety 

Vote 7 - Sport 4 Recreation 

Vote 8 - Waste Management 

Vote 9 - Roads Transport 

Vote 10 - 


61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

104 

47 

61 

176 

2 407 

47 

730 

2107 

3 548 

569 

- 

774 

2233 

3 761 

603 

820 

2 367 

3 987 

639 

Vote 11 • 













“ 

- 

- 

- 

Vote 12 - [NAME OF VOTE 12] 
















- 

Vole 13 - [NAME OF VOTE 13} 















~ 

- 

Vote 14 - [NAME OF VOTE 14] 







• 







~ 

” 


Vote 15 - [NAME OF VOTE 15] 

Total Revenue by Vote 













_ 

_ 

I 



29530 

4 081 

4 081 

4 081 

19 899 

4 081 

4 081 

4 081 

19 445 

4 081 

4 081 

4180 

105705 

107138 

109120 

Expenditure bv Vote to be appropriated 

















Vote 1 - Executive 4 Council 

Vote 2 - Finance 4 Admin 

Vote 3 - Planning 4 Development 


862 

1689 

1659 

862 

1 689 

1 659 

862 

1689 

1 659 

862 

1689 

1 659 

862 

1 689 

1 659 

862 

1689 

1 659 

862 

1689 

1 659 

862 

1 689 

1659 

062 

1689 

1 659 

862 

1689 

1659 

862 

1 689 

1 659 

862 

1 689 

1 659 

10 340 

20270 

19903 

10 961 
21437 

11 618 

22 626 

Vote 4 - Community 4 Social Services 


983 

983 

983 

983 

983 

983 

983 

983 

983 

983 

983 

983 

11 799 



Vote 5 - Community 4 Sodal Services 


112 

112 

112 

112 

112 

112 

112 

112 

112 

112 

112 

112 

1 345 

1 426 


Vote 6 - Public Safety 


562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

6 748 



Vote 7 - Sport 4 Recreation 


435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

5 224 

5 537 


Vote 8 - Waste Management 


296 

296 

296 

296 

296 

296 

296 

296 

296 

296 

296 

296 

3 548 

3 761 


Vote 9 - Roads Transport 

Vote 10 - 


868 

868 

868 

868 

868 

868 

868 

868 

868 

868 

868 

868 

10419 

11045 

11707 

Vote 11 - 














- 

— 

- 

Vote 12 - [NAME OF VOTE 12] 

















Vote 13- [NAME OF VOTE 13] 

















Vote 14 - [NAME OF VOTE 14] 

















Vote 15 -[NAME OF VOTE 15] 














_ 



1 1 otai Expenditure by vote 

7 466 

7 466 

7466 

7466 

7 4B6 

7 466 

7460 

7466 

7 466 

7 466 

7 466 

7466 

89 597 

94 625 

99 874 

Surplus/{Deficit) before assoc. 

Taxation 

Attributable to minorities 

Share of surplus/ (deficit) of assotiate 
Surplus/(Deficit) 

1 

22 063 

22 063 

(3 385) 

(3 385) 

(3 385) 

(3385) 

(3 385) 

(3 385) 

12 433 

12 433 

(3385) 

(3 385) 

(3 385) 

(3 385) 

(3 385) 

(3 305) 

11 978 

11978 

(3 385) 

(3 385) 

(3 385) 

(3 385) 

(3 286) 

(3286) 

16108 

16108 

12 513 

12513 

9 245 

9 245 


1 Surplus (Deficit) must reconcile with Budgeted Financial Performance 


KZN227 Richmond • Supporting Table SA27 Budgeted monthly revenue and expenditure (standard classific ation) 


Description 

Ref 






Budget Year 2015/16 






Medium Term Revenue and Expenditure 
















Framework 


R thousand 


July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 


June 

Budget Year 

Budget Year *1 

Budget Year +2 

" - " ‘I'. " - 












2015/16 

2016/17 

2017/18 

Revenue -Standard 

Governance and administration 

Executive and council 


26 449 

1364 

1000 

1 990 

1000 

15 818 

1000 

1000 

1000 

16 364 

1364 

15000 

1000 

1000 

(2 194) 

6G426 

65502 

64 986 

Budget and treasury office 

Corporate services 


25 085 

1000 

1000 

990 

1000 

15 000 

1000 

1000 

1000 

1000 

1 000 

(2 194) 

4 545 

60891 

4752 

59 701 

4 963 

58 911 

Community and public safety 

Community and social services 

Sport and recreation 

Pubtc safety 

Housing 


434 

197 

176 

61 

434 

197 

176 

61 

434 

197 

176 

61 

434 

197 

176 

61 

434 

137 

176 

61 

434 

197 

176 

61 

434 

197 

176 

61 

434 

197 

176 

61 

434 

197 

. 176 

61 


434 

197 

176 

61 

434 

197 

176 

61 

990 

5 205 

2 368 

2107 

73Q 

1 049 

5 517 

2 510 

2233 

774 

1 112 

5848 

2 661 
2367 

820 

Health 














” 

- 

- 

Economic and environmental services 

Planning and development 

Road transpod 

Environmental protection 


2 544 

2496 

47 

2 544 

2496 

47 

2 544 

2496 

47 

2 S44 

2496 

47 


■ 

2 544 

2 496 

47 

2544 

2 496 
47 

2 544 

2486 

47 


2 544 

2 496 

47 

2 543 

2496 

47 

30 525 

29 957 

569 

32 357 

31 754 

603 

34 298 

33 650 

639 

Trading services 

EJeclMCdy 


104 

104 

104 

104 

104 

104 

104 

104 

104 


104 

2407 

3 548 

3 761 

3987 

Water 













- 

- 


- 

Waste water management 
















- 

Waste management 

Other 

Total Revenue - Standard 


104 

104 

104 

104 

104 

104 

104 

104 

104 

104 

104 

2 407 

3 546 

3761 

3 987 


29 530 

4 081 

5071 

4 081 

19 899 

4 081 

4 081 

4 081 

19445 

4 081 

4 081 

3190 

105 705 

107138 

109120 

Exnenditure - Standard 

















Governance and administration 


2 551 

2 551 

2 551 

2551 

2551 

2 551 

2 551 

2 551 

2 551 

2651 

2 561 

2 551 

30610 


MW 

Executive and council 

Budget and treasury office 


862 

1069 


862 

1069 

662 

1 069 

862 

1069 

862 

1069 

862 

1 069 

862 

1069 


862 

1 069 

862 

1 069 

862 

1 069 

10340 

12 827 


§S|gj 

Corporate services 




620 

620 

620 

620 

620 

620 


620 


620 




Community and public safety 


2093 

2033 

2 093 

2 093 

2 033 

2 093 

2 093 

2093 

2093 

2093 

2 093 

2093 

25116 



Community and social services 


1095 



1095 

1 095 

1095 

1095 


1095 

1 095 

1 095 


13144 



Sport and recreation 


435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

5 224 

5 537 


Housing 


562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

582 

6748 

7153 

7 582 

Health 


_ 












" 

“ 

- 

Economic and environmental services 


2 527 

2 527 

2 527 

2527 

2527 

2 527 

2 527 

2 527 

2 527 

2527 

2 527 

2 527 




Planning and development 


1859 

1 659 

1659 

1659 

1 659 

1659 

1659 

1659 

1659 


1659 

1659 

19 903 



Road transpori 

Environmental protection 


888 

868 

868 

863 

868 

868 

868 

868 

868 


068 

868 

10 419 

11 045 

11707 

Trading services 

Etectncity 


296 

296 

296 

296 

296 

296 

296 

29S 

296 


296 

296 

3 548 

3761 

3 987 

Waler 
















_ 

Waste water management 

















Wests management 

Other 

Total Expenditure- Standard 


296 

296 

296 

296 

296 

296 

296 

296 

296 


296 

296 

3 548 

3 761 

3 987 

■ 


7 465 

7466 

7466 

7 466 

7 466 

7 466 

7 466 

7 486 

7 466 

7 466 

7 466 

89 597 

94625 

99874 

Surplu$/(Deficit) before assoc. 

Share of surplus! (deficit} of associate 
Surp!us/{Deflcft) 


22 063 

22063 

(3385) 

(3385) 

(2 395) 

(2 335) 

(3385) 

(3385) 

12433 

12433 




11 978 

11978 

(3 385) 

(3 335) 

(3 385) 

(3 385) 

m in 

16108 

16108 




I. Surplus (Deficit) mol reconcile with Budeted Financial Performance 

















































Vote 1 - Executive & Council 
Vote 2 - Finance & Admin 
Vote 3 - Planning & Development 
Vote 4 - Community & Social Services 
Vote 5 • Community & Social Services 
Vote 6 - Public Safety 
Vote 7 - Sport & Recreation 
Vote 8 - Waste Management 
Vote 9 - Roads T ransport 
Vote 10- 
Votetl- 

Vote 12 - [NAME OF VOTE 12] 

Vote 13 -[NAME OF VOTE 13] 

Vote 14 -[NAME OF VOTE 14] 

Vole 15 -[NAME OF VOTE 15] 

Capital multi-year expenditure sub-total 
Single-year expenditure to be appropriated 
Vote 1 - Executive & Council 
Vole 2 - Finance & Admin 
Vote 3 - Planning & Development 
Vote 4 - Community & Social Services 
Vote 5 - Community & Social Services 
Vote 6 - Public Safety 
Vote 7 - Sport & Recreation 
Vote 8 - Waste Management 
Vote 9 - Roads T ransport 
Vote 10- 
Vote 1 1 - 

Vole 12 -[NAME OF VOTE 12] 

Vote 13- (NAME OF VOTE 13] 

Vote 14 -[NAME OF VOTE 14] 

Vote 15 -[NAME OF VOTE 15] 

Capital single-year expenditure s ub-total 
Total Capital Expenditure 


Budget Year 2015/16 


Medium Term Revenue and Expenditure 

Framework 


Dec. 

January 

Feb. 

March 

April 

May 

June 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 



• 

■ 

• • • 

• 

• 

• 



- 

- 

- 

- 

— 

“ 


- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

(200) 

100 



- 

- 

- 

- 

- 

- 

(15) 

343 

- 

- 

- 

- 

- 

- 

- 

- 

- 

130 

_ 


100 

"" 


** 

- 

- 

- 

581 

- 

- 


- 

- 

- 

- 

- 

200 

634 

- 

_ 

- 

- 

- 

500 

500 

226 

0 

1226 

1256 

_ 

- 

- 

- 

- 

- 

- 

- 

300 


- 

2 254 

2 254 

— — ' 

2 254 

2254 

2 254 

2 254 

- 

22 537 

16 394 

18 450 

2 354 

2 254 

mmZx 

IBZ3 

2 754 

2 480 


25 851 

17 650 

18450 

2 354 

2 254 



2 754 

2 480 


25851 

17 650 

























KZN227 Richmond - Supporting Table SA29 Budgeted monthly capital expenditure (standard classification) 


Description 

R thousand 

Ref 




Budget Year 2015/16 

Medium Term Revenue and Expenditure 
Framework 

July 

August 

Sept. 

October 

Nov. 

Dec. 

January 

Feb. 

March 

April 

May 

June 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 

Governance and administration 

Executive and council 

Budget and treasury office 

Corporate services 

Community and public safety 

Community and social services 

Sport and recreation 

Public safety 

Housing 

Health 

Economic and environmental services 

Planning and development 

Road transport 

Environmental protection 

Trading services 

Electricity 

Water 

Waste water management 

Waste management 

Other 

1 

- 

250 

100 

150 

300 

150 

150 

2 304 

50 

2 254 

150 

100 

50 

200 

50 

150 

2 304 

50 

2 254 

300 

300 

15B 

100 

58 

315 

181 

134 

2 284 

30 

2 254 

100 

100 

100 

10) 

2 254 

2 254 

100 

100 

2 254 

2 254 

2254 

2 254 

2 254 

2 254 

500 

500 

2 254 

2254 

500 

500 

2 254 

2 254 

354 

354 

2 254 

2 254 

_ 

(215) 

(200) 

(15) 

72 

(128) 

200 

443 

100 

343 

2 441 

581 

1226 

634 

22 667 

130 

22 537 

300 

300 

1 256 

1256 

16 394 

16 394 

18 450 

18 450 

Total Capital Expenditure - Standard 

2 

- 

2 854 

2 954 

2 75? 

2 454 

2 354 

2 254 

2254 

2 754 

2 754 

2 608 

(143) 

25 851 

17 650 


Funded by. 

National Government 

Provincial Government 



2 254 

2 404 

1 400 

1 450 

1 400 

1 500 

1 500 

1 500 

1500 

1 500 

968 

17 376 

17 650 

18450 



Cash Receipts Bv Source 

Property rates 

Properly rales - penalties 8 coSection charges 
Service charges - electricity revenue 
Service charges - water revenue 
Service charges - sanitation revenue 
Service charges - refuse revenue 
I Service charges - other 

Rental of facilities and equipment 
Interest earned - external investments 
Interest earned - outstanding debtors 
Dividends received 
Fines 

Licences and permits 
Agency services 
T ranster receipts - operational 
Other revenue 
Cash Receipts by Source 

Other Cash Flows by Source 

Transfer receipts - capital 
I Contributions recognised - capital 8 Contributed assets 
Proceeds on disposal cl PP6 
Short term loans 
Borrowing long lerro'reftnan.cing 
increase (decrease) in consumer deposits 
Decrease (increase) in norvcurrent debtors 
j Decrease (increase) other non-current receivables 
Oecrease (increase) in non-current investments 


Total Cash Receipts by Source " | a 



Employee related costs 


Remuneration of councillors 
Finance charges 
Bulk purchases - Electricity 
Bulk purchases - Water & Sewer 
Other materials 
Contracted services 

Transfers and grants - other municipalities 
Transfers and grant - other 
Other expenditure 
Cash Payments by Type 

Other Cash Flows/Payments by Type 
Capita! assets 
Repayment of borrowing 
Other Cash Fio ws/Paymertls 
Total Cash Payments by Type 

NET 1NCREASE/1DECREA SE) I N CASH HELD 

Cash/cash equivalents at the mcmh/year begin: 
Cash/cash equivalents at the month/year end: 


Budget Year 2015/16 


Medium Term Revenue and Expenditure 
Framework 


December 

January 

February 

March 

April 


June 

Budget Year 

Budget Year *1 

Budget Year +2 






2015/16 

2016/17 

2017/18 

900 

900 

900 

900 

300 

900 

90 

i 

9090 

10 500 

9 815 

25 

25 

25 

25 

25 

25 

20 

270 

318 

337 

34 

34 

34 

34 

34 

34 

34 

405 

450 

450 

- 

- 


- 

- 

- 

1499 

2 217 

3 049 

3 354 

208 

208 


208 

208 



2 500 

2 650 

2 800 



- 

“ 


- 

- 

- 

111 

118 

~ 

10 

- 

10 

- 

to 

(3) 

47 

53 

53 



- 

- 

- 

- 

451 

617 

686 

586 


- 

- 

- 

- 

- 

360 

512 

626 

688 

3853 


3653 

10500 

3 653 

3 653 


69 606 

69 885 

72 221 







952 

952 

1 161 

149 

4 820 

4 830 

4 820 

11677 

4 820 

4 830 

3611 

86 216 

89488 

90 670 

1448 

1 448 

1448 

1448 

1 448 

1448 

1 448 

17376 

17 650 

18 450 







13164 

13164 




6278 

6268 

13125 



18 223 

116756 

107138 

109120 

2 794 

2 794 

2794 

2794 

2 794 

2 794 

4185 

37137 

39 625 

42 399 

373 

373 

373 

373 

373 

373 

373 

4 473 

4 741 

5 026 

15 

15 

15 

15 

15 

15 

15 

175 

186 

197 

580 

580 

580 

580 

580 

580 

1 110 

7 489 

7963 

8 759 

2776 

2778 

2 776 

2776 

2 776 

2 776 

258 

30794 

32 218 

32647 

6 537 

6 537 

6 537 

6 537 


6537 

5 940 

80068 

84733 

89 028 

2 354 

2251 

2254 

2 754 


2 480 

(15) 

25851 

17650 

18450 

8 831 

8 791 

8 791 

9 291 

9 291 


5925 

105 918 

102 383 


(2623) 

(2513) 

(2 523) 

3 834 

(3 023) 

(2739) 


10 838 

4 755 


36 064 

36 664 
34151 



35 463 
32 440 

32 440 
29 701 

29 701 
42 000 

31 162 
42 000 

42 000 

45 755 

46755 

46397 




























































KZN227 Richmond - NOT REQUIRED - municipality does not have entities 


Description 


Financial Performance 
Property rales 
Service charges 
Investment revenue 
Transfers recognised - operational 
Other own revenue 

Contributions recognised - capital & contributed assets 
Total Revenue (excluding capital transfers and contributions^ 
Employee costs 

Remuneration of Board Members 
Depreciation & asset impairment 
Finance charges 
Materials and bulk purchases 
Transfers and grants 
Other expenditure 
Total Expenditure 
Surplus/(Deficit) 


2C11/12 

2012/13 

2013/14 

Current Year 2014/15 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 


2015/16 Medium Term Revenue & Expenditure 
Framework 




Capital expenditure 
Transfers recognised - operational 
Pubic contributions 4 donations 
Borrowing 

Internally generated lunds 

Total sources 




Total current assets 
Total non current assels 
Tolal current liabilities 

Total non current liabilities 
Equity 


Net cash from (used) operating 
htet cash from (used) investing 
Net cash from (used) financing 

Cash/cash equivalents at the year end 















Total Entity Expenditure Implication 


References 

f. Total implication for all preceding years to be summed and total stated in 'Preceding Years' column 

2. List aH contracts with future financial obligations beyond the three years covered by the MTRSF (MFUA s33j 






















KZN227 Richmond - Supporting Table SA34a Capital expenditure on new assets by asset class 


Description 

Re 

2011/12 

2012/13 

2013/14 

Current Tear 201 4fl5 

2015/16 Medium Term Revenue & Expenditure 

Framework 

H thousand 



Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 



Outcome 

Outcome 

Outcome 

Budget 

Budge! 

Forecast 

2015/16 

+1 2016/17 

+22017/18 

Caoital expenditure on new assets bv Asset Class/S 

ub-class 










Infrastructure 



9 380 

17034 

21140 

16618 

25 865 

25885 

8 271 

16 394 

18450 

Ini restructure - Road irarsport 



6 523 

163B8 

21 140 

16618 

17535 

17 585 

8271 

16394 

10 450 

Ftoads, Pavements A Bridges 

Storm water 



6523 

18 388 

21 140 

16618 

17585 

17 505 

8271 

16394 

18450 

inlrastrueture • Electricity 



- 

- 

- 

- 

- 

- 

- 

- 

- 

Generation 

Transmission S Reticulation 

Street Lighting 












Infrastructure - Water 



- 

- 

- 

- 

- 

- 

- 

- 

- 

Dams 5 Reservoirs 

Water pur ilicahcn 

Reticulation 












Intrastructure • Sanitation 



- 

- 

- 

- 

- 

- 

- 

- 

- 

Reticulation 












Sewerage punficahon 












Infrastructure • Other 



2 657 

646 

- 

- 

8300 

8300 

- 

- 

- 

Waste Management 

Transportation 

Gas 

2 











Other 

3 


2 857 

646 


- 

0300 

8300 




Community 



2404 

2 071 

_ 

2250 

1200 

1200 

1854 

1256 

_ 

Parks & gardens 

SpocisfteJds & stadia 



2404 

2071 


2 250 



1244 

1256 


Swimming pools 

Community halls 

Libraries 

Recreational facilities 

Fire, safely & emergency 

Secwity and policing 

Buses 

ethics 

Museums & An Galleries 

Cemeteries 

7 






1200 

1200 

510 



Social rental housing 

Other 

e 








too 



Heritegeasrjets 



_ 

_ 

_ 


_ 


_ 

_ 

Buildings 

Other 

9 










Investment properties 


_ 




_ 

_ 


_ 

_ 

Housing development 

Other 











Or tier assets 



3 680 

1977 

_ 

631 

2907 

2907 

5325 

_ 

_ 

General vehicles 









3 865 



Specialised vehicles 

10 


- 

- 

- 

3 

037 

837 

- 

- 

- 

Plant S equipment 



2 753 

1759 


254 

33B 

338 

180 



Computers - hardware/equipment 



376 

108 



164 

164 

345 



Furniture and other office equipment 



551 

110 


159 

829 

629 

316 



Abattoirs 







- 

- 




Markets 







- 

- 




Civic Land and Buildings 







- 

- 

- 



Other Buildings 






200 

299 

299 




CSher Land 







- 

- 




Surplus Assets • (Inveslmeni or Inventory) 







- 

- 




Other 






15 

640 

640 

600 


















- 

" 

” 





~ 


List sub-class 











Blolonieal assets 


- 

_ 

- 

- 

- 

- 

- 

- 

- 

List sub-class 











Intangibles 


. 

_ 


. 

_ 



_ 

- 

Confers - software & programming 

Other (iist sub-class) 











Total Capital Expenditure on new assets j 

1 

15464 

21082 

21140 

19499 

29391 

29991 

15 451 

17 650 

18 450 


Specialised vphlclqs 


_ 

- 

- 

3 

837 

837 

- 

_ 

- 

Refuse 

Fire 

Conservancy 

Ambulances 





3 

837 

837 





References 


1. Total Capital Expenditure on new assets [SAMa) plus Total Capital Expenditure on renewal ol existing assets (SA34P) must reconcile to total capital expenditure in Budgeted Capital Expenditure 
Z Airports, Car Paris, Bus Terminals and Taxi Ranks 

3 For example ■ technology barytones (eg. fibre optic, WIFI infrastructure) for economic devetopmenl purposes 

4. Work-in-progress/under construction to be budgeted under the respective Item 

5. Infrastructure includes land and buildings required by that infrastructure and veUdes/phet A equipment used by the service generated by that infrastructure 
S. Donatedtontribuled A leased assets to fie included within the respective sub-class 



KZN227 Richmond - Supporting Table SA34b Capital expenditure on the renewal of existing assets by asset class 


Description 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/ 

R thousand 

1 

Audited 

Audited 

Audited 

Original 

Adjusted 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Icanita! excenditure on renewal of existina assets by Asset Ciass/Sub-class 





Infrastructure 


_ 


- 

2 000 

4100 

Infrastructure - Road transport 


- 

- 


2000 

4100 

Roads, Pavements & Bridges 

Storm water 





2 000 

4100 

Infrastructure - Electricity 


- 

- 

- 

- 

_ 

Generation 

Transmission & Reticulation 

Street Lighting 







Infrastructure ■ Water 


- 

- 

- 


— 

Dams & Reservoirs 

Water purification 

Reticulation 







Infrastructure ■ Sanitation 


- 


- 

- 

— 

Reticulation 

Sewerage purification 

Infrastructure - Other 






. 

Waste Management 

Transportation 

Gas 

2 






Other 

3 






Community 


_ 

- 

- 

- 

- 

Parks & gardens 

Sportsfields & stadia 

Swimming pools 

Community hails 

Libraries 

Recreational facilities 

Fire, safety & emergency 

Security and policing 

Buses 

Clinics 

Museums & Art Galleries 

Cemeteries 

7 






Social rental housing 

Other 

8 






Heritaae assets 


. 


_ 

- 

- 

Buildings 

Other 

9 






Investment oronerties 




— 


— 

Housing development 

Other 







Other assets 


_ 

— 

- 

- 

- 

General vehicles 

Specialised vehicles 

Plant & equipment 

Computers - hardware/equipment 

Furniture and other office equipment 

Abattoirs 

10 

' 







15 



2015/10 Medium Term Revenue & Expenditure 
Framework 

Full Year 
Forecast 

Budget Year 
2015/16 

1 Budget Year +1 1 Budget Year +2 
2016/17 ! 2017/18 







KZN227 Richmond - Supporting Table SA34c Repairs and maintenance expenditure by asset class 


Description 

— 

Ref 

2011/12 

2012/13 

— 

2013/14 

Current Year 2014/15 

R thousand 

1 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

iReDairs and maintenance exDenditure bv Asset Class/Sub-class 






infrastructure 


1391 

1 768 

1 676 

1931 

1 875 

1 875 

Infrastmcture - Road transport 


1 391 

1 768 

1 670 

1931 

1 875 

1875 

Roads, Pavements & Budges 

Storm water 


1 391 

1768 

1676 

1931 

1 875 

1 875 

infrastructure - Electricity 


- 

- 

_ 

- 

- 

- 

Generation 

Transmission S Reticulation 

Street Lighting 

Infrastmcture - Water 








Dams & Reservoirs 

Water purification 

Reticulation 








Infrastructure - Sanitation 


- 

- 

- 

- 

- 

- 

Reticulation 








Sewerage purification 

Infrastructure - Other 


- 

- 

- 

- 


- 

Waste Management 

Transportation 

Gas 

2 







Other 

3 



• 




Community 


- 

- 

- 

- 

- 

- 

Paiks & gardens 

Sportsfieids & stadia 

Swimming pools 

Community halls 

Libraries 

Recreational facilities 

Fire, safety & emergency 

Security and policing 

Buses 

Clinics 

Museums & Art Galleries 

Cemeteries 

7 







Social rental housing 

Other 

8 







Heritage assets 



_ 


_ 

- 

- 

BuWings 

Other 

9 







Investment Dronerties 


. 


_ 

- 

_ 

- 

Housing development 

Other 








Other assets 


. 

_ 

907 

1276 

1 161 

1161 

General vehicles 




290 

485 

360 

360] 

Specialised vehicles 

10 

- 

_ 

88 

50 

210 

210 








KZN227 Richmond ■ Supporting Table SA34d Depreciation by asset class 


Description 

jfief 

201102 

— 

2012/13 

2013/14 

Current Year 2014/15 

R thousand 


Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

Depreciation bv Asset Class/Sub-ctass 





___ 



infrastructure 


2008 



4123 

5155 


Infrastructure - Road transport 


1902 

2 293 

■■ESS 


5 032 

5 0321 

Ftoads, Pavements & Bridges 

Siam water 


1902 

2 293 

4148 

4 000 

5 032 

5 032) 

Infrastructure - Electricity 


- 

- 

- 

- 

- 

- 

Generation 

Transmission & Reticulation 

Street Lighting 








Infrastructure • Water 


- 

- 

- 

- 

- 

- 

Dams & Reservoirs 

Water purification 

Reticulation 








Infrastructure - Sanitation 



- 

- 

- 

- 

- 

Reticulation 

Sewerage purification 

Infrastructure - Other 


106 

117 

128 

123 

123 

123 

Waste Management 

Transportation 

Gas 

2 

61 

67 

74 


70 

70 

Other 

3 

45 

50 

55 

53 

53 

53 



- 

- 

_ 

- 

- 

- 

Parks A gardens 

Sportsfields & stadia 

Swimming pools 

Community halls 

Libraries 

Recreational facilities 

Fire, safety & emergency 

Security and policing 

Buses 

Clinics 

Museums A Art Galleries 

Cemeteries 

7 







Social rental housing 

Other 

8 







Heritage assets 


_ 

_ 

_ 


_ 

- 

Buildings 

Other 

9 







Investment properties 


_ 


-H 

_ 

— 

_ 

Housing development 

Other 








Other assets 


1724 

1 896 

2 086 

2026 

2 026 

2026 

General vehicles 


353 

388 

427 

488 

488 

486 j 

Specialised vehicles 

10 

25 

28 

30 

25 

25 

25 






















KZN227 Richmond - Supporting Table SA35 Future financial implications of the capital budget 


Vote Description 


R thousand 


201 5/1 6 Medium Term Revenue & Expenditure 
Framework 

Budget Year Budget Year +1 Budget Year +2 Forecast 
2015/16 2016/17 ! 2017/18 2018/19 


Forecasts 


Vote 1 - Executive & Council 

Vote 2 - Finance & Admin 

Vote 3 - Planning & Development 

Vote 4 - Community & Social Services 

Vote 5 - Community & Social Services 

Vote 6 - Public Safety 

Vote 7 - Sport & Recreation 

Vote 8 - Waste Management 

Vote 9 - Roads Transport 

Vote 10 - 

Vote 11 - 

Vote 12 - [NAME OF VOTE 12] 

Vote 13 - [NAME OF VOTE 13] 

Vote 14 -[NAMEOF VOTE 14] 

Vote 15 -[NAME OF VOTE 15] 

List entity summary if applicable 

Total Capital Expenditure 

Future operational costs by vote 


Vote 1 - Executive & Council 

Vote 2 - Finance & Admin 

Vote 3 - Planning & Development 

Vote 4 - Community & Social Services 

Vote 5 - Community & Social Services 

Vote 6 - Public Safety 

Vote 7 - Sport & Recreation 

Vote 8 - Waste Management 

Vote 9 - Roads Transport 

Vote 10- 

Vote 11 • 

Vote 12 -(NAME OF VOTE 12] 

Vote 13 -(NAME OF VOTE 13] 

Vote 14 -[NAME OF VOTE 14] 

Vote 15 -[NAME OF VOTE 15] 

List entity summary if applicable 
Total future operational costs 




Property rates 

Property rates - penalties & collection charges 
Service charges - electricity revenue 
Service charges • water revenue 
Service charges - sanitation revenue 
Service charges - refuse revenue 
Service charges- other 
Rental of facilities and equipment 
Interest earned ■ external investments 
other 

Total future revenue 


Net Financial implications 



450 

450 

450 

2 772 

3049 

3354 

2 500 

2 650 

2800 

72 207 

72 521 

73 914 

88 329 

89 488 

90 670 

27119 

22 787 

27 655 


1. Summarise the total capital cost until capital project is operational (MFMA s19(2)(a)) 

2. Summaiy of future operational costs from when projects operational (present value until the end of each asset's useful life) (MFMA s19(2)(bj) 

3. Summarise the future revenue from when projects are operational, including municipal tax and tariff implications, (present value until the end of assets useful life) 


r 









LtH 9B upw pottos gtcweti Cy Uwcipal 














KZN227 Richmond - Supporting Table 8A37 Projects delayed from previous financial year/s 


Municipal Vote/Capital project 

R thousand 

Rot. 

1,2 

Project name 

Project 

number 

Asset Class 

3 

Asset Sub-Class 

3 

GPS co-ordinates 

4 

Previous target 
year to 
complete 

Year 

Current Year 2014/15 

2515/16 Medium Term Revenue & Expenditure 

Framework 

Original 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year vt 
2016/17 

Budget Year *2 
2017/18 

Parent municipality. 

List alt capital projects grouped by Municipal 

m 

ole 



Examples 

Examples 








Entities: 

List all capita! projects grouped by Municipal 

Entity Name 

m 

ntity 

L . . 











References 




1. List all projects nitfi planned completion dates in current year that have been re-budgeted in (he MTRF.F 

2. Refer UFUA s3C j j 

3. A$ per Table SA34 









Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Part 2 - Supporting Documentation 

2.1 Overview of the annual budget process 

Section 53 of the MFMA requires the Mayor of the municipality to provide general political 
guidance in the budget process and the setting of priorities that must guide the preparation 
of the budget. In addition Chapter 2 of the Municipal Budget and Reporting Regulations 
states that the Mayor of the municipality must establish a Budget Steering Committee to 
provide technical assistance to the Mayor in discharging the responsibilities set out in 
section 53 of the Act. 

The Budget Steering Committee consists of the Mayor, Members of the Executive 
Committee, Municipal Manager and senior officials of the municipality. The primary aim of 
the Budget Steering Committee is to ensure:- 

-that the process followed to compile the budget complies with legislation and good budget 
practices; 

-that there is proper alignment between the policy and sen/ice delivery priorities set out in 
the municipality’s IDP and the budget, taking into account the need to protect the financial 
sustainability of municipality; 

-that the municipality’s revenue and tariff setting strategies ensure that the cash resources 
needed to deliver services are available; and 

-that the various spending priorities of the different municipal departments are properly 
evaluated and prioritised in the allocation of resources. 


2.1.1 Budget Process Overview 

In terms of section 21 of the MFMA the Mayor is required to table in Council ten months 
before the start of the new financial year (i.e. in August 2014) a time schedule that sets out 
the process to revise the IDP and prepare the budget. 

The Mayor tabled in Council the required budget time schedule on 30 August 2014. 

Key dates applicable to the process were:- 

• August 2014 - Based on the financial statements, previous year’s performance 
review, determine the financial position of the municipality and assess its financial 

• capacity and potential impacts on future strategies and budgets; 

• November 2014 - Assess impacts on tariffs and user charges; 

• January 2015 - Initiate the strategic plan, IDP and budget consultation with the 
community to update the community needs analysis and obtain feedback on results 
of previous years-outputs, outcomes and evaluation of performance. Meetings were 
only held in 5 of the seven wards due to the resignation of ward Councillors; 

Assess mid-year review of previous year’s budget for impact on budgets for the next 
three years. Council considered the 2014/2015 Mid-year review; 

• February 2015 - Budget steering committee to review Mid-Year budget and finalise 
Adjustment Budget. Inputs of Provincial Treasury considered in finalisation; 

• March 2015 - Detail departmental budget proposals (capital and operating) 
submitted to the Budget and Treasury Office for consolidation and assessment 
against the financial planning guidelines. 




Richmond Municipality 


2015/2016 Annua! Budget and MTREF 


Budget Steering committee meeting held to consider the multi year proposals for 
endorsement; 

• 26 March 2015 - Tabling in council of the Draft 2015/2016 IDP and 2015/2016 
MTREF for public consultation; 

• April 2015 - The Draft Budget and IDP 2015/2016 was advertised in the Natal 
Witness and llanga; 








mm 

14/04/2015 

Agricultural Hall 

Meeting was 
well attended 

12/04/2015 

Slahla Hall 

Meeting was 
well attended 

19/04/2015 

Tsongeni Hall 

Meeting was 
well attended 

19/04/2015 

Argossy Hall 

Meeting was 
well attended 

15/04/2015 

Inhlazuka Thusong Centre 
Mpofana Hall 

Meetings 
were well 
attended 

16/04/2015 

Smozomeni Hall 

Did not take 
place 

09/04/2015 

Magoda Hall 

Meeting well 
attended 


• 04-05 May 2015 - Closing date for written comments; 

• 12-13 May 2015 - Budget Steering Committee meetings held; 

Bilateral meetings held with Provincial Treasury to discuss first draft of the Budget 
2015/2016 - Comments received from Provincial Treasury; 

• 14-22 May 2015 - Finalisation of the MTREF and Budget documents; 

• 28 May 2015 - Tabling of the 201 5/2016 MTREF before council for consideration 
and approval; 

• June 2015 - submission of the Budget and required documentation to National and 
Provincial Treasury (electronic and hard ). Updating of budget returns. 


Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.1.2 IDP and Service Delivery and Budget Implementation Plan 

This is the fifth review of the IDP as adopted by Council in 2006/07. It started in August 2014 
after the tabling of the IDP Process Plan and the Budget Time Schedule for the 2015/16 
MTREF. 

The municipality’s IDP is its principal strategic planning instrument, which directly guides and 
informs its planning, budget, management and development actions. This framework is 
rolled out into objectives, key performance indicators and targets for implementation which 
directly inform the Service Delivery and Budget Implementation Plan. 

The IDP has been taken into a business and financial planning process leading up to the 
2015/16 MTREF, based on the approved 2014/15 MTREF, Mid-year Review and 
adjustments budget. The business planning process has subsequently been refined in the 
light of current economic circumstances and the resulting revenue projections. 

With the compilation of the 2015/16 MTREF, each department/function had to review the 
business planning process, including the setting of priorities and targets after reviewing the 
mid-year performance against the 2014/15 Departmental Service Delivery and Budget 
Implementation Plan. Business planning links back to priority needs and masterplanning, 
and essentially informed the detail operating budget appropriations and three-year capital 
programme. 

2.1.3 Financial Modelling and Key Planning Drivers 

As part of the compilation of the 2015/16 MTREF, extensive financial modelling was 
undertaken to ensure affordability and long-term financial sustainability. The following key 
factors and planning strategies have informed the compilation of the 2015/16 MTREF: 

• Policy priorities and strategic objectives 

• Asset maintenance 

• Economic climate and trends (i.e inflation, household debt, migration patterns) 

■ Performance trends 

• The approved 2014/15 adjustments budget and performance against the SDBIP 

• Cash Flow Management Strategy 

• Debtor payment levels 

• The need for tariff increases versus the ability of the community to pay for services; 

• Improved and sustainable service delivery 

In addition to the above, the strategic guidance given in National Treasury’ MFMA Circulars 
66 ,67, 70 72,74 & 75 has been taken into consideration in the planning and prioritisation 
process. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


; 

I 

2.1.4 Community Consultation j 

| 

Once the draft budget was approved by council the following community consultation 

processes were undertaken:- j 

- The draft 201 5/1 6 MTREF was published on the municipality’s website and a Notice 

placed in the Natal Witness and llanga; | 

- Hard copies were made available at all municipal offices and libraries; 

- Notices of the (zimbizo’s were be placed on municipal notice boards and various 
libraries; 

- Ward committees were utilised to facilitate the community consultation process 
during April 2015 ( as disclosed in 2.1 above) which included 7 public briefing 
sessions in 6 wards. Due to the resignation of the Speaker and a Ward councillor on 
izimbizo did not take place. Attendance at these sessions was up on the previous 
years and can be attributed to the additional initiatives that were launched during the 
consultation process. 

Submission received during the community consultation process and additional 
information regarding revenue and expenditure and individual capital projects were 
addressed, and where relevant, considered as part of the 2015/2016 MTREF. 

Action plans have been formulated by management to address all queries and input 
as per below (Also included in the IDP):- 


PROJECT/ 

PROGRAMME 

WARD 

CAPITAL 

MAINTENANCE 

FACILITATION 

STATUS 

Replacement of 
water meters 

1 



Liaise with District 

Ongoing 

Damaged storm 
water pipes - 
Harare 

1 

Variation 
Approved, 
Project 95% 
complete 



Complete 

Upgrade 

pavements along 
Shepstone and 
chilly street 

1 

✓ 



Included in budget 

Speed humps in 
Harding street are 
requested 

1 


✓ 


To be included in 
work plan 

Entrance to 
Richmond from 
the R56 needs to 
be upgraded 

t 

✓ 



Dependant on 
availability of 
budget 

Shepstone 
street/Caltex exit 
dangerous 

1 


✓ 


To be included in 
work plan 

Fencing 

8ambatha 

Rebellion site 

1 

✓ 



Dependant on 
availability of 
budget 


Recreation facility 


1 


Committee formed 
- to access land 








































Richmond Municipality 


2015/2016 Annual Budget and MTREF 



Proper parking to 
be made 


Renovation of 
lamport street 


Communication of 
refuse collection 
pick up days 


Illegal dumping 


Review cost of 
dump tickets 


Provide skip for 
garden refuse 


Maintenance of 
pump at 
Mzinoiovu 


Drivers test centre 


Construction of 
high school in 
Richmond 


Renovation of 
memorial hall 


Established HIV 
drop in centre 


Management of 
the selection 
process for 
Kwanaioga 
Games 


Construction of 
creche, Mzinoiovu 


Create 

employment and 
increase 
economic 
development 


Review rates 
policy in respect 
to pensioners 


Purchase of new 
traffic vehicle 


Improve and 
upgrade 


Liaise with Department 
of education 


Community Services 


Liaise with department 
of social development 


Liaise with relevant role 
players 


Liaise with social 
development 


To be undertaken 
with road marking 
project 


Dependant on 
budget availability 


Included in 
newsletter 


Appointment of 
peace officers 


Included in 
20 15/20 16 tariffs. 
Garden refuse free 


Skips purchased 


Under construction 



Being undertaken 
with insurance 
claim 



Reviewed with 
2015/2016 budget 


Liaise with UMDM 





























































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


sanitation 






Address 
sanitation issues 
in Siyathuthuka 
low cost housing 

2 



Liaise with UMDM and 
DoHS 


Construction of 

Siyatbuthuka 

Creche 

2 



Creche included in 
public amenities project 


Construction of 
bus shelters 

2 

7 



TO BE 

INVESTIGATED 

Refuse collection 
at Maswazini 

2 


7 


TO BE 

INVESTIGATED 

Assisting 
orphaned children 

2 



Liaise with department 
of social development 
and welfare agencies 


Formalization of 
fibre cemetery 

2 



Project underway 
through district 
municipality 


Construction of 

FET collage 

2 



Liaise with department 
of education project 


Bridge at Sgcakini 
from Dlungwana 
store 

2 



Technical 


Storm water 
rehabilitation and 
tarring of main 
road in 

Siyathuthuka 

2 

7 


Technical 

UNDER 

CONSTRUCTION 

Construction of 
access bridges on 
siyathuthuka main 
road 

2 

✓ 


Technical 

TO BE 

INVESTIGATED 

Access road from 
junction to D1 

2 

7 



TECHNICAL TO 
INVESTIGATE 

Bridge to be 
constructed 

Kwasheti 

2 

✓ 




Construction of 
pavements along 
the road from 
siyathuthuka to 
junction 

2 

✓ 




Construction of 
speed humps at 
Menziwa road 

2 





Repair and 
replace street light 
globes 

2 



Liaise with Eskom 


Electricity infill 

2 



Liaise with eskom 
















Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Outside building 
sanitation at 
siyathuthuka 



Mjitini bridge 
maintenance 


Maintenance of 
Sihiahleni access 
road 


Request Sgcakini 
primary 


Maintenance of 
Chibini access 
road 


Sanitation at 
Roseland's farm, 
jeke, moyeni 


Provision of water 

at Mtunzini, 

Mgxobeleni, 

qoyintaba, 

masangazane, 

Mhlanga 


All households be 
provided with 
toilets 


Road linking 

Gengeshe, 

impendie, 

elandskop, 

mafunza and 

incwadi 


Masifundisane 

programme 


Municipality to 
assist with the 
provision of 
houses in the 
barnesfield estate 


Maintenance of 
road near clinic 
kaMqandu 


Clinic at Hopewell 


Request for war 


Request for a post 
office at Insuka 




Liaise with the 
department of housing 


Technical Services 


Community Services Planning 



Community Services 


Community Services 



















































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Request a youth 
centre 

3 



I Community Services 


Street lights 

3 



Technical Services 

UNDER 

CONSTRUCTION 

Fencing of the 
youth ground 

3 



Technical Services 


Upgrading of 
Mavunda road 

3 



Technical Services 


Upgrading of RDP 
houses 

3 



Community Services 


Hopewell water 
and sanitation 

4 



Liaise with UMDM 


Request for gravel 
roads to be 
upgraded to black 
top 

4 

✓ 


Technical Services 

UNDER 

CONSTRUCTION 

v-drains blocked 

4 


/ 

Technical Services 


Speed humps 
required on the 
main road 

4 


> 

Technical Services 


Installation of 
street lights 

4 



Liaise with Eskom 


Waste removal 
required 

4 


■/ 

Technical Services 


Maintenance of 
community hall 

4 



Community Services 


Police station 
required 

4 



Liaise with SAPS 


Sports facility 
centre is required 

4 



Community Services 


Permanent clinic 

4 



Community Services 


Construction of 
low cost housing 
and maintenance 
of existing 
housing 

4 



Community Services 


Sustainable land 
for cemetery to be 
identified for 
agrossy and 
Hopewell 

4 



Town Planning 


Youth 

development 

required 

4 



LED 


Short road to 
Richmond 

4 



Technical Services 




Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Request Sukuma 
sakhe programme 
and computers 

4 



Community Services 


Drop in centre for 
disabled people 

4 



Community Services 


Transport to Iraq 

4 





Fix road to Taxi 
Rank 

4 





Construction of 
damaged houses 

4 





Water needed at 
Mpofana 

5 



Liaise with UMDM 


Water pumps 
have very low 
capacity therefore 
not enough water 
pressure 

5 



Liaise with UMDM 


Main road from 

Richmond to 
Nhlazuka to be 
tarred 

5 



DOT road. Liaise with 
DOT 


Bridge crossing 
the river to be 
constructed, 
(malizayo and 
kwathomi) 

5 

7 


Technical Services 


Rehabilitation of 
gravel road at 
Osuthu 

5' 

✓ 


Technical Services 


Access road at 
Malizwayo needs 
to be repaired 

5 

✓ 


Technical Services 


Existing sports 
field to be 
upgraded, 

Malizayo, 

Bulawayo and 
Mpofana 

5 

✓ 


Technical Services 

BULAWAYO AT 
PLANNING 

STAGE 

Blacktopping at 

P1 15 and D158 

5 

✓ 


Technical Services 


Community hall at 
Mshibane 



5 

✓ 


Community Services 


gum 

5 

✓ 


LED 


FET collage 

5 



Liaise between 
department of 
education 


Housing at 
Machobeni 

5 



Liaise with department 
of human settlement 



















Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Low ievel crossing 
at Mafizayo 


Bus stop shelters 
in D1034 and 
D158 


Mngeneleni 
school sports 
ground 


Community hal! at 
Shiyampahla 


Mthombolwazi 
school sports 
ground 


Request for 
fencing of 
agricultural crops 


Nompofana road 
upgrading 


Imbo tourism 


Emahlavini bridge 
to be repaired 


Renovation of 
emahlavini hali 


Sports field to be 
constructed at 
emahlavini 


Access road from 
Ysemaliza 


Repair masibane 
road 


Access roads at 
ngwengwe and 
other areas 


Road 

maintenance at 
mshibane 


Access road at 
madotsheni 


Request water 
drainage at 
emahlavini 


Access road from 
zamokuhie to 
mahlabathinj 
bridge 


Access road at 



Technical Services 


Technical Services 


Liaise with department 
of education 


Community Services 


Liaise with department 
of education 


Liaise with dept, of 
education 








Liaise with department 
of arts and culture 





Community Sen/ices 


Technical Services 


Technical Services 


Technical Services 


Technical Services 


Technical Services 


Technical Services 


Technical Services 


Technical Services 


Technical Services 



































































Richmond Municipality 


2015/2016 Annual Budget and MTREF 




























































Richmond Municipality 


2015/2016 Annual Budget and MTREF 



















































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


community 

1 



agriculture 


Existing cemetery 
to be fenced 

■ 

✓ 




The municipality 
to look for 
alternative land 
for cemetery 

7 

✓ 


Town Planning 


Electricity for farm 
dwellers 

■ 



Liaise with Eskom 


Town lands 
cemetery requires 
maintenance 

7 


✓ 

Technical Services 


Creche at the 
magoda area 

7 



Liaise with social 
development 


Request for 
mobile clinic to 
operate from the 
magoda hall 

7 



Liaise with department 
of health 


Sports field 
required 


✓ 


Community Services 


Nhiazuka clinic 
needed 

7 



Liaise with DOH 


Nhiazuka farms 
mobile clinic 
needed 

7 



Liaise with DOH 


Paraplegic 
sanitation needs 
to be considered 

7 



Liaise with UMDM 


St Bernard and 
Mandus housing 
project 

7 



Liaise with DOHS 


Access road from 
kwalVHoio to 
junction 

7 



Technical Services 


Road 

maintenance from 
eringin to 
kwaMtolo 

7 



Technical Services 



- AH attendance registers and minutes are available; 

- All documents in the appropriate format (electronic and printed) were provided to 
National Treasury and Provincial Treasury in accordance with Section 23 of the 
MFMA; 

- Comments and assistance was received from Provincial Treasury and where 
relevant considered as part of the finalisation of the 2015/2016 MTREF. 























Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.2 Overview of alignment of annua! budget with IDP 

The Constitution mandates local government with the responsibility to exercise local 
developmental and cooperative governance. The eradication of imbalances in South African 
society can only be realized through a credible integrated developmental planning process. 
Municipalities in South Africa need to utilise integrated development planning as a method to 
plan future development in their areas and so find the best solutions to achieve sound long- 
term development goals. A municipal IDP provides a five year strategic programme of action 
aimed at setting short, medium and long term strategic and budget priorities to create a 
development platform, which correlates with the term of office of the political incumbents. 

The plan aligns the resources and the capacity of a municipality to its overall development 
aims and guides the municipal budget. An IDP is therefore a key instrument which 
municipalities use to provide vision, leadership and direction to all those that have a role to 
play in the development of a municipal area. The IDP enables municipalities to make the 
best use of scarce resources and speed up service delivery. 

Integrated developmental planning in the South African context is amongst others, an 
approach to planning aimed at involving the municipality and the community to jointly find the 
best solutions towards sustainable development. Furthermore, integrated development 
planning provides a strategic environment for managing and guiding all planning, 
development and decision making in the municipality. 

It is important that the IDP developed by municipalities correlate with National and Provincial 
intent. It must aim to co-ordinate the work of local and other spheres of government in a 
coherent plan to improve the quality of life for all the people living in that area. Applied to the 
municipality, issues of national and provincial importance should be reflected in the IDP of 
the municipality. A clear understanding of such intent is therefore imperative to ensure that 
the municipality strategically complies with the key national and provincial priorities. 

The aim of this revision cycle was to develop and coordinate a coherent plan to improve the 
quality of life for all the people living in the area, also reflecting issues of national and 
provincial importance. One of the key objectives is therefore to ensure that there exists 
alignment between national and provincial priorities, policies and strategies and the 
municipality’s response to these requirements. 

The national and provincial priorities, policies and strategies of importance include amongst 
others: 

• Green Paper on National Strategic Planning of 2009; 

• Government Programme of Action; 

• Development Facilitation Act of 1995; 

• Provincial Growth and Development Strategy (GGDS); 

• National and Provincial spatial development perspectives; 

• Relevant sector plans such as transportation, legislation and policy; 

• National Key Performance Indicators (NKPIs); 

• Accelerated and Shared Growth Initiative (ASGiSA); 

• National 2014 Vision; 

• National Spatial Development Perspective (NSDP) and 

• The National Priority Outcomes. 

The Constitution requires local government to relate its management, budgeting and 
planning functions to its objectives. This gives a clear indication of the intended purposes of 
municipal integrated development planning. Legislation stipulates clearly that a municipality 
must not only give effect to its IDP, but must also conduct its affairs in a manner which is 
consistent with its IDP. 



Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.3 Measurable performance objectives and indicators 

Performance Management is a system intended to manage and monitor service delivery 
progress against the identified strategic objectives and priorities. In accordance with 
legislative requirements and good business practices as informed by the National 
Framework for Managing Programme Performance Information, the municipality has 
developed and implemented a performance management system of which system is 
constantly refined as the integrated planning process unfolds. The Municipality targets, 
monitors, assess and reviews organisational performance which in turn is directly linked to 
individual employee’s performance. 

At any given time within government, information from multiple years is being considered; 
plans and budgets for next year; implementation for the current year; and reporting on last 
year's performance. Although performance information is reported publicly during the last 
stage, the performance information process begins when policies are being developed, and 
continues through each of the planning, budgeting, implementation and reporting stages. 


The planning, budgeting and reporting cycle can be graphically illustrated as follows: 




Monitor and take 
corrective action 


Set targets and 
allocate resources 


Assess and adjust 


Identify desired impacts 


Specify performance 
indicators 


Planning, budgeting and reporting cycle 
2.3.1 Performance indicators and benchmarks 


2.3. 1.1 Liquidity 

• Current ratio is a measure of the current assets divided by the current liabilities and as a 
benchmark the municipality has set a limit of 1, hence at no point in time should this ratio be 
less than 1. Going forward it will be necessary to maintain these levels. 










Richmond Municipality 


2015/2016 Annual Budget and MTREF 


• The liquidity ratio is a measure of the ability of the municipality to utilize cash and cash 
equivalents to extinguish or retire its current liabilities immediately. Ideally the municipality 
should have the equivalent cash and cash equivalents on hand to meet at least the current 
liabilities, which should translate into a liquidity ratio of 1. Anything below 1 indicates a 
shortage in cash to meet creditor obligations. 

2. 3. 1.2 Revenue Management 

• As part of the financial sustainability strategy, the debt collection and credit control policy 
has been implemented to increase cash inflow, not only from current billings but also from 
debtors that are in arrears in excess of 90 days. 

2. 3. 1.3 Creditors Management 

• The municipality has managed to ensure that creditors are settled within the legislated 30 
days of invoice. The municipality has managed to ensure a 100 per cent compliance rate to 
this legislative obligation. This has had a favourable impact on suppliers’ perceptions of risk 
of doing business with the municipality, which is expected to benefit the municipality in the 
form of more competitive pricing of tenders, as suppliers compete for the municipality’s 
business. 


2.3.2 Free Basic Services: basic social services package for indigent households 

In terms of the municipality’s Indigent and Free Basic Services Policy registered households 
are entitled to 50kwh of electricity and free waste removal equivalent to once a week as well 
as a rebate on their property rates. 


2.4 Overview of budget related-policies 

The municipality’s budgeting process is guided and governed by relevant legislation, 
frameworks, strategies and related policies. 

All policies as listed hereunder, are available on the municipality’s website. 

The Following policies have been amended for the 2015/2016 financial year ( copies 
attached):- 


NO. 

POLICY 

DEPT. 

AVAILABILITY 

ADOPTION DATE 

i 





2.4.1 

Debt Collection and 

Credit Control 

Policy 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

2.4.2 

Property Rates Act 
Policy 

Budget & 
Treasury 
Office 

Y 


28/05/2015 

m 

Revenue 

enhancement Policy 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

2.4.4 

Petty Cash Policy 

Budget & 
Treasury 
Office 

Y 


. 

■ 

29/04/2011 

mm 

Borrowing Policy 

Budget & 

Y 


14/12/2010 














Richmond Municipality 


2015/2016 Annual Budget and MTREF 




Treasury 

Office 




2.4.6 

Long Term 

Financial Plan 

Policy 

Budget & 

T reasury 
Office 

Y 


£9/04(2011 

■ 

Supply Chain 
Management policy 

Budget & 
Treasury 
Office 

Y 


02/2015 

2.4.8 

Asset management 
policy 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

2.4.9 

Indigent policy and 
Free Basic Services 
Policy 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

■ 

Mai 

Budget & 

T reasury 
Office 

Y 


14/12/2010 

2.4.11 

Budget Policy 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

2.4.12 

Mm 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

2.4.13 

Funds and 

Reserves Policy 

Budget & 
Treasury 
Office 

Y 


p4/12/25l0 1 

2.4.14 

Tariff 

Policy(inciuding 
Property Rates 

Tariff, Refuse 
Removal / Solid 
Waste Tariff) 

Budget & 

Treasury 

Office 

Y 


14/12/2010 

2.4.15 

Virement Policy 

Budget & 
Treasury 
Office 

Y 


14/12/2010 

2.4.16 

Budget 

Implementation and 
Management Policy 

Budget & 
Treasury 

Office 

Y 



2.4.17 

Unauthorised 
Irregular, Fruitless 
and Wasteful 
Expenditure Policy 

Budget & 
Treasury 
Office 

Y 


28/05/2015 

2.4.19 

Policy on the 
provision of 

Doubtful Debt 

Budget & 
Treasury 

Office 

Y 


28/05/2015 

2.4.18 

Appointments of 
consultants policy 

Budget & 

T reasury 

Office 

Y 


28/05/2015 








2.4.2 Property rates Act Policy 


The Property Rates Act Policy (copy attached) as previously approved by council has been 
amended in accordance with the legislated amendments. Whilst the current policy is 
credible, sustainable and manageable there has been a need to review certain components 
to achieve a higher customer satisfaction and to take cognisance of community input. 





















Richmond Municipality 


2015/2016 Annua! Budget and MTREF 


2.5 Overview of budget assumptions 

2.5.1 External factors 

Owing to the economic slowdown, there are reduced payment levels by consumers. This is 
being addressed by the implementation of the debt collection and credit control policy. 

The MTBPS highlights that South Africa's economic performance has deteriorated over the 
past several years. Gross Domestic Product (GDP) growth of 1.4 per cent is estimated in 
2014/2015, down from 3.6 per cent in 201 1 . 

2.5.2 General inflation outlook and its impact on the municipal activities 

The following factors have been taken into consideration in the compilation of the 2015/16 
MTREF 

• National Government macro economic targets’; 

• The general inflationary outlook; 

• The increase in the cost of remuneration; 

• The increase in the cost of services by service providers; 

• Annual increases in contracted services. 

• Building the capacity of local government through the “ Back to Basics" which will 
focus on improving service delivery. 

2.5.3 Headline inflation forecasts 

As per MFMA circular 75, municipalities were requested to take the following macro- 
economic forecasts into consideration when preparing the 2015/2016 budgets and MTREF: 


Fiscal year 

2014 

Actual 

2015 

Estimate 

2016 

2017 

Forecast 

2018 

Real GDP 
growth 

2.2 

1.4 

2.0 

2.6 

3.0 

CPI Inflation 

5.8 

5.6 

4.8 

5.9 

5.6 


2.5.4 Collection rate for revenue services 

The base assumption is that tariff and rating increases will increase by 6 per cent and 4 per 
cent respectively. It is also assumed that current economic conditions, all relatively 
controlled inflationary conditions, will continue for the forecaster term. 

The rate of revenue collection is currently expressed as a percentage (90 per cent) of annual 
billings. There should also be an increased collection of arrear debt from the appointment of 
new debt collectors. The performance of arrear collections will however only be considered a 
source of additional cash in-flow once the performance has been carefully monitored. 

2.5.5 Salary increases 

The Salary and wage collective agreement for the period 01 July 2012 to 30 June 2015 has 
come to an end. The South African Local Government Association has issued the following 
update on the Salary Negotiations 2015 and beyond: 

“ SALGA revised offer 

> Across the board increase of 5.4% wef 1 July 2015 














Richmond Municipality 


2015/2016 Annual Budget and MTREF 


> On the outer further 2 years CPI + .25% for both outer years 

> Minimum wage of R5925pm and shall increase in the 2 outer years by the 
annual increase ” 


2.5.6 Remuneration of Councillors 

The municipality has considered the gazette on the Remuneration of Public Office bearers 
Act: Determination of Upper Limits of Salaries, Allowances and Benefits of different 
members of municipal council for the 2014/2015 financial year. 

2.5.7 Ability of the municipality to deliver and spend on the programmes 

It is estimated that a spending rate of 100 per cent is achieved on operating and capital 
expenditure for the 2015/2106 MTREF of which performance has been factored into the 
cash flow budget. 

2.6 Overview of budget funding 

For the medium-term, the funding strategy has been informed directly by ensuring financial 
sustainability and continuity. 


Funding measurement 


Description 

MFMA 

section 

Ref 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

Original 

Budget 

Adjusted 

Budget 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Funding measures 








Cashfcash equivalents at the year beg - R’OOO 

18(1 )b 

1 

74 680 

45674 

31 162 

42 00 0 

46755 

Cash + investments at the yr end less applications ■ R'000 

18(1)b 

2 

- 

- 

(258} 

(269) 

(282) 

Cash year end/rnonthfy employee/suppfier payments 

18(1 )b 

3 

0,3 

0,2 

0,2 

0,2 

0,2 

Surplus/(Defidt) excluding depreciation offsets: R'000 

18(1) 

4 

- 

- 

- 

- 

- 

Service charge rev % change - macro CPIX target exclusive 

18(1)a,(2) 

5 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Cash receipts % of Ratepayer & Other revenue 

18(1)a,(2) 

e 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Debt impairment expense as a % of totai billable revenue 

18(1)a42) 

7 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Capital payments % of capita! expenditure 

18(7)c:19 

8 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Borrowing receipts % of capital expenditure (exd. transfers) 

18(1)c 

9 

0,0% 

0,0% 

0,0% 

0,0% 


Grants % of Govt legislated/gazetted allocations 

18(1)a 

10 



0,0% 

0,0% 


Current consumer debtors % change - incr(decr) 

I8(1)a 

11 

56,8% 

(55,9%) 

31,9% 

(26,5%) 

15,4% 

Long term receivabies % change - incr(decr) 

18(1)a 

12 

0,0% 

0,0% 

0.0% 

0,0% 

0,0% 

R&M % of Property Plants Equipmenl 

20(1 )(vi) 

13 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Asset renewal % of capital budget 

20(1Kvi) 

14 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 


Cash and Cash Equivalents: The municipality’s cash position was discussed as part of the 
cash flow statement. A positive cash position, for each of the MTREF would generally be a 
minimum requirement, subject to the planned application of these funds such as cash 
backing of reserves and working capital requirements. 

The forecasted Cash and Cash Equivalents for the 201 5/2016 financial year shows R42 
million rand. 
















Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Cash plus investments less application of funds: The purpose of this measure is to j 

understand how the municipality has applied the available cash and investments as 

identified in the budgeted cash flow statement. j 

2.6.1 Medium-term outlook: operating revenue 

I 


The following table is a break-down of the operating revenue over the medium-term: 


Description 

2015/16 Medium Term Revenue & Expenditure Framework 

R thousands 

Budget Year 
2015/16 

% 

Budget Year +1 
2016/17 

% 

Budget Year 
+2 2017/18 

% 

Property rates 

10 400 000 

12% 

10 818 000 

12% 

10 152 080 

11% 

Service charges 

450 000 

1% 

450 000 

1% 

450 000 

0% 

Investment revenue 

2 500 000 

3% 

2 650 000 

3% 

2 800 000 

3% 

Transfers recognised - operational 

69 605 850 

79% 

69 884 950 

78% 

72 221 0S0 

80% 

Other own revenue 

5 373 130 

6% 

5 684 907 

6% 

5 046 450 

6% 

Total Revenue (excluding capital 
transfers and contributions) 

88 328 980 


89 487 857 


90 669 580 


Total Operating Expenditure 

89 597 137 


94 624 520 


99 874 489 


Surplus / (Deficit) 

-1 268 157 


-5 136 663 


-9 204 909 



Tariff setting plays a major role in ensuring desired ievels of revenue. Getting tariffs right 
assists in the compilation of a credible and funded budget. The municipality derives most of 
its income from grants and property rates. 

The revenue strategy is a function of key components such as: 

• Growth in the Municipalities economic development; 

• Revenue management and enhancement; 

• Achievement of a 95% annual collection rate; 

• National Treasury guidelines; 

• Achievement of a full cost recovery on service charges; 

• The Property rates Policy in terms of the Municipal Property rates Act, 2004; and 

• The ability to extend services and obtain cost recovery 

For the medium-term, the funding strategy has been informed directly by ensuring financial 
sustainability and continuity. 


2.6.2 Medium term outlook: capital revenue 

The following table is a breakdown of the funding composition of the 2015/2016 MTREF 
capital programme:- 












Richmond Municipality 


2015/2016 Annua! Budget and MTREF 


Sources of capital revenue over the MTREF 


R thousands 

Budget Year 
2015/16 

% 

Budget 
Year +1 
2016/17 

% 

Budget 
Year +2 
2017/18 

% 

Funded b y: 

National Government 

17 376 

000 

67% 

17 650 

000 

100% 

18 450 

000 

100% 

Provincial Government 

- 


- 


- 


Transfers recognised - capital 

Public contributions & donations 

Borrowing 

internally generated funds 

8 475 

000 

33% 

■ 




TOTAL CAPITAL FUNDING 

25 851 

000 

■ 

17 650 

000 

■ 

18 450 

000 

■ 


Capital grants and receipts equates to 67% of the total funding source which represents 
R17.3 million for the 2015/2016 financial year. 

2.6.3 Cash Flow Management 

Cash flow management and forecasting is a critical step in determining if the budget is 
funded over the medium-term. The table below is consistent with international standards of 
good financial management practice and also improves understand ability for councillors and 
management. 

Table A7 - Budget cash Flow Statement 


Description 

Current Year 2014/15 

2D1 5/1 6 Medium Term Revenue & 

Expenditure Framework j 

R thousand 

Original 

Budget 

Adjusted 

Budget 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
42 2017/18 

CASH FLOW FROM OPERATING ACTIVITIES 






Receipts 






Property rates, penalties & collection charges 

11 616 


9 090 

10 500 

9815 

Service charges 

46 917 


675 

768 

787 

Other revenue 

18 865 


70 270 

70623 

72959 

Government • operating 

1 BOO 


512 

626 

688 

Government - capital 



- 

- 

- 

Interest 



4 717 

5 699 

6154 

Dividends 



- 

111 

118 

Payments 






Suppliers and employees 

(56 992) 


(37 312) 

(39 811) 

(42595) 

Finance charges 

(114) 


(4 473) 

(4 741) 

(5 026) 

Transfers and Grants 

(760) 


(7489) 

(7 963) 

(8 759) 

NET CASH FROMZ(USED) OPERATING ACTIVITIES 

21 332 

19719 

35990 

35812 

34140 | 

























Richmond Municipality 


2015/2016 Annual Budget and MTRHF 


CASH FLOWS FROM INVESTING ACTIVITIES 

Receipts 

Proceeds on disposal of PPE 

Decrease (Increase) in non-current debtors 

Decrease (increase) other non-current receivables 

Decrease (increase) in non-current investments 

Payments 

Capita.' assets 

1 

1 

17 376 

17 650 

18450 

NET CASH FROM/(USED) INVESTING ACTIVITIES 


■m 

17376 

17 650 

18 450 

CASH FLOWS FROM FINANCING ACTIVITIES 

■ 

■ 

■| 



Receipts 

i i 


1 



Shortterm loans 




§811 

- 

Borrowing long term/refinancing 




SB 

_ 

Increase (decrease) in consumer deposits 

1 

IBM 

■ 

1 

- 

Payments 

mm 


m 

— 


Repayment of borrowing 

i 



i 

(18450) 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

W&3M 1 

Iff! 

(25851) 

!i 

(18 450) 

NET INCREASE/ (DECREASE) IN CASH HELD 

(307) 

(14 512) 

27 516 

35 812 


Cash/cash equivalents at the year begin: 

74 680 

45 674 

10 83B 

38353 


Cash/cash equivalents at the year end: 

74373 

31 162 

38353 

74165 

108305 


2.6.4 Cash backed reserves/accumulated surplus reconciliation 
Table A8 - Cash backed reserves / accumulated surplus reconciliation 


Description 

2013/14 

Current Year 201 4/15 

201 5/16 Medium Term Revenue & 
Expenditure Framework 

R thousand 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Budget 

Year 

2015/16 

Budget 

Year+1 

2016/17 

Budget 
Year +2 
2017/18 

Cash and investments available 







Cash/cash equivalents at the year beg 

43415 

74 680 

45 674 

31 162 

42 000 

46 755 

Other current investments > 90 days 

1 855 

595 

595 

60C 

660 

726 

- Long-term receivables 


10 

10 

_ 

- 

_ 

Cash and investments available: 

45 270 

75285 

45 279 

31 762 

42660 

47 481 

Apolication of cash and investments 







Trade and other creditors 

8 321 

1402 

1402 

1 500 

1545 

1 591 

Unspent borrowing 

- 

- 


- 

- 

- 

Statutory requirements 




- 

- 

- 

Other working capital requirements 

- 


- 

- 

- 

- 

Other provisions 







Long term investments committed 

- 

- 

- 

- 

- 

- 

Reserves to be backed by cash/investments 

247 



258 

269 

282 

Total Application of cash and investments: 

8568 

1402 

1402 

1758 

1 814 

1873 

Surplus(shortfall) 

36 702 

73 883 

44 877 

30004 

40 845 

45608 



















Richmond Municipality 


2015/2016 Annual Budget and MTREF 


From the above table it can be seen that the cash and investments available total R42.6 
million and although it decreases in the 2016/2017 there is a steady increase in 2017/2018. 

The following is an application of this funding:- 

• Unspent conditional grants are automatically assumed to be an obligation. The 
municipality is however budgeting to spend all unspent conditional grants; 

• Although there is borrowings in the previous financial year, this borrowing will be paid 
off in the 2015/2016 financial year; 

• The reserves to be cash baked is the funds in respect to the Housing Development 
fund 


2.6.5 Funding Compliance Measurement 
Table SA10 - Funding compliance measurement 


Description 

MFMA 

section 

Current Year 2014/15 

2015/16 Medium Term Revenue & 
Expenditure Framework 

Original 

Budget 


BU 

Budget 
Year +1 
2016/17 

Budget 
Year +2 
2017/18 

Fundina measures 

. 






Cash/cash equivalents at the year beg - R'OOC 

18fl)b 

74 680 

45 674 

31 162 

42 000 

46755 

Cash + investments at the yr end less applications • R'000 

18{1)b 

- 

- 

(258) 

(269) 

(282) 

Cash yearend/monthiy employee/supplier payments 

18{1)b 

0,3 

0,2 

0,2 

0,2 

0,2 

Sarplus/(Deficit) excluding depreciation offsets: R‘000 

18(1) 

- 

- 

- 

- 

- 

Service charge rev % change - macro CPIX target exclusive 

1 8(1 )a,(2) 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Cash receipts % of Ratepayer & Other revenue 

18(1)a,(2) 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Debt impairment expense as a % of total billable revenue 

18(1)a,(2) 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Capital payments % of capital expenditure 

18(1}c;19 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Borrowing receipts % of capital expenditure (exci. transfers) 

18(1)c 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Grants % of Govt, iegislated/gazetted allocations 

18(1)a 



0,0% 

0,0% 

0,0% 

Current consumer debtors % change • lncr(decr) 

1 8(1 >a 

56,8% 

(55,9%) 

31,9% 

(26,5%) 

15,4% 

Long term receivables % change - incr(decr) 

18(1 )a 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

R&M % of Property Plant & Equipment 

20(1 )(vi) 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Asset renewal % of capital budget 

20(1 )(vi) 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 


National Treasury requires that the municipality assess its financial sustainability against 
fourteen different measures that look at various aspects of the financial health of the 
municipality. These measures are contained in the table above. All the information comes 
directly from the annual budgeted statements of financial performance, financial position and 
cash flows. The funding measurement table essentially measures the degree to which the 
proposed budget complies with the funding requirement of the MFMA. 











Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Current Year 2014/1 5 


Original Adjusted 

Budget Budget 







2.7 Expenditure on grants and reconciliations of unspent funds 


Description Cnricn, Yes, 20.4,, 5 

R thousand «£- *3? S3 S3 

Budget Budget 2015/16 2016/17 2017/18 


EXPENDITURE: 

re of Transfers and Grants 

Operating Transfers and Grants 90 464 90 188 126 257 

National Government: 

Local Government Equitable Share 
Finance Management 
Municipal Systems Improvement 
INEP 
1NEP 
0 

MIG-PMU 

Provincial Government 
Provincialisalron of Libraries 
Community library services grant 
Sport and Recreation 
Housing 

Scholar Patrol Grant 

District Municipality: 

0 

Other arant providers: 


Total operating expenditure of Transfers and Grants: 













sfersand Grants 


Capital T ran8fere and Grants 

National Government 
Municipal Infrastructure Grant (MIG) 
Finance Management 
Municipal Systems Improvement 
Other capital transfers/g rants [insert desc] 
Provincial Government: 

Sports and recreation 
District Municipality: 

0 

Other qrant providers: 


Total capital expenditure of Transfers and Grants 


TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 


92 086 

92 813 

128 311 


34 986 

35149 

34 492 

35 300 

17 493 


17 376 

17 650 

17493 

17 493 

17116 

17 650 












164 141 168 371 



Ail grants recorded have been reconciled to the Division of Revenue Act. 












































































Richmond Municipality 


2015/2016 Annua! Budget and MTREF 


2.8 Allocations on grants made by the municipality 

KZN227 Richmond - Supporting Table SA21 Transfers and grants made by the municipality 


Description 

R thousand 

Current Year 
2014/16 

201S/1 8 Medium Term Revenue 
& Expenditure Framework 

Original 

Budget 

Adjusted 

Budget 

Budget 

Year 

2015/16 

Budget 

Year+1 

2016/17 

Budget 
Year +2 
2017/18 

Cash Transfers to other municipalities 


■ 

■ 

■ 

■ 

Total Cash Transfers To Municipalities: 

mm 

am 

_ 

I 


Cash Transfers to Entities/Other External Mechanisms 






Total Cash Transfers To Entities/Ems' 




_ 

. 

Cash Transfers to other Oraans of State 






Total Cash Transfers To Other Organs Of State: 

_ 

_ 

_ 

wm 


Cash Transfers to Oroanisations 





i 

Total Cash Transfers To Organisations 

■ 

■ 

■ 

m 


Cash Transfers to Groups of Individuals 





■ 

Total Cash Transfers To Groups Of Individuals: 


■ 

■ 

■ 

■ 

TOTAL CASH TRANSFERS AND GRANTS 

m 

mm 


— 



Non-Cash Transfers to other municipalities 






Total Non-Cash Transfers To Municipalities: 

_ 



„ 

_ 

Non-Cash Transfers to Entitles/Other External 
Mechanisms 






Total Non-Cash Transfers To Entities/Ems' 

_ 

. 

_ 


_ 

Non-Cash Transfers to other Oraans of State 






Totai Non-Cash Transfers To Other Organs Of State: 


_ 

. 

_ 


Non-Cash Grants to Oraanisations 













Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Total Non-Cash Grants To Organisations 

■ 

m 


■ 

81 

Grouos of Individuals 

Free basic services 

800 


1 

554 

640 

Total Non-Cash Grants To Groups Of Individuals: 

800 

800 

545 

554 

640 

TOTAL NON-CASH TRANSFERS AND GRANTS 

800 

800 

545 

554 

640 

TOTAL TRANSFERS AND GRANTS 

800 

800 


554 

640 


Grants to individuals are in respect to Free Basic Electricity, Free Basic Refuse and indigent 
rates. 

2.9 Councillor and employee benefits 


KZN227 Richmond - Supporting Table SA22 Summary counc 

(lor and staff benefits 

Summary of Employee and Councillor remuneration 

Current Year 2014/15 

2015/16 Medium Term Revenue & 
Expenditure Framework 

R thousand 

Original 

Budget 

Adjusted 

Budget 

Budget 

Year 

2015/16 

Budget 
Year +1 
2016/17 

Budget 
Year +2 
2017/18 


D 

E 

G 

H 

1 

Councillors (Political Office Bearers plus Other! 






Basic Salaries and Wages 

Pension and UIF Contributions 

Medical Aid Contributions 

Motor Vehicle Allowance 

Cellphone Allowance 

Housing Allowances 

Other benefits and allowances 

4 214 

4 214 

4 473 

4741 

5 026 

Sub Total - Councillors 

4214 

4214 

4 473 

4 741 

5026 

% increase 

- 

- 

- 

6,0% 

6,0% 

Senior Manaqers of the Municipality 






Basic Salaries and Wages 

4313 

3 948 

4469 

4 737 

5 021 

Pension and UIF Contributions 


- 




Medical Aid Contributions 


- 




Overtime 






Performance Bonus 

604 

552 

626 

626 

626 

Motor Vehicle Allowance 

Cellphone Allowance 

Housing Allowances 

Other benefits and allowances 

Payments in lieu of leave 

Long service awards 

Post-retirement benefit obligations 



450 

450 

450 

Sub Total - Senior Managers of Municipality 

4 917 

4 500 

5 544 

5 812 

6 097 

% increase 

- 

(8,5%) 

- 

4,8% 

4,9% 

Other Municipal Staff 






































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Basic Salaries and Wages 

21351 

15 847 

20 436 

21 837 

23 413 

Pension and UIF Contributions 

2757 

2128 

2 969 

2 543 

2 765 

Medical Aid Contributions 

1264 

1080 

1 637 

1 747 

1869 

Overtime 

171 

141 

125 

133 

143 

Performance Bonus 

1842 

1418 

1697 

2 478 

2 651 

Motor Vehicle Allowance 

706 

1038 

832 

917 

1013 

Cellphone Allowance 

207 

192 

243 

260 

270 

Housing Allowances 

42 

42 

43 

46 

49 

Other benefits and allowances 

787 

809 

910 

971 

1039 

Payments in lieu of leave 

600 

800 

1 000 

1067 

1 142 

Long sen/ice awards 

200 

300 

400 

427 

457 

Post-retirement benefit obligations 

1 100 

1322 

1 300 

1387 

1484 

Sub Total - Other Municipal Staff 

31 027 

24 918 

31 593 

33 813 

36 302 

% increase 

- 

■m 

_ 

7,0% 

7,4% 

Total Parent Municipality 

40158 

33632 

41 610 

44 366 

47 425 


_ 

(16,3%) 

_ 

6,6% 

6,9% 

TOTAL SALARY, ALLOWANCES & BENEFITS 

40158 

33 632 

41 610 

44 366 

47425 

% increase 

_ 

(16,3%) 

_ 

6,6% 

mm 

TOTAL MANAGERS AND STAFF 

35 944 

29 418 

37137 

39 625 

42 399 


The increase in respect to staff is more than 4.4 per cent recommended by National 
Treasury. This is due to the following:- 

> The current increase as circulated by SLAGA is 5.4 per cent. The municipality has 
incorporated a 6% increase; 

> Council has recently given staff either a one/two notch increases (2014/2015); 

> The new budget has also considered an additional notch increase; and 

> The addition of new positions onto the organogram. 






















Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.10 Monthly targets for revenue, expenditure and cash flow 


Description 






Budget Year 2015/16 







R thousand 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 
2015/16 

Revenue Bv Source 














Property rates 


6000 

444 

444 

444 

444 

444 

444 

444 

444 

444 

too 

10100 

Property rates • penalties 4 collection charges 

25 

25 

25 

25 

25 

25 

25 

25 

25 

25 

25 

25 

300 

Service charges - refuse revenue 

38 

38 

38 

38 

38 

38 

38 

38 

38 

38 

38 

38 

450 

Rental of lacilities and equipment 

231 


231 

231 

231 

231 

231 

231 

231 

231 

231 

231 

2 772 

interest earned - external investments 

208 


203 

208 

208 

208 

208 

208 

208 

208 

208 

208 

2 500 

Interest earned - outstanding debtors 

9 


9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

105 

Fines 


10 



10 


10 


10 


10 

3 

53 

Licences and permits 

57 

57 

57 

57 

57 

57 

57 

57 

57 

57 

57 

57 

686 

Agency services 

47 

47 

47 

47 

47 

47 

47 

47 

47 

47 

47 

47 

569 

Transfers recognised - operational 

16 802 

3653 

3 653 

3 653 

11000 

3 653 

3 653 

3 653 

10 500 

3653 

3 653 

(0) 

69 606 

Other revenue 

99 

99 

99 

99 

99 

99 

99 

S9 

99 

99 

99 

99 

1 190 

Total Revenue (excluding capital transfers and 
contributions) 

19596 

10377 

4 812 

4 812 

12169 

4 812 

4 822 

4 812 

11669 

4 812 

4 822 

SIS 

88 329 

Employee related costs 

2 794 

2 794 

2 794 

2794 

5 013 

2794 

2794 

2 794 

2 794 

2 794 

2 794 

4 185 

37 137 

Remuneration ol councillors 

373 

373 

373 

373 

373 

373 

373 

373 

373 

373 

373 

373 

4473 

Debt impairment 






300 





350 

435 

1085 

Depreciation S asset impairment 

658 

650 

658 

658 

658 

658 

658 

658 

658 

658 

656 

658 

7 893 

Finance charges 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 

175 

Contracted services 

| 580 

580 

580 

580 

580 

580 

580 

580 

580 

580 

580 

1 110 

7 4B9 

Transfers and grants 

45 

45 

45 

45 

45 

45 

45 

45 

45 

45 

45 

46 

545 

Othar expenditure 

2 776 

2776 

2 776 

2776 

2776 

2 776 

2 776 

2 776 

2776 

2 770 

2 776 

258 

30 794 

Loss on disposal of PPE 












- 

- 

Total Expenditure 

7 241 

7241 

7 241 

7 241 

9 460 

7 541 

7 241 

7241 

7241 

7 241 

7 591 

7 079 

89 597 

Surptus/(Deffcit) 

12 356 

3137 

(2 429) 

(2 429) 

2709 

(2 729) 

(2 410) 

(2 429) 

4 428 

(2 429) 

(2 769) 

(8 264) 


Transfers recognised - capital 

1 448 

1448 

1448 

1 448 

1448 

1448 

1448 

1448 

1448 

1448 

1448 

1448 


Surplus/(Oeficil) after capital transfers & contributions 

13 804 

4 585 

(981) 

(981) 

4157 

(1 281) 

(971) 

(981) 

5 876 

(961) 

(1 321) 

(4 815) 

16108 

SurpJus/(Deficit) 

13 804 

4 585 

mm 

mm 

4157 

BSfSS 1 

i mm 

IBB 

5 876 


\mm 

■H3I 

16108 







































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Description 






Budget Year 2015/16 







R thousand 

July 

August 

Sept 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 
2015/16 

Revenue bv Vote 

Vote 1 - Executive & Council 

Vote 2 - Finance & Admin 

1 364 

25 085 

1 000 

1 000 

1 000 

1818 

15 000 

1000 

1000 

1000 

1 364 

15 000 

1 000 

1000 

(1 204) 

4 545 

61 881 

Vote 3 - Planning & Development 

2 496 

2 496 

2 496 

2496 

2 496 

2 496 

2 496 

2 496 

2 496 

2 496 

2 496 

2496 

29 957 

Vote 4 • Community & Social Services 

197 

197 

197 

197 

197 

197 

197 

197 

197 

197 

197 

197 

2 368 

Vote 5 - Community & Social Services 
Vote 6 ■ Public Safety 

61 

61 

61 

61 

61 

61 

61 

61 

61 

61 

61 

61 

730 

Vote 7 - Sport & Recreation 

176 

176 

176 

176 

176 

176 

176 

176 

176 

176 

176 

176 

2107 

Vote 8 - Waste Management 

104 

104 

104 

104 

104 

104 

104 

104 

104 

104 

104 

2 407 

3 548 

Vote 9 -Roads Transport 

47 

47 

47 

47 

47 

47 

47 

47 

47 

47 

47 

47 

569 

Total Revenue by Vole 

29 530 

4 081 

4 081 

4 081 

19 699 

4 081 

4 081 

4 0B1 

19445 

4 081 

4 081 

4180 

105705 

Expenditure by Vote to be appropriated. 














Vote 1 - Executive & Council 

862 

862 

862 

862 

862 

862 

862 

862 

862 

862 

862 

862 

10 340 

Vote 2 - Finance & Admin 

1 689 

1 689 

1 689 

1 689 

1 689 

1 689 

1 689 

1689 

1 689 

1 689 : 

1689 

1689 

20 270 

Vote 3 - Planning & Development 

1659 

1659 

1 659 

1659 

1659 

1659 

1659 

1 659 

1659 

1 659 

1 659 

1659 

19 903 

Vote 4 - Community & Social Services 

983 

983 

983 

983 

983 

983 

983 

983 

983 

983 

983 

983 

11799 

Vote 5 - Community & Social Services 

112 

112 

112 

112 

112 

112 

112 

112 

112 

112 

112 

112 

1345 

Vote 6 - Public Safety 

562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

562 

6 748 

Vote 7 - Sport & Recreation 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

435 

5 224 

Vote 8 - Waste Management 

296 

296 

296 

296 

296 

296 

296 

296 

296 

296 

296 

296 

3 548 

Vote 9 -Roads Transport 

868 

868 

868 

868 

868 

868 

868 

868 

868 

868 

868 

868 

10419 

Total Expenditure by Vote 

7 466 

7 466 

7 466 

7 466 

7 466 

7 466 

7 466 

| 

7 466 

7 466 

7 466 

7 466 

89 597 

Surplus/{Deficit) before assoc. 

22 063 

(3 385) 

(3385) 

(3 385) 

12 433 

(3 

385) 

(3 

385) 

H 

11 978 

(3 

385} 

(3 

385) 

(3 286) 

16108 

Taxation 

Attributable to minorities 

Share of surplus/ (deficit) of associate 








1 




“ 

- 

Surplus/(Deficit) 

22 063 

mm 

II 


12433 

EH 

mm 

(3 

385) 

11978 

mm 

mm 

(3 286) 

16108 





































Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.11 Annual budgets and SDBIPs - internal departments 

• As per Attached Annexure C - ( Final SDBIP to be approved by the Mayor with 
legislated time frames) 


2.12 Contracts having future budgetary implications 

In terms of the Municipality’s Supply Chain Management Policy, no contracts are awarded 
beyond the medium-term revenue and expenditure framework (three years - 36 months). 

2.13 Capital expenditure details 


Municipal Manager 


Communication equipment (loud hailing, 2 speakers , digital recorder, video 
camera , wall banners) 

RM 

100 000,00 

Corporate 



Office furniture 

RM 

15 000,00 

Laptop Computer (SM Corporate) 

RM 

12 000,00 

Tools (Building maintenance) 

RM 

3 000,00 

Access Controlled Door to Admin Block 

RM 

20 000,00 

Alterations to Reception Area/Off/ces 

RM 

25 000,00 

Digital Attendance Recorder (DTG) 

RM 

a 000,00 


Local Economic Development 

Informal Trader Units 

RM 

100 000,00 

Community 

IX 

Laptop : SM Secretary 

RM 

8 000,00 

lx 

Canopy (Musa Bakkie) 

RM 

15 000,00 


Community Facilities 

1 x Concrete palisade Slahla Sportsground 

RM 

100 000,00 

lx 

Smozomeni Toilets rehabilitation 

RM 

10 000,00 


Renovations Agricultural Hall { Stage and Toilets) 

RM 

400 000,00 

Library 

lx 

Laptop Computer 

RM 

8000,00 

lx 

Generator 

RM 

40 000,00 

Licensing 

lx 

Forms Rack 

RM 

2 000,00 

Learners 

20 x 

Side Chairs 

RM 

10 000,00 




Richmond Municipality 


2015/2016 Annual Budget and MTREF 


Traffic 




3 x 

Cluster workstations 

RM 

10 000,00 

lx 

Traffic Vehicle 

RM 

200 000,00 

Testing Ground 



4 x 

Desktop computers 

RM 

48 000,00 

12 x 

Queuing System (Poles and TV) 

RM 

15 000,00 

lx 

Office Desk with drawers 

RM 

5 500,00 

lx 

Filing cabinets and shelving 

RM 

40 000,00 

lx 

Desktop colour printer 

RM 

5 000,00 

Protection services 




CCTV Cameras 

RM 

300 000,00 

Rural Roads 





Grader 

RM 

2 700000,00 

1 

Tipper Trucks 

RM 

700 000,00 


Urban Roads 

1 Bakkie 

RM 

285 000,00 

Plate compactor 

RM 

50 000,00 

Street Lights 

RM 

400 000,00 

Stormwater upgrade Ward 1 

RM 

1 547 000,00 

Grass Cutting 

10 Brush cutters 

RM 

60 000,00 

1 Garen Slash 

RM 

50 000,00 

Refuse 

6 Skip bins 

RM 

300 000,00 

Technical : Workshoo 

20 tonne Trolley Jack 

RM 

20 000,00 

1 Laptop 

RM 

10 000,00 

Wireless links to Testing Ground & Works Yard 

MSIG 

100 000,00 

Cabling for Testing Ground & Works Yard 

MSIG 

100 000,00 

Generator 

MSIG 

60 000,00 

Stormwater upgrade Ward 1 

COGTA 

853 000,00 

Mig funded projects 

Resurfacing of residential roads Ward 1 

MIG 

4 000 000,00 

Construction of Sidewalks from Bambatha Site to Ndabikona 

MIG 

4 000 000,00 

Tarring of internal roads in Ward 3 

MIG 

4 000 000,00 

Tarring of internal roads in ward 4 

MIG 

4 000 000,00 

Construction of Bulawyo Sportsfield Ward 5 

MIG 

1 116 150,00 




Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.14 Legislation compliance status 

Compliance with the MFMA implementation requirements have been substantially adhered 
to through the following activities: 

1. In year reporting 

Reporting to National Treasury in electronic format was fully complied with on a monthly 
basis. Section 71 reporting to the Mayor (within 10 working days) is undertaken on a monthly 
basis. 

2. Internship programme 

The municipality is participating in the Municipal Financial Management Internship 
programme and has employed five interns undergoing training in various divisions of the 
Budget and Treasury Office. Since the introduction of the Internship programme the 
municipality has successfully employed and trained 15 interns through this programme. 

3. Budget and Treasury Office 

The Budget and Treasury Office has been established in accordance with the MFMA. 

4. Audit Committee 

An Audit Committee has been established and is fully functional. 

5. Service Delivery and Implementation Plan 

The detail SDBIP document is at a draft stage and will be finalised after approval of the 
2015/16 MTREF in April 2015 directly aligned and informed by the 2015/16 MTREF. 

6. Annual Report 

Annual report is compiled in terms of the MFMA and National Treasury requirements. 

7. MFMA Training 

The MFMA training module is available in electronic format. 

8. Policies 

All financial policies are reviewed and adopted annually as part of the budget process. 

2.15 Other supporting documents 

• As per Attached tables 


Richmond Municipality 


2015/2016 Annual Budget and MTREF 


2.16 Municipal manager’s quality certificate 

I Mr E S Sithole, Municipal manager of Richmond Municipality, hereby certify that the annual 
budget and supporting documentation have been prepared in accordance with the Municipal 
Finance Management Act and the regulations made under the Act, and that the annual 
budget and supporting documents are consistent with the Integrated Development Plan of 
the municipality. 


Mr E S Sithole 

Municipal manager of 

Signature 

Date 28/05/2^15 



ND MUNICIPALITY ( KZ227 ) 



RICHMOND MUNICIPALITY 



Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



INDEX 

Section No. Page No. 

PREAMBLE 3 

DEFINITIONS 3 

t IMPLEMENTATION OFTHIS POLICY AND EFFECTIVE DATE 12 

2 FUNDAMENTAL PRINCIPLES OFTHIS POLICY 12 

3 THE PURPOSE OF THIS POLICY 13 

4 EQUITABLE TREATMENT OF RATEPAYERS 14 

5 DISCRETIONARY DECISIONS ADOPTED BY THE MUNICIPALITY WITH RESPECT TO 

LEVYING OF RATES 14 

6 CATEGORIES OF RATEABLE PROPERTY AND DIFFERENTIAL RATING 15 

7 RELIEF MEASURES FOR RATEPAYERS 17 

8 CATEGORIES OF OWNERS ENTITLED TO RELIEF 18 

9 EXEMPTIONS 18 

10 REDUCTIONS ... 20 

11 REBATES v . 21 

12 CRITERIA FOR DIFFERENTIAL RATING 23 

13 MULTIPLE PURPOSE PROPERTIES 23 

14 COMMUNITY PARTICIPATION 24 

15 ANNUAL RATES INCREASE / DECREASE 25 

16 RECOVERY OF RATES 25 

17 ' CONSOLIDATION AND APPORTIONMENT OF PAYMENTS 26 

18 DEFERMENT OF RATES 27 

19 IMPERMISSIBLE RATES IN TERMS OF SECTION 17 OF THE ACT 28 

20 CONSTITUTIONALLY IMPERMISSIBLE RATES 30 

21 LAND TENURE RIGHT 31 


2 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 





RATES POLICY 


PREAMBLE 

WHEREAS: 


The Council of the Richmond Municipality has resolved to levy rates on the market value of all 
rateable properties in its area jurisdiction as reflected In its property register compiled in terms of 
section 23 of the Act in order to provide a reliable source of revenue to provide basic services and 
perform its functions. '■ 


The Municipality must in accordance with the provision of section 3 of the Act adopt a rates policy 
consistent with the Municipal Property Rates Act, 2004 (Act No. 6 of 2004) on the levying of rates in 
the municipality. . r ' 

Revenue raised from property rates will be used to fund services that benefit the community as a 
whole as opposed to individual households, and these services include, but are not limited to, the 
maintenance of streets, roads, sidewalks, lighting, storm drainage facilities, municipal and recreation 
facilities, cemeteries as well as the municipal administration in general. 


DEFINITIONS 


Any words and phrases referred to in this policy shall have the same meaning and interpretation 
assigned in terms of the Municipal Property Rates Act 6 of 2004 (“the Act” ) and for this purpose lists 
hereunder the definitions used in the Act. 


In this Act, unless the context indicates otherwise— 

“agent”, in relation to the owner of a property, means a person appointed by the owner of the 
property- 

fa) to receive rental or other payments in respect of the property on behalf of the owner; or 
(b) to make payments in respect of the property on behalf of the owner; 

3 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



“agricultural purpose”, means property that is used primarily for agricultural purposes but, without 
derogating from section 9, excludes any portion that is used commercially for the hospitality of 
guests and excludes the use of 

(a) the property for the purpose of eco-tourism or for the trading in or hunting of game; 
“annually” means once every financial year; 

“appeal board” means a valuation appeal board established in terms of section 56; 

“assistant municipal valuer” means a person designated as an assistant municipal valuer in terms 
of section 35(1) or (2); 

“category”— 

(a) in relation to property, means a category of properties determined in terms of section 8; and 

(b) in relation to owners of properties, means a category of owners determined in terms of 
section 15 (2); 

“data-collector” means a person designated as a data-coliector in terms of section 36; 

“date of valuation” means the date determined by a municipality in terms of section 31(1); 

“day” means when any number of days are prescribed for the performance of any act, those days 
must be reckoned by excluding the first and including the last day, unless the last day falls on a 
Saturday, Sunday or Public Holiday, in which case the number of days must be reckoned by 
excluding the first day and also any such Saturday, Sunday or public Holiday; 

“district municipality” means a municipality that has municipal executive and legislative authority 
in an area that includes more than one municipality, and which is described in section 155 (1) of the 
Constitution as a category C municipality; 

“dominant use” shall be assessed on the higher of either; 

13.3.2.1 the measured extent under use (land and/or buildings), or 

1 3.3.2.2 the gross rental value of the area under use (land and/or buildings) 
where at least 66% of that property is used for a particular purpose. 


“effective date”— 

(a) in relation to a valuation roll, means the date on which the valuation roll takes effect in terms 
of section 32(1); or 

(b) in relation to a supplementary valuation roll, means the date on which a supplementary 
valuation roll takes effect in terms of section 78 (2) (b); 

“exclusion”, in relation to a municipality’s rating power, means a restriction of that power as 
provided for in section 17; 

4 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 




“exemption”, in relation to the payment of a rate, means an exemption granted by a municipality in 
terms of section 15; 

“financial year” means the period starting from 1 July in a year to 30 June the next year; 

“Income Tax Act” means the Income Tax Act, 1962 (Act No. 58 of 1962); 

“land reform beneficiary”, in relation to a property, means a person who— 

(a) acquired the property through — 

(i) the Provision of Land and Assistance Act, 1 993 (Act No. 1 26 of 1 993); or 

(ii) the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994); 

(b) holds the property subject to the Communal Property Associations Act, 1996 (Act No. 28 of 
1996); or 

(c) holds or acquires the property in terms of such other land tenure reform legislation as may 

pursuant to section 25 (6) and (7) of the Constitution be enacted after this Act has taken 
effect; r J- 

“land tenure right” means a land tenure right as defined in section 1 of the Upgrading of the Land 
Tenure Rights Act, 1991 (Act no. 1 12 of 1991); 

“local community”, in relation to a municipality— 

(a) means that body of persons comprising— / . ; 

(i) the residents of the municipality; 

(ii) the ratepayers of the municipality; 

(iii) any civic organizations and non-governmental, private sector or labour organizations 
or bodies which are involved in local affairs within the municipality; and 

(iv) visitors and other people residing outside the municipality who, because of their 
presence in the municipality, make use of services or facilities provided by the 
municipality; and 

(b) includes, more specifically, the poor and other disadvantaged sections of such body of 
persons; 

“local municipality” means a municipality that shares municipal executive and legislative authority 
in its area with a district municipality within whose area it falls, and which is described in section 
155 (1) of the Constitution as a category B municipality; 

“market value”, in relation to a property, means the value of the property determined in accordance 
with section 46; 

“MEC for local government” means the member of the Executive Council of a province who is 
responsible for (oca! government in that province; 


5 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



“metropolitan municipality” means a municipality that has exclusive executive and legislative 
authority in its area, and which is described in section 155 (1) of the Constitution as a category A 
municipality; 

“Minister” means the Cabinet member responsible for local government; 

“multiple purposes”, in relation to a property, means the use of a property for more than one 
purpose, subject to section 9; 

“municipal council” or “council” means a municipal council referred to in section 18 of the 
Municipal Structures Act; 

“Municipal Finance Management Act” means the Local Government: Municipal Finance 
Management Act, 2003 (Act No. 56 of 2003); 

“municipal manager” means a person appointed in terms of section 82 of the Municipal Structures 
Act; 

“Municipal Structures Act” means the Local Government: Municipal Structures Act, 1998 (Act 
No. 117 of 1998); 

“Municipal Systems Act” means the Local Government: Municipal Systems Act, 2000 (Act No. 32 
of 2000); ' ■>: 

“municipal valuer” or “valuer of a municipality” means a person designated as a municipal valuer 
in terms of section 33 (1); 

“newly rateable property” means any rateable property on which property rates were not levied 
before the end of the financial year preceding the date on which this Act took effect, excluding — 

(a) a property which was incorrectly omitted from a valuation roil and for that reason was not 
rated before that date; and 

(b) a property identified by the Minister by notice in the Gazette where the phasing-in of a rate is 



“occupier”, in relation to a property, means a person in actual occupation of a property, whether or 
not that person has a right to occupy the property; 

“office bearer”, in relation to places of public worship, means the primary person who officiates at 
services at the place of worship; 

“official residence” in relation to places of public worship, means- 

a) a portion of the property used for residential purposes; or 

b) one residential property, if the residential property is not located on the same property 
as the place of public worship, 

registered in the name of a religious community or registered in the name of trust established for 
the sole benefit of a religious community and used as a place of residence for the office bearer; 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



“organ of state” means an organ of state as defined in section 239 of the Constitution; 

“owner”— 

(a) in relation to a property referred to in paragraph (a) of the definition of “property”, means a 
person in whose name ownership of the property is registered; 

(b) in relation to a right referred to in paragraph (b) of the definition of “property”, means a 
person in whose name the right is registered; 

(bA) in relation to a time sharing interest contemplated in the Property Time- Sharing control 
Act, 1983 (Act no 75 of 1983), means the management association contemplated in 
regulations made in terms of Section 112 of the Property Time-Sharing control Act, 1983, 
and published in government notice R327of 24 February 1984; 

(bB) in relation to a share in a share block company, the share block company is defined in 
the Share Blocks Control Act, 1980 (Act no. 59 of 1 980); 

(bC) in relation to buildings, other immovable structures and infrastructure referred to in 
section 17(1 )(f), means the holder of the mining right or the mining permit; 

(c) in relation to a land tenure right referred to in paragraph (c) of the definition of “property”, 

means a person in whose name the right is registered or to whom it was granted in terms of 
legislation; or . ■/ 

(d) in relation to public service infrastructure referred to in paragraph (d) of the definition of 
“property”, means the organ of state which owns or controls that public service infrastructure 
as envisaged in the definition of "publicly controlled”, provided that a person mentioned 
below may for the purposes of this Act be regarded by a municipality as the owner of a 
property in the following cases: 

(i) A trustee, in the case of a property in a trust excluding state trust land; 

(ii) an executor or administrator, in the case of a property in a deceased estate; 

(iii) a trustee or liquidator, in the case of a property in an insolvent estate or in 
liquidation; 

(iv) a judicial manager, in the case of a property in the estate of a person under judicial 
management; 

(v) a curator, in the case of a property in the estate of a person under curatorship; 

(vi) a person in whose name a usufruct or other personal servitude is registered, in the 
case of a property that is subject to a usufruct or other personal servitude; 

(vli) a lessee, in the case of a property that is registered in the name of a municipality 
and is leased by it; 


7 


Richmond Municipality, Draft Rates Policy ( As amended for 201 5/2016) 



(vii/A) a lessee, in the case of property to which a land tenure right applies and 
which is leased by the holder of such right; or 
(viii) a buyer, in the case of a property that was sold by a municipality and of which 
possession was given to the buyer pending registration of ownership in the name 
of the buyer; 

“permitted use”, in relation to a property, means the limited purposes for which the property may be 
used in terms of— 

(a) any restrictions imposed by 

(i) a condition of title; 

(ii) a provision of a town planning or land use scheme; or 

(b) any legislation applicable to any specific property or properties; or 

(c) any alleviation of any such restrictions; 

“person” includes an organ of state; 

“place of public worship” means property used primarily for the purposes of congregation, 
excluding a structure that is primarily used for educational instruction in which secular or religious 
education is the primary instructive medium; Provided that the property is - 

a) registered in the name of the religious community; 

b) registered in the name of a trust established for the sole benefit of a religious 
community; or 

c) subject to a land tenure right; 

“prescribe” means prescribe by regulation in terms of section 83; 

“property” means- 

fa) immovable property registered in the name of a person, including, in the case of a sectional 
title scheme, a sectional title unit registered in the name of a person; 

(b) a right registered against immovable property in the name of a person, excluding a mortgage 
bond registered against the property; 

(c) a land tenure right registered in the name of a person or granted to a person in terms of 
legislation; or 

(d) public service infrastructure; 

“property register” means a register of properties referred to in section 23; 

“protected area” means an area that is or has to be listed in the register referred to in section 10 of 
the Protected Areas Act; 


8 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



“Protected Areas Act” means the National Environmental Management; Protected Areas Act, 
2003; 

“public benefit organization” properties owned by public benefit organsations and used for any 
specific activities listed in Part 1 of the Ninth Schedule of the Income tax Act; 

“publicly controlled” means owned by or otherwise under the control of an organ of state, 
including— 

(a) a public entity listed in the Public Finance Management Act, 1999 (Act No. 1 of 1999); 

(b) a municipality; or 

(c) a municipal entity as defined in the Municipal Systems Act; 

“pubiic service infrastructure” means publicly controlled infrastructure of the following kinds; 

(a) national, provincial or other public roads on which goods, services or labour move across a 

municipal boundary; ;£■ 

(b) water or sewer pipes, ducts or other conduits, dams, water supply reservoirs, water 
treatment plants or water pumps forming part of a water or sewer scheme serving the public; 

© power stations, power substations or power lines forming part of an electricity scheme serving 

the public; 

(d) gas or liquid fuel plants or refineries or pipelines for gas or liquid fuels, forming part of a 
scheme for transporting such fuels; 

(e) railway lines forming part of a national railway system; 

(f) communication towers, masts, exchanges or lines forming part of a communications system 
serving the public; 

(g) runways or aprons at national or provincial airports; 

(h) breakwaters, sea walls, channels, basins, quay walls, jetties, roads, railway or infrastructure 
used for the provision of water, lights, power, sewerage or similar services of ports, or 
navigational aids comprising lighthouses, radio navigational aids, buoys, beacons or any 
other device or system used to assist the safe and efficient navigation of vessels; 

(i) any other publicly controlled infrastructure as may be prescribed; or 

(j) rights of way, easements or servitudes in connection with infrastructure mentioned in 
paragraphs (a) to (i); 

“public service purposes” in relation to the use of a property, means property owned and used by 
an organ of state as- 

(a) hospitals or clinics; 

(b) schools, pre-schools 

“rate” means a municipal rate on property envisaged in section 229 (1) (a) of the Constitution; 

9 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 




“rateable property” means property on which a municipality may in terms of section 2 levy a rate, 
excluding property fully excluded from the levying of rates in terms of section 17; 

“ratio” means the relationship between the cent amount in the rand applicable to residential 
properties and different categories of non -residential properties: provided that the two relevant cent 
amounts in the rand are inclusive of any relieve 

“rebate”, in relation to a rate payable on a property, means a discount granted in terms of section 15 
on the amount of the rate payable on the property; 

“reduction”, in relation to a rate payable on a property, means the lowering in terms of section 15 of 
the amount for which the property was valued and the rating of the property at that lower amount; 

“register”— 

(a) means to record in a register in terms of— 

(i) the Deeds Registries Act, 1937 (Act No. 47 of 1937); or 

(ii) the Mining Titles Registration Act, 1 967 (Act No. 1 6 of 1 967); and 

(b) incfudes any other formal act in terms of any other legislation to record— 

(i) a right to use land for or in connection with mining purposes; or 

(ii) a land tenure right; • 

“residential property” means a property included in a valuation roil in terms of section 48 (2) (b) as 
residential in respect of which the permitted use is for residential purposes without derogating from 
section 9; 

“Rural Communal Land” means ^tate Trust Land which is either registered in the name of or 
vested in the ownership of the State or the fngonyama Trust Board and which is held in Trust and 
communally inhabited in terms of old order rights or new order rights, including a traditional system 
of land tenure. 

“Sectional Titles Act” means the Sectional Titles Act, 1986 (Act No. 95 of 1986); 

“sectional title scheme” means a scheme defined in section 1 of the Sectional Titles Act; 

“sectional title unit” means a unit defined in section 1 of the Sectional Titles Act; 

“specified public benefit activity” means an activity listed in item 1 (welfare and humanitarian), 
item 2 (health care) and item 4 (education and development) of Part 1 of the Ninth Schedule to the 
Income Tax Act; 

“state trust land” means land owned by the state— 

(a) in trust for persons communally inhabiting the land in terms of a traditional system of land 
tenure; 

(b) over which land tenure rights were registered or granted; or 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



(c) which is earmarked for disposal in terms of the Restitution of Land Rights Act, 1994 (Act No. 
22 of 1994); 

“this Act” includes regulations made in terms of section 83. 

(a) In this Act, a word or expression derived from a word or expression defined in subsection (1) 
has a corresponding meaning unless the context indicates that another meaning is intended; 
“vacant land” means land where no immovable improvements have been erected or in the case of 
properties in the process of construction and the final occupation certificate has not been issued 
where the property cannot be permanently occupied. 

Other Definitions 

“child headed household” means any child who is or is a blood relative of the owner of the 
property and which child is responsible for the care of siblings or parents 
“disabled” means a person who qualifies to receive relief in terms of the Social Services Act. 1992 
(Act No. 59 of 1 992) or has been certified as disabled by a medical practitioner; 

“Indigent owner” means an owner of property who is in permanent occupation of the property and 
qualifies for indigent relief in terms of the municipality’s indigent policy.; 

“The Municipality” means the Richmond Municipality; 

“Owners of property in an area affected by a disaster" means owners of property situated within 
an area affected by: 

(a) a disaster within the meaning of the Disaster Management Act 57 of 2002; 

(b) any other serious adverse social or economic conditions; 

“Pensioner” means 

(a) a person in receipt of a social pension; or 

(b) a person over the age of 60 years; or 

© a person who has retired prematurely from employment due to medical reasons 
“Retiree” means a person who has retired from employment in terms of that persons employment or 
who has reached the age of a pensioner; 

“Temporarily without income” means; 

(a) in the case of an employee - 

(i) the period for which the person is entitled to benefits in terms of the Unemployment 
Insurance Act; or 

(ii) 90 days whichever is the longer; or 

(c) in any other case, a period of 90 days determined from the date of application by that person 
for relief in terms of the Municipality’s policy; 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



“Non-profit organizations” means any organization which is registered in terms of the Non- profit 
Organizations Act. 


1. IMPLEMENTATION OF THIS POLICY AND EFFECTIVE DATE 

1.1. This policy takes effect from 1 July 2015. 

1.2. The Rates Policy must be reviewed annually, and if necessary amended by the 
Municipal Council, such amendments to be effected in conjunction with the 
Municipality’s annual budget in terms of Sections 22 and 23 of the Municipal Financial 
Management Act. 

1 .3 The Municipality has adopted by-laws to give effect to the implementation of its Rates 
policy and such by-laws must be read in conjunction with this policy. The rates by-laws 
may differentiate between: 

1.3.1 categories of properties; and 

1 .3.2 categories of owners of properties. 

1.4 The by-laws adopted in terms of Item 1.3 may be reviewed annually, and if necessary 
be amended by the Municipal Council, in conjunction and in accordance with the Rates 
Policy. 

2. FUNDAMENTAL PRINCIPLES OF THIS POLICY 

The principles of the policy are to ensure that:- 

2.1 the power of the municipality to impose rates on property will not be exercised in a way 
that materially and unreasonably prejudices national economic policies, economic 

12 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 


activities or the national mobility of goods services, capital or labour in terms of Section 
229 of the Constitution of the Republic of South Africa; 


2.2 all ratepayers, in a specific category, as determined by council from time to time, will be 
treated equitably; 

2.3 property rates will be assessed on the market value of all rateable properties in the 
jurisdiction of the municipality and for the purpose of generating revenue to balance the 
budget after taking into account: 

2.3.1 profits generated on trading and economic services; and 

2.3.2 the amounts required to finance exemptions, rebates and reductions of rates as 
approved by council from time to time; 

2.4 property rates will not be used to subsidize trading and economic services; 

2.5 the rates income generated by the municipality will tafce into account relief measures to 
address the social and economic needs of the community; 

2.6 this Policy was developed in consultation with the community and in compliance with a 
process of community participation in terms of Chapter 4 of the Municipal Systems Act. 

3. THE PURPOSE OF THIS POLICY 

The purpose of this policy is to: 

3. 1 comply with the provisions section 3 of the Municipal Property Rates Act, 2004 (Act No. 

6 of 2004); 

3.2 give effect to the principles outlined above; 

3.3 determine the methodology and to prescribe procedures for the implementation of the 
Act; 


3.4 


determine criteria to be applied for the levying of differential rates for different categories 
of properties; 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 


3.5 determine or provide criteria for the determination of categories of properties and 
categories of owners of properties for categories of properties; 

3.6 determine criteria to be applied for granting exemptions, rebates and reductions; 

3.7 determine how the municipality’s powers must be exercised in relation to multi purpose 
properties; 

3.8 determine measures to promote local economic and social development; and 

3.9 identify which categories of properties the municipality has elected not to rate as 
provided for in section 7 of the Act. 

4. EQUITABLE TREATMENT OF RATEPAYERS 

This municipality is committed to treating all ratepayers on an equitable basis. 
“Equitable" does not necessarily mean "equal 0 treatment of ratepayers. The 
circumstances of each category of owner or category of property will be considered in a 
fair manner, and within the limitations set out in the Act. The Municipality may adopt 
measures to ensure equitable and fair treatment of ratepayers. 

Any differentiation in levying rates must not constitute unfair discrimination. 

5. DISCRETIONARY DECISIONS ADOPTED BY THE MUNICIPALITY WITH RESPECT 



It is recorded that the Municipality has adopted the following resolutions: 

5.1 To levy rates on all rateable property in its area of jurisdiction. 

5.2 To determine the date of implementation as provided above. 

5.3 To determine the date of general valuation. 

5.4 T o levy different cents in the rand for different categories of rateable property. 

5.5 That the categories of properties for the purpose of differential rating referred to in 5.4 

above are those specified in SECTION 6.1.1. 

5.6 That the criteria for the assessment of market value in terms of section 8(1) of the 
MPRA shall be Actual use. 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 

I 

I 



57 


To determine that the valuations for multiple purpose usage will be assessed according 
to the dominant use of the property. 

5.8 To not rate properties of which the municipality is the owner, except where the property 
is leased to a third party or where the property has been sold but not transferred to a 
third party. 

5.9 To rate public service infrastructure (excluding municipal public service infrastructure) 
that is identifiable and to which a market related value can be determined with the 
proviso that the municipality may extend this annually to include other identifiable 
entities as the data set is available. 

6 . CATEGORIES OF RATEABLE PROPERTY AND DIFFERENTIAL RATING 

6. 1 Different rates may be levied for different categories of rateable property. 

6.1.1 The different categories are as follows: 


Residential 

R 

Commercial 

C 

Vacant Land 

VL 

Industrial 

C 

Agricultural 

AG 

Public Service Purposes 

PS 

Other -A;:;.-,, "-17 

0 

Public Service Infrastructure 

PSI 

Public Benefit Organisation 

PBO 

Unauthorised Use 

UU 

Mixed Use Property 

MU 


R as recorded 

C means property used for commercial, industrial or business purposes 

VL means property which is undeveloped and is not classified as any of the other listed 

categories. 

AG means farm property used for agricultural purposes i.e. production of crops, livestock or 
generally recognized agricultural activities with those buildings which are generally 
considered necessary for agricultural activities. 

PSP as recorded 

0 Means any property which is not associated with any of the categories of property listed 

above. 

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Richmond Municipality, Draft Rates Policy ( As amended for 201 5/2016) 



it 


PSI as recorded 

PBO means an activity listed in item 1 (welfare and humanitarian), item 2 (health care) and 
item 4 (education and development) of Part 1 of the Ninth Schedule to the Income Tax 
Act, 

UU means any property used for any purpose other than its permitted zoned use or that has 
not been granted special consent by the municipality in terms of its Town Planning 
Scheme; or that has any unauthorized structures on the property that are not part of the 
approved plan; and that cannot therefore be placed into any of the existing current 
permitted use categories approved by Council in the Rates Policy. 

MU As recorded 

6.2 A municipality may not levy: 

6.2.1 different rates on residential properties, except as provided for in sections 

1 1(1 )(b), 21 and 89 of the Act; _ 

6.2.2 a rate on non-residential properties that exceeds a prescribed ratio to the rate 
on residential properties determined in terms of section 1(1 )(a) of the Act. As at 
the date of adoption hereof no rate has been prescribed; 

6.2.3 rates which unreasonably discriminate between categories of non-residential 
properties; or 7 

6.2.4 additional rates except in Special Rating Areas as provided for in the Act. 

6.3 With due regard to the above, the following ratios are determined for differentia) rating purposes: 



CATEGORY OF PROPERTY 

RATIO IN RELATION TO 

RESIDNETIAL PROPERTY 

Residential 

1:1 

Commercial 

1:2 

Vacant Land 

1:2 

Industrial 

1:2 

Agricultural 

1:0.25 

Public Service Purposes 

1 :.025 

Other 

1:0.52 


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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 

















Public Service Infrastructure 

1:0.25 

Public Benefit Organisation 

1:0.25 

Unauthorised Use 

1:3 

Mixed Use Property 

1:1 


7. RELIEF MEASURES FOR RATEPAYERS 

7.1 .1 the need to grant relief to certain ratepayers (including the poor) with a view 

to providing for appropriate measures to alleviate the impact of the rates burden on 
them; '■ 

7.1.2 the effect of rates on non profit organizations whose income is applied solely to 
further the aims and objectives of the said organization, and which may be 
registered in terms of the Income Tax Act for tax reductions because of those 
activities; 

7.1.3 the specified public benefit activities recognized by the act relating to those 
activities listed in item 1 (welfare and humanitarian), item 2 (health care) and 
item 4 (education and development) of Part 1 of the Ninth schedule to the 
Income Tax Act, 1 962 (Act No.58 of 1962), and these public benefit 
organizations have been granted the relief identified below. 

7.4 The Municipality will only consider the grant of relief to those organizations who meet 
the requirements set out in clause 7.1.2 and 7.1.3 above and whose activities are of a 
public and/or charitable nature. 

7.5 The municipality will not grant relief in respect of the payment of rates other than by way 
of an exemption, a rebate or a reduction provided for in its rates policy and granted in 
terms of section 1 5 of the Act to: 

7.5.1 a category of properties, or 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



7.5.2 a category of owners of properties as provided hereunder. 

7.6 The municipality will not grant relief to the owners of properties on an individual basis. 


8. CATEGORIES OF OWNERS ENTITLED TO RELIEF 

This municipality has identified the categories of owners below for purposes of granting 
exemptions, rebates or reductions in terms of section 15 of the Act: 

8.1.1 indigent owners; 

8.1.2 pensioners; 

8.1.3 owners temporarily without an income; 

8.1.4 owners of property situated within an area affected by: 

8.1 .4.1 a disaster within the meaning of the Disaster Management Act 57 of 



8.1 .4.2 any other serious adverse social or economic conditions; 

8.1.5 public benefit organizations who conduct the following specified public benefit 

3CtiVit/0SI 

8. 1.5.1 welfare and humanitarian; or 

8. 1.5.2 health care; or 

8. 1.5.3 education; and 

8.1. 5.4 are registered in terms of the Income Tax Act for tax reductions 
because of the activities referred to in (8.1 .6); 

8. 1 .6 non-profit organizations registered in terms of the Non-profit Organizations Act 
whose activities are that of a public and charitable nature as may be specified 
by the Municipality from time to time;. 

8.1.7 minor children who are the head of a household as defined in child headed 
household; 

8.1.8 disabled persons; 

8.1.9 retirees; 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 


9. 


EXEMPTIONS 


An exemption is a reiease from liability for the payment of rates. 

A. EXEMPTIONS GRANTED TO CATEGORIES OF PROPERTIES 

9.1 The Municipality has exempted in total, from payment of rates the following categories of 
properties: 

9.1.1 Property registered in the name of and used primarily as a place of public 
worship by a religious community inducting an official residence also 
registered in the name of that community, which is occupied by an office 
bearer who officiates at services at. feat' place of public worship. 

9. 1 .2 Non-Profit organization/s conducting sporting and recreation activities. 

9.1.3 Properties situated on rural communal land and which are used exclusively as 
public places of worship by a religious community including an official 
residence also registered in the name of that community, which is occupied by 
an office bearer who officiates at services at that place of public worship. 

B. EXEMPTIONS GRANTED TO CATEGORIES OF OWNERS OF PROPERTIES 

9.2 The Municipality has resolved to exempt from the payment of rates the following 
categories of owners of properties: 

9.2.1 Properties owned by public benefit organizations which are used for any 
specific public benefit activities listed in Part 1 of the 9 th Schedule to the 
Income Tax Act; 

9.3 All applications for exemption shall be granted on an annual basis 

9.4 In order to qualify for exemption all applicants shall comply with the following 
requirements: 

9.4.1 written applications for exemption for each financial year must be lodged in the 
prescribed format with the Municipal Manager on or before 
the last working day of October ; 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 




9.4.2 in the case of public benefit organizations upon proof of: 

9.4.2. 1 registration in terms of the requirements of the Income T ax Act; 

9.4.2.2 an affidavit signed by the head of the public benefit organization or 
non profit organization before a Commissioner of Oaths that the 
property is used primarily for the specified public benefit activities 
and purposes of the said public benefit organization; 

9.4.3 in the case of a religious community upon proof of submission that: 

9.4.3. 1 the property is used primarily as a place of public worship; and 

9.4.3.2 in the case of the residence owned by the public benefit organization 
that property is occupied by an office bearer who officiates at 
services at that place of worship; 

9.4.3.3 a copy of the title deed issued by the Deeds Registry within the last 2 
months reflecting that the property is registered in the name of the 
applicant. Note that the requirement does not apply to exemptions in 
terms of 9.1.3 hereof. 

9.5. In the case of properties owned by non profit organizations upon proof of submission of: 

9.5.1 an affidavit signed by the head of the non profit organization before a 
Commissioner of Oaths that the property is used primarily for the aims and 
objective of the said non profit organization ; 

9.5.2 that no private pecuniary profit is made from the property; 

9.5.3 that no rent is received by the applicant for any use of the property by other 
persons. 

9.6 The Municipality reserves the right to specify such other requirements as the municipal 
council deems necessary from time to time. 

10. REDUCTIONS 

A reduction is the lowering of the value of the property upon which rates will be 
levied. 

10.1 It is recorded that the municipality is precluded in terms of section 17(1)(h) of the Act 
from levying rates on the first R1 5 000 of the market value of a property assigned in the 
valuation roil or supplementary valuation roll of a municipality to a category determined 
by the municipality: 


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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



10.1 .1 for residential properties; or 

1 0.1 .2 for properties used for multiple purposes provided one or more components of 
the property are used for residential purposes. 

10.2 The municipality has resolved to further reduce the value upon which rates will be levied 
by an amount not exceeding R 35 000,00 in respect of all developed properties or 
properties used for multiple purposes provided that one or more components of the 
property are used for residential purposes. 

11. REBATES 

A rebate is a discount granted on the amount of rates payable by the ratepayer. 

1 1 .1 The municipality has resolved to grant the following rebates, to tie following categories 
of owners of properties in addition to the rebate granted to the category of properties in 
11.1 above: 


Schedule of the categories of properties granted rebates: 


11.1 Indigent owners 

11.1.1. Criteria 

J in order to qualify as an indigent owner, the owner must: 

. 

(a) 

Be the sole owner of the property or owner jointly with 

his/her spouse; 


(b) 

Be living permanently on the property; 


© 

Not own any other property; 

• 


Have an aggregate gross annual income not greater than: 

• Single person : one state pension 

• Married person : two state pension 


(e) 

Provide proof of identity in the form of an identity document; 


(f) 

Substantiate items 8.1.1. (a) above by way of a sworn 

affidavit before a Commissioner of Oaths; 


(g) 

Provide proof of income on a sworn declaration and 

supported by documentation; 


(h) 

Provide any other supporting documentation as may be 
specified by the municipality from time to time; and 


(o 

Make application annually on the prescribed form and within 

the prescribed time period. 


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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 
























11.1.2 Rebate granted 



Gross Annual Household 

Income 

Percentage Rebate 

Single person - not 
exceeding one state 
pension 

50% 

Married person - not 
exceeding two state 
pensions 

50% 


1 1.2. Rebates for the Aged 


11.2.1 Criteria 




11.2.2 Rebate Granted 



In order to qualify , the owner must:* 


(a) Be at least 60 years of age at the date of application; 


(b) Be the sole owner of the property or owner jointly with 
his/her spouse; 


© Be living permanently on the property, 


(d) Will be applicable to only one property If the applicant owns 
more than one property. - Will be applicable to the lowest 
valued property; 


Provide proof of identity in the form of an identity document; 


Substantiate items 1 1.2.1 .(a) to (d) above by way of a sworn 
affidavit before a Commissioner of Oaths; 


(g) Provide any other supporting documentation as may be 
specified by the municipality from time to time; 


(h) Make application annually (by the last working day of 
November) on the prescribed from and within the prescribed 
time period. 


Category Percentage rebate 


60years - 64years 


65years - 69years 


70years and above 


1 1 .3 The Municipality will not grant relief in respect of the payment of a rate: 


Richmond Municipality, Draft Rates Policy ( As amended for 201 5/2016) 

































11.3.1 to a category of owners of properties, or to the owners of a category of 
properties, other than by way of an exemption, a rebate or a reduction as 
provided for in this policy and granted in terms of Section 15 of the Act; or 

1 1 .3.2 to the owners of properties on an individual basis. 

1 1 .4 Applicants qualifying and meeting the criteria for all rebates as listed above, will 
only receive the rebate most beneficial to them. 


12. CRITERIA FOR DIFFERENTIAL RATING 

12.1 Differential rating is the levying of different rates for different categories of properties. 
The Municipality has resolved to levy differential rates for different categories of rateable 
property properties as reflected in Section 6.1.1 above and the rates applicable to the 
different categories of properties are as resolved by the council and gazetted: 

13. MULTIPLE PURPOSE PROPERTIES 

13.1 The municipality has resolved to valuations according to the dominant use of the 
property. 

13.2 Section 9 of the Act provides for the value of properties to be based on one of the 
following criteria namely: 

1 3.2. 1 the permitted use (section 9(a)); 

1 3.2.2 the dominant use (section 9(b)); 

13.2.3 pro rata based on the various multi-purpose usage (Section 9(c)). 

13.3 It is recorded that this municipality has determined that for the purpose of assessing the 
value of multi purpose properties the following criteria will apply: 

13.3.1 option 13.2.1 will apply only in respect of vacant land which has not been put to 
any use. In this instance the zoning or permitted use prevails. If indeterminate, 
then the valuer will establish the Highest and Best Use of the property; 

23 

Richmond Municipality, Draft Rates Policy ( As amended for 201 5/2016) 



13.3.2 dominant usage as in 13.2.2 will be determined by the valuer as a basis for 
determining the use category. Dominant in this instance shall be measured as 
the higher of either; 

13.3.2.1 the measured extent under use (land and/or buildings), or 

1 3.3 .2.2 the gross rental value of the area under use (land and/or buildings). 

1 3.4 Properties will be assessed on dominant use where at least 66% of that properly is used 
for a particular purpose. The entire property will be assigned to that category of usage 
and the value will be assessed based on that usage only . 

13.5 Section 9(c) of the Act allows for that multiple purpose properties to be determined by 
apportioning the market value of the property to the different purposes for which the 
property is used and then applying the respective rate randage to the different usages 
on a pro rata basis. 

1 3.6 This municipality has resolved that: 

13.6.1 generally properties will be assigned to a category based on its dominant 
usage. 

14. COMMUNITY PARTICIPATION 

It Is recorded that every municipality may only adopt its rates policy or any 
amendment thereof or any review of its policy after following a process of 
community participation in accordance with chapter 4 of the Municipal systems 
Act , 2000. 

14.1 This Municipality will comply with its community participation and consultation 
obligations in terms of Chapter 4 of the Municipal Systems Act and Sections 4 and 5 of 
the Act before the Rates Policy or any review thereof is finally adopted. In terms of 
chapter 4 of the Municipal systems Act, 2000 (Act No. 32 of 2000) the Municipality is 
committed to: 

1 4.1 .1 building capacity of the local community to enable it to participate in the affairs 
of the Municipality; and 

14.1.2 to foster community participation for which the municipality will allocate funds 

in its budget for such processes. 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 




14.2 The Participation by the local community in municipal affairs will take place through the 
political structures; the mechanisms, processes and procedures for participation in 
municipal governance and any other appropriate mechanisms processes and 
procedures established by the municipality and generally to apply the provisions for 
participation as required by this act . 

1 4.3 The municipality will provide for: 

14.3.1 the receipt processing and consideration of petitions, objections and 
comments lodged by the members of the local community; 

14.3.2 public meetings and hearings by the municipal council and other political 
structures (e.g. ward committees) and political office bearers of the 
municipality; 

14.3.3 consultative cessions with locally recognized community organizations and 
where appropriate traditional authorities; 

14.4 Communication with the public relating to the Rates Policy will be in terms of section 
4(2) of the act by notice in: 

14.4.1 local newspapers circulating In its area and determined by this council as a 
newspaper of record; and/or 

14.4.2 official notice boards and other public places accessible to the public including 
the library and the municipal offices; 

1 4.4.3 on the municipal website (if applicable); 

and inviting the local community to submit comments and representations within the 
time specified In the notice. 

15. ANNUAL RATES INCREASE / DECREASE 

The Rates tariff will be reviewed (increased / decreased) annually during the budget 
process. On written application, and on good cause shown, the municipality may apply 
for exemption from the upper limit set by the National Treasury, on the percentage by 
which rates on properties or a rate on a specific category of properties may be 
increased. 

16. RECOVERY OF RATES 

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Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



16.1 


The following people shall be liable for the payment of rates levied by the Municipality: 

1 6.1 .1 owner of a property; 

1 6.1 .2 joint owners of a property, who shall be liable jointly and severally; 

1 6.1 .3 the owner of a sectional title unit; and 

1 6. 1 .4 in relation to agricultural properties: 

16.1.4.1 any one joint owner of the agricultural property for all the rates 
levied on the agricultural property; or 

16.1.4.2 each individual joint owner for that portion of rates levied on the 
joint owner's undivided share in the agricultural property, which 
ever option the Municipality may choose in relation to agricultural 
properties. 

1 6.2 In terms of Section 26 of the Act the Municipality will recover rates: 

16.2.1 on a monthly basis levied over a ten (10) month period commencing with the 
first rate account being raised in August and the last account raised in May of 
each year. Payment for each monthly rates account must be made on or 
before the last working day following the month in which the account was 
raised. 

16.2.2 payment on an annual basis may only be made by agreement with the 
municipality and payment must be effected on or before a date as determined 
annually by council. 

16.3 The Municipality wifi furnish each person liable for the payment of rates with a written 
account in terms of Section 27 of the Act. 

16.4 A Municipality may recover rates in arrears from tenants and occupiers in accordance 
with the provisions of Section 28 of the Act. 

16.5 A Municipality may recover rates due, either whole or in part, from the agent of the 
owner if this is more convenient for the Municipality and in terms of Section 29 of the 
Act. 

16.6 The municipalities Credit Control Policy shall apply to the collection of arrear rates. 

26 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



17. 


CONSOLIDATION AND APPORTIONMENT OF PAYMENTS 


Separate accounts of persons liable for payment to the municipality for either rates or 
services will be consolidated in one account and any appropriation of payments will be 
done in accordance with the municipality’s credit control policy. 

18. DEFERMENT OF RATES 

18.1 The Municipality will on application defer the payment of rates in terms of section 26(3) 
of the Act under the following special circumstances. To qualify for deferment of rates, 
the Applicant: - 

18.1.1 must be a pensioner, indigent, disabled, over 60 years of age, or who is not 
above 60 years of age, but has or has been retired from employment by 
reason of any illness or disability certified by a medical practitioner, dentist, 
psychologist, intern or intern psychologist contemplated in the Medical, Dental 
and Supplementary Health Service Professions Act, 1974 (Act 56 of 1974), 
and whose income from all sources whatsoever must not exceed the amount 
as disclosed in the Municipality’s Indigent Policy, (including the income of the 
spouse, if applicable) and the Municipal valuation of the property must not 
exceed R 50 000; 

18.1.2 must reside permanently on the property concerned; 

1 8.1 .3 must be the registered owner of the property. 

18.2 Application must be made annually in writing on the prescribed form: 

1 8.2.1 not later than the final date for payment of such rates provided that the council 
may in special circumstances grant a deferment of the payment of rates after 
the final date for such payment notwithstanding that such application was 
made after such final date for payment; 


27 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



18.3 Deferment will be considered provided that the total amount of ail rates so deferred 
together with accumulated interest accumulated thereon shall not at any time exceed 
50% of the value of the property concerned as shown in the valuation roll. 

18.4 The final date for payment of the rates on the property concerned shall not be affected 
by reason of any application for deferment in terms of subsection 17.2 above, provided 
that if the council ailows such application, the portion of the rates in respect of which 
payment is deferred shal) be refunded to the applicant. 

18.5 The accumulated amount of the deferred rates shall bear interest at a rate determined 
from time to time by the council and the council may also approve the waiver of such 
interest. 

18.6 Only the current year’s rates can be considered for deferment and then only if the 

Applicant's rates are not in arrears. ^ 

1 8.7 Any deferment granted in terms of here of shall terminate immediately: - 

18.7. 1 upon the death of the registered owner; provided that the council may continue 
such deferment, in any case where it is established to its satisfaction that the 
property concerned has been inherited by the surviving spouse and that such 
spouse is continuing in occupation of the property; 

18.7.2 upon the expropriation, sale or other disposal of the property concerned; 

18.7.3 upon the owner ceasing to reside permanently on the property concerned; 

18.7.4 if the owner fails by the final date for the payment thereof, to pay rates or any 
part thereof owing in respect of the property concerned, after allowing for the 
amount of the deferment; and 

1 8.7.5 on expiry of the period of deferment. 

19. IMPERMISSIBLE RATES IN TERMS OF SECTION 17 OF THE ACT 

19.1 It is recorded that the Municipality may not, in terms of section 1 7 of the Act levy a rate 
on- 


19.1.1 the first 30% of the market value of public service infrastructure; 

28 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



19.1.2 those parts of a special nature reserve, national park or nature reserve within 
the meaning of the Protected Areas Act, or of a national botanical garden 
within the meaning of the National Environmental Management: Biodiversity 
Act, 2004, which are not developed or used for commercial, business, 
agricultural or residential purposes; 

19.1.3 a property belonging to a land reform beneficiary or his or her heirs, provided 
that this exclusion lapses ten years from the date on which such beneficiary's 
title was registered in the office of the Registrar of Deeds; 

19.1.4 the first R15 000 of the market value of a property assigned in the valuation 
roll or supplementary valuation roll of a municipality to a category determined 
by the municipality- 

1 9. 1 .4. 1 residential purposes; 

1 9. 1 .4.2 for properties used for multiple purposes, provided one or more 
components of the property are used for residential purposes; or 

19.1.5 on a property registered in the name of and used primarily as a for place of 
public worship by a religious community, including an official residence 
registered in the name of that community which is occupied by an office-bearer 
of that community who officiates at services at that place of worship. 

19.2 The exclusion from rates of a property referred to in subsection 18.1.5 lapses if the 
declaration of that property as a special nature reserve, national park, nature reserve or 
national botanical garden, or as part of such a reserve, park or botanical garden, is 
withdrawn in terms of the applicable Act mentioned in that subsection. 

19.3 If the property in respect of which the declaration is withdrawn is privately owned, the 
owner, upon withdrawal of the declaration, becomes liable to the municipality concerned 
for any rates that, had it not been for subsection 18.1.5, would have been payable on 
the property during the period commencing from the effective date of the current 
valuation roll of the municipality. If the property was declared as a protected area after 
the effective date of the current valuation rod, rates are payable only from the date of 
declaration of the property. 

29 

Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



19.4 The amount for which an owner becomes liable in terms of paragraph (b) must be 
regarded as rates in arrears, and the applicable interest on that amount is payable to the 
municipality. 

19.5 Paragraphs 18.2 and 18.3 apply only if the declaration of the property was withdrawn 
because of- 

19.5.1 a decision by the private owner for any reason to withdraw from the agreement 
concluded between the private owner and the state in terms of the Protected Areas Act, 
and in terms of which the private owner initially consented to the property being declared 
as a protected area; or 

1 9.5.2 a decision by the state to withdraw from such agreement because of a breach 
of the agreement by the private owner. 

20. CONSTITUTIONALLY IMPERMISSIBLE RATES 

20.1 The Act provides that in terms of Section 229(2)(a) of the Constitution a Municipality 
may not exercise its power to levy rates on property in a way that would materially an 
unreasonably prejudice - 

20. 1 . 1 national economic policies; 

20. 1 .2 economic activities across its boundaries; or 

20.1.3 the national mobility of goods, services, capita! or labour. 

21) LAND TENURE RIGHTS 

Tenure rights and tenure holders are primarily associated with rural land. The character of a tenure 
right is one of communal living in terms of limited rights which exclude ownership in freehold, and 
provide for the right of use and enjoyment mainly for residential or agricultural purposes, but also 
embraces commercial use. The occupancy is associated with family, community and/or a traditional 
authority and not the cadastral or land parcel boundaries. Occupation and use will often straddle 
cadastral boundaries. Given the definition of 'property 5 and ‘owner 5 Land Tenure Rights must be 
identified, valued and rated. 

The identification, valuation and rating of the residential old order rights and residential Permission to 
Occupy and other residential Land Tenure rights have been excluded from separate rating for this 
valuation cycle, and will be valued as part of the parent property under the category rural communal 

30 

Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 



land. The basis of this approach is informed by the character of the State Trust Land which precludes 
the identification of all usage at this stage. The cost and time implications outweigh the benefit of any 
revenue generation received, and which revenue will not be capable of being recouped especially in 
light of the legislative requirement to phase in the rating over a three year period. For this valuation 
cycle only the commercial and institutional units be identified, valued and rated separately. 




' * 




Mk- 


31 


Richmond Municipality, Draft Rates Policy ( As amended for 2015/2016) 


RICHMOND MUNICIPALITY 



UNAUTHORISED, IRREGULAR. 
FRUITLESS AND WASTEFUL 


EXPENDITURE POLICY 




RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy ; _ 


INDEX 

Page No. 

1 Definitions 2 

2 Objective 3 

3 Principles 4 

4 Scope of application 7 

5 Process to be followed when dealing with Unauthorised, 

Irregular, Fruitless and Wasteful Expenditure 7 

5.1 Unauthorised Expenditure 7 

5.2 Adjustments budgets to authorise unauthorised 

Expenditure 8 

5.3 Recovery of unauthorised expenditure 10 

5.4 Irregular Expenditure 10 

5.5 Rectification of minor breaches of the procurement 

Process 1 1 

5.6 Disciplinary charges for irregular expenditure 13 

5.7 Criminal charges from an act of irregular expenditure 14 

5.8 Recovery of irregular expenditure 

5.9 Fruitless and wasteful expenditure 15 

5.10 Register of unauthorised, irregular, fruitless and 

Wasteful expenditure 15 

6 Reporting Requirements 16 

7 Accounting Treatment Disclosure 18 

8 Management reporting 18 

9 Declaration of Intent 19 

10 Governing Prescripts 19 

11 Policy implementation and review 19 


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RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy 


1. DEFINITIONS 

In this Policy, unless the context indicates otherwise, a word or expression to 

which a meaning has been assigned has the same meaning, and - 

“Act”, means Municipal Financial Management Act, 2003 (Act No. 56 of 2003) 

“Allocation”, in relation to a municipality, means— 

(a) A municipality’s share of the local government’s equitable share referred to in 
section 214(1) (a) of the Constitution ; 

(b) An allocation of money to a municipality in terms of section 214(1 He) of the 
Constitution ; 

(c) An allocation of money to a municipality in terms of a provincial budget; or 

(d) Any other allocation of money to a municipality by an organ of state, including 
by another municipality, otherwise than in compliance with a commercial or 
other business transaction; 

“ex post” means after the fact or actual; 

“Fruitless and Wasteful Expenditure” means expenditure that was made in vain 

and would have been avoided had reasonable care been exercised; 

irregular Expenditure”, in relation to a municipality or municipal entity, means — 

(a) expenditure incurred by a municipality or municipal entity in contravention of, 
or that is not in accordance with, a requirement of the Act, and which has not 
been condoned in terms of section 170 ; 

(b) expenditure incurred by a municipality or municipal entity in contravention of, 
or that is not in accordance with, a requirement of the Municipal Systems Act, 
and which has not been condoned in terms of the Act; 

(c) expenditure incurred by a municipality in contravention of, or that is not in 
accordance with, a requirement of the Public Office-Bearers Act, 1998 (Act 
No. 20 of 1998 ) as amended from time to time; or 

(d) expenditure incurred by a municipality or municipal entity in contravention of, 
or that is not in accordance with, a requirement of the supply chain 
management policy of the municipality or entity or any of the municipality’s by- 
laws giving effect to such policy, and which has not been condoned in terms 
of such policy or by-law, but excludes expenditure by a municipality which falls 
within the definition of “ unauthorised expenditure ” 


2 




RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

“MBRR” means the Municipal Budget and Reporting Regulations, which 
prescribes the structure and formats of municipal budgets. 

“MFMA” means the Municipal Finance Management Act. 2003 (Act No. 56 of 
2003) 

“Unauthorised Expenditure”, in relation to a municipality, means any 
expenditure incurred by a municipality otherwise than in accordance with section 
15 or 11 (3) , and includes: 

(a) overspending of the total amount appropriated in the municipality’s approved 
budget; 

(b) overspending of the total amount appropriated for a vote in the approved 
budget; 

(c) expenditure from a vote unrelated to the department or functional area 
covered by the vote; 

(d) expenditure of money appropriated for a specific purpose, otherwise than for 
that specific purpose; 

(e) spending of an allocation referred to in paragraph (b) . (c) or (d) of the definition 
of " allocation ” otherwise than in accordance with any conditions of the 
allocation; or 

(f) a grant by the municipality otherwise than in accordance with this Act; 

“Vote” means: 

(a) one of the main segments into which a budget of a municipality is divided for 
the appropriation of money for the different departments or functional areas of 
the municipality; and 

(b) which specifies the total amount that is appropriated for the purposes of the 
department or functional area concerned. 

2. OBJECTIVE 

The objective of this policy document is to clearly define the responsibilities of the 
Municipality in terms of the Municipal Finance Management Act with respect to 
Unauthorised, Irregular, Fruitless and Wasteful expenditure. This policy document 
addresses the following areas: 

2.1 The definition of Unauthorised, Irregular, Fruitless and Wasteful expenditure in 
terms of the Act. 


3 



RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy 


2.2 The roles and responsibilities of the Accounting Officer, management and other 
officials of the municipality with respect to the prevention, identification, reporting, 
recovery, write off or approval and disclosure in the annual financial statements of 
Unauthorised, Irregular, Fruitless and Wasteful expenditure. 

3. PRINCIPLES 

3.1 This Policy supports the following principles: 

3.1.1 To secure the sound and sustainable management of the financial affairs of 
municipalities and other institutions in the local sphere of government; 

3.1 .2 To establish treasury norms and standards for the local sphere of government; 

3.1.3 Ensuring transparency, accountability and appropriate lines of responsibility in the 
fiscal and financial affairs of municipalities and municipal entities; 

3.1.4 The management of the municipality’s revenues, expenditures, assets and 
liabilities and the handling of their financial dealings. 

3.2 Section 32(2) and Section 32(3)-(7) of the MFMA identifies the following 
responsibilities with respect to a municipality and Accounting Officer: 

3.2.1 A municipality must recover unauthorised, irregular or fruitless and wasteful 
expenditure from the person liable for that expenditure unless the expenditure: 

a) in the case of unauthorised expenditure, is: 

• authorised in an adjustments budget; or 

• certified by the municipal council, after investigation by a council committee, 
as irrecoverable and written off by the council; and 

b) in the case of irregular or fruitless and wasteful expenditure, is, after 
investigation by a council committee, certified by the council as irrecoverable 
and written off by the council. 

3.3 If the accounting officer becomes aware that the council, the mayor or the 
executive committee of the municipality, as the case may be, has taken a decision 
which, if implemented, is likely to result in unauthorised, irregular or fruitless and 
wasteful expenditure, the accounting officer is not liable for any ensuing 
unauthorised, irregular or fruitless and wasteful expenditure provided that the 
accounting officer has informed the council, the mayor or the executive committee, 


4 



RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

in writing, that the expenditure is likely to be unauthorised, irregular or fruitless and 
wasteful expenditure. 

3.4 The accounting officer must promptly inform the mayor, the MEC for local 
government in the province and the Auditor-General, in writing, of: 

3.4.1 any unauthorised, irregular or fruitless and wasteful expenditure incurred by the 
municipality; 

3.4.2 whether any person is responsible or under investigation for such unauthorised, 
irregular or fruitless and wasteful expenditure; and 

3.4.3 the steps that have been taken: 

a) to recover or rectify such expenditure; and 

b) to prevent a recurrence of such expenditure. 

3.5 The writing off in terms of Section 32(2) of the MFMA of any unauthorised, 
irregular or fruitless and wasteful expenditure as irrecoverable is no excuse in 
criminal or disciplinary proceedings against a person charged with the commission 
of an offence or a breach of this Act relating to such unauthorised, irregular or 
fruitless and wasteful expenditure. 

3.6 The accounting officer must report to the South African Police Service all cases of 
alleged: 

3.6.1 irregular expenditure that constitute a criminal offence; and 

3.6.2 theft and fraud that occurred in the municipality. 

3.7 The council of a municipality must take all reasonable steps to ensure that all 
cases referred to in Section 32(6) of the MFMA are reported to the South African 
Police Service if: 

3.7.1 the charge is against the accounting officer; or 

3.7.2 the accounting officer fails to comply with subsection Section 32(6) of the MFMA. 

3.8 In terms of Section 62(1 )(a)-(e) of the MFMA, the Accounting Officer is responsible 
for managing the financial administration of the municipality, and must for this 
purpose take all reasonable steps to ensure: 


5 



RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

3.8.1 That the resources of the municipality are used effectively, efficiently and 
economically; 

3.8.2 That full and proper records of the financial affairs of the municipality are kept in 
accordance with any prescribed norms and standards; 

3.8.3 That the municipality has and maintains effective, efficient and transparent 
systems: 

a) of financial and risk management and internal control; and 

b) of internal audit operating in accordance with any prescribed norms and 
standards; 

3.8.4 That unauthorised, irregular or fruitless and wasteful expenditure and other losses 
are prevented; 

3.8.5 That disciplinary or, when appropriate, criminal proceedings are instituted against 
any official of the municipality who has allegedly committed an act of financial 
misconduct or an offence in terms of Chapter 1 5 of the MFMA. 

3.9 In terms of Section 78(a)-(c) of the MFMA, the senior management of a 
municipality and each official of a municipality exercising financial management 
responsibilities must take all reasonable steps within their respective areas of 
responsibility to ensure: 

3.9.1 That the system of financial management and internal control established for the 
municipality is carried out diligently; 

3.9.2 That the financial and other resources of the municipality are utilised effectively, 
efficiently, economically and transparently; 

3.9.3 That any unauthorised, irregular or fruitless and wasteful expenditure and any 
other losses are prevented. 


3.10 In terms of the reporting responsibilities of the Accounting Officer, Section 
125(2)(d) and (e) of the MFMA, the notes to the annual financial statements of a 
municipality or municipal entity must disclose the following information: 

3.10.1 Particulars of: 

a) Any material losses and any material irregular or fruitless and wasteful 
expenditures, including in the case of a municipality, any material unauthorised 


6 




RICHMOND MUNICIPALITY Unauthorised, irregular, Fruitless and Wasteful Expenditure 

Policy 

expenditure, that occurred during the financial year, and whether these are 
recoverable; 

b) Any criminal or disciplinary steps taken as a result of such losses or such 
unauthorised, irregular or fruitless and wasteful expenditures; and 

c) Any material losses recovered or written off; 

d) Particulars of non-compliance with this Act; and 

e) Any other matters that may be prescribed. 

4. SCOPE OF APPLICATION 

4.1 From a responsibility perspective, this policy is relevant to all employees of the 
municipality, whether full-time or part-time. It is, however, specifically applicable to 
the Council, Accounting Officer, Chief Financial Officer, Senior Manager’s, 
Officials and all employees whether full-time or part-time. In particular, the duly 
appointed Directorate and responsibility managers have significant roles in: 

4.1.1 Identifying the identity of the person who is liable for unauthorised, irregular or 
fruitless and wasteful expenditure. 

4.1.2 Deciding on how to recover unauthorised, irregular or fruitless and wasteful 
expenditure from the person liable for that expenditure. 

4.1.3 Determining the amount of unauthorised, irregular or fruitless and wasteful 
expenditure to be recovered, written off or provided for. 

5. PROCESSES TO BE FOLLOWED WHEN DEALING WITH UNAUTHORISED, 
IRREGULAR, FRUITLESS AND WASTEFULL EXPENDITURE 

5.1 Unauthorised expenditure 

5.1.1 In considering authorisation of unauthorised expenditure, council must consider 
the following factors: 

a) the matter must be referred to Council for a determination and decision; 

b) the nature, extent, grounds and value of the unauthorised expenditure must be 
submitted to Council; 

c) the incident must be referred to a Council Committee for investigation and 
recommendations; 


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RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

d) it must be established whether the Accounting Officer or official or public office 
bearer that made, permitted or authorised the unauthorised expenditure acted 
deliberately or in a negligent or grossly negligent manner. 

e) the Accounting Officer must inform the Council, the mayor or the Executive 
Committee that a particular decision would result in an unauthorised 
expenditure as per section 32(3) of the MFMA; 

f) there must be good ground indicating reasons for authorising the unauthorised 
expenditure. For example: 

• the Mayor, Accounting Officer or official was acting in the best interests of 
the Municipality and the local community by making and permitting 
unauthorised expenditure; 

• the Mayor, Accounting Officer or official was acting in good faith when 
making and permitting unauthorised expenditure; and 

• the Municipality has not suffered any material loss as a result of the action. 

5.1.2 Under these instances, the Council may authorise the unauthorised expenditure. If 
unauthorised expenditure is approved by Council, there would be no further 
consequences for the political office-bearers or officials involved in the decision to 
incur the expenditure. 

5.2 Adjustments budgets to authorise unauthorised expenditure 

5.2.1 The municipality may incur expenditure only in terms of an approved budget. The 
Council may only authorise unauthorised expenditure in an adjustments budget. 

5.2.2 The manner in which the Council may authorise the unauthorised expenditure in 
the adjustment budget as follows: 

a) Adjustments budget for unforeseen and unavoidable expenditure : An 
adjustments budget is to allow Council to provide ex post authorisation for 
unforeseen and unavoidable expenditure that was authorised by the Mayor in 
terms of section 29 of the MFMA must be tabled In council at the “first available 
opportunity” or within the 60 days after the expenditure was incurred (see 
section 29(3) of the MFMA). Should either of these timeframes be missed, the 
unforeseen and unavoidable expenditure must be treated in the same manner 


! 


8 



RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

as any other type of unauthorised expenditure, and may still be authorised in 
one of the other adjustments budgets process described below. 

b) Main adjustments budget: In terms of regulation 23(6 )(a) of the MBRR, 
council may authorise unauthorised expenditure in the adjustments budget 
which may be tabled in council "at any time after the mid-year budget and 
performance assessment has been tabled in the council, but not later than 28 
February of the current year". Therefore unauthorised expenditure that 
occurred in the first half of the current financial year may be authorised by 
council in this adjustments budget. Where unauthorised expenditure from this 
period is not identified or investigated in time to include in this adjustments 
budget, it must be held over to the following adjustments budget process noted 
below. 

c) Special adjustments budget to authorise unauthorised expenditure: In 

terms of regulation 23(6)(b) of the MBRR, council may authorise unauthorised 
expenditure in a special adjustments budget tabled in council when the mayor 
tables the annual report in terms of section 127(2) of the MFMA. This special 
adjustments budget "may only deal with unauthorised expenditure from the 
previous financial year which the council is being requested to authorise in 
terms of section 32(2)(a)(i) of the Act.” This special adjustments budget 
therefore deals with: 

• unauthorised expenditure that occurred in the first half of the previous 
financial year that was not included in the main adjustments budget or that 
was included but referred back for further investigation or further 
information; 

• unauthorised expenditure that occurred in the second half of the previous 
financial year, and 

• any unauthorised expenditure identified by the Auditor-General during the 
annual audit process. 

The timing of this special adjustments budget requires: 

• the municipality to report all the unauthorised expenditure in its annual 
financial statements (thus ensuring transparency regarding its performance 
with implementing the budget); 

• the Auditor-Genera! to audit the municipality’s disclosure of its 
unauthorised expenditure and to add any further unauthorised expenditure 
Identified in the audit process; and 


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RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

• sufficient time (but also places a time limit) for instances of unauthorised 
expenditure to be properly investigated before being presented to council 
for a decision on whether or not to authorise it; the investigation is normally 
done by a council committee. 

5.3 Recovery of unauthorised expenditure 

5.3.1 All instances of unauthorised expenditure must be recovered from the liable official 
or political office-bearer, unless the unauthorised expenditure has been authorised 
by council in an adjustments budget. 

5.3.2 Once it has been established who is liable for the unauthorised expenditure, the 
accounting officer must, in writing, request that the liable official or political office- 
bearer pay the amount within 30 days or in reasonable installments. If the person 
fails to comply with the request, the matter must be handed to the municipality’s 
legal division for the recovery of the debt through the normal debt collection 
process. 

5.4 Irregular expenditure 

5.4.1 In terms of section 32(2)(b) irregular expenditure may only be written-off by 
Council if, after an investigation by a council committee, the irregular expenditure 
is certified as irrecoverable. In other words writing-off is not a primary response, it 
is subordinate to the recovery processes, and may only take place if the irregular 
expenditure is certified by Council as irrecoverable, based on the findings of an 
investigation. 

5.4.2 With reference to (a) as defined, - in terms of section 170 of the MFMA, only the 
National Treasury may condone non-compliance with a regulation issued in terms 
of the MFMA or a condition imposed by the Act itself. The municipal Council 
therefore has no power in terms of the MFMA to condone any act of non- 
compliance in terms of the MFMA or any of its regulations. The treatment of 
expenditure associated with the non-compliance is therefore the responsibility of 
the Council. 

5.4.3 With reference to (b) as defined - there is no provision in the MSA that allows for a 
contravention of the Act to be condoned. Nevertheless, should a municipality wish 
to request that an act of non-compliance with any provision of the MSA be 


10 




RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy 


condoned, then the accounting officer should address the request to the Minister 
of Co-operative Governance and Traditional Affairs, who is responsible for 
administering the MSA. The resultant expenditure should however be dealt with in 
terms of section 32(2) of the MFMA. 

5.4.4 With reference to (c) as defined - there is no provision to allow irregular 
expenditure resulting from a contravention of the Public Office-Bearers Act to be 
condoned. This is consistent with section 167(2) of the MFMA, which provides that 
such irregular expenditure cannot be written-off and must be recovered from the 
political office-bearer concerned. 

5.4.5 With reference to (d) as defined - a council may condone a contravention of the 
council approved SCM policy or a by-law giving effect to such policy, provided that 
the contravention, is not also a contravention of the MFMA or the SCM 
regulations, in which case (a) applies and then only National Treasury can 
condone a contravention of the SCM regulations. Any such requests must be 
accompanied by a full motivation and submitted to mfma@treasury.gov.za for 
consideration. 

5.4.6 Once the Accounting Officer or Council becomes aware of any allegation of 
irregular expenditure, such allegation may be referred to the municipality’s own 
Internal Audit Unit or any other appropriate investigative body for investigation, to 
determine whether or not grounds exist for a charge of financial misconduct to be 
laid against the official liable for the expenditure. 

5.5 Ratification of minor breaches of the procurement process 

5.5.1 In terms of regulation 36(1 )(b) of the Municipal Supply Chain Management 
Regulations, the supply chain policy of a municipality may allow the accounting 
officer to ratify any minor breaches of the procurement processes by an official or 
committee acting in terms of delegated powers or duties which are purely technical 
in nature. Where a municipality’s supply chain management policy does not 
include this provision the accounting officer cannot exercise this ratification power. 

It is important to note that the accounting officer can only rely on this provision if 
the official or committee who committed the breach had the delegated authority to 
perform the function in terms of the municipality’s adopted System of Delegations, 
which must be consistent with the MFMA and its regulations. The process to deal 


11 




RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

with minor breaches of the SCM policy is contained in a flowchart, refer to 
(Annexure B). 

5.5.2 The accounting officer may only ratify a breach of process, and not the irregular 
expenditure itself, which means that the ‘irregular’ expenditure will still remain 
irregular. The responsibility to ratify the actual irregular expenditure vests with the 
Council and processes to deal with such matters are outlined In section 32(2) of 
the MFMA read together with Regulation 74 of the MBRR. 

5.5.3 Regulation 36(2) of the SCM regulations states that the accounting officer must 
record the reasons for any deviations and report to the next Council meeting, and 
disclose this expenditure in a note to the annual financial statements. The 
emphasis is on recording the “reasons for any deviations and the associated 
expenditure”. 

5.5.4 Ail breaches of a municipality’s SCM policy will result in irregular expenditure, in 
the event that expenditure is incurred; the monetary value of this irregular 
expenditure is not relevant. The issue of whether the breach is minor or material 
relates to the nature of the breach and the intent of those responsible for the 
breach; not to the monetary value thereof. 

5.5.5 In terms of regulation 36 of the SCM Regulations, the accounting officer is 
responsible for deciding whether a particular breach of procurement processes is 
minor or material. In exercising this discretion the accounting officer must be 
guided by: 

a) the specific nature of the breach : is it simply technical in nature, not 
impacting in any significant way on the essential fairness, equity, 
transparency, competitiveness or cost effectiveness of the procurement 
process? 

b) the circumstance surrounding the breach: are the circumstances 
justifiable or, at least, excusable? 

c) the intent of those responsible for the breach: were they acting in good 
faith? 

d) the financial implication as a result of the breach: what was the extent of 
the loss or benefit? 


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RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy l 

5.5.6 The accounting officer would have to consider the merits of each breach of the 

C 

procurement processes and take a decision as to whether it should be classified 
as a minor or material breach. 

This category only covers breaches of procurement processes in the municipality’s 
SCM policy and not breaches of other legislation or regulations. 

It is important to emphasise that, in terms of the regulation 36 of the SCM 

I 

Regulations, only the accounting officer can consider the ratification of minor 

I 

breaches of procurement processes that are purely of a technical nature. 

5.5.7 The accounting officer must implement appropriate processes in the municipality’s 
SCM policy to investigate the nature of the breach so that an informed decision on 
corrective action can be made. In the event that a breach falls outside the 
classification of a minor breach, the accounting officer cannot follow the remedy 
contained in regulation 36 (1) (b). 

i 

5.5.8 The MFMA and the SCM regulations do not specify what these processes should 
be, however, it is recommended that Council investigate the nature of the breach 
through its Internal Audit Unit or any other investigation body and adopt corrective 
action as recommended by the Audit Committee. 

5.5.9 The SCM regulation 36(2) specifies a separate process for reporting the 
ratification of minor breaches to council, after they have been ratified by the 
accounting officer. The findings of any investigation must be reported to the 
accounting officer for consideration when making a decision in this regard. It is 
important to maintain documentary evidence for audit purposes. 

5.6 Disciplinary charges for irregular expenditure 

5.6.1 If, after having followed a proper investigation, the council concludes that the 
political office-bearer or official responsible for making, permitting or authorising 
irregular expenditure did not act in good faith, then the municipality must consider 
instituting disciplinary action and/or criminal charges against the liable person/s. 

5.6.2 If the irregular expenditure falls within the ambit of the above description, then the 
council, mayor or accounting officer (as may be relevant) must institute disciplinary 
action as follows: 


13 




I 

RICHMOND MUNICIPALITY Unauthorised, irregular, Fruitless and Wasteful Expenditure 

Policy 

a) Financial misconduct in terms of section 171 of the MFMA: In the case of 
an official that deliberately or negligently: 

• contravened a provision of the MFMA which resulted in irregular 
expenditure; or 

• made, permitted or authorised an irregular expenditure (due to non- 

I 

compliance with any of legislation mentioned in the definition of 
irregular expenditure); 

b) Breach of the Code of Conduct for Municipal Staff Members: in the case 

t 

of an official whose actions in making, permitting or authorizing an irregular 
expenditure constitute a breach of the Code; and 

c) Breach of the Code of Conduct for Councillors : in the case of a political 
office-bearer, whose actions in making, permitting or authorizing an irregular 
expenditure constitute a breach of the Code. This would also include 
instances where a councillor knowingly voted in favour or agreed with a 
resolution before council that contravened legislation resulting in irregular 
expenditure when implemented, or where the political office-bearer improperly 
interfered in the management or administration of the municipality. 

5.7 Criminal charges arising from an act of irregular expenditure 

5.7.1 If, after following a proper investigation, the council concludes that the official or 
political office-bearer responsible for making, permitting or authorising an instance 
of irregular expenditure acted deliberately or negligently, then the Council must 
institute disciplinary procedures and lay criminal charges against the liable official 
or political office-bearer. 

5.7.2 The irregular expenditure was the result of a breach of the definition of irregular 
expenditure it must be considered in terms of section 173 of the MFMA. 

5.8 Recovery of irregular expenditure 

5.8.1 All instances of irregular expenditure must be recovered from the liable official or 
political office-bearer, unless the expenditure is certified by the municipal council, 
after investigation by a council committee, as irrecoverable and is written off by the 
council. In other words, the expenditure that is written off is therefore condoned. 


14 




RICHMOND MUNICIPALITY Unauthorised, Irregular, Fruitless and Wasteful Expenditure 

Policy 

5.8,2 Irregular expenditures resulting from breaches of the Public Office-Bearers Act is 
an exception in that the irregular expenditure must be recovered from the political 
office-bearer to whom it was paid, who might not have been responsible for 
making, permitting or authorising the irregular expenditure. Once it has been 
established who is liable for the irregular expenditure, the accounting officer must 
in writing request that the liable political office-bearer or official pay the amount 
within 30 days or in reasonable instalments. If the person fails to comply with the 
request, the matter must be recovered through the normal debt collection process 
of the municipality. 

5.9 Fruitless and wasteful expenditure 

5.9.1 The processes to respond appropriately to fruitless and wasteful expenditure are 
similar to the following three processes outlined for irregular expenditure: 

a) disciplinary charges against officials and political office bearers; 

b) criminal charges against officials and political office-bearers; and 

c) recovery of the fruitless and wasteful expenditure from the liable persons. 

5.9.2 The description of the categories of irregular expenditure in the above three 
instances can be applied directly to fruitless and wasteful expenditure. The 
difference is that fruitless and wasteful expenditure can arise in any circumstance 
and is not dependent on non-compliance with any legislation. 

5.9.3 Council should follow section 32(2)(b) of the MFMA when dealing with instances of 
fruitless and wasteful expenditure. 

5.10 Register of unauthorised, irregular, fruitless and wasteful expenditure 

5.10.1 All instances of unauthorised, irregular, fruitless and wasteful expenditures must 
be reported to the mayor, the MEC for local government in the province, the 
Auditor-General, disclosed in the annual report, and to council as required by 
section 32(4) and 74 of the MFMA. This disclosure will assist in addressing 
challenges relating to expenditure control and transparent reporting in order to 
strengthen accountability. 

5.10.2 The introduction of a ‘register’ to capture unauthorised, irregular, fruitless and 
wasteful expenditure will ensure that financial management in municipalities is 
improved, resulting in better audit outcomes. 


15 



RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy 


5.10.3 Ail municipalities need to do all they can to prevent prohibited expenditures. The 
accounting officer also needs to make sure that the municipality has proper 
processes in place to record and manage prohibited expenditures, should they 
occur. Therefore, as part of complying with section 62(1 )(d) of the MFMA, the 
accounting officer (who may delegate the task to the chief financial officer) must 
set-up and maintain a Register of Unauthorised, Irregular, Fruitless and Wasteful 
Expenditures. 

5.10.4 Annexure A sets out the minimum information that should appear in such a 
Register. Municipalities are free to add more detail should they deem this 
necessary. The aim of the Register is also to serve as a tool for recording all 
unauthorised, irregular, fruitless and wasteful expenditures and for tracking 
progress in dealing with the consequences flowing from such expenditures until all 
the issues that gave rise to the expenditures are properly resolved in accordance 
with the legal framework. 

5.10.5 Municipalities are required to implement a register of unauthorised, irregular, 
fruitless and wasteful expenditure from 1 July 2013, for all transactions falling 
within this category and ensure it is updated on a continuous basis, This 
information will allow management to address such matters more thoroughly and 
within appropriate timeframes. 

6. REPORTING REQUIREMENTS 

The following diagram provides guidance as to the reporting requirements 
regarding unauthorised, irregular, fruitless and wasteful expenditure: 



16 





RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 


The Accounting Officer must in terms of Section 32(4)(c)(i)(ii) of the MFMA, 
implement steps to rectify or recover such expenditure and to prevent a 
recurrence of such expenditure. 


The Accounting Officer must in terms of Section 32(6)(a) and (b) of the MFMA, 
report to the South African Police Services all cases of alleged irregular 
expenditure that constitute a criminal offence and theft and fraud that occurred in 
the municipality. 


The Accounting Officer tables unauthorised, irregular, fruitless and wasteful 
expenditure before the Council. 




Council has the following responsibilities in terms of Section 32(2)(a)(i)(ii) of the 











RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy 


7, ACCOUNTING TREATMENT AND DISCLOSURE 

7.1 Accounting policies: 

7.1.1 Revenue Recognition: 

If the amounts recovered as a result of unauthorised, irregular, fruitless and 
wasteful expenditure are material a revenue recognition accounting policy will be 
required in the annual financial statements. 

The accounting policy for revenue recognition should include the following: 

a) Revenue from non-exchange transactions: 

Revenue from the recovery of unauthorised, irregular, fruitless and wasteful 
expenditure is based on legislated procedures including those set out in the 
Municipal Finance Management Act (Act no.56 of 2003) and is recognised 
when the recovery thereof from the responsible councillors or officials is 
virtually certain.” 

b) Mandatory accounting policy notes required in the Annual Financial 
Statements: 


The inclusion of the following accounting policy notes is mandatory. The 
accounting policy notes should read as follows: 

8. MANAGEMENT REPORTING 

8.1 Management information concerning the status of the disciplinary steps and or 
criminal proceedings instituted with respect to all unauthorised, irregular, fruitless 
and wasteful expenditure incurred by the Municipality shall be provided to the 
Chief Financial Officer on a monthly basis. The information should preferably 
include the date of the incident, a description of the incident and the subsequent 
steps taken, 

8.2 Any approval granted to write off debt owed to the Municipality, shall be provided 
to the Chief Financial Officer on a monthly basis. This will be in the form of a 
Council decision. 


18 




RICHMOND MUNICIPALITY 


Unauthorised, Irregular, Fruitless and Wasteful Expenditure 
Policy 


9. DECLARATION OF INTENT 

At its broadest level, the Municipal Finance Management Act endeavours “to 
secure sound and sustainable management of the fiscal and financial affairs of 
municipalities and municipal entities by establishing norms and standards and 
other requirements.” 

In particular, Chapter 8 of the MFMA places the onus on each employee within the 
Municipality to take responsibility for the effective, efficient, economical and 
transparent use of financial and other resources within that employee’s area of 
responsibility. More specifically, the employee must take effective and appropriate 
steps to prevent, within that employee’s area of responsibility, any unauthorised, 
irregular, fruitless and wasteful expenditure and any under-collection of revenue 
due. 


10. GOVERNING PRESCRIPTS 

This Policy has been formulated in terms of the Municipal Finance Management 
Act, 2003 (Act 56 of 2003). 

Legal framework 

This policy will be implemented within the legal framework of the relevant national 
legislation outlined hereunder. 

• Treasury regulations GNR.225 of 15 March 2005: Amendment of Treasury 
Regulations in terms of Section 76 

• The Municipal Finance Management Act, 2003 (Act 56 of 2003) Sections 32, 
62, 78, 95, 102, 105, 125, 171, 172 and 173. 

• The Municipal Supply Chain Management Regulations in terms of regulation 
36(1 )(b) 

• The Municipal Systems Act, in terms of section 4(2 )(a). 

11. POLICY ADOPTION 

This policy has been considered and approved by the COUNCIL OF RICHMOND 
MUNICIPALITY as follows: 

Council Resolution No: 

Approval Date: 


19 



RICHMOND MUNICIPALITY 



POLICY ON PROVISION FOR 
DOUBTFUL DEBT AND WRITING OFF 
OF IRRECOVERABLE DEBT 



Richmond Municipality Policy on Provision for Doubtful debt and 

Writing off irrecoverable Debt 




1 . 


INTRODUCTION 


1.1 This policy provides guidelines on the treatment of impairment and write-off of receivables. 

1.2 The policy seeks that households consumers with no or lower income are not denied a 
reasonable service and that the municipality is not financially burdened with non-payment of 
services. 

1.3 The Council is faced with a significant amount of outstanding debt and the continuous 
defaulting by certain consumers who can afford to pay for service. 

1.4 Despite strict enforcement of the previous policies, Council will continuously be confronted by 
circumstances requiring the possible write-off of irrecoverable debt and Council is required by 
GRAP 104 to determine possible debt impairment. Provision should therefore be made for 
this impairment. To allow this, the Credit Control Policy, Par 9, inter alia, stipulates that:- 

1.4.1 The Municipal Manager must ensure that all avenues are utilised to collect the 
municipality’s debt. There are certain circumstances that allow for the valid 
termination of debt collection procedures, such as:- 

• The insolvency of the debtor, whose estate has insufficient funds; 

• A balance being too small to recover, for economic reasons, considering the cost 
of recovery; 

• Indigent households who have no assets which can be sold for recovery of debt 
to municipality; or indigents who do have assets (e.g. RDP houses); 

• Any debtor’s account whose cost to recover is more than the assets of that 
debtor; 

• A decreased debtor who has no assets to the debt; and 

• Where Council deems that a customer or groups of customers are unable to pay 
for services rendered. 

1.4.2 The municipality will maintain audit trails in such an instances and document the 
reason for the abandonment of the action or claim in respect of the debt. 

1.5 In addition, the policy further stipulates that “Council must appoint a committee in terms of its 
delegation to review and recommend to Council to approve all bad debt write-off cases.” 

1 .6 The effective management of receivables include, amongst others, the following processes: 

• Impiementation/maintenance of the appropriate information and Communication 
Technology (!CT) Systems and Business Processes; 

• Accurate Billing; 

• Customer Care and Accounts enquiry management; 

• Effective and timeous Credit Control; 

• Impairment of Receivables (Provision for Doubtful Receivables); and 

• Write-off of uncoliectable debtor. 

2. OBJECTIVES OF THE POLICY 

2.1 The objectives of this policy are: 

2.1 .1 To ensure that the receivables disclosed in the annual financial statements are stated 
at amounts that are redeemed to be collectable; and 

2.1.2 To ensure that uncollectable debt is written-off within guidelines of applicable policies 
and legislation. 


Richmond Municipality 


Policy on Provision for Doubtful debt and 
Writing off irrecoverable Debt 



3. 


IMPAIRMENT OF RECEIVABLES 


Consumer receivables, long-term receivables and other receivables are stated at cost fess 
provision for impairment (bad debt). 

Provision for impairment is made on an individual basis or based on expected payment. 

In accordance with GRAP 104, an objective assessment of financial assets is made at year- 
end to determine possible impairment. Impairment loss is recognised as an expense in the 
Statement of Financial Performance. 

3.1 Consumer Debtors 


Consumer debtors are evaluated at the end of the reporting date and impaired as follows, 
taking their payment ratio over 12 months into consideration; 


j Category of Debtor 

Percentage of debt regarded as 

Percentage of debt provided for 


collectable 

as irrecoverable 

Credit balance 

Zero 

Zero 

Current account 

100% 

Zero 

Debt owing between 30 to 

1 50 days 

100% 

Zero 

Debt in excess of 150 days 

Zero 

100% 

Approved indigents 

Zero 

100% 

Pending indigents 

Zero 

100% 

Hand over accounts to 
panel of debt collectors, 
legal hand over , clearance 
hand over (debt outside of 
Section 118(1)(b)of the 
Municipal Systems Act 

Zero 

100% 

Government / public 
infrastructure account 

100% 

Zero 

Housing rental receivables 

• Current debt 

• Debt between 30 to 150 

100% 

Zero 

days 

100% 

Zero 

• Debt ageing 150 days* I 

Zero 

100% 


3.2 Sundry Deposits 

Sundry deposits are assessed for impairment to ensure that no objective evidence exists that 
these deposit are irrecoverable. 

3.3 Sundry Receivables 

Sundry receivables with debit balances at year-end are classified as financial instruments. 
Sundry receivables are assessed individually for impairment to ensure that no objective 
evidence exists that these receivables are irrecoverable. 


Richmond Municipality 


Policy on Provision for Doubtful debt and 
Writing off irrecoverable Debt 


4. RESPONSIBILITY / ACCOUNTABILITY 

The Council has the overall responsibility for approving the Writing Off of irrecoverable Debt. 

4.1 Write-off of Doubtful Receivables 

The following should be the guiding principle in implementing the Policy for Writing off of 

irrecoverable Debt:- 

4.1.1 The policy is in accordance with the Local Government Municipal Finance 
Management Act 2003, Local Government Municipal System Act 2000, as amended 
and other related legislation. 

4.1.2 Before any debt is written off it must be proven that the debt has become 
irrecoverable. To ensure that recommendation for write-off is consistent and accurate, 
irrecoverable debt will be defined as> 

4.1 .2.1 Where the tracing of the receivables is unsuccessful; and 

4. 1.2.2 All reasonable steps, at the discretion of the appointed write off committee, 
were taken by the officials to recover the debt. 

4.1 .3 Bad debt write-offs must be considered in terms of cost benefit; when it becomes too 
costly to recover and the chances of collecting the debt are slim, a write-off should be 
considered. 

4.1 .4 Time value of money is very important because the older the debt becomes, the more 
difficult and costly it becomes to collect. It is therefore imperative that a proper system 
of credit control is implemented and maintained to avoid debt reaching the stage of 
becoming too expensive to recover. 

4.1.5 Differentiation must be made between those household consumers who cannot afford 
to pay for basic services and those who just do not want to pay for these services. 

4.1 .6 Debt can only be written off if the required provision exists in the Municipality’s budget 
and /or reserves. 

5. CATEGORIES OF RECEIVABLES THAT MAY QUALIFY FOR THE WRITING OFF OF 

IRRECOVERABLE DEBT 

5.1 Approved Indigent Household Consumer in terms of the Municipality’s indigent Policy 

5.1.1 Upon approval for registration as an indigent household consumer, the debtor's 
interest on the arrear amount will be written off. 

5.1.2 Any new arrears accumulated by the debtor (i.e. any amounts in excess of the 
indigent allowance for free basic services) whilst registered as an indigent consumer, 
will not qualify to be written off and must be dealt with strictly in accordance with the 
Municipality’s Credit Control Policy and Indigent Household Policy. 


5.2 Balance too small to recover considering the cost for recovery 

5.2.1 Where final accounts have been submitted and paid by the respective consumer and 
the remaining balance after finalisation of any final readings and other administrative 
costs results in a balance of one hundred Rand (R100) or less, such account must be 
forwarded once to the consumer for payment. 

5.2.2 Where such account is not paid by the respective consumer within a period of sixty 
(60) days such amounts will automatically be written off. 

5.3 Insolvency of the Debtor and Insolvent Deceased Estates 

5.3.1 Where a debtor becomes insolvent, the Municipality must ensure that a creditor’s 
claim is timeousfy registered. Any amount not being recovered due to insufficient 
funds or if there is a risk of a contribution being made to an insolvent estate must, 
after notification, be written off. 


Richmond Municipality 


Policy on Provision for Doubtful debt and 
Writing off irrecoverable Debt 



5.3.2 In case of death of the debtor, a creditor’s claim must be timeousiy registered against 
the deceased’s estate. Any amount not being recovered due to insufficient funds or if 
there is a risk of a contribution being made to a deceased estate must, after 
notification, be written off. 

5.4 Untraceable Debtors 

5.4.1 Where for any reason the forward address of a debtor becomes untraceabfe or the 
debtor becomes untraceable from the current address, such account must be handed 
over to a collection agent for recovery of the debt. The collection agent will be paid an 
all-inclusive fee that will be negotiated. The Terms of Reference for such collection 
agent must include the appointment of a tracing agent to locate the debtor. Should a 
debtor be untraceable, the collection agent must report to the Municipality on the 
actions that were taken to attempt to trace the debtor. 

5.4.2 Any amount owed by a debtor that has become untraceabie must, after notification, 
be written off or sold to a debt collection agency at a discount. 

5.4.3 Debt written off in the above instances will automatically result in the debtor being 
reported to the credit bureau by the Municipality. 

5.5 Special Arrangements in order to obtain a Clearance Certificate 

5.5.1 in terms of legislation the Municipality will under norma! circumstances not issue a 
Clearance Certificate on any property unless all outstanding amounts are paid to 
date, or alternatively payment of the current two years outstanding debt is made and 
a guarantee by the attorney handling the property transfer is issued in favour of the 
Municipality for the balance of the debt. 

Further, to obtain rates clearance the municipality will request monies in advance 
relative to the period of validity of the rates clearance certificate. 

5.6 Special Incentives introduced by Council for Household Consumer in terms of the 

Approved Revenue Enhancement Strategy 

5.6.1 Notwithstanding the Municipality’s Credit Control Policy a debtor may enter into a 
written agreement with the Municipality to repay any outstanding and due amount to 
the Municipality under the following conditions:- 

5. 6.1.1 The outstanding balance, cost and any interest thereon shall be paid in 
regular and consecutive monthly instalments; 

5.6.1 .2 The current monthly amount must be paid in full; and 

5.6. 1.3 The written agreement has to be signed on behalf of the Municipality by a 
duly authorised officer. 

5.6.2 In order to determine monthly instalments, a comprehensive statement of assets and 
liabilities and income and expenditure, must be provided by the debtor and reviewed 
by a BTO official. 

5.6.3 To ensure the continuous payments, of such arrangement the amount determined 
must be affordable to the consumer (i.e. amount not to exceed 25% of gross income, 
taking into account that the payment of the monthly current account is a prerequisite 
for concluding an arrangement. 

5.6.4 Due to ineffective non-implementation of credit control measures in the past, the 
majority of household consumers have accumulated significant arrears amounts and 
these consumers are not in a position to pay all of these arrear amounts in full 
together with their current monthly accounts. In order to improve the current payment 
levels from consumers, the Council of Richmond Municipality may resolve to 

■ implement special incentives to address the arrear debt. 


Richmond Municipality 


Policy on Provision for Doubtful debt and 
Writing off irrecoverable Debt 




6 . 


ESTABLISHMENT OF A COMMITTEE TO MONITOR ANY DEBT TO BE WRITTEN OFF 


6.1 Council will establish and appoint a Committee to monitor the implementation of this Policy. 

6.2 The Committee will consist of the following members:- 

6.2.1 The Municipal Manager (Chairperson). 

6.2.2 Chief Financial Officer (Alternative Chairperson). 

6.2.3 Member of the Executive Committee for Finance. 

6.2.4 One member of the Portfolio Committee for Finance to be nominated by the Portfolio 
Committee for Finance. 

6.3 The above Committee will meet at least quarterly to receive and review a report from the 
Chief Financial Officer containing full details of any actions taken by officials with respect to 
this Policy ,and to consider an circumstance not covered by this Policy. 

6.4 The quorum for the Committee shall be 50% of the members plus one. 

6.5 Formal minutes of Committee meetings must be prepared and submitted to Council. 

6.6 The Chief Financial Officer will, after thorough review of any application in terms of this Policy, 
be delegated to write off any amounts to the maximum of: 

6.6.1 In the case of a household consumer an amount of RIO 000 (excluding interest and 
penalties) per submission; 

6.6.2 In the case of a business consumer an amount of R20 000 (excluding interest and 
penalties) per submission; and 

6.6.3 Any amount in excess of the delegations provided for in paragraphs 6.6.1 and 6.6.2 
above must be submitted together with a recommendation to the Municipal Manager 
for consideration. The Municipal Manager will, after thorough review of any 
recommendation by the Chief Financial Officer and in terms of this Policy, be 
delegated to write off any amounts to the maximum of> 

6.6. 3.1 In the case of a household consumer an amount of R20 000 (excluding 
interest and penalties) per submission; and 

6.6. 3.2 In the case of a business consumer an amount R50 000 (excluding interest 
and penalties) per submission. 

6.7 Any amount in excess of the delegation provided for in paragraph 6, 6. 3.1 and 6.6. 3.2 above 
may only be reviewed by Committee to Motor Debt to written off and must be submitted 
together with a recommendation to Council for consideration. 


7. DELEGATED POWERS ON WRITING OFF INTEREST AND PENALTIES ON 
RECOVERABLE DEBTS 


7.1 The Chief Financial Officer will, after thorough review of any application in terms of this Policy, 
be delegated to write off interest and penalties, subject to full settlement account, to the 
maximum of: 

7.1.1 In the case of a household consumer an amount of R1 0 000 per submission; 

7.1 .2 In the case of a business consumer an amount of R20 000 per submission; and 

7.1.3 Any amount in excess of the delegation provided for in paragraph 7.1.1 and 7.1.2 
above must be submitted together with a recommendation to the Municipal Manager 
for consideration. The Municipal Manager will, after thorough review of any 
recommendation by the Chief Financial Officer and in terms of this Policy, be 
delegated to write off interest and penalties, subject to full settlement of the 
account, to the maximum of: 


Richmond Municipality 


Policy on Provision for Doubtful debt and 
Writing off irrecoverable Debt 



7. 1.3.1 In the case of a household consumer an amount of R20 000 per submission; 
and 

7.1 .3.2 In the case of a business consumer an amount of R50 000 per submission. 

7.2 Any amount in excess of the delegation provided for in paragraph 10.1 .1 to 10.1 .5 above may 

only be reviewed by the Committee to Monitor Debt to be written off and must be submitted 
together with a recommendation to Council for consideration. 


8. APPLICATION OF PRESCRIPTION ACT 

The provisions of Prescription Act will apply to all services debt, excluding assessment rates. 

Applications and/ or claims for prescription from receivables will only be assessed if no formal credit 
control or legai actions have been instituted during prescription debt period of three (3) years. 

Budget and Treasury officials will assess application inn terms of prescribed requirements. If in 
compliance with Prescription Act, approval may be granted to write- off portion of the debt in terms of 
the delegation in paragraphs 6.6.1 to 6.6.7 above. 

Reconciliation of the Provision of Doubtful Receivables Account must be prepared annually by the 
Chief Financial Officer and retained for audit purposes. 


9. IMPLEMENTATION AND REVIEW OF THIS POLICY 

This policy shall be implemented once approved by Council. All future submission for the writing off 
debt must be consideration in accordance with this policy. 


Richmond Municipality 


Policy on Provision for Doubtful debt and 
Writing off irrecoverable Debt 




Richmond Municipally 
Budflal 

aaaaMfl 


ANNEXURE 

A1 


A: Rirtaa 


Percentage 



201412015 

261512016 

Increase 


Residential Property 

0,0065897 

0,0066533 


4% 

Businssa, Commercial and industrial property 

0,0133038 

0,0138360 


4% 

Vacant Land 


0,0205599 

new 


Agriculture! Property 

0,0015932 

0.0017610 


4% 

Publio Service Purposes 

0,0133038 

0,0138360 


4% 

Public Service Infrastructure 

0,0016932 

0,0017610 


4% 

Public benefit organisation proporty 

0,0036932 

0,0027610 


4% 

Other 

0,0038632 

0,0040177 


4% 

Unauthorised Use 


0,0205599 

new 


Mixed Use Proeprty 


0,0068533 

ne# 



Nolee I Sanoral 

NB:AII rebates and exemptions are contained in the rales policy and may in certain Instances be applied to tha rates as 
aa sensed eboue. 

1. pates will be payable monthly in ten {10) equal instalments with the first installment payable on 30 September 2015 and the test 
instatmont payable on 30 Jure 2016. 

2. The date on which the determination ot raise Dome into operation is 1 July 201S. 

3. Any rates remaining unpaid longer than 3 months will be subject to legal action to be instituted to reamer the aitear amounts. 

4. Any rates that are not paid cm the due date wilt be subject to interest at the rate of 1.25% per month or part thereof. 

5. A coteetioo tee of 10% will be raised on the amount outstanding as at 1 May 2016 for annual rates and 1 June 2016 for monthly 
races. 

B : Tariff of Charges 
1, BUILDINGS 

(a) Plan inspection fees to accompany application for 
Approval of building plans for swimming pools 


{i) Where the total area of the building oi buildings 
Depicted on (he plan of a new building docs not exceed 
30 square mates 



257,64 

283,70 

6% 

(ii) for each additional 1 0 square meters of floor area or part ineroof by 
which such floor area exceeds 30 square meters 

66,91 

70,92 

6% 

(Hi) for additions to a building where the floor area Is increased, in 
respect of the proposed increased floor area 

tn accordance 
with i & 2 above 

In accordance 
with i 6 2 above 


(iv) forslruclwffl alterations to a building where tha floor area is not 

Increased 

267,64 

283,70 

6% 

(v) for any proposed structure which Is of such a nature trial the floor 
area cannot be measured, tor each R1000.00 for pert [hereof) in 
value as assessed by me Engineer/ Building Inspector 

63,18 with a 

min of 189.37 

67.00 with a 
min of 200.00 

5% 

6% 

(b) Plan Inspection foe to accompany application for approval of 
swimming pod building plans 

468,36 

496,43 

6% 

(c) for every preliminary plan submitted for scrutiny, consideration 
and comment prior to Ihe submission of plans and application in terms 
of paragraph 1(a) above 

Cost plus 10% 

Cost plus 10% 


<d) for each building site inspection by tha Building Inspector 

133,83 

141,85 

6% 


(a) Damage caused by building operations: Deposit 
Where it is proposed to erect a new building or construct a 
swimming pool, the owner of the site shall, before common ring the 
proposed worit, ma)<0 a deport with (he Chief Finandai Officer to covet 
or offset any cost of repair or reinstatement of the road verge, 

paving ot guttering damaged as a result of such worts, 334,56 350,63 6% 

If any refund is due , (he refund shad be made by (he Chief Fmarvciai 
Officer following lire signing of (he relevant completion certificate. 

2. CEMETERY 

(a) Burial Fee 


i. Adult 

334.56 

354,63 

6% 

II. Child under 12 years of ate 

167.28 

177,32 

6* 

i'li. Child under 1 year of age or still born 

126,37 

133,99 

6% 

(a) (3) Maintenance levy 

i. Adult 

669,08 

709,22 

6K 

ii. Child under 12 years of age 

669,08 

709,22 

6* 

Hi. Chltd under 1 year of age or still born 

669,08 

709,22 

6% 

1! burial Is on a Saturday/Sunday or Public holiday an overtime deposit will be chargee 

500,00 

500,00 

0% 


Motes: 1 , The charge for the burial of a new born cbdd and mother in 
the same coffin shall be the seme as for a single adult, 

2. Maintenance levies chair be used for tha general upkeep 
of (he cemetery. 

3. The municipality undertakes no responsibility for the 
repairing of monuments, gravestones or other erections. 


(b) Grave site reservations 


401,46 


475,55 


6 % 





ANNEXURE 

A2 

Percentage 


■ 2PH7Q15 

2 CH8/2MB . 

Increase 

© Miscellaneous charges 

Cost plus m 



(1) Exhumation of body 

Cost plus 10% 



(il) Overtime labour charges, in addition, to the normal burial (ess, 
for burials on a Saturday, Sunday and Public Holidays and for 
funerals conducted afler working hours on other days 

Cost plus 10% 



(iii) Interment of ashes in existing grave 

202,07 

214,21 

6% 

(iv) Containing ashes In Wail of Remembrance 

267,64 

283,70 

6% 

Note-All work to be undertaken at the Cost pfus 1 0% tariffs shall be 

350,00 

350,00 

0% 


subject to payment of a R3S0.0D, deposit prior to such work being 
amttt'ted upon. 

(d) The scale of charges for non- residents shall be double that made 
for residents, with the exception of overtime labour charge, the 
maintenance levy and the grave reservation fee shall be the same for 
residents and non-residents. 

3. DOSS 

(a) Impounding fee per animal per day 267,64 283,70 636 

(b) Charge for keeping and maintenance of Impounded dogs, per day Cost plus 10% 

(o) Vatetirrary charges Coat plus 1 0% 

4. DRAINAGE 

(a) Plan inspection fee to accompany application for approval of sanltary/storm water drainage plans which are not included with building 

plans 133,83 241,86 5% 

Note: All work to be undertaken nt the coat plus 10% tariff shell be 
subject to the payment of R100.00 deposit prior Id such writ being 
embarked on 

5. ENCROACHMENTS 


(a) Verandahs, balconies, signboards, pumps and appliances and any other projections built cv erected across or on any public sidewalk or 
road reserve with the Council's consent per annum or part thereof payable in advance with effect 1 July each yea 

(b) for every application to erect or display any sign or boarding within the municipal are: 


214.22 

227,10 

6% 

133,83 

141,66 

636 


6. HIRE OF MUNICIPAL HALLS . SPORTFIELDS , KfTCHEN EQUIPMENT AND FITTINGS 

(a) Hire of Memorial Hall 


(I) Weekdays 


OShOOto 16h30- per hour 

39,79 

42,19 

634 

16h30 to 24hD0 - per hour 

39,79 

42,19 

6% 

(If) After 24h00 - per hour 

(iii) Saturdays, Sundays and Public Holidays 

66,91 

70,92 

636 

OShOO to 241100 - per hour 

39,79 

42,19 

5W 

After 24hO0 - per hour 

39,79 

42,19 

636 

(Iv) Hire of kitchen - per hour 

66,91 

70,92 

636 

Hire of al cither halls In the municipal area 




(i) Weekdays 

R 334.60 for 

R 355.00 


Minimum 

4hrs 

for 4hrs 

636 


+ R40.40per 

* M3. 00 



hour 

per hour 



thereafter 

thereafter 

636 

(if) After 24hOO -per hour 

63,19 

67,00 

636 

(iii) Saturdays, Sundays and Public Holidays 

R 404.00 for 

R 428.00 


Minimum 

4hrs 

fordhrs 

6% 


+ R60.62 per 

•* R64.25 



hour 

per hour 



thereafter 

thereafter 

636 

(Iv) Hire of kitchen 

53,56 

56,78 

6% 

(b) Reduced rale hire under paragraphs (3) will be on written 
application and subject to approval by the Municipal Manager. 

133,83 

141,B6 

6% 

The hire of the halls for burials or funarals 

133,83 

141,86 

636 


(c) Hire it hall for reward, commercial or political purposes ; double 
the charges setoul in paragraph 6 (a) . 

Notes: The Municipal Manaijer shall have tho discretion to call upon 
any applicant to pay a deposit of R300.00 for offsetting the cost of 
repelrlng damage twtlch the hirsts use might rise to. or to refuse any 
application for hire or to discontinue periods of hire, subject to tha 
applicant/hfror haying a right of appeal to the municipality. 



7. LIBRARY 

(a) Kite of activities ream, including Kitchen 
(i) Education of cultural use 

(li) Are exhibitions whare purcbasa of exhibit is invited per day 
(lii) Oihor ires®, aubjecl to availability are! as provided fo» under 
tariff 0(a) and (b) 

(b) Charge for each item loaned from libraries and retained beyond the due or expired data 


(i) Items other than video tapes per week or part thereof 


(II) Video tapes per day 
(c) Annual membership aubscripliana 
(i) Richmond residents 

(II) District. Members 
Adults 
Children 


S. SANITARY SERVICES 

(a) Disposal of animal carcases 
(i) Large animal (horses, con etc) 

(II) SmaS animat (dog,cat etc) 

(») Destruction, removal of items (Subject to minimum charge of 
R20.00', 

(c) Clearing of raik vegetation and ovargrowtn frem private land 

(d) Supply of disposable refuse bags (each) 

(e) Removal ol domestic and commercial refuse 

( II from lots within municipal area ( to be raised against the owner) 

- Demesne once a weak 

- Commercial Iwtce a wee* 

- Commsrael five times a weak 


204 4/201 S 

No charge 

66,91 

As per Library 
Services 

As per Library 
Services 

Nil 

33,53 

Nil 

Cost plus 10% 
40,22 

Cost phis 10% 
Cost plus 1B% 


2015/2016 


to be removed 
to be removed 
to be removed 


As per 
Library 
Services 

to be 
removed 


to be 
removed 

to be 
removed 

to be 
removed 


Co3tpius10% 

42,5S 

Cost plus 10% 
Cost plus 10% 


Suppliarscoat plus 10% 


35.73 37,88 

270,06 286.29 

842.70 893.28 


Residents 



(i)Per enUy per sedan 

FREE 

FREE 

(ti)Per entry per sedan and trailer 

12,67 

13,44 

(iii)Per entry per half ton LDV 

12.67 

13,44 

(tv)Per eniry per on lone LDV and trailer 

37,84 

40,10 

(v)Per entry per one ton LDV 

37,84 

40,10 

(vi)Per entry per one tone LDV and trailer 

56,77 

60,1? 

(vii)Per entry per 3.5 ton truck 

94,63 

100,29 

(viii)Per entry per 6 cubic meter track 

120.21 

133,78 

(viiii)Per entry P® 10 cubic meter trick 

189,40 

200,77 


0. TOWN PLANNING 

(a) Town Planning schema, par copy 

(b) Application In terms of Section 47 t/s A(l)of 
Ordinance 27 of 1949 

Area of land to bs rezensd 
Lass than 1 hectare 
1 hectare but less than 5 hectares 
6 hectares but teas than 10 hectares 
10 hectares and over 


(no foes shall be payable for application by (ha trtalo, and the municipality may reduce or waive fees whare 
Mrs applicant is a charitable institution.) 

Zoning certificate 

(c) GIS Data 
hard copy - per item 


Paper size AD 

(I) Plain paper- map 
(ii) Plain paper -topo/ortho 
(Hi) Giou paper - map 
(iv) Gloss paper - topo/ortho 
M Black and white copy 


Suppliere price phis 10% 


1 070, S8 

1 271,32 

1 338.23 

1 338.23 
plU6 R300.00 
for every hectare 
or part thereof 
In excess of 10 
hectares 


66,91 


106,10 

127,16 

211,46 

253,19 

28,12 


1 134,81 
1 347,60 
1 416,52 
1 418,52 
plus R300.00 
for every hectare 
or part thereof 
In excess ol 16 
hectares 


70,92 


112,49 

134,80 

224,15 

268,40 

29,80 


ANNEXURE 

A3 

Percentage 

Increase 


6% 


6 « 

6K 

6 % 


0 % 

6% 

6 % 

S% 

6% 

6% 

6% 

6 % 

6% 


6% 

6 % 

6% 

6% 


6 % 


6% 

6% 

6 % 

6% 

6 % 



ANNEXURE 


A4 

Percentage 



201412015 

jwm<»s 

fnorsnse 

Paper ska A1 

(i) Plain paper - map 

84,30 

89,35 

654 

(ii) Plain paper - topo/ortho 

99,10 

105,05 

694 

(Hi) Gloss paper - map 

166,54 

178,65 

6% 

(iv) Gloss paper - topo/ortho 

195,76 

208,54 

6* 

(v) Black and white copy 

20,03 

21,23 

636 

Paper size A2 

(i) Plain paper - map 

54,38 

68,25 

6% 

(ii) Plan paper - topo/ortho 

77,65 

82,30 

694 

{ill} Gbsi paper - map 

127,16 

134,80 

6% 

(iv) Gloss paper - topo/ortlro 

153,86 

163,08 

696 

(v) Black and white copy 

20,03 

21,23 

6% 

Paper sire A3 

(i) Plain paper - map 

20,03 

21,23 

694 

(Ii) Plain paper - topo/ortho 

26,70 

28,28 

694 

(ili) Gloss paper -map 

40,22 

42,65 

654 

(iv) G)«i paper -topo/ortho 

53,56 

56,78 

696 

(v) Black and white copy 

0,59 

0,S2 

496 

Paper sire A4 

(i) Plain paper - map 

13,35 

14,14 

694 

(ii) Plain paper - topo/ortho 

20,03 

21,23 

6% 

(•ii) Gloss paper - map 

26,70 

28,28 

696 

(Iv) Gloss paper - topo/ortho 

40,22 

42,65 

694 

(v) Black and white copy 

0,41 

0,45 

8% 

Map book - Thematic Maps 

267,64 

283,70 

696 

Map book -Census 

401,46 

425,55 

696 

(f) Search fee (town planning) 

17,74 

18,83 

646 

(g) Copies of document 

-A4 

2,15 

2,26 

596 

-A3 

3,13 

3,31 

696 

(h) Amendment to a scheme 

3 787,43 

4 011,68 

« 6 

(i) Concent in terms of scheme 

3 787,43 

4 014,68 

696 

(j) Subdivision of land up to 5 pieces of land 

- basic fee (excf u advert) 

1 262,48 

1 338,23 

694 

- Pise per subdivision * remainder 

219,87 

233,09 

696 

(k) Subdivision of land over 5 pieces of land 

- basic fse (sxctu advert) 

2 524,95 

2 676,45 

696 

- Plus per subdivision + remainder 

113.56 

120,35 

694 

(1) Subdivision for government subsidised townships for low 
income housing project 
- basic fee (exe'u advert) 

208,33 

220,84 

696 

- Plus per sutxflvlaion * remainder 

21,47 

22,75 

696 

(m) Cancellation of approved layout plan 

1 262,48 

1 338,23 

696 

(n) Cotieofdatior of lend 

- basic fee 

315,62 

334,55 

696 

- plus per component 

64,26 

68,13 

694 

(o) Processing of DFA applications - basic fee 

6 312,38 

6 691,33 

654 

(p) Proparalion of sawice agreements - basic fee 

1 262,48 

1338,23 

694 

(q) Relaxation of municipal omnibus servitudes - basic foe 

252,43 

267,56 

694 

(r) Alteration. GUUporsPn and del ebon of condition of Mia mining 

to land - basic Fas 

2 524,95 

2 676,45 

696 

(s) Development situated outside the area of a scheme 

3 787,43 

4 014,68 

694 

(t) Alteration, suspension and deletion of condition of approval relating to land - haaic fee 

3 787,43 

4 014,68 

696 

(u) Cloture of municipal road - basic fas 

3 787,43 

4 014,53 

696 

(v) Closure of public place 

3 787,43 

4 014,68 

696 

(w) Rural settlement development 

1893,71 

2 007,33 

696 


(x) Advertisements costs shall bs bora by the applicant Upon confinrsHon of the application b sing complete end Iha 
14 day acknowledgement period having lapsed, the Technical Services Department shall, wrtbin a period of 14 vwiktng 
days, supply the applicant with the text of the notice to Be advertised In the two official languages of the region, which 
the applicant sfiaii place in the local newspaper at their cost, and eene copies thereof on effected property owners as 
directed by the development officer. 






| 

s 

ANNEXURE 

AS 

Percentage 



M15/201B 

Increase 

(y) Entoftwnents 



| 

- Spot fins - applicable! to buildings ,-jfler July 2008 

- Daily rate for transgression until submission of application for 

0 312, 3S 

6 691,12 

6% 

rsgularfsation 

631.23 per day 

669,10 per day 

654 

10. MISCELLANEOUS TARIFFS 



| 

(a) Copy of valuation roll 

133,94 

142,09 

6% 

(b) Copy of voters list per copy 

CoS plus 10% 

Cost plus 10% 

0% 

© Copy of By-laws, per page 

6,67 

7,06 

6% 

<d) Plare of townships 

Suppliers price plus 

Suppliers price plus 10% 

(») Photostat copies, per sheet M 

LOO 

1,00 

0% 

Photostat copies, per ehaet A3 

1,50 

1,50 

0% 

(f) Section 160 (3) of Ordinance 25 of 1974 Valuation appeal foe 

66,91 

70,92 

6% 

|g) Ranks or stands for public buses/taxis per annum or part thereol (permits renewable with effect 1 July 
(i) Buses 

133,83 

141,85 

6% 

(ii) Taxis (Nelson) 

133,83 

Wl,85 

6% 

Taxis (Shepstone) 

133,83 

141,85 

6% 

(h) Construction of gutter bridges, dish drains and other works In terms 
of Section 206 (2) o( ordinance 25 of 1974 

Cost plus 10% 

Cosl plus 1G% 


(i) Issue of any certificates, including rates clearance certificate 

66,91 

70,92 

5% 

0) Negotiable instrument tendered in payment end dishonoured upon 
presentation for payment . penally 

107,12 

113,57 

6% 

(k) Storage of abandoned or seized motor vehicles par day 

267,64 

283,70 

6% 

(t) Charge fat work carried out on private property on request in case 
of need or because of default and olherwrea provided tor elsewhere in 
the tariff Qf charges 

Cost plus 10% 

Cosl plus 10% 


(m) Search fee for each plan, document or We produced, excluding Inspection of municipal minute: 

63,12 

66,91 

6% 

(r>) Certified copy or extract from minutes and or hearing, per (100) words or part thereo 

13,38 

14,18 

6% 

(q) Storage of impounded livestock per animal per day 

267,04 

283,70 

B% 

(r) Illegal parking in staff parking 

63,12 

66,91 

6% 

(s) Fax charges per page 

6,66 

6,02 

6% 

(t) Business licence and assocaited costs 

as per the budnew act 


(u) Tender document fees 


300,00 


Please note that the above tariffs aro exclusive of vat. 

Please note that Internet will be raised al 15% p.a. on all outstanding accounts. 

These tariffs Witt come into operation on 1 July 2015. 

The date on which the determination of rales will coma Into operation is 1 July 2015. 




Any person who desires to object to the rates determination shall do so in writing within fourteen{14) days 
after by delivering such objection to the Municipal Manager, 57 Shepstone Street, Richmond, 

Kwazulu • Natal on weekdays from 08hOC to !6h00 or by posting the objection to the Municipal Manager 

P/Bag 311028, Richmond, 3780. 






RICHMOND WUNlQPAirrr 
2015/2016 1 DHAFf WJOGET INPUT 
SUMMA flY 


REVENUE 

EXPENDITURE 
NET SURPlUS/DEflOT 


YTO Budget 

Total Budget 

YTD actual 

-54 788389,34 

-81 322 130,00 

-64 274 013,21 

39 650 407,72 

66 262 903,47 

37 044 509,61 

-15 137 975,62 

-15 059 226,53 

-27 229 443,60 


(54 788 383,34) 

(81 322 130,00) 

- 1 

(64 273 355,66) \ 
(157,55) 


39 647 019,72 

3 388,00 

66 257 D93.47 

5 810,00 | 

37 040 650,81 1 
3 918,80 


YTO Variance Annual Forecast 


-17 611572,79 




a 025 718,03 


-17611572,79 8 025 718,03 


Ip si : Capital Receipts 
MIC 

MIG Prior Yr 
Small Town 
UMDM - EPWP/EHO 
MSIG 

Donation SIGMA IT 
landfill site donation 
FM6 
Library 

Bert performing municipaTity 
Sport! and rec Grant 

Deficit 

Depreciation 


Revtied 


-98933 702,79 
74 222 811,50 


-24 710 891,29 


31 154 788,09 


16838 000,00 
5 325 776,00 
8381140,00 
60000,00 
113 200,00 
68 800,00 
274 782,09 
25 000,00 

33 690,00 

34 400,00 


6 443 896,80 

7 180 940,50 


BUDGET 2015/2010 BUDGET 2016/2017 BUDGET 2017/2018 

-105 70S 130.00 -107 138 819,00 -109 120 402,00 


89 596 772,55 

94 625 009,34 

' 99 874 125,58 

-16 108 357.4S 

-12513 809,66 

-9 246 276,42 

18 229150,00 

17 650 050,00 

18 449 950,00 

17 116 150,QD 

17 650050,00 

18449 950,00 

260 000,00 

* 

* 

853 000,00 



2 12D 792.55 

S 136 240,34 

9 203 873,58 

7 839 03435 

8 688 93B.01 

5 557 831,81 


1496,6837 



RICHMOND MUNlOPAin RICHMOND MUNICIPALITY 
COUNCIL 







BUDGET 

BUDGET 

BUDGET 




Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

10 

10 

10 

3730000 ADDITIONAL COUNCILOR SUP PORT 

(2 553 000,00) 

(4 545000,00) 

(4 752 000,00) 

(4 963 000,00) 





(2 553 000,00) 

(4 54S 000,00) 

(4 752 000,00) 

(4 963 000,00) 

10 

10 

10 

5010000 SALARIES 

409415,00 

424 380,00 

450 479,37 

476 832,41 

10 

10 

10 

5011000 ANNUAL BONUS 

11 130,00 

24 765,00 

26 288,05 

27 82530 

10 

10 

10 

5040000 OVERTIME 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

10 

10' 

10 

5060000 CELL PHONE ALLOWANCE 

5 690,00 

n 176,00 

23 539,82 

24916,90 

10 

10 

10 

5094000 PERFORMANCE INCENTIVE 

740,00 

4 240,00 

4 500,76 

4 764,05 

10 

10 

10 

5100000 PEN510N 

7 170,00 

40560,00 

43 054,44 

45 573,12 

10 

10 

10 

5140000 l/COUNCil LEVY 

320,00 

90,00 

55,54 

101,12 

10 

10 

10 

5150000 UIF 

4 720.00 

885,00 

939,43 

994,38 

10 

10 

10 

5160000 5KILLS LEW 

4 265,00 

4 250,00 

4 511,38 

4 775,29 

10 

10 

10 

5260000 MAYOR 

725 300,00 

768 818,00 

815000,00 

865 000,00 

10 

10 

10 

5270000 CELLPHONE ALLOWANCE 

312 600,00 

332 000,00 

352 000,00 

373 000,00 

10 

10 

10 

5271000 DATA CARD5 

62 920,00 

67 000,00 

71 000,00 

75 000,00 

10 

IQ 

10 

5280000 DEPUTY MAYOR 

319 120,00 

339 000,00 

359000,00 

380000,00 

10 

10 

10 

5290000 COUNCILORS 

2 175 825,00 

2 310 000,00 

1 445 000,00 

2 590 000,00 

10 

10 

10 

5300000 SPEAKER OF COUNCIL 

319 121,00 

339 000,00 

359 000,00 

381 00030 

10 

10 

10 

$310000 MEMBER OF EX CO 

299 175,00 

317126,00 

336153,56 

356322,77 

10 

10 

10 

5510000 DEPRECIATION 

80 500,00 

88 550,00 

97 4QS,00 

107 145,50 

10 

10 

10 

5670000 CH EV CAPTJVA- NK 5327 

10 000,00 

- 


- 

10 

10 

10 

6110000 INTEREST EXTERNAL LOANS 

20 000.00 

20 000,00 

20000,00 

20 000,00 

10 

10 

10 

6205000 CELL PHONE CONTRACTS 

54 584,00 

27 000,00 

29 000,00 

32 000,00 

10 

10 

10 

6220000 HIRE PHOTOCOPIER 

16056,00 

10 000,00 

10 000,00 

10000.00 

10 

10 

10 

6250000 LEASE OF VEHICLE5 

220000,00 

250000,00 

- 

- 

10 

10 

10 

6285000 TRACKER 

2 170,00 

2 200,00 

2 200,00 

2 200,00 

10 

10 

10 

6310001 MAGMA; ARMED RESPONSE 

5 000,00 

2 200,00 

2 400,00 

2 500,00 

10 

10 

10 

6312000 MULTICHOICE 

1940,00 

- 

- 

- 

10 

10 

10 

PRONEL 

40 000,00 

- 

- 

- 

10 

10 

10 

6590000 CATERING (MUNICIPAL FUNC 

20 000 J30 

SO 000,00 

40 000,00 

40000,00 

10 

10 

10 

6720005 FUEL & OIL-CHEV CAPT1VA NK5327 

50 000,00 

60000,00 

60 000,00 

60000,00 

10 

10 

10 

6760000 GENERAL EXPENSES 

18 000,00 

- 

- 

- 

10 

10 

10 

6955000 LICENCES VEHICLES 

1400,00 

1484,00 

1 573,04 

1 667,42 

10 

10 

10 

7000000 LEVIES SALGA 

500 000,00 

500 000,00 

550000,00 

55Q 000,00 

10 

10 

10 

7050000 COUNCIL MARKETING 

50 000,00 

40 000,00 

50000,00 

50 000,00 

10 

10 

10 

7060000 POSTAGE 

500,00 

1000,00 

1000,00 

1000,00 

10 

10 

10 

7030000 PRINTING & STATIONERY 

15000,00 

20000,00 

20 000,00 

20 000,00 

10 

10 

10 

7190000 SEMINARS & CONFERENCES 

35000,00 

50000,00 

50000,00 

50 000,00 

10 

10 

10 

7220000 51YAFUN DA CAMPAIGN 

20000,00 

20 000,00 

20 000,00 

20 000,00 

10 

10 

10 

7230000 SUB5ISTENCE;TRAVEL SACCO 

250000,00 

250000,00 

250 000,00 

250000,00 

10 

10 

10 

7250000 SUBS (PERIOD. &PAPERS) 

2 500,00 

2 500,00 

2 500,00 

2 500,00 

10 

10 

10 

7320000 WARD COMMITTEE & AMAKHOSI 


518400,00 

518400,00 

518 400,00 





6 07S 161,00 

6 912 624,00 

7 020 04038 

7 348 518,89 


-106 


»***: 


Traditional leaders /AmalchOsi 
Ward comm increased to R600.00 


1 200,00 

14400,00 



s 





sssssssssssses 


I-* « 


saassaaaasasaasaasaasasaasaaasaaaassaaaaass 

ssssss2ssssssassaasssssssssas3sss3ssssas2ss 


MUNICIPAL MANAGER 


Description 

.. YTD Budget 

Total Budget 

Revised 

BUDGET 

2015/2016 

BUOGET 

2016/2017 

BUDGET 

2017/2018 

10 20 4 222 000 Insurance Claims 

- 

- 

(300 000,00} 

- 





10 

10 

20 

S010000 SALARIES 

786 870,00 

1 348 920,00 

1 298 920,00 

1 470 640,00 

1 561 084,36 

1 652 407,80 

10 

10 

20 

5011000 ANNUAL BONUS 

158 745,00 

158 745,00 

108 745,00 

181 980,00 

193 171,77 

204472,32 

10 

10 

20 

5040000 OVERTIME 

14 581,00 

25 000,00 

25 000,00 

10 000,00 

5 000,00 

5 000,00 

10 

10 

20 

5060000 CELL PHONE ALLOWANCE 

6 636,00 

11 376,00 

11 376,00 

17 064,00 

18 113,44 

19 173,07 

10 

10 

20 

5090000 TRAVELLING ALLOWANCE 

56 000,00 

96 000,00 

156 000,00 

230 400,00 

244 569,60 

258 876,92 

10 

10 

20 

5094000 PERFORMANCE INCENTIVE 

2 350,00 

2 350,00 

2 350,00 

4 220,00 

4 479,53 

4 741,58 

10 

10 

20 

5100000 PENSION 

18 690,00 

32 050,00 

32 050,00 

35 950,00 

38 160,93 

40 393,34 

10 

10 

20 

5120000 MEDICAL AID 

31 045,00 

53 222,00 

53 222,00 

41 055,00 

43 579,88 

46 129,31 

10 

10 

20 

5140000 l/COUNCIL LEW 

287,00 

500,00 

500,00 

255,00 

270.68 

286,S2 

10 

10 

20 

5150000 UIF 

3 255,00 

5 585,00 

5 585,00 

6 300,00 

6 687,45 

7 078,67 

10 

10 

20 

5160000 SKILLS LEW 

9 562,00 

16 400,00 

16 400,00 

14 700,00 

15 604,05 

16 516,89 

10 

10 

20 

5510000 DEPRECIATION 

52 500,00 

90 000,00 

40 000,00 

44 000,00 

48 400,00 

53 240,00 

10 

10 

20 

6110000 INTEREST EXTERNAL LOANS 

637,00 

1 100,00 

5 000,00 

20 000,00 

20 000,00 

20 000,00 

10 

10 

20 

620S000 CELL PHONE CONTRACTS 

19 215,00 

32 946,00 

32 946,00 

28 000,00 

32 000,00 

35 000,00 

10 

10 

20 

6220000 HIRE PHOTOCOPIER 

25 270,00 

43 320,00 

28 320,00 

15 000,00 

15 000,00 

15 000,00 

10 

10 

20 

6245000 INTERNAL AUDIT 

490 000,00 

490 000,00 

640 000,00 

700 000,00 

750 000,00 

800 000,00 

10 

10 

20 

6590000 CATERING (MUNICIPAL FUNC 

5 831,00 

10 000,00 

20 000,00 

25 000,00 

30 000,00 

35 000,00 

10 

10 

20 

6760000 GENERAL EXPENSE5 

5 831,00 

10 000,00 

12 000,00 

' 

- 

- 

10 

10 

20 

6905000 IDP; BUDGET AND STRATEGI C PLANNING 

29 162,00 

50 000,00 

SO 000,00 

80 000,00 

100 000,00 

100 000,00 

10 

10 

20 

INSURANCE CLAIMS 

- 

- 

100000,00 

- 

- 

- 

10 

10 

20 

6935000 LEGAL FEES 

116 662,00 

200 000,00 

210 000,00 

200 000,00 

200 000,00 

200 000,00 

10 

10 

20 

7052000 MARKETING / COMMUNICATIO N (NEWSLET 

58 331,00 

100 000,00 

70 000,00 

90 000,00 

110000,00 

120 000,00 

10 

10 

20 

7060000 POSTAGE 

875,00 

1 500,00 

1 500,00 

- 

- 

- 

10 

10 

20 

7090000 PRINTING & STATIONERY 

14 581,00 

25 000,00 

30 000,00 

30 000,00 

31 800,00 

40 000,00 

10 

10 

20 

7120000 PROFFESSIONAL SUBS 

2 912,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

10 

10 

20 

7190000 SEMINARS &. CONFERENCES 

11 662,00 

20 000,00 

30 000,00 

30 000,00 

31 800,00 

34 000,00 

10 

10 

20 

7230000 SUBSISTENCEjTRAVEL &ACCO 

92 750,00 

159 000,00 

159 000,00 

140 000,00 

148 400,00 

9000,00 

10 

10 

20 

7250000 5UBS (PERIOD.&PAPER5) 

3 500,00 

6 000,00 

6 000,00 

8 000,00 

8 480,00 

9 000,00 





2 017 740,00 

2 994 014,00 

3 149 914,00 

3 427 564,00 

3 661 601,69 

3 730 316,40 




BUDGET BUDGET 

2016/2017 2017/2018 

(857 000,00) (1 033 000,00) 

(60 000,00) (60 000,00) 


3 841 557,89 

4 066 289,02 

372 172,52 

393 944,61 

5000,00 

S 000,00 

7 642,80 

8 089,90 

23 845,54 

25 240,50 

95 535,00 

101 123,80 

29 233,71 

30 943,88 

18746,09 

19 842,74 

399 017, B 5 

422 360,39 

188 357,87 

199 376,80 

50 000,00 

50 000,00 

1 719,63 

1 820,23 

31 983,00 

33 854,00 

38 426,30 

40 674,24 

60 500,00 

66 550,00 

50 000,00 

SO 000,00 

100 000,00 

100 000,00 

10 000,00 

10 000,0-0 

20 000,00 

20000,00 

33 000,00 

37 000,00 

15 000,00 

15 000,00 

4 000,00 

4 000,00 

5 000,00 

5000,00 

100 000,00 

102 000,00 

6 600,00 

6 600,00 

350 000,00 

350 000,00 

10 000,00 

10 000,00 

60 000,00 

£0 000,00 

10 000,00 

10 000,00 

5 000,00 

5 000,00 

5000,00 

5 000,00 

10 000,00 

10 000,00 

10000,00 

10 000,00 

50 000,00 

SO 000/30 

1000,00 

1 000,00 

957 000,00 

1 033 000,00 

60 000,00 

60000,00 

70000,00 

70 000,00 

2 000,00 

2 000,00 

24 000,00 

24 000,00 

150 000.00 

150 000,00 

70 000,00 

70000,00 

200 000,00 

200 000,00 

10 000,00 

10 000.00 

310000,00 

350 000,00 

120 000,00 

120 000,00 

7 991 338,18 

8 414 710,11 


RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 


COMMUNITY 





Descrmtion 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

10 25 

5 

3680000 

INTERGOVERNMENTAL- EQUIT ABLE 5HARE 

(600 000,00) 

(500 000,00) 

(550 000,00) 

(605 000,00) 

10 25 

5 

3715000 

SPORTS & REC: CARETAKER GRANT 

(150 000,00) 

(150 000,00) 

(150 000,00) 

(150 000,00) 





(750 000,00) 

(650 000,00) 

(700000,00) 

(755 000,00) 

10 25 

S 

5010000 

SALARIES 

1 283 845,00 

1 490 690,00 

1 582 367,44 

1 674 935,93 

10 25 

5 

5011000 

ANNUAL BONUS 

101 087,00 

173 250,00 

183 904,88 

194 663,31 

10 25 

5 

5040000 

OVERTIME 

5 000,00 

10 000,00 

15 000,00 

15000,00 

10 25 

5 

5060000 

Cai PHONE ALLOWANCE 

11 380,00 

38 950,00 

41345,43 

43 764,13 

10 25 

5 

5090000 

TRAVEL ALLOWANCE 

60000,00 

90000,00 

95 535,00 

101 123,80 

10 25 

5 

S094000 

PERFORMANCE INCENTIVE 

S 520,00 

6 250,00 

6 634,38 

7 022,49 

10 25 

5 

5100000 

PEN5ION 

56 460,00 

85 390,00 

90 641,49 

95 944,01 

10 25 

5 

5120000 

MEDICAL AID 

35 245,00 

109 830,00 

116 584,55 

123 404,74 

10 25 

5 

5140000 

l/COUNCIL LEVY 

500,00 

360,00 

382,14 

404.S0 

10 25 

5 

51S0000 

UIF 

6 100,00 

7 165,00 

7 605,65 

8 050,58 

10 25 

5 

5160000 

SKILLS LEVY 

15 570,00 

14 910,00 

15 B26,97 

16 752,84 

10 25 

5 

5510000 

DEPRECIATION 

970 000,00 

1 067 000,00 

1 173 700,00 

1191070,00 

10 25 

5 

5663000 

I5UZU : NK 4457 

10 000,00 

15 000,00 

20 000,00 

25 000,00 

10 25 

5 

S9S2000 

NK 2680 (HOUSING) 

10 000,00 

10 000,00 

10000,00 

10 000,00 

10 25 

5 

6205000 

CELL PHONE CONTRACTS 

28 890,00 

19 000,00 

21 000,00 

23 000,00 

10 25 

5 

6315000 

SPCA- CONTRACT 

40 000,00 

180 000,00 

180 000,00 

180 000,00 

10 25 

5 

6480000 

ARTS & CULTURE 

56 000,00 

45 000,00 

70 000,00 

80 000,00 

10 25 

5 

6490000 

AIDS AWARENE55 

27 375,00 

40 000,00 

60 000,00 ' 

60 000,00 

10 25 

5 

6590000 

CATERING (MUNICIPAL FUNC 

10 000,00 

10000,00 

10 000,00 

10 000,00 

10 2S 

5 

6670000 

DISASTER MGMT IMPLEMENT 

35 000,00 

60 000,00 

100 000,00 

100 000,00 

10 25 

5 


DISABILITY PROGRAMMES 

- 

55 000,00 

55 000,00 

55 000,00 

10 25 

5 

6720041 

F&O: NK 2680 (HOUSING) 

15 000,00 

15 000,00 

15 000,00 

15 000,00 

10 25 

5 

6720043 

FSO: NK4457 

20 000,00 

20 000,00 

20 000,00 

20 000,00 

10 25 

5 

6751000 

EBE 

600 000,00 

500 000,00 

550 000,00 

605 000,00 

10 25 

5 

6760000 

GENERAL EXPENSES 

1000,00 

- 

5 000,00 

5 000,00 

10 25 

5 

6930000 

SAIGA GAME5 

200 000,00 

300 000,00 

350 000,00 

350 000,00 

10 25 

5 

6955000 

LICENCES VEHICLES 

2 000,00 

2 500,00 

2 500,00 

2 500,00 

10 25 

5 

7060000 

POSTAGE 

500,00 

1000,00 

1 000,00 

1000,00 

10 25 

5 

7090000 

PRINTING & STATIONERY 

4 000,00 

10 000,00 

10 000,00 

10 000,00 

10 25 

S 

7120000 

PROFFESSIONAL5UBS 

1000,00 

2 000, 00 

2 000,00 

2 000,00 

10 25 

5 


SENIOR OTIZEN5 

- 

60 000,00 

60 000,00 

60 000,00 

10 2S 

5 

7186000 

5 PORTS AND RECREATION GR ANT - CARETAKER 

115 600,00 

150 000,00 

150 000,00 

150 000,00 

10 25 

5 

7190000 

SEMINARS & CONFERENCES 

5 500,00 

10 000, 00 

15 000,00 

15 000,00 

10 25 

5 

7215000 

SPORTS AND RECREATION 

46 000,00 

20 000,00 

65 000,00 

70 000,00 

10 ‘25 

S 

7230000 

SUBSI5TENCE;TRAVEL &ACCO 

30 000,00 

40 000,00 

50 000,00 

50 000,00 

10 25 

S 

73B6000 

SUKHUMA 5AKHE 

20 000,00 

30 000,00 

30 000,00 

30 000,00 





3 828 572,00 

4 688 295,00 

5 181 027,89 

5 500 636,32 


180 000,00 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 







BUDGET 

BUDGET 

BUDGET 




Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

1 10 

25 

20 

3520000 LIBRARY FIN E5 

{2 750,00) 

(2 500,00) 

(2 500,00) 

(2 500,00} 

1 10 

25 

20 

3682000 COMM LIB SERV GRANT 

(126 000,00) 

(170 000,00) 

(179999,00) 

(188 000,00) 

1 10 

25 

20 

3852000 PROVING OF LIBRARIES 

(685 000,00) 

(707 000,00) 

(744 000,00) 

(781 000,00) 

1 10 

25 

20 

4110000 COPIES 

(10 000,00) 

(5 000,00} 

(5 000,00) 

(5 000,00) 

1 10 

25 

20 

4135000 DONATIONS 

(33 690,00) 

, 

- 

- 

1 10 

25 

20 

4225000 LIBRARY LOST BOOKS 

(550,00) 

- 

- 

. 





(857 990,00) 

(884 500,00) 

(931499,00) 

(976 500,00) 

1 10 

25 

20 

5010000 5ALARIES 

785 820,00 

883 015,00 

937 320,42 

992 153,67 

1 10 

25 

20 

5011000 ANNUAL BONUS 

65 485,00 

73 590,00 

78 115,79 

82 685,56 

1 10 

25 

20 

5060000 CELL PHONE ALLOWANCE 

11 090,00 

5 688,00 

6 037,81 

6 391,02 

1 10 

2S 

20 

5090000 TRAVELLING ALLOWANCE 

33 800,00 

76 800,00 

8 1 523,20 

86 292,31 

1 10 

25 

20 

5094000 PERFORMANCE INCENTIVE 

7 860,00 

2 510,00 

2 664,37 

2 820,23 

1 10 

25 

20 

5100000 PENSION 

147 000,00 

120 530,00 

127 942,60 

135 427,24 

1 10 

25 

20 

5120000 MEDICAL AID 

70 115,00 

96 630,00 

102 572,75 

108 573,25 

1 10 

25 

20 

5140000 l/COUNCIL LEVY 

470,00 

540,00 

573,21 

606,74 

1 10 

25 

20 

5150000 UIF 

10 960,00 

10 590,00 

11 241,29 

11 898,90 

1 10 

25 

20 

5160000 SKILLS LEVY 

8 960,00 

8 830,00 

9 373,05 

9 921,37 

1 10 

25 

20 

5510000 DEPRECIATION 

64 750,50 

71225,55 

78 348,11 

86 182,92 

1 10 

25 

20 

6110000 INTEREST EXTERNAL LOAN5 

2 200,00 

15 000,00 

15 000,00 

15 000,00 

1 10 

25 

20 

6220000 HIRE PHOTOCOPIER 

38 115,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

20 

6310001 MAGMA: ARMED RESPON5E 

4 000,00 

2 200,00 

2 400,00 

2 500,00 

1 10 

25 

20 

6590000 CATERING {MUNICIPAL FUNC 

5 000,00 

8 000,00 

8 000,00 

8 000,00 

1 10 

25 

20 

6591000 COMM LIB SERVICES GRANT 

126 000,00 

170 000,00 

179 999,00 

188 000,00 

1 10 

25 

20 

6610000 CLEANING MATERIALS 

10 000,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

20 

6720000 FUEL SOIL 

3 429,80 

4 000,00 

4 000,00 

4 000,00 

1 10 

25 

20 

6940000 LIBRARY BOOKS 

25 000,00 

30 000,00 

35 000,00 

35 000,00 

1 10 

25 

20 

6945000 LIBRARY ACTIVITIES 

10 000,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

20 

6950000 LICENCES TELEVISION 

700,00 

1000,00 

1 000,00 

1 000,00 

1 10 

25 

20 

6990000 LOST LIBRARY BOOKS 

7 000,00 

- 

- 

- 

1 10 

25 

20 

7060000 POSTAGE 

3 000,00 

5 000,00 

5 000,00 

5 000,00 

1 10 

25 

20 

7090000 PRINTING & STATIONERY 

10 000,00 

15 000,00 

15 000,00 

15 000,00 

1 10 

25 

20 

7120000 PRO FFE5S ION AL SUBS 

2000,00 

3 000,00 

3 000,00 

3 000,00 

1 10 

25 

20 

7190000 SEMINARS & CONFERENCES 

7 000,00 

12 000,00 

15 000,00 

15 000,00 

1 10 

25 

20 

7230000 SUBSiSTENCE;TRAVEL &ACCO 

33 000,00 

35 000,00 

40 000,00 

40 000,00 

1 10 

25 

20 

7250000 SUBS (PERiOD.&PAPERS) 

10 000,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

20 

7270000 TELEPHONE 

3 500,00 

5 000,00 

5 000,00 

5 000,00 





1 506 055,30 

1 695 148,55 

1 804 111,57 

1 899 453,20 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 


CEMETRY 


Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 

10 

25 

10 

4150000 FEES BURIAL 

{30 000,00) 

(30 000,00) 

(30 000,00) 

(30 000,00) 

1 

10 

25 

10 

4155000 LEVY CEMETRY 

(45 000,00} 

(45 000,00) 

(45 000,00) 

(45 000,00) 






(75 000,00) 

(75 000,00) 

(75 000,00) 

(75 000,00) 

1 

10 

25 

10 

5010000 SALARIES 

76 990,00 

85 190,00 

90 429,19 

95 719,29 

1 

10 

25 

10 

5011000 ANNUAL BONUS 

6 420,00 

7 100,00 

7 536,65 

7 977,54 

1 

10 

25 

10 

5949999 OVERTIME 

5 000,00 

10 000,00 

10 000,00 

10 000,00 

1 

10 

25 

10 

5094000 PERFORMANCE INCENTIVE 

770,00 

850,00 

902,28 

955,06 

1 

10 

25 

10 

5100000 PENSION 

10 510,00 

11 630,00 

12 345,25 

13 067,44 

1 

10 

25 

10 

5120000 MEDICAL AID 

5 810,00 

10 275,00 

10 906,91 

11 544,97 

1 

10 

25 

10 

5130000 l/COUNCIL LEVY 

100,00 

90,00 

95,54 

101,12 

1 

10 

25 

10 

5150000 UIF 

1 000,00 

925,00 

981,89 

1 039,33 

1 

10 

25 

10 

5160000 SKILLS LEVY 

885,00 

850,00 

902,28 

955,06 

1 

10 

25 

10 

5510000 DEPRECIATION 

1 650,00 

1 815,00 

1 996,50 

2 196,15 

1 

10 

25 

10 

5612000 GENERAL MAINTENANCE 

5 500,00 

10 000,00 

10 000,00 

10 000,00 

1 

10 

25 

10 

CHEMICALS 

2 750,00 

3 000,00 

3 500,00 

4 000,00 

1 

10 

25 

10 

PAUPER BURIALS 

11 000,00 

15 000,00 

16 500,00 

18 150,00 

1 

10 

25 

10 

BURIAL SUPPORT FOR INDIG ENTS 

48 000,00 

50 000,00 

55 000,00 

60 500,00 






176 385,00 

206 725,00 

221 096,47 

236 205,96 



RICHMOND MUNICIPALITY 
2015/2016 ; DRAFT BUDGET INPUT 
HOUSING 

BUDGET BUDGET BUDGET 
Description YTD Budget Revised 2015/2016 2016/2017 2017/2018 

1 10 25 15 DOHS-ZWELETHU HOUSING - (348 444,70) 

(348 444,70) - - 

1 10 25 15 DEPTOF HUMAN SETTLEMENTS-; - 348 444,70 


348 444,70 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 


INHLAZUKA 



Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 10 

25 

30 

3260000 HALL HIRE FEES 

(3 000,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 

1 10 

25 

30 

3330000 RENTAL SHOPS AND TAXI RANK 

(165 000,00) 

(181 500,00) 

(199 650,00) 

(219 615,00) 





(168 000,00) 

(184 500,00) 

(202 650,00) 

(222 615,00) 

1 10 

25 

30 

5010000 SALARIES 

214 470,00 

336 430,00 

357120,45 

378 011,99 

1 10 

25 

30 

5011000 ANNUAL BONUS 

17 880,00 

28 035,00 

29 759,15 

31 500,06 

1 10 

25 

30 

5040000 OVERTIME 

2 500,00 

- 

- 

- 

1 10 

25 

30 

5060000 CELL PHONE ALLOWANCE 

5 690,00 

5 690,00 

6 039,94 

6 393,27 

1 10 

25 

30 

5094000 PERFORMANCE INCENTIVE 

2 150,00 

3 365,00 

3 571,95 

3 780,91 

1 10 

25 

30 

5100000 PENSION 

35 350,00 

45 925,00 

48 749,39 

51601,23 

1 10 

25 

30 

MEDICAL AID 

- 

21 468,00 

22 788,28 

24 121,40 

1 10 

25 

30 

5130000 UNIFORMS 

9 350,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

30 

5140000 l/COUNCIL LEVY 

100,00 

270,00 

286,61 

303,37 

1 10 

25 

30 

5150000 UIF 

3 205,00 

3 700,00 

3 927,55 

4 157,31 

1 10 

25 

30 

5160000 SKILLS LEVY 

2 410,00 

3 365,00 

3 571,95 

3 780,91 

1 10 

25 

30 

5510000 DEPRECIATION 

9 000,00 

9 900,00 

10 890,00 

11 979,00 

1 10 

25 

30 

5580000 BUILDINGS 

10 000,00 

20 000,00 

25 000,00 

25 000,00 

1 10 

25 

30 

5651000 ISUZU -NK3874 

15 000,00 

15 000,00 

15 000,00 

15 000,00 

1 10 

25 

30 

6201000 AMLEC-MONITORING FEES 

2 080,00 

2 300,00 

2 500,00 

2 550,00 

1 10 

25 

30 

6310000 MUNICIPAL SECURITY 

411933,00 

481 000,00 

519 000,00 

560 000,00 

1 10 

25 

30 

6590000 CATERING (MUNICIPAL FUNC 

3 300,00 

3 300,00 

3 300,00 

3 300,00 

1 10 

25 

30 

6610000 CLEANING MATERIALS 

11 000,00 

10 000,00 

. 11000,00 

11 000,00 

1 10 

25 

30 

6690000 ELECTRICITY 

111561,00 

121 561,00 

121561,00 

121 561,00 

1 10 

25 

30 

6720032 F&O ISUZU BAKKIE - NK387 4 

40 000,00 

40 000,00 

40 000,00 

40 000,00 

1 10 

25 

30 

6955000 LICENCES VEHICLE5 

715,00 

715,00 

715,00 

715,00 

1 10 

25 

30 

7090000 PRINTING & STATIONERY 

8 800,00 

8 000,00 

8 800,00 

8 800,00 

1 10 

25 

30 

7230000 SU BSISTE NCE;TR AVEL &ACCO 

7 000,00 

5 000,00 

7 000,00 

7 000,00 

1 10 

25 

30 

7270000 TELEPHONE 

30 000,00 

30 000,00 

30000,00 

30000,00 


953 494,00 


1 205 024,00 


1 280 581,25 


1350 555,44 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
HOPEWELL 





Description 

YTD Budget 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 10 

2$ 

40 

3260000 HALL HIRE FEES 

(3 500,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 

1 10 

25 

40 

3330000 RENTAL SHOPS AND TAXI RANK 

(16 331,00) 

(23 000,00) 

(17 000,00) 

(17 000,00) 

(17 000,00) 





(19 831,00) 

(26 000,00) 

(20 000,00) 

(20 000,00) 

(20 000,00) 

1 10 

25 

40 

5010000 SALARIES 

44 905,00 

76 990,00 

87 615,00 

93 003,32 

98 444,02 

1 10 

2S 

40 

5011000 ANNUAL BONUS 

6 420,00 

6 420,00 

7 300,00 

7 748,95 

8 202,26 

1 10 

25 

40 

5040000 OVERTIME 

581,00 

1 000,00 

_ 

- 

- 

1 10 

25 

40 

S094000 PERFORMANCE INCENTIVE 

770,00 

770,00 

880,00 

934,12 

988,77 

1 10 

2S 

40 

5100000 PENSION 

6 125,00 

10 510,00 

11 960,00 

12 695,54 

13 438,23 

1 10 

25 

40 

5130000 UNIFORM5 

4 809,00 

a 250,00 

5 000,00 

5 000,00 

5 000,00 

1 10 

25 

40 

5140000 l/COUNCIL LEVY 

42,00 

80,00 

90,00 

95,54 

101,12 

1 10 

25 

40 

5150000 UIF 

490,00 

840,00 

950,00 

1 008,43 

1 067,42 

1 10 

2S 

40 

5160000 SKILLS LEVY 

490,00 

850,00 

880,00 

934,12 

988,77 

1 10 

25 

40 

5510000 DEPRECIATION 

3 472,00 

2 400,00 

2 640,00 

2 904,00 

3 194,40 

1 10 

25 

40 

5580000 BUILDINGS 

14 112,00 

24 200,00 

30 000,00 

30 000,00 

30 000,00 

1 10 

25 

40 

6310000 MUNICIPAL SECURITY 

147 672,00 

248 160,00 

288 000,00 

311 000,00 

336 000,00 

1 10 

25 

40 

6610000 CLEANING MATERIALS 

6 412,00 

14 000,00 

10 000,00 

11 000,00 

11 000,00 

1 10 

25 

40 

6690000 ELECTRICITY 

17 647,00 

30 261,00 

35 000,00 

40 000,00 

45 000,00 


253 947,00 

424 731,00 

480 315,00 

516324,01 

553 424,98 


RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
MAGODA 





Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 10 

25 

50 

3260000 HALL HIRE FEES 

(3 000,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 





(3 000,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 

1 10 

25 

50 

5010000 SALARIES 

66 990,00 

87 615,00 

93 003,32 

98 444,02 

1 10 

25 

50 

5011000 ANNUAL BONUS 

6420,00 

7 300,00 

7 748,95 

8 202,26 

1 10 

25 

50 

5094000 PERFORMANCE INCENTIVE 

770,00 

880,00 

934,12 

988,77 

1 10 

25 

50 

5100000 PENSION 

10 510,00 

11 960,00 

12 695,54 

13 438,23 

1 10 

25 

50 

5120000 MEDICAL AID 

990,00 

5 000,00 

5 000,00 

5 000,00 

1 10 

25 

50 

5140000 l/COUNCIL LEVY 

80,00 

90,00 

95,54 

101,12 

1 10 

25 

50 

5150000 UIF 

840,00 

950,00 

1 008,43 

1 067,42 

1 10 

25 

50 

5160000 SKILLS LEVY 

840,00 

880,00 

934,12 

988,77 

1 10 

25 

50 

5580000 BUILDINGS 

11 000,00 

10 000,00 

11 000,00 

11 000,00 

1 10 

25 

50 

6235000 1NGONYAMA TRUST 

22 130,00 

25 000,00 

25 000,00 

25 000,00 

1 10 

25 

50 

6310000 MUNICIPAL SECURITY 

168 773,00 

192 000,00 

208 000,00 

224 000,00 

1 10 

25 

50 

6610000 CLEANING MATERIALS 

5 500,00 

5 500,00 

5 500,00 

5 500,00 

1 10 

25 

50 

6690000 ELECTRICITY 

5 500,00 

5 500,00 

5 500,00 

5 500,00 





300 343,00 

352 675,00 

376 420,01 

399 230,58 


RICHMOND MUNICIPALITY 
201S/2016 : DRAFT BUDGET INPUT 
Nkumane 


Description 


10 

25 

55 

UNIFORMS 

10 

25 

55 

5580000 BUILDINGS 

10 

25 

55 

6310000 MUNICIPAL SECURITY 

10 

25 

55 

6610000 CLEANING MATERIALS 

10 

25 

55 

6690000 ELECTRICITY 


BUDGET BUDGET BUDGET 


Revised 

2015/2016 

2016/2017 

2017/2018 

- 

4 000,00 

4 000,00 

4 000,00 

4 700,00 

10 000,00 

10 000,00 

10 000,00 

168 773,00 

192 000,00 

207 000,00 

224 000,00 

9 600,00 

6 600,00 

6 600,00 

6 600,00 

5 500,00 

6 000,00 

6 000,00 

6 000,00 


188 573,00 218 600,00 233 600,00 250 600,00 


RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 


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RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 


BUILDINGS 






Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

10 

25 

60 

3260000 

HALL HIRE FEE5 

(55 000,00) 

(50 000,00) 

(50 000,00) 

(50 000,00) 

10 

25 

bl) 

3300000 

RENTAL MUNICIPAL RESIDEN TIAL PROPERTIES 

(9 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 

10 

25 

bO 

3330000 

RENTAL 5HOPS AND TAXI RANK 

(110 000,00) 

(130 000,00) 

(140 000,00) 

(157 000,00) 

10 

25 

60 

3331000 

RENT ERF 261/263 

(253 270,00) 

(252 000,00) 

(252 000,00) 

(252 000,00) 

10 

2S 

60 

3332000 

RETAIL MARKET STALLS 

(30 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 

10 

25 

60 

4130000 

FEES BUILDING INSPECTION S 

(10 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 

10 

25 

60 

4140000 

FEES BUILDING PLANS 

(22 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 

10 

25 

60 

4160000 

FEES ENCROACHMENT 

(11000,00) 

(8 000,00) 

(8 000,00) 

(8 000,00) 

10 

25 

60 

4200000 

FEE5 REZONING 

(22 000,00) 

(5 000,00) 

(5 000,00) 

(5 000,00) 

10 

25 

60 

4255000 

REIMBURSIVE EXP MA5AKHUX OLO CTR 

(62 000,00) 

(60 000,00) 

(60 000,00) 

(60 000,00) 






(584 270,00) 

(545 000,00) 

(555 000,00) 

(572 000,00) 

10 

25 

60 

5010000 

SALARIES 

109 870,00 

119 250,00 

126 583,88 

133 989,03 

10 

25 

60 

5011000 

ANNUAL BONUS 

9 160,00 

9 940,00 

10 551,31 

11 168,56 

10 

25 

60 

5040000 

OVERTIME 

2 200,00 


. 


10 

25 

60 

5094000 

PERFORMANCE INCENTIVE 

1 100,00 

1 190,00 

1 263,19 

1 337,08 

10 

25 

60 

5100000 

PENSION 

15 000,00 

16 230,00 

17 228,15 

18 235,99 

10 

25 

60 

5120000 

MEDICAL AID 

7 050,00 

10 000,00 

10 000,00 

10 000,00 

10 

25 

60 

5140000 

l/COUNCIL LEVY 

80,00 

90,00 

95,54 

101,12 

10 

25 

60 

5150000 

UIF 

1 190,00 

1 300,00 

1 379,95 

1 460,68 

10 

25 

60 

5160000 

5 KILLS LEVY 

1 100,00 

1 190,00 

1 263,19 

1 337,08 

10 

25 

60 

5510000 

DEPRECIATION 

500 000,00 

550 000,00 

605 000,00 

665 500,00 

10 

25 

60 

5580000 

BUILDINGS 

14 000,00 

15 000,00 

20 000,00 

25 000,00 

10 

25 

60 

5988000 

TOYOTA BAKKIE NK 2775 

10 000,00 

15 000,00 

20 000,00 

25 000,00 

10 

25 

60 

6215000 

FIRE EXTINGU5IHERS-SERVI CE 

2 940,00 

4 300,00 

4 700,00 

5 200,00 

10 

25 

60 

6262000 

SERVICE- AIRCON5 

22 000,00 

24 000,00 

26 000,00 

29 000,00 

10 

2S 

60 

6310000 

MUNICIPAL SECURITY 

768 739,00 

876 000,00 

946 000,00 

1 022 000,00 

10 

25 

60 

6610000 

CLEANING MATERIALS 

22 000,00 

20 000,00 

25 000,00 

30 000,00 

10 

25 

60 

6690000 

ELECTRICITY 

330 784,00 

370 000,00 

380 000,00 

390 000,00 

10 

25 

60 

6720027 

FUEL & OIL NK277S 

15 000,00 

20 000,00 

22 000,00 

24 200,00 

10 

25 

60 

6955000 

LICENCES VEHICLES 

1 100,00 

2 000,00 

2 200,00 

2 420,00 

10 

25 

60 

7080000 

MUNIC CHARGE5-WATER ACCS 

100 000,00 

110 000,00 

121 000,00 

133 100,00 






1 933 313,00 

2 165 490,00 

2 340 265,19 

2 529 049,55 



RICHMOND MUNICIPALITY 
2015/2016 ; DRAFT BUDGET INPUT 
INPALEN1 






Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 

10 

25 

70 

3260000 HALL HIRE FEES 

(2 000,00) 

{3 000,00) 

(3 000,00) 

(3 000,00) 






(2 000,00) 

{3 000,00) 

(3 000,00) 

(3 000,00) 

1 

10 

25 

70 

5010000 SALARIES 

147 575,00 

171 180,00 

181 707,57 

192 337,46 

1 

10 

25 

70 

5011000 ANNUAL BONU5 

12 300,00 

14 265,00 

15 142,30 

16 028,12 

1 

10 

25 

70 

5094000 PERFORMANCE INCENTIVE 

1 480,00 

1 710,00 

1 815,17 

1 921,35 

1 

10 

25 

70 

5100000 PENSION 

20 145,00 

23 365,00 

24 801,95 

26 252,86 

1 

10 

25 

70 

5140000 l/COUNCIL LEVY 

160,00 

180,00 

191,07 

202,25 

1 

10 

25 

70 

5150000 UIF 

1 600,00 

1 855,00 

1 969,08 

2 084,27 

1 

10 

25 

70 

5160000 SKILLS LEVY 

1 600,00 

1 710,00 

1 815,17 

1921,35 

1 

10 

25 

70 

5580000 BUILDINGS 

- 

15 000,00 

15 000,00 

15 000,00 

1 

10 

25 

70 

6610000 CLEANING MATERIALS 

- 

2 000,00 

- 

- 

1 

10 

25 

70 

6310000 MUNICIPAL SECURITY 

168 773,00 

192 000,00 

207 000,00 

224 000,00 






353 633,00 

423 265,00 

449 442,30 

479 747,67 



RICHMOND MUNICIPALITY 
2015/2016 ; DRAFT BUDGET INPUT 
SMOZOMEN1 

BUDGET BUDGET BUDGET 





Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

1 10 

25 

80 

3260000 HALL HIRE FEES 

(3 000,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 





(3 000,00) 

(3 000,00) 

(3 000,00) 

(3 000,00) 

1 10 

25 

80 

5010000 SALARIES 

73 415,00 

83 560,00 

88 698,94 

93 887,83 

1 10 

25 

80 

5011000 ANNUAL BONUS 

6 120,00 

6 970,00 

7 398,66 

7 831,48 

1 10 

25 

80 

5094000 PERFORMANCE INCENTIVE 

735,00 

835,00 

886,35 

938,20 

1 10 

25 

80 

5100000 PENSION 

7 160,00 

11 400,00 

12 101,10 

12 809,01 

1 10 

25 

80 

5140000 l/COUNCIL LEVY 

80,00 

90,00 

95,54 

101,12 

1 10 

25 

80 

5150000 UIF 

800,00 

905,00 

960,66 

1 016,86 

1 10 

25 

80 

5160000 SKILLS LEVY 

800,00 

835,00 

886,35 

938,20 

1 10 

25 

80 

5580000 BUILDINGS 

7 700,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

80 

6235000 JNGONYAMA TRUST 

22 130,00 

25 000,00 

25 000,00 

25 000,00 

1 10 

25 

80 

6310000 MUNICIPAL SECURITY 

168 773,00 

192 000,00 

207 000,00 

224 000,00 

1 10 

25 

80 

6610000 CLEANING MATERIAL5 

6 600,00 

10 000,00 

10 000,00 

10 000,00 

1 10 

25 

80 

6690000 ELECTRICITY 

21 600,00 

24 000,00 

27 000,00 

28 000,00 


315 913,00 


365 595,00 390 027,59 414 522,71 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 


PHATHENI 




Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 

10 

25 

90 

5010000 SALARIES 

73 140,00 

83 560,00 

88 698,94 

93 887,83 

1 

10 

25 

90 

5011000 ANNUAL BONUS 

6 595,00 

6 970,00 

7 398,66 

7 831,48 

1 

10 

25 

90 

5094000 PERFORMANCE INCENTIVE 

675,00 

835,00 

886,35 

938,20 

1 

10 

25 

90 

5100000 PENSION 

10 165,00 

11 405,00 

12 106,41 

12 814,63 

1 

10 

25 

90 

5130000 UNIFORMS 

6 600,00 

5 000,00 

5 000,00 

5 000,00 

1 

10 

25 

90 

5140000 l/COUNCIL LEVY 

80,00 

90,00 

95,54 

101,12 

1 

10 

25 

90 

5150000 UIF 

730,00 

913,00 

969,15 

1 025,84 

1 

10 

25 

90 

5160000 SKILLS LEVY 

730,00 

913,00 

969,15 

1025,84 

1 

10 

25 

90 

5580000 BUILDINGS 

8 250,00 

12 000,00 

12 000,00 

12 000,00 

1 

10 

25 

90 

6310000 MUNICIPAL SECURITY 

448 233,00 

533 000,00 

576 000,00 

622 000,00 

1 

10 

25 

90 

6610000 CLEANING MATERIALS 

8 250,00 

10 000,00 

10 000,00 

10 000,00 

1 

10 

25 

90 

6690000 ELECTRICITY 

5 500,00 

6 000,00 

6 000,00 

6 000,00 


568 948,00 


670 686,00 720 124,19 772 624,95 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
SlYATHUTHUKA AND MAUZAYO 






Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 

10 

25 

95 

5010000 SALARIES 

73 420,00 

83 560,00 

88 698,94 

93 887,83 

1 

10 

25 

95 

5011000 ANNUAL BONUS 

6 120,00 

6 965,00 

7 393,35 

7 825,86 

1 

10 

25 

95 

5094000 PERFORMANCE INCENTIVE 

735,00 

835,00 

886,35 

938,20 

1 

10 

25 

95 

5100000 PENSION 

10 020,00 

11 405,00 

12 106,41 

12 814,63 

1 

10 

25 

95 

5140000 l/COUNCIL LEVY 

80,00 

90,00 

95,54 

101,12 

1 

10 

25 

95 

5150000 UIF 

800,00 

913,00 

969,15 

1 025,84 

1 

10 

25 

95 

5160000 SKILLS LEVY 

800,00 

913,00 

969,15 

1 025,84 

1 

10 

25 

95 

5580000 BUILDINGS 

13 200,00 

15 000,00 

15 000,00 

15 000,00 

1 

10 

25 

95 

6310000 MUNICIPAL SECURITY 

168 775,00 

192 000,00 

208 000,00 

224 000,00 

1 

.10 

25 

95 

6610000 CLEANING MATERIALS 

8 250,00 

8 250,00 

8 250,00 

8 250,00 

1 

10 

25 

95 

6690000 ELECTRICITY 

5 500,00 

6 000,00 

7 000,00 

8 000,00 

1 

10 

25 

96 

5580000 BUILDINGS 

7 700,00 

10 000,00 

12 000,00 

12 000,00 

1 

10 

25 

96 

6610000 CLEANING MATERIALS 

2 750,00 

4 000,00 

4 000,00 

4 000,00 

1 

10 

25 

96 

6690000 ELECTRICITY 

4 000,00 

5 000,00 

5 000,00 

5 000,00 


344 931,00 370 368,88 393 869,34 


302 150,00 


RICHMOND MUNICIPALITY 


2015/2016 1 DRAFT BUDGET INPUT 
TRAFFIC 







BUDGET 

BUDGET 

BUDGET 




Descriotlon 

Revised 

2015/2016 

2016/2017 

2017/2018 

1 10 

35 

10 

3510000 TRAFFIC FINES 

(50 000,00) 

(50 000,00) 

(50 000,00) 

(50 000,00) 

1 10 

35 

10 

3580000 RANK PERMITS 

(10000,00) 

(10 000,00} 

(10000,00) 

(10 000,00} 

1 10 

35 

10 

3925000 5CHOLAR PATROL GRANT 

(75 000,00) 




1 10 

35 

10 

4220000 IMPOUNDING 5TORAGE - MOT OR VEHICLES 

(4 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 

1 10 

35 

10 

4221000 IMPOUNDING & STORAGE - A NIMALS 

(2 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 





(141 000,00) 

(80 000,00) 

(80 000,00) 

(80 000,00) 

1 10 

35 

10 

5010000 SALARIES 

1038 650,00 

1 366 235,00 

1 450 258,45 

1 535 098,57 

1 10 

35 

10 

5011000 ANNUAL 80NU5 

94 890,00 

113 850,00 

120 851;78 

127 921,60 

1 10 

35 

10 

5040000 OVERTIME 

25 000,00 

25 000,00 

35 000,00 

40 000,00 

1 10 

35 

10 

5050000 HOU5ING ALLOWANCE 

5 740,00 

7 200,00 

7 642,80 

8 089,90 

1 10 

35 

10 

5060000 CELL PHONE ALLOWANCE 

28 840,00 

28 152,00 

29 883,35 

31 631,52 

1 10 

35 

10 

5070000 DANGER ALLOWANCE 

39 000,00 

42 000,00 

44 583,00 

47 191,11 

1 10 

35 

10 

5090000 TRAVELLING ALLOWANCE 

96 000,00 

96 000,00 

101 904,00 

107 865,38 

1 10 

35 

10 

5094000 PERFORMANCE INCENTIVE 

11390,00 

13 660,00 

14 500,09 

15 348,35 

1 10 

35 

10 

5100000 PEN5ION 

183 830,00 

186 490,00 

197 959,14 

209 539,74 

1 10 

35 

10 

5120000 MEDICAL AID 

134 775,00 

165 075,00 

175 227,11 

185 477,90 

1 10 

35 

10 

5130000 UNIFORM5 

71 500,00 

100 000,00 

100 000,00 

100 000,00 

1 10 

35 

10 

5140000 l/COUNCIL LEVY 

550,00 

720,00 

764,28 

808,99 

1 10 

35 

10 

5150000 UIF 

14 115,00 

17 650,00 

18 735,48 

19 831,50 

1 10 

35 

10 

5160000 5KILL5 LEVY 

14 620,00 

13 665,00 

14 505,40 

15 353,96 

1 10 

35 

10 

5510000 DEPRECIATION 

142 000,00 

156 200,00 

171 820,00 

189 002,00 

1 10 

35 

10 

5617000 TRAFFIC NEW VEHICLE 

- 

10 000,00 

10000,00 

10 000,00 

1 10 

35 

10 

5654000 CHEV CRUZ NK4957 

20 000,00 

20 000,00 

20 000,00 

20 000,00 

1 10 

35 

10 

5657000 CHEV CRUZ NK 6274 

20000,00 

20 000,00 

20 000,00 

20 000,00 

1 10 

35 

10 

5900000 5PEED TIMING MACHINES 

6 000,00 

6 000,00 

6 000,00 

6 000,00 

1 10 

35 

10 

5910000 DRAGGER MACHINES-CALIBRA 

4 000,00 

_ 



1 10 

35 

10 

5920000 GENERATOR & ACCESSORIES 

1 000,00 

5 000,00 

5 000,00 

5 000,00 

1 10 

35 

10 

6205000 CELLPHONE CONTRACTS 

1 970,00 

3 000,00 

3 300,00 

3 700,00 

1 10 

35 

10 

DRIVERS TESTING CENTRE ESTABLISHMENT 

250 000,00 

_ 

. 


1 10 

35 

10 

6720035 F&O: CHEV CRUS (TRAFFIC) NK4957 

35000,00 

35 000,00 

35 000,00 

35 000,00 

1 10 

35 

10 

6720040 F&O: CHEV CRUZ (TRAFFIC) NK 6274 

30 000,00 

35 000,00 

35 000,00 

35 000,00 

1 10 

35 

10 

6720042 F&O : GENERATOR <LC) 

3 000,00 

5 000,00 

5 000,00 

5 000,00 

1 10 

35 

10 

6720047 F&O: TRAFFIC NEW VEHICLE 


30 000,00 

30 000,00 

30 000,00 

1 10 

35 

10 

6760000 GENERAL EXPEN5E5 

5 000,00 


10 000,00 

10 000,00 

1 10 

35 

10 

6955000 UCENCE5 VEHICLES 

2 310,00 

3 000,00 

3 000,00 

3000,00 

1 10 

35 

10 

7060000 P05TAGE 

1 500,00 

2 000,00 

2 000,00 

2 000,00 

1 10 

35 

10 

7090000 PRINTING & STATIONERY 

20 000,00 

25 000,00 

30 000,00 

30 000,00 

1 10 

35 

10 

7180000 RTI ENFORCEMENT VISIT 

10000,00 

15 000,00 

25 000,00 

25 000,00 

1 10 

35 

10 

7185000 ROAD SAFETY EDUCATION 

20 000,00 

25 000,00 

35 000,00 

40 000,00 

1 10 

35 

10 

7190000 SEMINARS & CONFERENCES 

7 000,00 

10 000,00 

15 000,00 

15 000,00 

1 10 

35 

10 

7200000 5CHQLAR PATROL 

75 000,00 

. 

. 


1 10 

35 

10 

7230000 5U8SlSTENCE;TRAVEL &ACCO 

10 000,00 

15 000,00 

20 000,00 

20 000,00 





2 423 680,00 

2 595 897,00 

2 792 934,87 

2 947 860,54 



RICHMOND MUNICIPALITY 
2015/2016 ; DRAFT BUDGET INPUT 


SECURITY 




Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 

10 

35 

20 

5010000 SALARIES 

1 380 000,00 

1 552 450,00 

1 647 925,68 

1 744 329,33 

1 

10 

35 

20 

5011000 ANNUAL BONUS 

84 065,00 

129 370,00 

137 326,26 

145 359,84 

1 

10 

35 

20 

5040000 OVERTIME 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

1 

10 

35 

20 

5060000 CELL PHONE ALLOWANCE 

5 690,00 

11 376,00 

12 075,62 

12 782,05 

1 

10 

35 

20 

5094000 PERFORMANCE INCENTIVE 

13 570,00 

15 525,00 

16 479,79 

17 443,86 

1 

10 

35 

20 

5100000 PENSION 

169 435,00 

211 910,00 

224 942,47 

238 101,60 

1 

10 

35 

20 

5120000 MEDICAL AID 

63 845,00 

133 342,00 

141 542,53 

149 822,77 

1 

10 

35 

20 

5130000 UNIFORMS 

44 000,00 

50 000,00 

55 000,00 

60 000,00 

1 

10 

35 

20 

5140000 l/COUNCIL LEVY 

860,00 

1 260,00 

1 337,49 

1 415,73 

1 

10 

35 

20 

5150000 UIF 

14 560,00 

17 850,00 

18 947,78 

20 056,22 

1 

10 

35 

20 

5160000 SKILLS LEVY 

14 510,00 

15 530,00 

16 485,10 

17 449,47 

1 

10 

35 

20 

5510000 DEPRECIATION 

- - 

- 

- 

- 

1 

10 

35 

20 

5995000 FIAT NK5360 

5 000,00 

10 000,00 

10 000,00 

10 000,00 

1 

10 

35 

20 

6720025 FULE& OIL - NK 5360 

15 000,00 

20 000,00 

25 000,00 

30 000,00 

1 

10 

35 

20 

6955000 LICENCES VEHICLES 

495,00 

800,00 

800,00 

800,00 

1 

10 

35 

20 

7230000 SUBSiSTENCE;TRAVEL &ACCO 

1 100,00 

- 

- 

- 


1 817 130,00 2 174 413,00 2 312 862,70 2 452 560,87 


RICHMOND MUNICIPALITY 

2015/2016 : DRAFT BUDGET INPUT 

LEARNERS LICENCE AND DRIVERS TESTING GROUND 


BUDGET BUDGET BUDGET 





Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

L 10 

35 

40 

3590000 LEARNERS LICENSES 

(350 000,00) 

(350000,00) 

(350 000,00) 

(350 000,00) 

l 10 

35 

40 

DRIVERS LICENCES 

- 

(300 000,00) 

(300 000,00) 

(300 000,00) 





(350 000,00) 

(650 000,00) 

(650 000,00) 

(650 000,00) 

1 10 

35 

40 

5010000 SALARIES 

581 795,00 

1 006 240,00 

1 068 123,76 

1 130 609,00 

1 10 

35 

40 

5011000 ANNUAL BONUS 

54 320,00 

83 860,00 

89 017,39 

94 224,91 

1 10 

35 

40 

5040000 OVERTIME 

1 500,00 

- 

- 

- 

1 10 

35 

40 

5094000 PERFORMANCE INCENTIVE 

8 330,00 

10 065,00 

10 684,00 

11 309,01 

1 10 

35 

40 

5100000 PENSION 

61 320,00 

137 350,00 

145 797,03 

154 326,15 

1 10 

35 

40 

5120000 MEDICAL AID 

64 750,00 

131 280,00 

139 353,72 

147 505,91 

1 10 

35 

40 

5140000 l/COUNCIL LEVY 

550,00 

630,00 

668,75 

707,87 

1 10 

35 

40 

5150000 UIF 

8 790,00 

10 900,00 

11570,35 

12 247,22 

1 10 

35 

40 

5160000 SKILLS LEVY 

9 050,00 

10 060,00 

10 678,69 

11303,39 

1 10 

35 

40 

5580000 BUILDINGS 

4 400,00 

10 000,00 

15 000,00 

20 000,00 

1 10 

35 

40 

6310000 MUNICIPAL SECURITY 

- 

395 000,00 

426 000,00 

461 000,00 

1 10 

35 

40 

6220000 HIRE PHOTOCOPIER 

20 460,00 

25 000,00 

25 000,00 

25 000,00 

1 10 

35 

40 

6610000 CLEANING MATERIALS 

- 

15 000,00 

15 000,00 

15 000,00 

1 10 

35 

40 

7060000 POSTAGE 

5 000,00 

10 000,00 

15 000,00 

20 000,00 

1 10 

35 

40 

7090000 PRINTING & STATIONERY 

20 000,00 

50 000,00 

55 000,00 

60 000,00 

1 10 

35 

40 

7126000 PRODIBA 

60 000,00 

80 000,00 

90 000,00 

100 000,00 

1 10 

35 

40 

7230000 SUBSISTENCE;TRAVEL &ACCO 

1 100,00 

- 

- 

- 


901 365,00 


1 975 385,00 


2 116 893,68 


2 263 233,46 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
MVL 








BUDGET 

BUDGET 

BUDGET 





Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

1 

10 

40 

20 

3620000 VEHICLE LICENCE COMMISSI ON 

(517 000,00) 

(568 700,00) 

(625 570,00) 

(688 127,00) 






(517 000,00) 

(568 700,00) 

(625 570,00) 

(688 127,00) 

1 

10 

40 

20 

5010000 SALARIES 

341 835,00 

303 360,00 

321106,56 

340 854,61 

1 

10 

40 

20 

5011000 ANNUAL BONUS 

29 320,00 

25 280,00 

26 758,88 

28 404,55 

1 

10 

40 

20 

5040000 OVERTIME 

1 500,00 

- 

- 

- 

1 

10 

40 

20 

5094000 PERFORMANCE INCENTIVE 

2 780,00 

3 035,00 

3 212,55 

3 410,12 

1 

10 

40 

20 

5100000 PENSION 

48 030,00 

41 410,00 

43 832,49 

46 528,18 

1 

10 

40 

20 

5120000 MEDICAL AID 

38 110,00 

33 223,00 

35 166,55 

37 329,29 

1 

10 

40 

20 

5140000 l/COUNCIL LEVY 

235,00 

180,00 

190,53 

202,25 

1 

10 

40 

20 

5150000 UIF 

3 120,00 

3 290,00 

3 482,47 

3 696,64 

1 

10 

40 

20 

5160000 SKILLS LEVY 

3 830,00 

3 035,00 

3 212,55 

3 410,12 


468 760,00 412 813,00 436 962,56 463 835,76 


RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDG FT INPUT 
LOCAL ECONOMIC DEVELOPMENT (LED) 





Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

10 

30 

30 

3560000 BUSINESS LICENCE5 

(20 000,00) 

(15 000,00) 

(15 000,00) 

(15 000,00) 

10 

30 

30 

357S000 HAWKERS LICENCES 

(500,00) 

(500,00) 

(500,00) 

(500,00) 

10 

30 

30 

3S85000 NETVENDOR 

(20 000,00) 

(10 000,00) 

(10000,00) 

(10 000,00) 

10 

30 

30 

3724000 EPWP 

(1 255 000,00) 

(1 046 000,00) 



10 

30 

30 

4109000 ADVERTISING INCOME 

(10 000,00) 

(10 000,00) 

(10 000,00) 

(10 000,00) 





(1305 500,00) 

(1081500,00) 

(35 500,00) 

(35 500,00) 

10 

30 

30 

5010000 SALARIES 

700 840,00 

943 160,00 

998 334,86 

1 059 732,45 

10 

30 

30 

5011000 ANNUAL BONUS 

50 905,00 

78 600,00 

83 198,10 

88 314,78 

10 

30 

30 

5040000 OVERTIME 

- 




10 

30 

30 

5060000 CELL PHONE ALLOWANCE 

11 090,00 

11 088,00 

11 736,65 

12 458,45 

10 

30 

30 

5090000 TRAVELLING ALLOWANCE 

108 800,00 

115 200,00 

121 939,20 

129 438,46 

10 

30 

30 

5094000 PERFORMANCE INCENTIVE 

7 910,00 

9 430,00 

9 981,66 

10 595,53 

10 

30 

30 

5100000 PENSION 

117 950,00 

128 740,00 

136 271,29 

144 651,97 

10 

30 

30 

5120000 MEDICAL AID 

47 085,00 

28 433,00 

30 096,33 

31 947,25 

10 

30 

30 

S 140000 l/COUNCIL LEVY 

312,00 

341,00 

360,95 

383,15 

10 

30 

30 

5150000 UIF 

9 640,00 

11 480,00 

12 151,58 

12 898,90 

10 

30 

30 

5160000 SKILLS LEVY 

9 740,00 

9 431,00 

9 982,71 

10 596,65 

10 

30 

30 

5510000 DEPRECIATION 

2 200,00 

2 420,00 

2 662,00 

2 928,20 

10 

30 

30 

5580000 BUILDINGS 

6 000,00 

6 000,00 

6 600,00 

7 260,00 

10 

30 

30 

5951000 ISUZU BAKKIE NK 5784 

10 000,00 

10 000, 00 

10 000,00 

10 000,00 

10 

30 

30 

6200000 HIRE OF PHOTOCOPIER 

- 

25 000,00 

25 000,00 

25 000,00 

10 

30 

30 

6205000 CELL PHONE CONTRACTS 

2 878,00 

2 000,00 

2 500,00 

3 000,00 

10 

30 

30 

6510000 ADVERTISING 

5 000,00 

10 000,00 

10 000,00 

10 000,00 

10 

30 

30 

6590000 CATERING (MUNICIPAL FUNC 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

10 

30 

30 

6720034 F&O ISUZU BAKKIE NK 5784 

12 000,00 

12 000,00 

12 000,00 

12 000,00 

10 

30 

30 

6760000 GENERAL EXPENSES 

3 000,00 

. 

300,00 

300,00 

10 

30 

30 

6762000 LED MARKETING 

15 000,00 

20 000,00 

20 000,00 

20 000,00 

10 

30 

30 

6955000 LICENCES VEHICLES 

750,00 

800,00 

800,00 

800,00 

10 

30 

30 

6965000 ELECTRICITY PRE PAID 

- 

. 

_ 


10 

30 

30 

7090000 PRINTING & STATIONERY 

20 000,00 

20 000,00 

20 000,00 

20 000,00 

10 

30 

30 

7190000 SEMINARS & CONFERENCES 

9 000,00 

10 000,00 

10 000,00 

10 000,00 

10 

30 

30 

7230000 SUBSISTENCE;TRAVEL &ACCO 

105 000,00 

60 000,00 

80 000,00 

80 000,00 

10 

30 

30 

7231000 EPWP 

1 255 000,00 

1 046 000,00 

1 046 000,00 

1 046 000,00 

10 

30 

30 

7272000 TOURI5M 

50 000,00 

50 000,00 

50 000,00 

50 000,00 

10 

30 

30 

7380000 YOUTH- TRAINING AND 5KIL LS DEVELOPMEf 

10000,00 

20 000,00 

25 000,00 

25 000,00 

10 

30 

30 

7382000 YOUTH-MATRIC TOP ACHIEVE R5 AWARD 

15 000,00 

10 000,00 

10 000,00 

10 000,00 

10 

30 

30 

7383000 YOUTH - CAREER EXPO 

25 000,00 

30 000,00 

40 000,00 

40 000,00 

10 

30 

30 

7384000 YOUTH MONTH PROGRAMMES 

40 000,00 

50 000,00 

60000,00 

60 000,00 

10 

30 

30 

7385000 YOUTH - ARTS&CULTURE & H IV/AID5 

20 000,00 

30 000,00 

30 000,00 

30 000,00 


2 675 100,00 

2 755 123,00 

2 879 915,33 

2 968 305,81 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
TOWN PLANNING 

BUDGET BUDGET BUDGET 

Description Revised 2015/2016... 2016/2017 2017/2018 


10 

30 

10 

4190000 FEES SUBDIVISION 

(6 000,00) 

(5 000,00) 

(5 000,00) 

(5 000,00) 





(6 000,00) 

(5 000,00) 

(5 000,00) 

(5 000,00) 

10 

30 

10 

5010000 SALARIES 

359 640,00 

746 450,00 

792 356,68 

838 709,54 

10 

30 

10 

5011000 ANNUAL BONUS 

29 970,00 

62 204,00 

66 029,55 

69 892,27 

10 

30 

10 

5050000 HOUSING ALLOWANCE 

6 030,00 

7 200,00 

7642,80 

8 089,90 

10 

30 

10 

5060000 CELL PHONE ALLOWANCE 

11 090,00 

11 088,00 

11 769,91 

12 458,45 

10 

30 

10 

5090000 TRAVELLING ALLOWANCE 

96 000,00 

115 200,00 

122 284,80 

129 438,46 

10 

30 

10 

5094000 PERFORMANCE INCENTIVE 

3 600,00 

7 465,00 

7 924,10 

8 387,66 

10 

30 

10 

5100000 PENSION 

64 740,00 

101 890,00 

108 156,24 

114 483,37 

10 

30 

10 

5120000 MEDICAL AID 

30 000,00 

36 000,00 

38 214,00 

40 449,52 

10 

30 

10 

5140000 l/COUNCIL LEVY 

80,00 

270,00 

286,61 

303,37 

10 

30 

10 

5150000 UIF 

5 035,00 

9 230,00 

9 797,65 

10 370,81 

10 

30 

10 

5160000 SKILLS LEVY 

5 040,00 

7 465,00 

7 924,10 

8 387,66 

10 

30 

10 

5510000 DEPRECIATION 

10 000,00 

11 000,00 

12 100,00 

13 310,00 

10 

30 

10 

5653000 ISUZU KB250 D - NK5518 

15 000,00 

- 

- 

- 

10 

30 

10 

6225000 PLANNING SHARED SERVICES 

114 190,00 

100 000,00 

100 000,00 

100 000,00 

10 

30 

10 

6590000 CATERING (MUNICIPAL FUNC 

5 000,00 

5 000,00 

5 500,00 

6 050,00 

10 

30 

10 

6720001 FUEL & OIL-ISUZU KB250D NK5518 

- 

- 

- 

- 

10 

30 

10 

6955000 LICENCES VEHICLES 

715,00 

- 

- 

- 

10 

30 

10 

7090000 PRINTING & STATIONERY 

8 000,00 

10 000,00 

11 000,00 

12 100,00 

10 

30 

10 

7190000 SEMINARS & CONFERENCES 

2 000,00 

3 000,00 

3 300,00 

3 630,00 

10 

30 

10 

7230000 SUBSISTENCE;TRAVEL &ACCO 

40 000,00 

25 000,00 

27 500,00 

30 250,00 

10 

30 

10 

7388000 TOWNSHIP ESTABLISHMENT 

500 000,00 

- 

- 

- 


1 306 130,00 


1258 462,00 1331786,41 1406 311,02 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
TECHNICAL 








BUDGET 

BUDGET 

BUDGET 





DescriDtJon 

Revised 

2015/2016 

2016/2017 

2017/2018 

10 

30 

20 

3750000 

MUNICIPAL INFRASTRUCTURE GRANT (MIG) 

(17 493 000,00) 

(18 017 000,00) 

(18 579 000,00) 

(19 421000,00) 

10 

30 

20 


MUNICIPAL INFRASTRUCTURE GRANT (MIG) Prior Year 

(5 325 776,00) 

_ 

. 


10 

30 

20 

3926000 

5MALL TOWN REGENERATION GRANT 

(8 381 140,00) 




10 

30 

20 


BEST BERFORMING MUNICIPALITY 


(853 000,00) 

- 

. 

10 

30 

20 


DME-INEP 


(10 000 000,00) 

(10 000 000,00) 

(10000000,00) 






(31 199 916,00) 

(28 870 000,00) 

(28 579000,00) 

(29421000,00) 

10 

30 

20 

5010000 

5ALARIES 

1 851 600,00 

2 268 940,00 

2 408 479,81 

2 549 375,88 

10 

30 

20 

5011000 

ANNUAL BONUS 

105 770,00 

238 105,00 

252 748,46 

267 534,24 

10 

30 

20 

5040000 

OVERTIME 

5 000,00 

5 000,00 

5 000,00 

5 000,00 

10 

30 

20 

SOSOOOO 

HOUSING ALLOWANCE 

6000,00 

7 200,00 

7 200,00 

7 200,00 

10 

30 

20 

5060000 

CELL PHONE ALLOWANCE 

22 600,00 

21 216,00 

22 520,78 

23 838,25 

10 

30 

20 

S090O0O 

TRAVELLING ALLOWANCE 

392 000,00 

282 000,00 

299 343,00 

316 854, S7 

10 

30 

20 

5094000 

PERFORMANCE INCENTIVE 

11 900,00 

14 040,00 

14 903,46 

15 775,31 

10 

30 

20 

5100000 

PENSION 

215 750,00 

191 615,00 

203 399,32 

215 298,18 

10 

30 

20 

5120000 

MEDICAL AID 

26 510,00 

89 440,00 

94 940,56 

100 494,58 

10 

30 

20 

5130000 

UNIFORMS 

135 000,00 

155 000,00 

170 500,00 

187 550,00 

10 

30 

20 

5140000 

l/COUNCIL LEVY 

780,00 

900,00 

955,35 

1 011,24 

10 

30 

20 

5150000 

UIF 

16 660,00 

15 500,00 

16 453,25 

17 415,77 

10 

30 

20 

5160000 

SKILLS LEVY 

24 930,00 

22 690,00 

24 085,44 

25 494,43 

10 

30 

20 

5510000 

DEPRECIATION 

1 000 000,00 

1 100 000,00 

1 210 000,00 

133 1 000,00 

10 

30 

20 

5580000 

BUILDINGS 

- 

10 000,00 

11 000,00 

12 100,00 

10 

30 

20 

5652000 

ISU2U 250 D - NK431S (MECHANIC) 

10 000,00 

15 000,00 

16 500,00 

18 150,00 

10 

30 

20 

6205000 

CELL PHONE CONTRACTS 

32 329,00 

21000,00 

23 000,00 

26 000,00 

10 

30 

20 

6216000 

RENTAL: GAS CYLINDERS 

6310,00 

5 900,00 

6 400,00 

7 000,00 

10 

30 

20 

6310000 

MUNICIPAL SECURITY 

346 806,00 

395 000,00 

426 000,00 

461 000,00 

10 

30 

20 

6S69000 

DM E-ELECTRIFICATION PROG RAMME 

3 200 000,00 

10 000 000,00 

10 000 000,00 

10000 000,00 

10 

30 

20 

6590000 

CATERING (MUNICIPAL FUNC 

5 000,00 

- 

_ 

* 

10 

30 

20 

6610000 

CLEANING MATERIALS 

21 900,00 

15 000,00 

16 500,00 

18 150,00 

10 

30 

20 

6690000 

ELECTRICITY 

13 937,00 

20 000,00 

22 000,00 

24 200,00 

10 

30 

20 

6720033 

F&O BAKKIE MECHANIC - NK4315 

20 000,00 

30 000,00 

33 000,00 

36 300,00 

10 

30 

20 

6725000 

F&0:GAINS AND LOSSES 

8 000,00 

5 000,00 

5 500,00 

6 050,00 

10 

30 

20 

6760000 

GENERAL EXPENSE5 

4 400,00 

. 

- 

_ 

10 

30 

20 

6955000 

LICENCES VEHICLES 

1 870,00 

2 000,00 

2 200,00 

2 420,00 

10 

30 

20 

6958000 

PMU UNIT 

655 000,00 

900 850,00 

928 950,00 

971 050,00 

10 

30 

20 

7090000 

PRINTING & STATIONERY 

8 000,00 

10 000,00 

11 000,00 

12 100,00 

10 

30 

20 

7120000 

PROFFESSIONALSUBS 

1 100,00 

2 000,00 

2 200,00 

2 420,00 

10 

30 

20 

7190000 

SEMINARS & CONFERENCES 

5 500,00 

6 000,00 

6 600,00 

7 260,00 

10 

30 

20 

7230000 

SUB5ISTENCE;TRAVEL &ACCO 

77 000,00 

40 000,00 

44 000,00 

48 400,00 






8 231 652,00 

15 889 396,00 

16 285 379,43 

16 716 442,45 






RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
GRASS CUTTING 






Description 

Revised 

BUDGET 

2015/2016 

BUDGET 

2016/2017 

BUDGET 

2017/2018 

1 

10 

45 

40 

3290000 MUNICIPAL PLANTATIONS 

(4 100 000,00) 

(2 100 000,00) 

(2 100 000,00) 

(2 100 000,00) 

1 

10 

45 

40 

3935000 SPORTS & RECREATION GRAN T 

- 

_ 



1 

10 

45 

40 

4260000 SALES HAY 

(8 000,00) 

(7 000,00) 

(7 000,00) 

(7 000,00) 





DISTRICT MUNICIPALITY - EHO /EPWP PROJE< 

(76 000,00) 

- 

- 

. 






(4 184 000,00) 

(2 107 000,00) 

(2 107 000,00) 

(2 107 000,00) 

1 

10 

45 

40 

5010000 SALARIES 

872 655,00 

985 970,00 

1 043 649,25 

1 107 833,67 

1 

10 

45 

40 

5011000 ANNUAL BONUS 

74 390,00 

82 165,00 

86 971,65 

92 320,41 

1 

10 

45 

40 

5040000 OVERTIME 

10 000,00 

10 000,00 

10 000,00 

10 000,00 

1 

10 

45 

40 

5060000 CELL PHONE ALLOWANCE 

5 690,00 

11 090,00 

11 738,77 

12 460,70 

1 

10 

45 

40 

5094000 PERFORMANCE INCENTIVE 

8 930,50 

9 860,00 

10 436,81 

11 078,67 

1 

10 

45 

40 

5100000 PENSION 

126 125,00 

134 590,00 

142 463,52 

151 225,02 

1 

10 

45 

40 

5120000 MEDICALA1D 

12 790,00 

76 990,00 

81 493,92 

86 505,79 

1 

10 

4S 

40 

5140000 l/COUNCIL LEW 

860,00 

990,00 

1 047,92 

1 112,36 

1 

10 

45 

40 

5150000 UIF 

9 730,00 

10 800,00 

11 431,80 

12 134,86 

1 

10 

45 

40 

5160000 SKILLS LEVY 

9 930,00 

9 860,00 

10 436,81 

11 078,67 

1 

10 

45 

40 

5510000 DEPRECIATION 

4 800,00 

5 280,00 

5 808,00 

6 388,80 

1 

10 

45 

40 

5599000 REPAIRS & MAINTENANCE 

76 974,00 

76 000,00 

83 600,00 

91 960,00 

1 

10 

45 

40 

5665000 NEW TRACTOR 

15 000,00 

20 000,00 

22 000,00 

24 200,00 

1 

10 

45 

40 

5870000 LAWNMOWERS & BRUSHCUTTER 

60 000,00 

65 000,00 

71 500,00 

78 650,00 

1 

10 

45 

40 

5989000 TOYOTA BAKKIE ESTATES NK1498 

10 000,00 

15 000,00 

16 500,00 

18 150,00 

1 

10 

45 

40 

5990000 ISUZU KB200 - NK5596 

10 000,00 

15 000,00 

16 500,00 

18 150,00 

1 

10 

45 

40 

5996000 TRACTOR NK 3552 

20000,00 

25 000,00 

27 500,00 

30 250,00 

1 

10 

45 

40 

6015000 ALL TRAILERS 

10 000,00 

20 000,00 

22 000,00 

24 200,00 

1 

10 

45 

40 

6230000 IN5URANCE 

126 421,00 

130 000,00 

143 000,00 

157 300,00 

1 

10 

45 

40 

6310000 MUNICIPAL SECURITY 

197 550,00 

198 000,00 

217 800,00 

239 580,00 

1 

10 

45 

40 

6500000 ADMIN COST5 

429 346,00 

430 000,00 

473 000,00 

520 300,00 

1 

10 

45 

40 

65 70000 CHEMICALS 

97 746,00 

95 000,00 

104 500,00 

114 950,00 

1 

10 

45 

40 

DISTRICT MUNICIPALITY - EHO /EPWP PROJEf 

16 000,00 

- 

- 

- 

1 

10 

45 

40 

6720006 FUEL & OIL- NK5596 

30 000,00 

40 000,00 

44 000,00 

48 400,00 

1 

10 

45 

40 

6720008 FUEL & OIL- LAWNMOWERS A NO BRUSHCUT 

80 000,00 

100 000,00 

110 000,00 

121 000,00 

1 

10 

45 

40 

6720024 FUEL AND OIL TRAC-NK3552 

25 000,00 

30 000,00 

33 000,00 

36 300,00 

1 

10 

45 

40 

6720028 FUEL & OIL NK1498 

30 000,00 

35 000,00 

38 500,00 

42 350,00 

1 

10 

45 

40 

6720045 F&O: NEW TRACTOR 

15 000,00 

20 000,00 

22 000,00 

24 200,00 

1 

10 

45 

40 

6795000 COMMISSION 

71 433,00 

70 000,00 

77 000,00 

84 700,00 

1 

10 

45 

40 

6955000 LICENCES VEHICLES 

1000,00 

2 000,00 

2 200,00 

2 420,00 

1 

10 

45 

40 

7055000 CONTRACTORS 

2 808 708,00 

2 500 000,00 

2 750 000,00 

3 025 000,00 






5 266 078,50 

5 223 595,00 

5 690 078,43 

6 204 198,96 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
SOUQ WASTE 


1 

10 

55 

10 

3210000 

Description 

REFUSE COLLECTION 

1 

10 

55 

10 

3420000 

INTEREST ON ACCOUNTS 

1 

10 

55 

10 

3680000 

INTERGOVERNMENTAL- EQUITABLE SHARE 


1 

10 

55 

10 

5010000 

SALARIES 

1 

10 

55 

10 

5011000 

ANNUAL BONUS 

1 

10 

55 

10 

5040000 

OVERTIME 

1 

10 

55 

10 

5050000 

HOUSING ALLOWANCE 

1 

10 

55 

10 

5060000 

CELL PHONE ALLOWANCE 

1 

10 

55 

10 

5094000 

PERFORMANCE INCENTIVE 

1 

10 

55 

10 

5100000 

PENSION 

1 

10 

55 

10 

5120000 

MEDICAL AID 

1 

10 

55 

10 

5140000 

I/CO UN Cl L LEVY 

1 

10 

55 

10 

5150000 

UIF 

1 

10 

55 

10 

5160000 

SKILLS LEVY 

1 

10 

55 

10 

5510000 

DEPRECIATION 

1 

10 

55 

10 

5666000 

5KIPPER TRUCK NK 

1 

10 

55 

10 

5997000 

ISUZU REFUSE TRUCK NK563 2 

1 

10 

55 

10 

6010000 

REFUSE COMPACTOR HANOMAG 

1 

10 

55 

10 

6550000 

BAGS REFUSE 

1 

10 

55 

10 

6720030 

FUEL & OIL NK 5632 

1 

10 

55 

10 

6720039 

F&O: REFUSE COMPACTOR HAN NOMAG 

1 

10 

55 

10 

6720046 

F&O: SKIPPER TRUCK NK 

1 

10 

55 

10 

6740000 

FREE BASIC SERV GRANT 

1 

10 

55 

10 

6955000 

LICENCES VEHICLE5 



BUDGET 

BUDGET 

BUDGET 

Revised 

2015/2016 

2016/2017 

2017/2018 

(400 000,00) 

(450 000,00) 

(450 000,00) 

(450 000,00) 

(28 000,00) 

(25 000,00) 

(26 500,00) 

(28 090,00) 

(200 000,00) 

(3 053 494,00) 

(825 000,00) 

(907 500,00) 

(628 000,00) 

(3 528 494,00) 

(1 301 500,00) 

(1385 590,00) 

490 490,00 

616 420,00 

652 480,57 

692 608,13 

44 210,00 

51 370,00 

54 375,15 

57 719,22 

20 000,00 

20 000,00 

20 000,00 

20 000,00 

6 420,00 

- 

- 

_ 

5 690,00 

5 690,00 

6 022,87 

6 393,27 

5 310,00 

6 165,00 

6 525,65 

6 926,98 

144 930,00 

84 150,00 

89 072,78 

94 550,75 

11 450,00 

28 433,00 

30 096,33 

31 947,25 

470,00 

540,00 

571,59 

606,74 

5 870,00 

6 735,00 

7 129,00 

7 567,43 

6 020,00 

6 165,00 

6 525,65 

6 926,98 

400 000,00 

440 000,00 

484 000,00 

532 400,00 

15 000,00 

30 000,00 

33 000,00 

36 300,00 

35 000,00 

40 000,00 

44 000,00 

48 400,00 

30 000,00 

40 000,00 

44 000,00 

48 400,00 

30 000,00 

40 000,00 

44 000,00 

48 400,00 

115 000,00 

120 000,00 

132 000,00 

145 200,00 

49 500,00 

50 000,00 

55 000,00 

60 500,00 

30 000,00 

40 000,00 

44 000,00 

48 400,00 

55 000,00 

35 000,00 

35 000,00 

35 000,00 

11 500,00 

15 000,00 

16 500,00 

18 150,00 

1 511 860,00 

1 675 668,00 

1 804 299,58 

1 946 396,75 


(1 852 826,00) 


RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
STREET CLEANING 

BUDGET BUDGET BUDGET 






Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

1 

10 

55 

20 

5010000 SALARIES 

451 550,00 

652 790,00 

690 978,22 

733 473,38 

1 

10 

55 

20 

5011000 ANNUAL BONUS 

38 380,00 

54 400,00 

57 582,40 

61 123,72 

1 

10 

55 

20 

5094000 PERFORMANCE INCENTIVE 

4 500,00 

6 530,00 

6 912,01 

7 337,09 

1 

10 

55 

20 

5100000 PENSION 

107 860,00 

89 100,00 

94 312,35 

100 112,56 

1 

10 

55 

20 

5120000 MEDICAL AID 

8 000,00 

30 816,00 

32 618,74 

34 624,79 

1 

10 

55 

20 

5140000 l/COUNCIL LEVY 

470,00 

720,00 

762,12 

808,99 

1 

10 

55 

20 

5150000 UIF 

4 860,00 

7 070,00 

7 483,60 

7 943,84 

1 

10 

55 

20 

5160000 SKILLS LEVY 

4 860,00 

6 530,00 

6 912,01 

7 337,09 


620 480,00 847 9S6,00 


897 561,43 


952 761,45 



RICHMOND MUNICIPALITY 
2015/2016 : DRAFT BUDGET INPUT 
LANDFILL SITE 

BUDGET BUDGET BUDGET 






Description 

Revised 

2015/2016 

2016/2017 

2017/2018 

1 

10 

55 

30 

4250000 REFUSE DUMP FEES 

(27 000,00) 

{20 000,00) 

(20 000,00) 

(20 000,00) 

1 

10 

55 

30 

DONATED ASSETS 

(274 782,09) 

- 

- 

- 






(301 782,09) 

(20 000,00) 

(20 000,00) 

(20 000,00) 

1 

10 

55 

30 

5010000 SALARIES 

256 870,00 

334 220,00 

353 771,87 

375 528,84 

1 

10 

55 

30 

5011000 ANNUAL BONUS 

23 080,00 

27 855,00 

29 484,52 

31 297,82 

1 

10 

55 

30 

5040000 OVERTIME 

5 000,00 

5 000,00 

5 500,00 

6 000,00 

1 

10 

55 

30 

5060000 CELL PHONE ALLOWANCE 

5 690,00 

3 600,00 

3 810,60 

4 044,95 

1 

10 

55 

30 

5094000 PERFORMANCE INCENTIVE 

2 770,00 

3 350,00 

3 545,98 

3 764,05 

1 

10 

55 

30 

5100000 PENSION 

37 795,00 

45 630,00 

48 299,36 

51 269,77 

1 

10 

55 

30 

5120000 MEDICAL AID 

18 770,00 

28 435,00 

30 098,45 

31 949,50 

1 

10 

55 

30 

5140000 I/COUNCIL LEVY 

235,00 

270,00 

285,80 

303,37 

1 

10 

55 

30 

5150000 UIF 

3 070,00 

3 660,00 

3 874,11 

4 112,37 

1 

10 

55 

30 

5160000 SKILLS LEVY 

3 110,00 

3 350,00 

3 545,98 

3 764,05 

1 

10 

55 

30 

6310000 MUNICIPAL SECURITY 

253 160,00 

288 000,00 

311 000,00 

336 000,00 

1 

10 

55 

30 

6690000 ELECTRICITY 

21 098,00 

30 000,00 

32 100,00 

34 347,00 

1 

10 

55 

30 

6902000 INTEREST PAID: UNWINDING OF LANDFILL SITE 

200 200,00 

250 000,00 

267 500,00 

286 225,00 

1 

10 

55 

30 

6955000 LICENCES VEHICLE5 

880,00 

1 500,00 

1 605,00 

1717,35 


831 728,00 


1024 870,00 


1 094 421,65 


1 170 324,07 


Paste Capital 


TOTAL PCH 

BMHflBttBl eesdpfifis tumping amount department 


Municipal Manager 

Communication equipment (loud hailing, 2 speakers 

HM 

100 000,00 

100 000,00 

QiiiaaB 

Office furniture 

RM 

15000,00 

83000,00 

laptop Computer ( SM Corporate) 

HM 

11000,00 


Tools (Building maintenance) 

RM 

3 000, IB 


Access Controlled Door to Admin Blot* 

RM 

20 000,00 


Alterations to Reception Area/Offices 

RM 

25000,00 


Digital Attendance Recorder (OTG) 

RM 

8000,00 



Local Economic 

informal Trader Units 

RM 

100000,00 

100000/10 

Community 




23000,00 

IX 

laptop : 5M Secretary 

RM 

8 000.00 


lx 

Canopy (Musa SakMe) 

HM 

15 000,00 


Community fa^tftfles 



510 000,00 

lx 

Concrete palfctadn SlaMa Sporttground 

RM 

100000,00 


lx 

Snuuomeni Toilets rehabilitation 

RM 

io 000,00 



Perorations Agricultural Mall { Mage and Toilets) 

RM 

400 000,00 


Utaa 

lx 

laptop Computer 

RM 

8000,00 

48 000,00 

lx 

Generator 

RM 

« 000,00 


Licensing 





IX 

forms Rack 

RM 

2000,00 

2 000.00 

learners 

20 x 

Side Chalri 

RM 

10 000,00 

10000,00 

Traffic 

Sx 

Cluster workstations 

RM 

10 000,00 

U0 000,00 

lx 

Traffic Vehicle 

RM 

10O 000,00 


Ax 

Desktop computers 

RM 

43 000,00 


12 X 

Queuinj! System (Poles and TV) 

RM 

15 000,00 


lx 

Office Desk with drawers 

RM 

5 500,00 


ix 

Filing calmuKi and shelving 

RM 

40 000,00 


lx 

Desktop colour printer 

RM 

5 000,00 


Protection services 



300000,00 


CC7V Cameras 

RM 

300 000,00 


Technical 





Rural Roads 

Grader 

RM 

2 700 000,00 

3400 000,00 


1 Tipper Trucks 

RM 

700 COO, 00 


UftfiLfioadt 

1 Bakklc 

RM 

2S5 000,00 

2282 000,00 


Plate compactor 

RM 

50 000,00 



aow/ioi? 


mams. 



Sired Lights 

Stormwater Upgrade Ward 1 


RM 

RM 


400 000.00 
J S47 000,00 


10 Brushcutters 


1 Garen Slash 


Bstvss . 


6 Skip bint 


20 tcnne Trolley Jarlt 


1 Laptop 


TOTAL BASIC CAPITAL 

flfiBGE. 

Wireless links to Testing Ground & Works Yard 
Cabling for Testing Ground & Waits Yard 
Generator 

stormwater upgrade Ward 1 

Mte funded project s 

Resurfacing of residential roads Ward 1 

Construction of Sidewalks from Bambatha Site to 
NdatJkona 

Tarring of internal roads In Ward 3 
Tarring of internal roads in Ward 4 
Construction of BuJawyo Sports frela Ward S 


HM 

RM 


RM 


RM 


RM 


MStG 

MSIG 

MSJG 

CQGTA 

MIG 

MIG 

MIG 

MIG 

MIG 


Ufltw>,oo 

60 000,00 
50 000,00 

300000.00 

300000,00 

20 000,00 

20 000,00 

iQ 000,00 

10 000,00 

1 7 62lsdo'oflf 

260000, DO 

ioo 000,00 

100 000 flO 

60 000,00 r 

853000.00 

853 000,00 

17 116 150,00 

4 000 000,00 17116150 

900 050,00 

4 000 000,00 
4 000 000,00 


4ocoot50.c>o 


1 116 150,00 

Construction of Sulawyo Sporurield Ward 5 

MIG 

1 383 85 0.00 


Construction of Moyeni Gravel Road Ward 6 

MIG 

4 000 000,110 


Resurfacing of Smoiomonl Main Road Ward 

MIG 

4 K10 OKI, 00 „ 


Construction of Uganda Gravel Road Ward 7 

MIG 

4 000 000,00 


Roads Pro}«ctt 

MiG 

4 266 200,00 

1 18 229 150,00 | 



| 17 6S0 050,00} 


18 449 950,00 


| 18 449 980#! | 



RICHMOND MUNICIPALITY 


SERVICE DELIVERY AND BUDGET 
IMPLEMENTATION PLAN 2015/2016 


PREPARED BY: 

RICHMOND MUNICIPALITY 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 




1. Table of Contents 


No 

Description 

Page 

No 

Annexure 

1. 

Table of Contents 

ms 


2. 

Introduction 



3. 

Monthly Projections of revenue to be collected 
for each source 



4. 

Monthly projections of expenditure (operating 
and capital) 

4- 


5. 

Quarterly projections of service delivery targets 
and performance indicators 



6. 

Ward information for expenditure and service 
delivery and detailed capital works plan 



7. 

Approval by the Mayor 




2. Introduction 

The Service Delivery and Budget Implementation Plan (SDBIP) is a legal requirement in terms of section 53 
(1) of the Municipal Finance Management Act, Act No. 56 of 2003, 

The SDBIP provides the link between the Mayor, Council and the administration, and facilitates the process for 
holding management accountable for its performance. The SDBIP is a management, implementation and 
monitoring tool that will assist the Mayor, Councilors, municipal manager, senior managers and the community. 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 


















3. MONTHLY PROJECTIONS OF REVENUE TO BE COLECTED BY EACH SOURCE 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 



KZN227 Richmond - Supporting Table SA25 Budgeted monthly revenue and expenditure 


Description 

R thousand 

Ref 





Budget Year 2015/16 

Medium Term Revenue and Expenditure 
Framework 

July 

August 

SepL 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 

Property rates 

Property rates - penalties & collection charges 

Service charges - electricity revenue 

Service charges - water revenue 

Service charges - sanitation revenue 

Service charges - refuse revenue 

Service charges - other 

Rental of facilities and equipment 

Inierest earned - external investments 

Interest earned - outstanding debtors 

Dividends received 

Fines 

Licences and permits 

Agency services 

Transfers recognised - operational 

Other revenue 

Gains on disposal oi PPE 


25 

30 

231 

208 

9 

57 

47 

18 802 

93 

6 000 

25 

38 

231 

208 

9 

10 

57 

47 

3 653 

99 

444 

25 

38 

231 

208 

9 

57 

47 

3 653 

99 

444 

25 

38 

231 

208 

9 

57 

47 

3 653 

99 

444 

25 

38 

231 

208 

9 

10 

57 

47 

11000 

99 

444 

25 

38 

231 

208 

9 

57 

47 

3 653 

99 

444 

25 

38 

231 

206 

9 

10 

57 

47 

3 653 

99 

444 

25 

38 

231 

208 

9 

57 

47 

3 653 

99 

444 

25 

38 

231 

20B 

9 

10 

57 

47 

10 500 

99 

444 

25 

38 

231 

208 

9 

57 

47 

3 653 

99 

444 

25 

3B 

23! 

208 

9 

10 

57 

47 

3 653 

99 

100 

25 

38 

231 

208 

9 

3 

57 

47 

(0) 

99 

10100 

300 

450 

2 772 

2500 

105 

53 

686 

569 

69 606 

1 190 

10 500 

318 

450 

3 049 

2 650 

111 

53 

686 

626 

69885 

1 161 

9815 

337 

450 

3354 

2 BOO 
118 

53 

686 

680 

72 221 

149 

Total Revenue {excluding capital transfers and contrib 

ution 

19 596 

10377 

4 8J2 

4 812 

12169 

4 812 

4822 

4 812 


4 812 

4 822 

815 

88 329 

89 488 

90 670 


















Employee related costs 


2 794 

2 794 

2 794 

2 794 

5 013 

2 794 

2 794 

2 794 

2 794 

2 794 

2 794 

4185 

37137 



Remuneration of councillors 


373 

373 

373 

373 

373 

373 

373 

373 

373 

373 

373 

373 

4 473 

4 7d1 


Deb! impairment 







300 





350 

435 

1 085 



Depreciation & asset impairment 


658 

658 

658 

658 

658 

658 

658 

650 

658 

658 

650 


7 899 

8 688 


Finance charges 


15 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 


175 

1B6 


Bulk purchases 

















Other materials 

















Contracted services 


500 

580 

580 

580 

580 

580 

500 

580 

580 

500 

580 


7 489 



Transfers and grants 


45 

45 

45 

45 

45 

45 

45 

45 

45 

45 

45 

46 

545 

554 

640 

Other expenditure 


2 776 

2 776 

2 770 

2 776 

2 776 

2 776 

2776 

2 776 

2 776 

2 776 

2 776 

258 

30 794 

32 216 

32 647 

Loss on disposal ot PPE 













- 




Total Expenditure 


7241 

7241 

7241 

7 241 

9460 


7241 

7 241 

7 241 

7241 

7 591 

7 079 

89 597 

94 625 


Surplus/(Deficit) 


12356 

3137 

(2429) 

(2 429) 

2 709 

(2 729) 

(2419) 

(2 429) 

4 428 

(2 429) 

(2 769) 

(6 264) 

■KEl 

(5 137) 


Transfers recognised - capital 


1448 

1448 

1 44B 

1448 

1448 

1448 

1448 

1448 

1448 

1 448 

1448 

1448 

UK m 

17 650 


Contributions recognised - capital 














Wm 



Contributed assets 













_ 

1 1 1 



Surplus/(Deficit) after capital transfers & 


















contributions 



4 585 

(981) 

(981) 

4157 

(1281) 

(971) 

(981) 

5 876 

(981) 

(1 321) 

(4 815) 

16108 

12 513 

9 245 

Taxation 

















Attributable to minorities 

















Share of surplus/ {deficit) of associate 

















Surplus/(DefIcit) 

1 

13804 

4585 

(981) 


4157 

(1281) 



5 876 

(981) 

(1 321) 

(4815) 

16108 


9 245 

Heterencqs 







f. Surplus (Deficit) must reconcile with Budgeted Financial Performance 


























4. MONTHLY PROJECTIONS OF EXPENDITURE (OPERATING AND CAPITAL) . 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 


KZN227 Richmond - Supporting Table SA25 Budgeted monthly revenue and expenditure 


Description 

Ref 




Budget Year 201 5/1 6 

Medium Term Revenue and Expenditure 
Framework 

R thousand 


July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year +2 
2017/18 

Property rates 

Property rates - penalties & collection charges 

Service charges - electricity revenue 


25 

6000 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

444 

25 

100 

25 

10100 

300 

10 500 

318 

9815 

337 

Service charges - water revenue 













~ 

“ 

- 

- 

Service charges - sanitation revenue 














“ 


- 

Service charges - refuse revenue 

Service charges - other 


38 

38 

38 

38 

38 

38 

38 

38 

38 

38 

38 

38 

450 

450 

450 

Rental of facilities and equipment 

Interest earned • externa) investments 

Interest earned - outstanding debtors 

Dividends received 


231 

208 

9 

231 

208 

9 

231 

208 

9 

231 

208 

g 

231 

208 

g 

231 

208 

9 

231 

208 

9 

231 

206 

9 

231 

208 

9 

231 

208 

9 

231 

208 

9 

231 

208 

9 

2 772 

2 500 

105 

3 049 

2 650 

111 

3354 

2 800 
118 

Fines 

Licences and permits 

Agency services 

Transfers recognised - operational 

Other revenue 

Gains on disposal of PPE 

Total Revenue (excluding capital transfers and contrib 

ution 

57 

47 

18 882 

99 

to 

57 

47 

3653 

99 

57 

47 

3 653 

99 

57 

47 

3 653 

99 

10 

57 

47 

11000 

99 

57 

47 

3653 

99 

10 

57 

47 

3653 

99 

57 

47 

3653 

99 

10 

57 

47 
10 500 

99 

57 

47 

3 653 

99 

10 

57 

47 

3 653 

99 

3 

57 

47 

(0) 

99 

53 

686 

569 

69 606 

1 190 

53 

686 

626 
69 885 

1 161 

53 

688 

688 

72221 

149 

19 596 

10377 

4 812 

4 812 

12169 

4 812 

4822 

4612 

11669 

4 812 

4 822 

815 

88329 

89 488 

90670 

Expenditure By Type 

















Employee related costs 

Remuneration of councillors 

Debt impairment 

Depreciation & asset impairment 

Finance charges 

Bulk purchases 

Other materials 


2 794 

373 

65 B 

15 

2 794 

373 

658 

15 

2 794 

373 

658 

15 

2 794 

373 

656 

15 

5013 

373 

658 

15 

2794 

373 

300 

658 

15 

2 794 
373 

658 

15 

2 794 

373 

658 

15 

2 794 

373 

658 

15 

2 794 

373 

658 

15 

2 794 

373 

350 

658 

15 

4185 

373 

435 

658 

15 

37137 

4 473 

1085 

7 899 

175 

39 625 

4 741 

650 

8 688 

186 

42 399 

5 026 

650 

9 557 

197 

Conlracted services 

Transfers and grants 

Olher expenditure 

Loss on disposal of PPE 


580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

. 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 776 

580 

45 

2 770 

1 110 

46 

258 

7 489 
545 

30 794 

7 963 

554 

32 218 

8 759 

640 

32 647 

Total Expenditure 


7 241 

7 241 

7 241 

7241 

9 460 

7 541 

7 241 

7241 

7241 

7241 

7591 

7 079 

89 597 

94625 

99 874 

Surplus/(Deficit) 

Transfers recognised - capital 

Contributions recognised - capital 


12 356 

1448 

3137 

1448 

(2 429) 
1448 

(2429) 

1448 

2 709 

1448 

(2 729) 
1448 

(2 419) 
1448 

(2 429) 
1448 

4 428 

1448 

(2429) 

1448 

(2 769) 
1448 

(6264) 

1448 

(1 268) 
17 376 

(5 137) 
17 850 

(9 205) 
18 450 

Contributed assets 

— — 

















Surplus/(Deficit) after capital transfers & 
contributions 

Taxation 


13 804 

4 585 


(981) 

4157 

(1 281) 



5 876 

(981) 


(4815) 

16108 

12 513 

9 245 

Attributable to minorities 
















_ 

Share of surplus/ (deficit) of associate 













- 

- 

- 

_ 

References 




Sgi 



(1281) 



5 876 

(981) 


(4 815) 

16108 

12 513 

9245 


1, Surplus (Deficit) must reconcile with Budgeted Financial Performance 























5. QUARTERLY PROJECTIONS OF SERVICE DELIVERY TARGETS AND 

PERFORMANCE INDICATORS 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 





















































tf {troptmaa developed to sbmubte 




















































































































































































































































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6. WARD INFORMATION FOR EXPENDITURE AND SERVICE DELIVERY AND 

DETAILED CAPITAL WORKS PLAN 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 



Capital Budget 2015/2016 


Department Otv Item 


Funding Amount 


Communication equipment (loud hailing , 2 speakers , digital recorder, video camera 
,wall banners) 

RM 

100 000,00 

Corporate 



Office furniture 

RM 

15 000,00 

Laptop Computer ( SM Corporate) 

RM 

12 000,00 

Tools (Building maintenance) 

RM 

3 000,00 

Access Controlled Door to Admin Block. 

RM 

20 000,00 

Alterations to Reception Area/Offices 

RM 

25 000,00 

Digital Attendance Recorder (DTG) 

RM 

8 000,00 


Local Economic Development 




Informal Trader Units 

RM 

100 000,00 

Community 




1 X 

Laptop : SM Secretary 

RM 

8 000,00 

I X 

Canopy {Musa Bakkie) 

RM 

15 000,00 

Community Facilities 



1 X 

Concrete palisade Slahla Spovtsground 

RM 

100 000,00 

I X 

Smozomeni Toilets rehabilitation 

RM 

10 000,00 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 



Renovations Agricultural Hail { Stage and Toilets) 


RM 


400 000,00 


Library 




1 X 

Laptop Computer 

RM 

8 000,00 

I X 

Generator 

RM 

40 000,00 

Licensing 




1 X 

Forms Rack 

RM 

2 000,00 

Learners 




20 x 

Side Chairs 

RM 

10 000,00 

Traffic 




3 x 

Cluster workstations 

RM 

10 000,00 

l X 

Traffic Vehicle 

RM 

200 000,00 

Testing Ground 



4 x 

Desktop computers 

RM 

48 000,00 

12 x 

Queuing System (Poles and TV) 

RM 

15 000,00 

lx 

Office Desk with drawers 

RM 

5 500,00 

1 X 

Filing cabinets and shelving 

RM 

40 000,00 

1 X 

Desktop colour printer 

RM 

5 000,00 

Protection services 




CC TV Cameras RM 300 000,00 


Rural Roads 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 




Grader 

RM 

2 700 000,00 

l Tipper Trucks 

RM 

700 000,00 


Urban Ronds 



1 Bakkie 

RM 

285 000,00 

Plate compactor 

RM 

50 000,00 

Street Lights 

RM 

400 000,00 

Stormwater upgrade Ward 1 

RM 

V 547 000,00 


Grass Cutting 


10 Bmshcutters 

RM 

60 000,00 

1 Garcu Slash 

RM 

50 000,00 

Refuse 

6 Skip bins 

RM 

300 000,00 

Technical : Workshop 

20 tonne Trolley Jack 

RM 

20 000,00 

1 Laptop 

RM 

10000,00 

Wireless links to Testing Ground & Works Yard 

MS1G 

100 000,00 

Cabling for Testing Ground & Works Yard 

MS1G 

100 000,00 

Generator 

MS1G 

60 000,00 

Stormwater upgrade W aid 1 

COGTA 

853 000,00 

Mic funded projects 

Resurfacing of residential roads Ward 1 

MIG 

4 000 000,00 

Construction of Sidewalks from Bambatha Site to Ndabikona 

MIG 

4 000 000,00 

Tarring of internal roads in Ward 3 

MIG 

4 000 000,00 

Tarring of internal roads in Ward 4 

MIG 

4 000 000,00 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 



Construction of Bulawyo Sportsfield Ward 5 


MIG 


I 116- 150,00 


Richmond Municipality, Service Delivery and Budget Implementation Plan 2015/2016 


7. APPROVAL BY THE MAYOR 


The First Draft Service Delivery and Budget Implementation Plan for the Richmond Municipality for 
20 1 5/20 1 6 was approved by the Honourable Mayor, Councillor A Ragavaloo on 


Signature Date 

Councillor A Ragavaloo 


Richmond Municipality, Service Delivery and Budget implementation Plan 2015/2016