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TSHWANE 


IGNITING EXCELLENCE 



MTREF 

Medium-term Revenue and Expenditure Framework 


2015/16 




TABLE OF CONTENTS 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Executive Mayor’s Budget Address 11 

Part 1 - Annual Budget 37 

1.1 Council Resolutions 39 

1.2 Executive Summary 41 

1.3 Operating Revenue Framework (parent) 45 

1.4 Operating expenditure framework (parent) 59 

1.5 Capital expenditure 63 

1.6 Annual budget tables - parent municipality 69 

1.7 Annual budget tables - consolidated municipality 87 

Part 2 - Supporting Documentation 1 03 

2.1 Overview of the annual budget process 105 

2.2 Overview of alignment of annual budget with IDP 109 

2.3 Measurable performance objectives and indicators 113 

2.4 Overview of budget-related-policies 119 

2.5 Overview of budget assumptions 123 

2.6 Overview of budget funding 127 

2.7 Expenditure on grants and reconciliations of unspent funds 139 

2.8 Transfers and grants made by the municipality 141 

2.9 Councillor and employee benefits 143 

2.10 Monthly targets for revenue, expenditure and cash flow 147 

2.11 Contracts with future budgetary implications 153 

2.12 Capital expenditure details 155 

2.13 Status of compliance with legislation 171 

2.14 Municipality supporting tables 173 

2.15 Annual budgets and service delivery agreements - municipal entities 205 

2.16 Annual budgets and service delivery and budget implementation plans - departments 225 

2.17 City Manager’s quality certificate 237 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


LIST OF TABLES 

Table 1 : Consolidated overview of the 201 5/1 6 MTREF 44 

Table 2: Summary of revenue classified by main revenue source 45 

Table 3: Percentage growth in revenue by main revenue source 46 

Table 4: Operating transfers and grant receipts 47 

Table 5: Proposed tariff increases over the medium term 48 

Table 6: Property rates tariffs 49 

Table 7: Residential property rates scenarios 50 

Table 8: Water tariffs 51 

Table 9: Comparison of current water charges and increases (domestic) over the medium-term 52 

Table 10: Comparison between current sanitation charges and increases 52 

Table 11 : Comparison between current sanitation charges and increases, single-dwelling houses 53 
Table 12: Sliding scale tariffs 54 

Table 13: Comparison between current electricity charges and increases (domestic) 54 

Table 14: Comparison of current refuse removal charges and increases 55 

Table 15: Monthly amount payable for refuse removal 56 

Table 16: MBRR SA1 4 - Household bills 58 

Table 17: Summary of operating expenditure by standard classification item 59 

Table 18: Repairs and maintenance per asset class 62 

Table 19: 2015/16 medium-term capital budget per vote 64 

Table 20: Renewal of existing assets 64 

Table 21 : MBRR A1 - Budget summary 69 

Table 22: MBRR A2 - Budgeted financial performance (revenue and expenditure by 
standard classification) 71 

Table 23: MBRR A3 - Budgeted financial performance (revenue and expenditure by 
municipal vote) 73 

Table 24: Surplus or deficit calculations for the trading services 74 

Table 25: MBRR A4 - Budgeted financial performance (revenue and expenditure) 75 

Table 26: MBRR A5 - Budgeted capital expenditure by vote, standard classification and 
funding source 77 

Table 27: MBRR A6 - Budgeted financial position 79 

Table 28: MBRR A7 - Budgeted cash flow statement 81 

Table 29: MBRR A8 - Cash-backed reserves or accumulated surplus reconciliation 82 

Table 30: MBRR A9 - Asset management 83 

Table 31 : MBRR A1 0 - Basic service delivery measurement 85 

Table 32: MBRR A1 - Consolidated budget summary 87 

Table 33: MBRR A2 - Consolidated budgeted financial performance (revenue and expenditure 
by standard classification) 89 

Table 34: MBRR A3 - Consolidated budgeted financial performance (revenue and expenditure by 
municipal vote) 90 

Table 35: MBRR A4 - Consolidated budgeted financial performance (revenue and expenditure) 91 

Table 36: MBRR A5 - Consolidated budgeted capital expenditure by vote, standard classification 

and funding 93 

Table 37: MBRR A6 - Consolidated budgeted financial position 95 

Table 38: MBRR A7 - Consolidated budgeted cash flows 97 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 39: MBRR A8 - Consolidated cash-backed reserves or accumulated surplus reconciliation 98 
Table 40: MBRR A9 - Consolidated asset management 99 

Table 41 : MBRR A1 0 - Consolidated basic service delivery measurement 1 01 

Table 42: Summary of budget time schedule 106 

Table 43: MBRR SA4 - Reconciliation between the IDP strategic objectives and budgeted 
revenue 111 

Table 44: MBRR SA5 - Reconciliation between the IDP strategic objectives and budgeted 
operating expenditure 112 

Table 45: MBRR SA6 - Reconciliation between the IDP strategic objectives and budgeted 
capital expenditure 112 

Table 46: MBRR SA8 - Performance indicators and benchmarks 114 

Table 47: National Scale Ratings 123 

Table 48: Breakdown of operating revenue over the medium term 1 27 

Table 49: MBRR SA1 5 - Investment particulars by type 1 29 

Table 50: MBRR SA1 6 - Investment particulars by maturity 1 29 

Table 51 : Sources of capital revenue over the MTREF 130 

Table 52: MBRR SA17 - Detail of borrowings 131 

Table 53: MBRR SA18 - Capital transfers and grant receipts 132 

Table 54: MBRR A7 - Budgeted cash flow statement 133 

Table 55: MBRR A8 - Cashbacked reserves or accumulated surplus reconciliation 134 

Table 56: MBRR SA10- Funding compliance measurement 136 

Table 57: MBRR SA19 - Expenditure on transfers and grant programmes 139 

Table 58: MBRR SA20 - Reconciliation between transfers, grant receipts and unspent funds 140 

Table 59: MBRR SA21 - Transfers and grants made by the municipality 141 

Table 60: MBRR SA22 - Summary of councillor and staff benefits 143 

Table 61 : MBRR SA23 - Salaries, allowances and benefits (political office bearers/ 
councillors/senior managers) 144 

Table 62: MBRR SA24 - Summary of personnel numbers 145 

Table 63: MBRR SA25 - Budgeted monthly revenue and expenditure 147 

Table 64: MBRR SA26 - Budgeted monthly revenue and expenditure (municipal vote) 148 

Table 65: MBRR SA27 - Budgeted monthly revenue and expenditure (standard classification) 149 

Table 66: MBRR SA28 - Budgeted monthly capital expenditure (municipal vote) 150 

Table 67: MBRR SA29 - Budgeted monthly capital expenditure (standard classification) 151 

Table 68: MBRR SA30 - Budgeted monthly cash flow 152 

Table 69: MBRR SA34a - Capital expenditure on new assets by asset class 155 

Table 70: MBRR SA34b - Capital expenditure on the renewal of existing assets by asset class 156 

Table 71 : MBRR SA34c - Repairs and maintenance expenditure by asset class 1 57 

Table 72: MBRR SA34d - Depreciation by asset class 158 

Table 73: MBRR SA35 - Future financial implications of the capital budget 159 

Table 74: MBRR SA36 - Detailed capital budget per municipal vote 160 

Table 75: MBRR SA37 - Projects delayed from previous financial year 170 

Table 76: MBRR SA1 - Supporting detail to budgeted financial performance 173 

Table 77: MBRR SA1 - Consolidated supporting detail to budgeted financial performance 174 

Table 78: MBRR SA2 - Matrix financial performance budget (revenue source/expenditure type 
and department) 175 

Table 79: MBRR SA2 - Consolidated Matrix Financial Performance Budget 

(revenue source/expenditure type and department) 176 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 80: MBRR SA3 - Supporting detail to statement of financial position 1 77 

Table 81 : MBRR SA3 - Consolidated supporting detail to budgeted financial position 178 

Table 82: MBRR SA4 - Consolidated Reconciliation of IDP strategic objectives and 
budget (revenue) 179 

Table 83: MBRR SA5 - Consolidated Reconciliation of IDP strategic objectives and budget 
(operating expenditure) 179 

Table 84: MBRR SA8 - Consolidated performance indicators and benchmarks 180 

Table 85: MBRR SA9 - Social, economic and demographic statistics and assumptions 181 

Table 86: MBRR SA10 - Consolidated funding measurement 184 

Table 87: Supporting SA11 - Property rates summary 185 

Table 88: Supporting SA1 2a - Property rates by category (current year) 1 86 

Table 89: Supporting SA1 2b - Property rates by category (budget year) 1 87 

Table 90: Supporting SA13(a) - Service tariffs by category 188 

Table 91 : Supporting SA1 3(b) - Service tariffs by category - explanatory 1 89 

Table 92: MBRR SA1 5 - Consolidated investment particulars by type 1 90 

Table 93: MBRR SA1 6 - Consolidated Investment particulars by maturity 1 90 

Table 94: MBRR SA17 - Consolidated borrowing 191 

Table 95: MBRR SA1 8 - Consolidated transfers and grant receipts 1 92 

Table 96: MBRR SA1 9 - Consolidated expenditure on transfers and grant programmes 1 93 

Table 97: MBRR SA20 - Consolidated reconciliation of transfers, grant receipts and 
unspent funds 194 

Table 98: MBRR SA22 - Consolidated summary of councillor and staff benefits 195 

Table 99: MBRR SA23 - Consolidated salaries, allowances and benefits 

(political office bearers/ councillors/senior managers) 196 

Table 100: MBRR SA24 - Consolidated summary of personnel numbers 197 

Table 101 : MBRR SA25 - Consolidated budgeted monthly revenue and expenditure 198 

Table 102: MBRR SA26 - Consolidated budgeted monthly revenue and expenditure 
(municipal vote) 199 

Table 103: MBRR SA27 - Consolidated budgeted monthly revenue and expenditure 
(standard classification) 200 

Table 104: MBRR SA30 - Consolidated budgeted monthly cash flow 201 

Table 105: MBRR SA31 - Consolidated aggregated entity budget 202 

Table 106: MBRR SA32 - Consolidated List of external mechanisms 203 

Table 107: MBRR SA34d - Consolidated depreciation by asset class 204 

Table 108: Housing Company Tshwane - Budget summary 206 

Table 109: Housing Company Tshwane - Budgeted financial performance 207 

Table 110: Housing Company Tshwane - Budgeted financial position 208 

Table 111 : Housing Company Tshwane - Budgeted cash flow 209 

Table 112: Housing Company Tshwane - Board members’ allowance and staff benefits 210 

Table 113: Housing Company Tshwane - Budgeted monthly cash flow, revenue and expenditure 211 
Table 114: Sandspruit Works Association - Budget summary 212 

Table 115: Sandspruit Works Association - Budgeted financial performance 213 

Table 116: Sandspruit Works Association - Budgeted financial position 214 

Table 117: Sandspruit Works Association - Budgeted cash flow 21 5 

Table 118: Sandspruit Works Association - Board members’ allowance and staff benefits 216 

Table 119: Sandspruit Works Association - Budgeted monthly cashflow, revenue and expenditure 217 

Table 120: TEDA- Budget summary 218 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 1 21 : TEDA - Budgeted financial performance 21 9 

Table 122: TEDA - Budgeted financial position 220 

Table 123: TEDA - Budgeted cash flow 221 

Table 124: TEDA - Board members’ allowance and staff benefits 222 

Table 125: TEDA - Budgeted monthly cash flow, revenue and expenditure 223 

Table 126: Audit and Risk - Budgeted financial performance 225 

Table 127: City Planning and Development: - Budgeted financial performance 226 

Table 128: City Strategies and Performance Management - Budgeted financial performance 226 

Table 129: Communications, Marketing and Events - Budgeted financial performance 227 

Table 130: Corporate and Shared Services - Budgeted financial performance 227 

Table 131 : Economic Development - Budgeted financial performance 228 

Table 132: Emergency Services - Budgeted financial performance 228 

Table 133: Energy and Electricity - Budgeted financial performance 229 

Table 134: Environmental Management - Budgeted financial performance 229 

Table 135: Financial Services - Budgeted financial performance 230 

Table 136: Health and Social Development - Budgeted financial performance 230 

Table 137: Housing and Human Settlement - Budgeted financial performance 231 

Table 138: Information and Communication Technology - Budgeted financial performance 231 

Table 139: Legal Services - Budgeted financial performance 232 

Table 140: Metro Police Services - Budgeted financial performance 232 

Table 141 : Office of the Chief Whip - Budgeted financial performance 233 

Table 142: Office of the City Manager - Budgeted financial performance 233 

Table 143: Office of the Executive Mayor - Budgeted financial performance 234 

Table 144: Office of the Speaker - Budgeted financial performance 234 

Table 145: Service Delivery and Transformation Management - Budgeted financial performance 235 
Table 146: Sport and Recreation - Budgeted financial performance 235 

Table 147: Transport - Budgeted financial performance 236 

Table 148: Water and Sanitation - Budgeted financial performance 236 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


LIST OF FIGURES 


Figure 1 : City of Tshwane’s guiding principles 42 

Figure 2: Expenditure by major type 59 

Figure 3: Main operational expenditure categories 61 

Figure 4: Draft Capital budget per main strategic focus 63 

Figure 5: Infrastructure-related projects 67 

Figure 6: Depreciation in relation to repairs and maintenance over the MTREF 84 

Figure 7: Relationship between City of Tshwane Plans 109 

Figure 8: Alignment of the Tshwane Vision 2055 outcomes with the 2011/16 IDP approved 
strategic objectives 1 1 1 

Figure 9: Breakdown of operating revenue over the 2015/16 MTREF 128 

Figure 10: Sources of capital revenue for the 2015/16 financial year 130 

Figure 11 : Growth in outstanding borrowing (long-term liabilities) 131 

Figure 12: Cash and cash equivalents or cashbacked reserves and accumulated funds 135 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


ABBREVIATIONS AND ACRONYMS 


AMR 

ASGISA 

BPC 

BSC 

CBD 

CFO 

CIF 

CM 

CPI 

CRR 

DACE 

DBSA 

DMTN 

DoR Bill 

DWA 

ECD 

EEDSM 

EM 

EPWP 

FBS 

FM 

GDP 

GDS 

GFS 

GGDS 

GRAP 

GV 

HDI 

HR 

IBT 

ICT 

IDP 

IRPN 

IT 

JOC 

k€ 

km 

KPA 

KPI 

kWh 

€ 

LED 

LG SETA 
LTFM 


Automated Meter Reading 

Accelerated and Shared Growth Initiative - South Africa 

Business Planning and Consolidation 

Budget Steering Committee 

Central Business District 

Chief Financial Officer 

Capital Investment Framework 

City Manager 

Consumer Price Index 

Capital Replacement Reserve 

Department of Agriculture, Conservation and Environment 

Development Bank of Southern Africa 

Domestic Medium-term Note 

Division of Revenue Bill 

Department of Water Affairs 

Early Childhood Development 

Energy Efficiency Demand Side Management 

Executive Mayor 

Expanded Public Works Programme 

Free basic services 

Financial Management 

Gross domestic product 

Growth and Development Strategy 

Government Financial Statistics 

Gauteng Growth and Development Strategy 

Generally Recognised Accounting Practice 

General Valuation 

Historically Disadvantaged Individuals 
Human Resources 
Inclining Block tariff 

Information Communication Technology 

Integrated Development Plan 

Integrated Rapid Public Transport Network 

Information Technology 

Joint Operating Committee 

kilolitre 

kilometre 

Key Performance Area 
Key Performance Indicator 
kilowatt hour 
litre 

Local Economic Development 

Local Government Skills Education Training Authority 

Long-term Financial Model 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


LTFS 

IES 

MBRR 

MFMA 

MFMIP 

MIG 

MMC 

MPRA 

MSA 

MSDF 

MTREF 

NERSA 

NGO 

NKPIs 

NSDP 

NT 

OHS 

OP 

OPCA 

PBO 

PHC 

PMS 

PPE 

PPP 

PTIS 

REPCO 

RG 

ROC 

ROR 

RSA 

SALGA 

SAPS 

SAV 

SCOA 

SDBIP 

SEZ 

SMME 

SRAB 

TEDA 

TLMA 

TRT 

UDZ 

USDG 

WTW 

WWTW 


Long-term Financial Strategy 
Indigent Exit Strategy 

Municipal Budget and Reporting Regulations 

Municipal Finance Management Act, 2003 (Act 56 of 2003) 

Municipal Finance Management Intern Programme 

Municipal Infrastructure Grant 

Member of Mayoral Committee 

Municipal Property Rates Act, 2004 (Act 6 of 2004) 

Municipal Systems Act, 2000 (Act 32 of 2000) 

Metropolitan Spatial Development Framework 

Medium-term Revenue and Expenditure Framework 

National Electricity Regulator South Africa 

Non-governmental organisation 

National Key Performance Indicators 

National Spatial Development Perspective 

National Treasury 

Occupational Health and Safety 

Operational Plan 

Operation Clean Audit 

Public Benefit Organisations 

Provincial Health Care 

Performance Management System 

Property Plant and Equipment 

Public Private Partnership 

Public Transport Infrastructure System 

Revenue, Expenditure and Performance Committee 

Restructuring Grant 

Regional Operating Centre 

Rate of Return 

Republic of South Africa 

South African Local Government Association 

South African Police Service 

Sustainable Agricultural Villages 

Standard Chart of Accounts 

Service Delivery Budget Implementation Plan 

Special Economic Zones 

Small Micro and Medium Enterprises 

Starting Regulatory Asset Base 

Tshwane Economic Development Agency 

Tshwane Leadership and Management Academy 

Tshwane Rapid Transport 

Urban Development Zone 

Urban Settlements Development Grant 

Water Treatment Works 

Waste Water Treatment Works 



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BUDGET ADDRESS 










The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



C II r Kgosientso Ramokgopa 

Executive Mayor 


BUDGET ADDRESS BY HIS WORSHIP THE EXECUTIVE MAYOR OF THE CITY OF TSHWANE, 
COUNCILLOR KGOSIENTSO RAMOKGOPA, 22 MAY 2015, SAMMY MARKS COUNCIL CHAMBER, 
TSHWANE 

Investing our shared wealth - building the People’s Capital 

Madam Speaker of Council; 

Representatives of Chapter 9 Institutions; 

Chief Whip of Council; 

Leader of Council Business; 

Members of the Mayoral Committee; 

House of Traditional Leaders - Magoshi le bashomishane mmogo ba bona; 

Your Excellencies, Ambassadors and High Commissioners; 

Leaders of Faith-based Organisations; 

Fellow Councillors; 

Leaders of the Business Community and Civil Society; 

Distinguished Leadership of our Academic Centres of Excellence; 

City Manager and Senior Managers; 

Members of the Media; 

Comrades and Friends; 

Fellow Citizens 

Madam Speaker, 

We are taking another step as we wander into our long journey towards 2055, when generations after 
ours will celebrate the centenary of the Freedom Charter and look back into what we did and did not 
achieve and ask us if indeed our actions, policies and programmes were about what our forefathers 
envisaged when they proclaimed in 1955 that “the People shall share in the Country’s wealth”. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Madam Speaker, 

It is this profound call by the gathering of our people in Kliptown that inspired us to make the decisions 
we have made in determining the resources we put into investing our people’s wealth, thereby radically 
transforming our economic pace and building a People’s Capital. We are convinced that our people 
themselves can create a poverty-free world and all we have to do is to free them from their chains and 
shackles, which have rendered them powerless to gain access to the resources they need to feed and 
fend for themselves. 

The global and local macroeconomic context 

Madam Speaker, 

It is prudent for us to ensure that the 2015/16 Medium-term Revenue and Expenditure Framework is, 
in part, shaped by the ever-changing global and local macroeconomic environment that the City finds 
itself in. 

Since the recent economic crisis, the global economy has been on a slow road towards recovery. It is 
more evident than ever that the role of emerging economies should not be underestimated; despite the 
slowdown in growth of emerging and developing economies, they accounted for approximately three- 
quarters of global growth in 2014. Economic growth is forecast to be stronger in 2015 for advanced 
economies, with emerging economies expected to experience continued subdued growth, while 
nevertheless continuing to remain relevant. 

Madam Speaker, 

Headline inflation declined in advanced economies as a result of the decline in oil prices and lower 
prices for other commodities. A decline in inflation was also experienced across emerging economies 
as a result of the indirect effect that lower global oil prices had on the economy. However, given the 
complex nature of the global economy and the slow recovery of the oil price, which has since been rising 
again, it is crucial that we take cognisance of the potential that such effects could exert on the disposable 
income of ordinary households. 

Within the South African context, inflation is currently within the inflation target range and is likely to 
remain within this range in the near future, as expectations place inflation at 5,5 percent for 2015 and 5,2 
percent in 2016. The effects of lower oil prices in the domestic economy are evident with lower inflation 
trends being observed, which will assist citizens in the short term, but the benefits from the decrease 
in oil prices are not expected to persist, as a result of increased monetary pressures placed on citizens 
through a significant increase in fuel levies, the volatility of the rand, upward adjustments in personal 
income tax and likely policy adjustments as a result of international market pressures. 

In the development of our MTREF, we remain acutely aware of the pressure that such global and local 
developments place on the residents of Tshwane. On average, since 2008 real disposable income has 
grown by only 3 percent per year, and given the compounding effect of price increases on disposable 
income levels, the net effect of price increases has forced residents to change their behaviour. This is 
further corroborated by the fact that the buying power of residents has been declining at approximately 
1 ,6 percent per annum in 2012 and 2013. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Considering the geographical size and spread of the land area covered under the jurisdiction and 
service delivery footprint of Tshwane, transport costs are a key consideration for residents and with 
the effective reversal of the decrease in the fuel price and the depreciation of the rand, it is likely that 
residents will face increased private transportation costs, placing further strain on the disposable income 
of our residents, particularly poor households. 

Madam Speaker, 

The South African economy is expected to grow at a subdued rate of 2 percent in 2015, with a growth 
projection of 3 percent by 2017. This is largely a result of the hamstrung energy supply and the direct effect 
this has on economic activity. Nationally this constraint is being addressed by stepping up maintenance, 
renewing existing and establishing new co-generation agreements, expediting the completion of new 
power stations, inviting independent power producers to provide electricity and exploring alternative 
renewable energy sources at the national and local levels. As pronounced in the State of the Capital 
Address, we are committed to addressing this national constraint through our concerted effort towards 
renewable energy alternatives as well as the refurbishment and the injection of operational efficiency 
measures pertaining to the City’s power stations. 

Madam Speaker, 

Twenty four percent of our country’s population reside within the borders of Gauteng, the smallest 
province in the country, accounting for just over 1 percent of our country’s land mass, thus making it the 
most densely populated province in the country with, on average, 698 people per square kilometre. As a 
result, Gauteng remains a key economic hub for the country and the largest contributor to the country’s 
GDP with a contribution of over 35 percent playing a key role with respect to international trade as it 
accounts for more than 50 percent of the country’s international import orders and 60 percent of South 
Africa’s export orders. 

The role of Gauteng as a job creator is of the greatest significance at the national level. There are over 
6 million economically active citizens in the province, which accounts for approximately 32 percent of 
the national economically active population. Gauteng has on average five times more buying power than 
any other province in the country and has the highest GDP per capita across provinces. Furthermore, 
the province accounts for 35 percent of national total annual disposable income and has the highest 
annual per capita income. Despite this, and the declining unemployment rate since 2010, the province 
still faces a stubbornly high unemployment rate of 25,1 percent. 

Globally, given the changing city narrative and the emergence of the city state, it has become undeniable 
that the role of cities is crucial for the development of national economies. This is no different for South 
Africa, as metros accounted for 54 percent of national employment and 60 percent of national GDP. 

In the South African studies, over the past twenty years, Tshwane features as growing very strongly, 
particularly when compared with other metropolitan cities, growing at an average of 4,3 percent per 
annum between 1996 and 2013. While benefitting from being a centre of national government and 
administration, where our economic growth has been cushioned from recessionary effects, Tshwane’s 
industrial base has also performed quite well. Analysis undertaken by Turok and Borel-Saladin clearly 
demonstrates the consistent growth of the city over the past 20 years. Furthermore, Tshwane has the 
second highest per capita GDP across all metros and the third largest annual total disposable income. 
Tshwane accounts for approximately 28 percent of provincial GDP and 10 percent of national GDP. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

However, socioeconomic challenges remain with vast disparities continuing to affect our potential levels 
of social cohesion as a city. 

Interestingly, although Tshwane has performed well, some argue that despite the high contribution to 
national GDP and GDP growth by Gauteng, the province is in fact underperforming in terms of its GDP 
growth per capita. Employment and participation in Tshwane’s economy have improved significantly 
since 1996, with Tshwane having one of the lowest unemployment rates in the country, currently at 
21,5 percent, with employment in Tshwane increasing by 61 percent since 1996. While the rate of 
unemployment seems favourable within a national context, it is still stubbornly alarming when viewed 
from a global perspective and potentially undermines our GDP per capita potential as a nation. 

Significant progress has been made over the last 21 years. However, despite these successes, 
challenges remain, the most significant being that of poverty and inequality. Tshwane is characterised 
by large disparities, both across income and access dimensions, reflecting that of South Africa, and the 
City is actively working towards mitigating these challenges through various employment and business 
opportunities such as Tshepo 10 000, the EPWP and preferential procurement policies to address 
historical legacies of the past. Due to the complexity of the problem, there is no quick solution, though. 
One cannot ignore the racial inequality across space, which has not changed significantly since 1994. 
Of course spatial racial inequalities compound income disparities when one considers the travel times 
taken for workers to access economic opportunities. 

Central to the eradication of our socio-economic challenges is the modernisation of our nation’s economy, 
institutions and society, as these are a core component of the transformation process and inextricably 
exert fundamental impacts on human life from a sociological perspective. 

The country has been investing a significant amount of resources towards employment creation; the 
target as asserted within the NDP is to reduce the unemployment rate from 24,9 percent in June 2012 
to 14 percent by 2020, and finally to 6 percent by 2030. In order to improve the living standards of the 
citizens of South Africa, the NDP highlights the need to increase the incomes of the bottom 40 percent 
earners from the current 6 percent to 10 percent by 2030. This can be achieved through increasing the 
regulated minimum wage while opening up new employment opportunities. 

The main stance as per the NDP involves a chain of developments leading to a sustainable economic 
scenario with a cycle that feeds from within itself. Poverty alleviation is expected to be a consequence of 
improved living standards accompanied by growth and increased job creation opportunities. An effective 
government that is people centred is bound to perpetuate an active citizenry, which will in turn lead to 
increased opportunities and thus better living standards. 

Tshwane Vision 2055 defines the City’s chosen development path aimed at fostering economic 
transformation and spatial justice. The City’s development efforts can be monitored with the progress 
achieved thus far towards fulfilling our vision. Vision 2055 is aligned with the NDP and is also supplemented 
by short-term and medium-term strategic plans, whose implementation is meant to culminate in the 
manifestation of our long-term future. 

The City is near the finalisation of its Sustainable Inclusive Growth Implementation Strategy, which has 
quantified the city’s contribution to the nation’s NDP targets, and clear interventions have been defined 
over the short, medium and long-term. Without accounting for Tshwane having to grow faster than the 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

nation, just in order to meet the NDP targets, Tshwane’s GDP will need to increase to 5,4 percent and 
GDP per capita will need to increase by 2,2 percent. This implies that the city’s economy will need to 
more than double by 2030 and almost one million new jobs will need to be created. This is three times 
the number of jobs that have been created over the last fifteen years, thereby providing a snapshot of 
the work ahead of us all. These initiatives will only bear fruit if we all come together. 

Madam Speaker, 

In the delivery of the Capital City’s MTREF, we will focus on outlining our investment interventions aimed 
at contributing towards the eventual reversal of this situation through the creation of enhanced access 
to shared wealth. Our resolve to continue working towards enhancing the welfare of our citizens will 
become increasingly evident. 

The 2015/16 IDP marks the last year of the 2011-2016 Council term and we are thus ensuring that 
we conclude on promised deliverables of the five-year IDP. The City has continued to strengthen the 
involvement of its citizens in planning and budgeting processes on an annual basis, the culmination of 
which is based on the needs of our communities. The financial allocations outlined today are essentially 
informed by City-led developmental programmes and priorities to ensure that our current commitments 
are met, if not exceeded. This includes: the provision of basic services, urban management, the 
formalisation of informal settlements, the conclusion of social services and recreational facilities, 
economic development initiatives, the acceleration of free Wi-Fi, the expedition of A Re Yeng and 
sustainability and alternative energy. Over the current five-year period, the City has made an investment 
of approximately R20 billion on its capital infrastructure and we have consistently spent in excess of 93 
percent of our capital budget. 

Madam Speaker, 

Vision 2055, whose outcomes are anchored on the principles of the Freedom Charter, is our point of 
departure for the 2015/16 MTREF, while simultaneously ensuring that the City is fiscally sustainable 
into the future. The prudent management of public finances, which represent our shared wealth, is 
central to the City’s operations. In order to achieve this, we have previously announced that the City has 
embarked upon its balance sheet restructuring and optimisation programme, which seeks to identify 
alternative sources of revenue, improve operational efficiencies, restructure our asset portfolio and 
explore alternative funding models in support of exponentially growing infrastructure demands. 

As a result, we reviewed our current levels of spending within prudent financial limits, thereby necessitating 
the rebasing of our budget. The City is budgeting for a surplus of R584,9 million in the 201 5/1 6 financial 
year, thereby representing our commitment towards ensuring fiscal sustainability. Furthermore, over 
the last MTREF, our total revenue, excluding capital transfers, was R65,4 billion and within the next 
three-year cycle, we expect the City’s revenue to grow to R83,9 billion, constituting an increase of 28,3 
percent as compared to the past three years. This is even within the context of collection levels projected 
to reduce over the medium term, as we need to be realistic with respect to our future to ensure prudent 
financial management. 

In terms of total expenditure, we have spent R66.5 billion over the past three years, and in the next 
MTREF, the City’s operating expenditure is projected at R81,8 billion. The upcoming year presents an 
expenditure plan of approximately R29 billion, which includes an operational budget of R25,1 billion, 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

against operating revenue of R25,7 billion. The capital budget of the 2015/16 financial year is R3,9 
billion and approximately R1 2, 1 billion over the MTREF, which includes grant funding, borrowings and 
our own funding. This represents an increase of 4,9 percent on operating revenue as well as a 4,7 
percent increase on operating expenditure in comparison with the 2014/15 adjustments budget. 

Investing in radical economic transformation 

(i) Connectivity and inclusive growth 

Madam Speaker, 

Aligned to our recent commitment made in the State of the Capital Address to treat Wi-Fi as a basic 
and free service, we have allocated R300 million towards the free Wi-Fi project over the current MTREF 
cycle, with R100 million for the 2015/16 financial year. We will, by the end of 2016, roll out Wi-Fi in a 
manner that ensures that each and every Tshwane resident is connected within a one kilometre radius 
from their place of residence! 

Madam Speaker, 

In our endeavour to create a world-class knowledge and technology hub to advance knowledge transfer, 
the City is investing R74 million in a high-profile Interactive Digital Centre, which is a facility that utilises 
visual reality to educate, train and support the local industry while creating entrepreneurial opportunities. 

This digital centre will enable the transfer of knowledge twelve times faster than in a normal classroom 
set-up by creating three-dimensional computer models. For instance, the training centre will be able to 
create a model of a water pipe that needs to be fixed in a classroom and learners will be able to work 
on the model while being taught how to fix the pipe without being on ground, thereby enabling practical 
experience. This initiative will create educational value and new jobs within Tshwane. 

(ii) Decent employment 

Madam Speaker, 

Generally, the middle class accounts for 50 per cent of wealth within a nation and the remaining 50 
percent is divided between the rich and poor. South Africa is a severe outlier in this regard, as the top 
ten per cent of South Africans earn 35 times more than the bottom ten per cent. Compared to inequality 
levels within the US, South Africa is ten times worse off; and compared to the global average, twelve 
times worse off. However, it is important to mention that while the Gini co-efficient within South Africa is 
at an unacceptably and astronomically high level, this is a global phenomenon. 

Social transformation seems to be the most obvious response to the persistence of poverty. Poverty is 
a structural problem inseparable from power relations that have defined the making and remaking of 
the political economy and society over the last four centuries - and magnified during the past one. Our 
socio-economic systems are the result of the evolution of patterns forged, inter alia, by the industrial, 
democratic and information revolutions. These systems have produced an unprecedented quantity of 
resources and a high standard of living for a minute portion of the world’s population, while continuing 
to keep the vast majority poor. 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Within the current financial year, the City has a target of creating 40 000 EPWP work opportunities; a 
target which we are confident that we will meet with the last financial year’s target being significantly 
exceeded. Aligned to our commitment of contributing towards the reduction of unemployment within 
Tshwane, the EPWP has been allocated a total budget of approximately R415 million over the MTREF 
period, which includes R164,8 million in the 2015/16 financial year. 

Madam Speaker, 

(iii) Cooperatives and SMMEs 

Madam Speaker, 

During the State of the Capital Address, we highlighted clear progress on the Tshepo 10 000 project, 
wherein R273 million would have been contracted to Tshepo 10 000 cooperatives by the end of May 
2015. In addition to these contractual agreements, in the 2015/16 financial year an amount of R20 
million has been allocated to the training of 177 Tshepo 10 000 cooperatives. Over and above these 
allocations, we will also invest an amount of R27,9 million towards the implementation of various local 
economic development programmes in all Tshwane regions, which include cross-sectoral SMME and 
cooperative mentorship programmes. 

(iv) Investing in the informal sector and the revitalisation of township economies 

Madam Speaker, 

In the State of the Capital Address, we strongly affirmed our commitment towards the informal sector, 
including R100 million towards infrastructure development over the next five years, which includes the 
development of stalls in Pretoria North and Cullinan in the 201 5/1 6 financial year, at a cost of R5 million. 

Madam Speaker, 

In order to accelerate the revitalisation of township economies, we have outlined core projects aimed 
at supporting the current trajectory of these important economic hubs. Within the current financial year 
and the 2015/16 financial year, we have allocated the following amounts to these projects in respect of 
which the City will enter into off-take agreements with the businesses concerned: 

• Our commitment towards our continued support of the success of the Eco-Furniture Factory in 
Ga-Rankuwa, which includes Tshepo 10 000 beneficiaries, is demonstrated by an allocation of 
R1 ,5 million for the payment of rent and utility services; 

• The youth-owned township bakery facility in Soshanguve will be implemented in the current 
financial year at a cost of R3,8 million; 

• The first car wash facility will be implemented this financial year at a cost of R6,6 million; 

• The brickmaking facility in Mamelodi has been allocated an amount of R4,9 million; 

• The paper towel manufacturing facility has been allocated R3 million for the construction of 
the factory; and 

• The fresh produce facility will receive an amount of R1 3,5 million from the City’s capital budget 
over the next three years, which includes an allocation of R3 million in the 1 5/1 6 financial year 
for its construction in Marabastad. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Fellow Citizens, it must be noted that this is the first of many such initiatives still to come! 

(v) Promoting trade and investment 

Madam Speaker, 

An amount of R233,3 million has been committed over the next three years to the development of 
the BPO Park in Hammanskraal, which will also contribute towards the development of SMMEs. This 
includes an amount of R54,1 million in the 2015/16 financial year, which will firmly work towards the 
commencement of construction of this state-of-the-art facility. 

In order to contribute towards the creation of an investor-friendly environment, the City of Tshwane’s 
Incentives Policy seeks to attract investors who will bring the expertise, funds and capacity to develop 
new structures and industries. This initiative was born out of the realisation that the City of Tshwane 
will not achieve its desired growth and development without cultivating the right environment, efficient 
processes, proactive but sustainable policies and funding strategies of its own. However, in order for the 
City to make use of rates as a form of incentive to potential developers, it is necessary that our property 
rates policy prescribes the granting of such a rebate through the utilisation of the Municipal Property 
Rates Act. 

The Draft 2015/16 Property Rates Policy has been amended to add additional categories of ownership. 
The first category concerns land alienated by the City after January 2015. Through this category, the 
City aims to offer various property rate rebates on land alienated by Council to a transferee after being 
developed and lawfully occupied. It also makes provision for previously disenfranchised owners of small 
and medium businesses, targeting investments between R5 million and R50 million in the city. The 
second category targets the owners of catalytic investment properties, and offers a rebate of 50 percent 
over a maximum period of five years for investments greater than R400 million. In this regard, investors 
and developers will be eligible to apply to the City for rate rebates. 

The policy aims to facilitate increased investment and development within Tshwane and requires 
collaboration between the private and public sector to guide development in line with Tshwane Vision 
2055 in an endeavour to foster transparent and accountable working relationships among all stakeholders 
involved. 

Madam Speaker, 

The Tshwane Economic Development Agency, TEDA, our implementation agent for core City 
programmes, is central to many of these initiatives and a grand allocation of R54,1 million has been 
allocated in the 2015/16 financial year. 

(vi) The Tshwane Fresh Produce Market and the Tshwane Agropolitan City 

Madam Speaker, 

As pronounced in the State of the Capital Address, the Fresh Produce Market has grown by 13 percent 
from a revenue perspective over the 2013/14 financial year, producing a favourable surplus. The total 
budget of the market for the 2015/16 financial year is R118 million, which includes a financial allocation 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

for the market trading system and the upgrading of facilities to begin an exercise to comply with export 
regulatory requirements. 

It is estimated that the market will require an investment of R450 million for infrastructure development 
and enhancement for it to be able to handle the projected volumes required to maintain its current 
market share by 2025. Given competing service delivery needs, the City has applied to National 
Treasury through the Department of Agriculture, Forestry and Fisheries for funding, which is currently 
being processed. In this regard, a decision is expected by the end of the current financial year. 

Madam Speaker, 

Aligned to our conscious decision to transition to a low-carbon, resource-efficient and climate-resilient 
city, the Tshwane Food and Energy Centre in Rethabiseng, known as the Tshwane Agropolitan City, has 
been allocated R20 million towards this development that will optimise the entire food production value 
chain, and contribute towards the development of SMMEs as well as renewable energy generation. 
Implementation will be phased over three years, and an allocation of R60 million over the MTREF has 
been dedicated for this purpose. Turnover is estimated at R7 million in the first year and R21 million and 
R84 million is the two subsequent years, that is, 2016 and 2017. 

Investing our shared wealth towards enhanced spatial justice 

(i) Towards a new spatial landscape through catalytic investment 

Madam Speaker, 

In line with the Honourable Premier’s assertion of the importance of the Northern Corridor as a 
development anchor for the Gauteng City Region, we have outlined catalytic developments that will 
transform Tshwane’s spatial landscape. These include: (i) the R6,1 billion African Gateway development 
in Centurion, (ii) the Government Boulevard development, (iii) the West Capital, (iii) the R4 to R6 billion 
East Capital development, and (iv) the R100 million Caledonian Inner City Park development. These 
projects were initiated by the City and their implementation will be effected through public-private 
partnerships as well as private sector led investments, with the exception of the Caledonian Inner City 
Park. 

(ii) Infrastructure services to our people - our real wealth 

Madam Speaker, 

We are proud of the commitment we have maintained with respect to prioritising infrastructure provision 
within previously disadvantaged areas of Tshwane aimed at the continued advancement of the physical 
and economic mobility of our residents. 

We committed to the development of two new cemeteries which will alleviate the burial challenges 
experienced by communities in the north of Tshwane; in this regard, we will be investing an amount of 
R62 million over the MTREF period. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Madam Speaker, 

During the State of the Capital Address, we spoke at length about the restoration of dignity to all Tshwane 
residents by providing housing, security and comfort. Our flagship Re aga Tshwane programme, which 
will formalise various informal settlements across Tshwane, includes the installation and upgrading of 
services, such as water, sanitation, electricity and roads. In addition, the programme will provide street 
signage, which will include township tourism and leisure establishment signage as well as street names 
and directional signage, utilising Tshepo 10 000. The Re aga Tshwane programme has been allocated 
a budget of R913 million over the MTREF, which includes an amount of R264 million for the 2015/16 
financial year. 

In addition, our housing mega projects, which will deliver over 180 000 housing units over the next five 
years, will require a budget of R36,9 billion, as communicated in the State of the Capital Address. A total 
of R200 million in the 2015/16 financial year will be spent from the Urban Settlements Development 
Grant (USDG) to deliver on the commitment of 5 000 serviced stands. In addition, various funding 
sources to implement the remaining mega projects have been explored and these include: the USDG, 
the Human Settlement Development Grant, the Restructuring Capital Grant and partnerships with the 
private sector to accelerate service delivery. 

Madam Speaker, 

We have also previously outlined a bold commitment towards the development of affordable rental 
units across Tshwane, which will generate a total of 5 355 units over the next three years. In this regard, 
within the 201 5/1 6 financial year, Housing Company Tshwane has committed R4,9 million to commence 
with the installation of services for the 900 units to be developed in Townlands and a further R4,2 
million to finalise detailed planning for the 320-unit Timberland development. In addition, the 720-unit 
development in Chantelle Extension 39, to be developed over three years, requires a total of R30 million 
for the installation of services within the 2015/16 financial year. An amount of R10 million will be utilised 
from the USDG with the remaining amount leveraged from the private sector. Furthermore, Housing 
Company Tshwane will receive a grant allocation of R8 million from the City within the 2015/1 6 financial 
year. 

Madam Speaker, 

We reiterate that access to electricity and lighting contributes towards the reduction of crime and, 
ultimately, the creation of a safer city, and true to that belief, we have accelerated the public lighting 
infrastructure programme and have installed a total of 2 731 street lights and 58 high-mast lights in the 
2013/14 financial year. In this regard, a budget of R70 million has been allocated towards the expansion 
of public lighting in the 2015/16 financial year within a total budget of R210 million over the MTREF. 
Through the effective utilisation of this budget, a total of 2 500 new streetlights and 35 new high-mast 
lights will be installed across Tshwane. 

Accordingly, the Services Infrastructure Department has been allocated a total of R802,5 million for 
infrastructure projects to be executed in the 2015/16 financial year. From the allocated budget, R447,5 
million will be invested within energy and electricity, and water and sanitation will receive an amount of 
R355 million. 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Madam Speaker, 

A budget of R100 million has been earmarked for new bulk infrastructure for the construction of new 
substations and upgrading of the capacity of the existing substations to cater for the development and 
growth in electricity demand. In this regard, new substations will be constructed in Soshanguve Block 
JJ, Monavoni and Hatherley. Furthermore, to ensure that our infrastructure can stand the test of time, 
substations in the Bronkhorstspruit, Mamelodi, Kentron in the Highveld area, and Eldoraigne will be 
upgraded. 

Madam Speaker, 

Decent access to shelter must be accompanied by access to energy for all citizens of Tshwane. As a 
result, the Electricity-for-AII programme has been allocated a budget of R157 million in the 2015/16 
financial year and R620 million over the MTREF period. This budget will enable the realisation of the 
electrification of 7 000 new households. The programme is currently focusing of electrifying formal and 
informal areas under the formalisation programme by the Re aga Tshwane team. The Electricity-for-AII 
programme is being accelerated in the current year and will be continuing in future financial years. The 
following areas will benefit from the 2015/16 electrification programme: 

• Mahube Valley Extension 15 

• Olievenhoutbosch Extension 27 

• Pienaarspoort 

• Kameeldrift 

• Soshanguve Extension 19 

• Fort West Fort Extension 5 

• Zithobeni Extension 9 

In addition, Eskom will electrify the following areas: 

• Dewagensdrift 

• Chris Hani (Kudube Unit 3 in Hammanskraal) 

• Winterveld 

• Slovoville 

Madam Speaker, 

The investments that the City of Tshwane has been making in the provision of electricity have yielded 
a positive result over the years. The Statistician General in the 2011 Census states that electricity 
access in Tshwane is 88,6%. However, with the dawn of democracy and the election of new leadership 
by popular vote, we have inherited a city with aging electricity infrastructure and obstinate backlogs. 
In order to address all the backlogs of electricity provision, the City would have to allocate over R350 
million of its resources towards that outcome. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Madam Speaker, 

Electricity distribution losses were 14,25 percent in the 2013/14 financial year, projected to fall to 10 
percent in the 2015/16 financial year. Among the causes of electricity distribution losses are illegal 
connections, by-passing electrical wires and aging infrastructure. 

Through programmes such as Re aga Tshwane, we are providing informal settlements with legal 
connections to electricity, thus reducing illegal connections and minimising distribution losses. The 
programme is complemented by the war room programme of Operation Kuka Maoto, which removed 
393 illegal connections within a two-month period; this is set to continue. The losses that occur as a 
result of ageing infrastructure are, however, more complex. The City would have to make an investment 
of over R4,1 billion to eradicate the refurbishment backlogs and address electricity demand, excluding 
investments that are required for infrastructural upgrades of regional distribution networks. 

Madam Speaker, 

The City in its endeavour to provide basic water and sanitation services to its residents will spend 
over R350 million in the new financial year. Among other projects, we will spend R90 million on the 
replacement and upgrade of waste water treatment works; R90 million on the refurbishment of networks 
and backlogs; R59,5 million on bulk pipe replacements; R57,5 million on reservoir extensions; R80 
million on the lengthening of networks and pipelines; and R18 million on the replacement of worn-out 
pipes. In addition, 3 500 water connections will be installed at a cost of R1 9 million and 350 households 
will be provided with sanitation services at a cost of R20,5 million. 

As part of our programme to eliminate water losses, we will deploy the Tshepo 10 000 brigade to 
implement our War on Leaks programme, and for the first time employ their services to support the 
construction of 10 mega litres atthe Klipgat Hospital reservoir and the installation of associated pipework. 
The total budget devoted towards this programme is R12 million in the new financial year. 

The Sandspruit Works Association, our municipal entity, will receive a grant allocation of R1 72,9 million 
to continue to complement water supply to our communities in the far north of Tshwane. 

Madam Speaker, 

According to Census 2011, 89,2 percent of the population of Tshwane have access to potable water 
within their households, while 7,4 percent access water through communal standpipes. In spite of these 
strides, Tshwane is located in one of the most water-stressed geographical areas in the world, where 
national water losses are estimated at 36 percent of the total water resources of the country. Of the 
36 percent, 25,5 percent is made up of real losses. Within the context of Tshwane’s vast geographic 
expanse and intricate web of bulk services, the main causes of real losses are undetectable leaks, burst 
pipes as a result of ageing infrastructure and illegal connections. The City currently experiences, on 
average, approximately 50 000 leaks per annum. In order to curb these leakages, the City would have 
to invest upwards of R2 billion to completely overhaul infrastructure that has long exceeded its life cycle. 
It is obvious from the figures provided that the City’s fiscus will not be able to cover these needs. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Madam Speaker, 

In the recent State of the Capital Address, we announced our plans to turn around the manner in 
which we optimise the potential of waste in Tshwane. The plans announced are long-term interventions 
and require collaboration from each and every citizen within Tshwane. For example, our sustainability 
interventions will only work if all residents begin to separate waste at source. To this end, we will invest R5 
million for the provision of receptacles for recyclable waste and to embark upon awareness campaigns 
in targeted communities where waste collection services and infrastructure support the collection of 
separated waste, for instance buy-back centres and waste recovery facilities. 

Our projected revenue for the waste management service is R994 million within the 2014/15 financial 
year, and it is expected that our revenue will increase to R1 ,1 4 billion in the 2015/16 financial year. 
However, the programme of standardising service levels across Tshwane has a long way to go. There 
is still a need to provide 200 000 240-litre bins in the eastern and northern areas of Tshwane, and an 
amount of R10 million has been budgeted for this programme, which will continue in subsequent outer 
years. 

(iii) Sustainable mobility and integrated public transport 

Madam Speaker, 

As we commit to bring our people closer to work and work closer to the people, we need our infrastructure 
to be of the highest quality, in addition to being safe and sustainable. Our roads are the arteries and 
veins in which the life blood of our economy moves. Without this, we cannot inject energy and vigour 
into our economic hubs. We allocated R672 million for the 2015/16 year for the roads and transport 
budget, which will focus on the eradication of road and storm water backlogs and addressing areas 
that are prone to flooding. The main focus in the 2015/16 financial year regarding the provision of roads 
and storm water systems will be the Soshanguve, Mabopane and Winterveld areas with an allocation 
of R347 million, and the Mamelodi area, where an amount of R50 million has been budgeted for this 
purpose. The upgrading of the Mabopane Station modal interchange will continue to improve facilities 
and integrate public transport within Mabopane and surrounding areas. An amount of R55 million has 
been allocated for this purpose. 

Aligned to our commitment to create a resilient and resource-efficient Capital City, we remain proponents 
of an environment that is conducive to various forms of non-motorised transport (NMT) with a total 
of approximately R40 million being spent within the 2015/16 financial year to improve non-motorised 
transport facilities towards the development of various station precincts in the Sunnyside area. 

Park Street will be upgraded to include a dedicated cycle lane that will link Sunnyside with the University 
of Pretoria as part of the planned NMT upgrades. Further to the NMT facilities that will be provided under 
the A Re Yeng project, our transport team will continue with the Shova Kalula (Pedal Easy) project to 
provide cycling facilities in line with the City’s NMT Master Plan. An amount of R10 million has been 
allocated for this purpose, and to ensure that our roads and roadsides are cycling and pedestrian friendly 
and safe, we have allocated a further amount of R63,4 million towards our proactive maintenance plan, 
which will be utilised in terms of the City’s pavement management system. 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Madam Speaker, 

To this effect, we can announce the following additional investments in our A Re Yeng : 

The construction of a public transport hub in Wonderboom (Rainbow Junction) will allow for the 
seamless integration between rail, the A Re Yeng , mini-bus taxis, non-motorised transport and park- 
and-ride facilities, and will commence within the 2015/16 financial year. The total cost of this public 
transport hub is R260 million over the next two financial years, with R100 million being allocated in the 
2015/16 financial year. 

We committed to the completion of the A Re Yeng line from Wonderboom to the CBD by November 
2015 in the State of the Capital Address. In this regard, a total amount of R25 million is committed to 
the completion of the Wonderboom to CBD line as well as associated stations in the new financial year. 

Aimed at easing access to mobility for our communities within the near east, the extension of the 
service to Menlyn and ultimately Mahube Valley in the east of Tshwane will see the commencement 
of construction along Lynnwood and Atterbury Road respectively. Our total investment in this regard 
amounts to R420 million over the next two financial years, with R70 million allocated in the 2015/16 
financial year. 

Madam Speaker, 

As previously pronounced, the City has procured 84 buses for the next phase of the A Re Yeng through 
the Bus Operating Company at a total cost of R243 million. This includes 40 compressed natural gas 
(CNG) buses at a total of R116 million, all arriving by December 2015 and further demonstrating our 
commitment towards sustainable mobility. 

In addition, construction will commence on the Belle Ombre Bus Depot, which will allow for the refuelling, 
parking and maintenance of the TRT bus fleet comprising buses that are fuelled by both compressed 
natural gas (CNG) and diesel. The total investment in the depot is R160 million, with R110 million 
committed towards this development in the new financial year. 

Madam Speaker, 

Many of these initiatives outlined will be funded primarily by the public transport infrastructure 
grant (PTIG) and the public transport network operating grant (PTNOG), which have allocations of just 
under R3 billion over the MTREF. We have invested R2,2 billion in the A Re Yeng and we are planning 
to spend another R2,3 billion over the MTREF period. 

Aligned to our commitment to expand access to public transport and develop an integrated public 
transport network, with Tshwane Bus Services already having procured 120 new buses, an operational 
budget of R271 ,8 million has been allocated for the 2015/16 financial year as a part of our turnaround 
strategy. A total of R42,8 million has been budgeted to ensure that our fleet, new and old, is always 
roadworthy and safe to carry passengers, and a further R57,4 million has been budgeted to service 
the maintenance lease contract for the 120 new buses already procured. In addition, an amount of 
R2,28 million makes provision for the fleet and fuel management system, which is a key element of the 
turnaround strategy. 


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Madam Speaker, 

We have made some exciting announcements with respect to the expansion of Wonderboom Airport’s 
service offering. The operating budget for Wonderboom Airport amounts to R79,15 million. This amount 
is made up of expenditure of approximately R111 million and operating revenue of around R32 million. 
Accordingly, we remain committed to our previous pronouncements in the recent State of the Capital 
Address with respect to the process of re-engineering the business and operating model of Wonderboom 
Airport. 

We have announced that our remaking of the Capital City will not only be representative of substantive 
change in our lives, but should introduce a new look and feel of our Capital. Our ambition for going 
back into the future through the introduction of a light rail tram mode of transport is promising. During 
the 2015/16 financial year the department will further develop a bankable feasibility study, following the 
completion of a pre-feasibility study, with the aim to explore a public-private partnership procurement 
process and prepare funding applications. 

(iv) A sustainable city is possible - investing in a sustainable future for all 

Madam Speaker, 

As mentioned in the State of the Capital Address, we have initiated a number of sustainability interventions 
to respond to the continuing challenges of climate change and environmental degradation. As the City 
of Tshwane aims to drive investment in sustainable development, an important aspect will be to define 
the role of external private capital, as public finances alone will not be sufficient to close the funding gap. 

As a result, the City is not planning to spend vast amounts of funds on the implementation of these 
projects, but will allow access to our facilities and thus craft innovative revenue-sharing arrangements 
with implementers to diversify our revenue streams. We will continue to mobilise substantially increased 
investment in key areas including renewable energy, low-carbon transport, energy-efficient buildings, 
clean technologies, improved waste management, improved water provision and sustainable agriculture. 

In the 201 5/1 6 financial year, to further demonstrate our commitment to sustainability, we have allocated 
a total amount of R70 million for our street light programme, which will be achieved through the installation 
of light-emitting diode (LED) lights throughout Tshwane. These lights will not only ensure that the city is 
well illuminated, but will enable the realisation of significant energy savings. For example, a LED light 
bulb consumes up to 8 watts of electricity as opposed to the 60 watts consumed by a conventional light 
bulb. These savings will also enable us to cover a much wider geographical area. 

Investing in our society through equitable access 

(i) The creation of a liveable and caring city 

Madam Speaker, 

As an NHI pilot city, we are pleased to confirm that clinics upgraded in the current financial year now 
comply with the norms and standards for the implementation of the NHI programme. In order to expand 
this exercise, the City is allocating a further R43 million towards the completion of three clinics in the 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

next three years, namely the Gazankulu, Soshanguve and Zithobeni clinics; a further R2 million will go 
towards the upgrading of clinic dispensaries. 

As a part of our NHI pilot, 12 000 households and 40 000 members of the respective households were 
registered on the programme and an amount R20 million is allocated to continue with the implementation 
of the programme during the 201 5/1 6 financial year. 

The City received grant funding amounting to R33 million towards the construction of the Hammanskraal, 
Winterveld and Mabopane social development centres to enable our communities, including women, 
youths, the elderly and children, to have access to a suite of social development services under one roof 
closer to their areas of residence. 

Early childhood development support is critical to the development of our young citizens and, as a 
result, we have made a further allocation of R7 million towards the continued support of NGO-managed 
ECD centres for the 2015/1 6 financial year. 

In addition to the Gauteng Provincial Government allocation of R11 ,5 million towards the implementation 
of HIV and AIDS programmes in Tshwane, we have allocated R1,3 million to address the structural, 
social, economic and behavioural factors that drive HIV and TB. In addition, the City will invest R82,5 
million on immunisation and HIV awareness programmes across all regions. 

(ii) Investing in our social capital - opening the doors of education and culture 

Madam Speaker, 

Education remains central to the City’s agenda and, ultimately, to the growth of Tshwane’s economy. As 
a result, the Provincial Department has committed R42 million in the 201 5/1 6 financial year and a further 
R63 million in the next year towards the construction of six new libraries within Tshwane. 

(Hi) A well-resourced and formidable metro police service 

Madam Speaker, 

To ensure our support towards the deployment of ten metro police officers per ward for the 2015/16 
financial year, an amount of R33 million is allocated to continue with the payment of stipends for our 
TMPD trainees for a period of five months at R3 000 per student trainee. Once ranked as constables, 
their salaries will be catered for by means of an allocation of R240,6 million. 

To date, we have invested R195 million towards the roll-out and maintenance of CCTV cameras as a 
core component of our business and community safety programmes. For the continuous monitoring and 
maintenance of the current CCTV network infrastructure, an amount of R54,8 million has been allocated 
for the 201 5/1 6 financial year. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


(iv) Investing our shared wealth to bring service delivery to the doorstep of our residents 

Madam Speaker, 

During previous addresses, we asserted the implementation of the regionalisation model, which 
implied that City departments would only be responsible for capital projects, with regional offices being 
responsible for operational expenditure due to their latent potential to respond to community needs more 
expeditiously. A total of R1 ,5 billion alone will be diverted towards the maintenance of infrastructure within 
Tshwane regions, representing six percent of our total operating expenditure budget, one percentage 
point shy of the National Treasury benchmark of seven percent. 

In this regard, from an infrastructure maintenance perspective, the following amounts have been 
allocated to the maintenance of energy, water, sanitation, transport, housing and urban management 
related activities: 

• R1 26 million towards the maintenance of waste water treatment works; 

• R152 million to ensure a less than 48 hour response time to water leaks; 

• R303 million to ensure that 100 percent of planned electrical maintenance is conducted and 

reconnections effected within four hours; 

• R119 million on the maintenance of housing schemes and flats; 

• R219 million towards the reactive blading of gravel roads and the re-gravelling of roads 

according to a planned maintenance scheduled; and 

• R416 million on the urban management function, which includes urban renewal projects, 
waste removal, the maintenance of cemeteries and parks and horticulture as well as by-law 
enforcement. 

Aligned to the preservation of our rich heritage and culture as well and to accelerate access to learning, 
the City has allocated a total of approximately R75 million for this purpose. 

Madam Speaker, 

We have recently outlined our planned turnaround strategy for the delivery of licensing services to our 
citizens and we have accordingly allocated a budget of R4,5 million for this purpose to ensure that our 
residents are able to benefit from tangible changes during the 2015/16 financial year. 

Investing our shared wealth towards igniting excellence 

(i) Towards the promotion of good governance 

Madam Speaker, 

We remain resolute in our commitment to combat corruption and its remnants in whatever shape or form 
it may present itself. We have previously demonstrated our resolve in this regard and will continue to do 
so going forward. Our offensive against this scourge that continues to erode public resources that are 
meant to alleviate poverty among our people, will not only be consequence driven but will also be littered 
with a myriad of interventions that are meant to institute preventative control measures to discourage 
and curb the spread of corrupt activities. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

In this regard, an amount of R30 million within the City’s operational budget will go towards fighting fraud 
and corruption. The City will initiate proactive measures to prevent fraud and corruption and R5 million 
will be spent on these initiatives, which include fraud detection operations, observation and entrapment 
operations, as well as the fraud awareness campaign. In addition, R1 million will be utilised towards the 
Anti-Fraud and Corruption Hotline. Most of the funds will be utilised on high-profile forensic investigations 
focusing on the investigation of tender irregularities in the supply chain management area of the City. We 
have allocated a further amount of R30 million to the Financial Services Department to improve supply 
chain processes, including the automation of the procurement and document management processes, 
which has the added benefit of activating our e-Tshwane project. An amount of R15 million will be 
invested in our e-Tshwane services to ensure that more and more communities access their account 
information electronically. 

Madam Speaker, 

One of the key pillars of exceptional service delivery is good governance. This happens when we can 
proudly stand in front of our people and declare that in spite of the size of our budget, our financial 
management systems are in order. We believe that once again, the Auditor-General will confirm this 
assertion when his findings are made known in due course. 

Madam Speaker, 

As indicated in the recent State of the Capital Address, the City has received an unqualified audit 
opinion for the third consecutive year, thereby demonstrating the credibility of our annual financial 
statements. An unqualified audit opinion with no matters of emphasis implies that there are no findings 
on performance information and compliance with all legislation and prescripts; analogous to what is 
loosely termed a “clean audit”. This remains the City’s short-term goal, as it will provide further evidence 
of our commitment towards generating optimal levels of return on the investment of our collective wealth 
as well as our firm accountability to all citizens of Tshwane. 

Madam Speaker, 

In the 2014 Budget Address, we highlighted that based on findings of the Auditor-General, the current 
disparate approach to the manner in which the City deals with its entities is no longer sustainable and we 
are pleased to confirm that the Shareholder Unit within the Office of the Executive Mayor is now in full 
swing. The Shareholder Unit is tasked with reviewing, monitoring and overseeing the business affairs 
and practices of our municipal entities, an exercise that we are confident will yield the results expected 
from Housing Company Tshwane, the Tshwane Economic Development Agency and the Sandspruit 
Works Association. 

Madam Speaker, 

We wish to reaffirm that the recent rating report of Moody’s does not constitute a rating action and is 
merely a market update, which reflects the City’s diversified economic base with a stable outlook for 
the future. The report places Tshwane in the middle of the range amongst South African municipalities. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


(ii) Modernising the Capital City’s public service and administration 

Madam Speaker, 

Our paperless solutions do not end with the obvious. In our endeavour to improve the quality of our 
health services and the achievement of cost efficiencies, the City has recently successfully completed a 
pilot project on an integrated electronic patient record system, including a biometric verification system, 
to be able to track patients and the dispensing of medication to prevent duplications, keeping an accurate 
record of medication stock levels and most notably to automate the manual filing system. An estimated 
amount of R7 million has been budgeted for the first roll-out to clinics to be able to serve with enhanced 
operational efficiencies. This is the first of its kind in Africa. 

Madam Speaker, 

We remain committed to the creation of a public service that maintains the highest grade of professionalism, 
people centricity and undoubted integrity at all times. As we strive to operate as a business, while not 
being wholly profit driven, we are committed to treating our residents as clients, whose business we 
require for our survival and theirs. The search for the best of the best among our public servants and the 
retention of political office-bearers of the highest community stature require that we invest in incentives 
for them and in their development throughout their productive employment in the City. 

With respect to the remuneration of municipal employees and councillors, we are pleased to confirm 
that our remuneration expenditure currently totals 27,8 percent and we project that these levels will 
decrease to 26,2 percent by the 201 7/1 8 financial year, which is well within National Treasury’s accepted 
norms of between 25 and 30 percent. 

Tshwane tariffs for the 2015/16 financial year 

Madam Speaker, 

Tshwane Vision 2055 captures the aspirations of Tshwane’s residents, but most importantly, captures 
Tshwane as the Capital City of South Africa, whose citizens enjoy a high quality of life, have access to 
social, economic and enhanced political freedoms, and are partners in the development of the African 
Capital City of excellence. Tshwane Vision 2055 is about the future Capital City that will be liveable, 
resilient and inclusive. It is also about ensuring that the future Capital City’s financial sustainability 
remains stable and robust through: 

(i) Sustainable alternative revenue streams; 

(ii) Improved operational efficiencies; 

(iii) Improved and secured long-term liquidity status; and an 

(iv) Improved credit rating. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

As previously mentioned, the City’s balance sheet restructuring and optimisation process is beginning 
to bear fruit. This currently includes the following projects in progress, whose details were reported in 
the State of the Capital Address: 

(i) The refurbishment of the Pretoria West and Rooiwal power stations; 

(ii) The release of strategic land parcels, including the land auction project and those that will be 
issued through an RFP process; 

(iii) The optimisation of the city’s real estate, including market-related leases and disposals; 

(iv) The business re-engineering of Wonderboom Airport; 

(v) Efficient supply chain management, including ensuring value for money in procurement; 

(vi) The reduction of leave as a liability on the City’s balance sheet; 

(vii) The creation and implementation of a diversified funding strategy, eg the Tshwane House 
PPP and various private sector led sustainability initiatives and private sector financed City 
initiatives, such as the West Capital development; 

(viii) The exploration of borrowing from both commercial and development institutions, such as 
the DBSA, European Investment Bank, the French Development Agency and the Danish 
Development Agency. 

Madam Speaker, 

We remain committed to transitioning to a green economy, which will require the adoption of a new 
financing mechanism and a different approach to development, with a reconfiguration of the City of 
Tshwane’s investments and a shift in the manner that the City operates. Due to the capital-intensive 
nature of most green economy projects, the City has to diversify its funding sources and consider 
financing the majority of these projects via PPPs, for example. We remain dedicated to the continued 
exploration of alternative funding mechanisms to enhance the City’s developmental path. 

Madam Speaker, 

Efficient and effective revenue management is imperative towards ensuring our service delivery and 
economic priorities outlined today. In addition to our pronouncement made in the State of the Capital 
Address on the matter of the smart meters, a report will be tabled at Council containing the contract 
termination terms. We wish to emphasise that there will be no disruption to services, including to those 
who already have smart meters installed. As part of the modernisation of our service delivery offering, 
the City would like to reiterate the fact that it remains convinced of the merits of the project based on its 
demand-side management capabilities, and as such we will commence with processes to continue with 
the roll-out of smart meters. 

We remain cognisant of the financial position of our residents and therefore our tariffs for the new 
financial year are set within the dual context of an awareness of this fact as well as the need for us to 
collectively invest in the future we wish to create. 


page I 32 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

However, we remain committed to supporting indigent households within the Tshwane area and we will 
continue with this programme beyond the 2014/15 financial year. In the 2015/16 financial year, R511 
has been committed to each indigent household per month, which equates to a total subsidy package of 
R737 million. Registered indigent households qualify for the following free basic services: 

(i) An exemption from the payment for refuse removal and property 
rates, irrespective of the value of the property; and 

(ii) A grant of 1 00 kWh of electricity and 1 2 kf of water. 

In addition, pensioners and people with physical and mental disability qualify for rebates subject to the 
City’s policy conditions. 

Madam Speaker, 

For property owners in general, the first R75 000 value of residential property is exempted from rates. 


The tariff increases for the 2015/16 are summarised as follows: 


Main services 

2015/16 average tariff increase 


% 

Sanitation 

9,0 

Refuse removal 

15,0 

Water 

13,5 

Electricity 

12,0 

Property rates 

8,0 


Madam Speaker, 

It is important to note that our tariffs are influenced by both internal and external factors, such as the 
expected increases of our bulk suppliers, namely Eskom and Rand Water. The City projects an increase 
from our bulk suppliers of 14,2 and 13,5 percent, respectively. We will now outline various scenarios to 
provide a real picture of what our tariff increases translate into from a monetary perspective. 

Scenario 1: 

If your property value is R300 000 and you are consuming on average electricity of 350 kWh per 
month and consuming 20 kf of water per month, your total average municipal bill is currently R1 1 20,77. 
With tariff increases, it will reach R1 241,42, which equates approximately to an average 10,8 percent 
increase. 

Scenario 2: 

If your property value is R700 000 and you are consuming on average electricity of 850 kWh per month 
and consuming 30 k l of water per month, your total average municipal bill is currently R2 345.94. With 
tariff increases, your bill will reach R2 601,98, representing a 10,9 percent increase (or R256,05). 


page I 33 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Scenario 3: 

If your property value is R1 million and you are consuming on average electricity of 1 500 kWh per 
month and 50 k i of water per month, your total average municipal bill is currently R3 923,95; with tariff 
increases it will reach R4 367,20, which is an average increase of 11 ,3 percent. 

In all the scenarios outlined, waste removal will increase from R1 86,86 to R214,88, representative of a 
R28,02 increase. 

Madam Speaker, 

We have discovered that some electricity resellers have been intentionally and unethically overcharging 
our residents and businesses. The City approved a progressive tariff in the 2014/15 financial year that 
should be applied by all resellers, based on consumption levels, so low use of electricity would benefit 
from a lower tariff and high use of electricity would be charged at a higher rate. Instead of applying these 
tariffs as stipulated, some resellers have been charging residents and businesses in their areas at a 
substantially higher tariff, resulting in potential benefits not accruing to our residents and businesses. 

In addition, we have discovered that some resellers have been charging residents and businesses an 
exorbitant “administration fee” of up to R500 or more. Madam Speaker, we recognise that this remains 
an unregulated area and as such, in the 2015/16 financial year, this “administration fee” will be capped 
at a maximum of R1 00, which implies that no reseller will be allowed to charge residents amounts higher 
than this upper limit. Residents and businesses that are based in the supply areas of resellers will be 
promptly notified of the upper limit of the administration fee. 

It is critical that we do not legitimise such behaviour and, in this regard, we are instituting an investigation 
on all resellers to ascertain the veracity of this scourge. Resellers found to have broken the law will not 
only be required to refund residents and businesses, but will also be found liable of contravening by- 
laws and NERSA regulations. A fine of R1 million will be imposed against the reseller, irrespective of 
the amount charged above allowed tariffs. We will secure the services of a reputable accounting firm to 
conduct these investigations. 

Concluding remarks 

Madam Speaker, 

We have outlined some of the socio-economic challenges, in part as a result of the continued structural 
economic inefficiencies, facing Tshwane residents in particular and South African residents in general. 
This dire situation is inextricably linked to high tariff increases witnessed in recent periods, which 
have placed an inordinate burden on our resident’s ability to pay for services received, given that their 
disposable income levels are already highly pressurised. 

Since the advent of the country’s constitutional democracy, our governance system has continued 
to operate as a unitary state, although power has been devolved to subnational levels, where local 
government has administrative and political functions enshrined in law and policy. However, local 
government remains largely excluded from decisions pertaining to the division of revenue. 


page I 34 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Nationally raised revenues are divided between the three spheres of government based on their 
expenditure responsibilities and other revenue sources available to them. However, the vertical 
distribution of revenue favours provincial governments due to their low revenue-generating capacity. 
Local government receives the lowest proportion of the equitable share because of its assumed high 
revenue-raising capacity. This assumption points to the lack of the devolution of powers and functions 
on financial matters and, thus, demonstrates the lack of an appreciation of the structural economic 
challenges and consumer constraints, all of which negatively impact on local government’s capacity to 
raise revenue within the context of exponentially growing new infrastructure demands in metro areas, in 
part related to the growing trend of urbanisation. 

Madam Speaker, 

Local government being the “sphere closest to the people” is increasingly expected to assume greater 
responsibility in driving both social and economic development. The mandate of local government 
expanded from roughly 156 high-level responsibilities during the initial mandate period to roughly 226 
in 2014, indicating an increase of about 66 (or 43 percent) high-level responsibilities within ten years. 

The extension of these constitutional powers and functions have posed enormous operational, 
governance and policy-making implications for municipalities and cities, yet the fiscal muscle and 
resources flowing to this sphere are not concomitant to these mandates. For instance, local government 
is expected to be responsible for the maintenance of ageing infrastructure while being expected to deliver 
on major backlogs in social infrastructure, in addition to economic infrastructure required to recalibrate 
the compass and course of our developmental trajectory. At this moment in time, we require in excess of 
R20 billion just to formalise existing informal settlements within Tshwane. One can appreciate the gravity 
of this untenable situation when this figure is juxtaposed against a total current budget of R29 billion! 
Clearly, this calls for a special dispensation at the national level to address these matters. 

Municipalities with relatively good revenue-raising capabilities are given proportionally less 
allocations within the formula than municipalities with poor revenue-raising capabilities. This approach 
fundamentally disadvantages metropolitan municipalities. The report on the State of Local Government, 
2009 appropriately notes that cities such as Cape Town, eThekwini and the Gauteng complex (City of 
Johannesburg, City of Ekurhuleni and City of Tshwane) may require special legislation and functional 
planning authorities to maximise their role in building the national economy, while rural municipalities in 
former homeland areas, for example, need to be released from the complexities of compliance with an 
integrated development plan that far surpasses their capacity to implement. 

Madam Speaker, 

For us to ensure that things do not fall apart, we must, in the first instance, never allow the market to be 
the principal determinant of the nature of our society. Mere reliance on the market would never assist 
us in achieving our development outcomes; on the contrary, if we were to rely on the market to produce 
these results, the only product would be the exacerbation of poverty and inequality and a retreat from 
the realisation of the objective of nation-building. 

Instead, we must place at the centre of our daily activities the pursuit of the goals of social cohesion, 
human solidarity and investment in our people. We have turned 21 years of age as a democracy and, 
once again, celebrated our freedom with the peoples of the world. We expressed and cemented that 


page I 35 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

commitment with the adoption of the National Development Plan as an action-packed journey to the 
future we desire. 

As we commit to work together, I wish to thank all residents, stakeholders and partners of the City of 
Tshwane for your on-going support as we strive to collectively shape the future we all envisage for 
generations to come. 


page I 36 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.1 COUNCIL RESOLUTIONS 

1 . That in terms of section 24 of the Municipal Finance Management Act, (Act 56 of 2003), the 
annual budget of the municipality for the financial year 2015/1 6, and the multi-year and single- 
year capital appropriations are approved as set out in the following tables as contained in 
Annexure B: 

1.1 Budgeted Financial Performance (revenue and expenditure by standard classification). 

1 .2 Budgeted Financial Performance (revenue and expenditure by municipal vote). 

1 .3 Budgeted Financial Performance (revenue by source and expenditure by type). 

1.4 Multi-year and single year capital appropriations by municipal vote, programme, standard 
classification and associated funding by source. 

1 .5 Budgeted financial position. 

1 .6 Budgeted cash flow budget. 

1 .7 Cash-backed reserve and accumulated surplus reconciliation. 

1.8 Asset management. 

2. That the Basic service delivery measurement as set out in Annexure B be noted. 

3. That the consolidated budget that includes the financial impact of municipal entities as set out 
in Annexure B be noted. 

4. That in terms of section 75A of the Local Government: Municipal Systems Act, 2000 (Act 32 
of 2000), the tariffs for property rates, electricity PARTS I and II (Diverse fees), the supply of 
water, sanitation services as well as refuse removal services as set out in Annexures C, D, E, 
F and G respectively, be approved with effect from 1 July 2015. 

5. That it be noted that the implementation of the proposed increase in electricity tariffs is subject 
to the approval of the National Electricity Regulator of South Africa (NERSA). 

6. That in terms of section 75A of the Local Government: Municipal Systems Act, 2000 (Act 
32 of 2000), the tariffs for other services, as set out in Annexures HI to H22 respectively, be 
approved with effect from 1 July 2015. 

7. That approval be granted for the City of Tshwane to enter the capital market for the funding of 
the capital programmes for the 2015/1 6 financial year limited to an amount not exceeding R1 ,2 
billion per financial year of the MTREF in terms of Section 46 of the MFMA. 

8. That approval be granted to the Acting Chief Financial Officer to incur short term debt as and 
when required according to the cash flow position of the City of Tshwane for the total amount 
not exceeding R1 ,2 billion at any time. 

9. That the City Manager be authorised to sign all necessary agreements or documents to give 
affect to the decision as in recommendations 8 and 9 above. 

10. That the amended Budget Policy, attached as Annexure I be approved. 

11 . That the Property Rates Policy and By-laws, attached as Annexure J be approved. 

12. That no amendments be made, regarding the objections and representations received on the 
tabled 2015/16 MTREF and proposed tariffs. 


page I 39 






The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.2 EXECUTIVE SUMMARY 

In his budget speech on 25 February 2015 Finance Minister, highlighted that “Today’s budget is 
constrained by the need to consolidate our public finances, in the context of slower growth and rising 
debt we must intensify our efforts to address economic constraints, improve our growth performance, 
create work opportunities and broaden economic participation.” 

As outlined by the President of South Africa in the State of the Nation Address on the 1 2th of February 
2015, Cabinet has agreed on nine strategic priorities to be pursued this year, in partnership with the 
private sector and all stakeholders. They include: 

• Resolving the energy challenge, 

• Revitalising agriculture, 

• Adding value to our mineral wealth, 

• Enhancing the Industrial Policy Action Plan, 

• Encouraging private investment, 

• Reducing workplace conflict, 

• Unlocking the potential of small enterprises, 

• Infrastructure investment, and 

• Support for implementation of the National Development Plan through in-depth, results-driven 
processes, known as phakisa laboratories. 

The following impacts directly on local government’s budgets: 

• Global economic growth is expected to remain sluggish over the period ahead, rising from 
3,3% in 2014 to 3,5% this year. 

• Electricity shortages hold back growth in manufacturing and mining, and also inhibit investment 
in housing and raise costs for businesses and households. Mainly for this reason, local 
projected economic growth for 2015 is only 2%, down from 2,5% indicated in October last 
year. Growth is expected to rise to 3% by 201 7. 

• Consumer price inflation peaked at 6,6% in June last year. It has subsequently declined to just 
4,4% last month, and is expected to average 4,3% in 2015, laying a foundation for economic 
growth. 

The focus of the draft 2015/16 MTREF is to ensure that the City is financially viable and sustainable. 
This required reviewing of the current spending levels within prudent financial limits, necessitating re- 
alignment and addressing basic service delivery. 

The IDP remains the implementation framework for service delivery interventions, good governance 
and a mobilisation platform for partnership with the private sector and social partners and communities. 
The preparation of the budget is directly informed by the needs submitted by the community through the 
Integrated Development Plan (IDP) process. 

In 2011 , when the five year IDP was approved the theme: “Consolidating service delivery, accelerating 
service delivery and strengthening the foundations for a new Tshwane: a city of excellence” was agreed 


page I 41 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


upon. To achieve the aspirations of the theme, strategic objectives and indicators were identified and 
these remain as per the amendment of the 2014/15 IDP as follows: 

• Provide sustainable services infrastructure and human settlement. 

• Promote shared economic growth and job creation. 

• Ensure sustainable, safer communities and integrated social development. 

• Promote good governance and an active citizenry. 

• Improved financial sustainability. 

• Continued institutional development, transformation and innovation. 

Subsequently, through the development of Tshwane Vision 2055, the City has set a long term development 
agenda which will guide all future initiatives of the City. The long term vision of the City is as follows: 

In 2055, Tshwane is liveable, resilient and inclusive whose citizens enjoy a high quality 
of life, have access to social, economic and enhanced political freedoms and where 
citizens are partners in the development of the African Capital City of excellence. 

National Treasury issued Circulars 74 and 75, guiding municipalities in the preparation of their 2015/16 
MTREFs. 

Figure 1 : City of Tshwane’s guiding principles 



Ensuring the City’s 
financial viability 


• Revise the level of expenditure to 
create a surplus in the 2015/16 
MTREF 



• Revise the level of borrowing 

• Accelerating revenue collection 

• Implement operational efficiencies. 



Accelerate basic service 
delivery 


• Reprioritization of existing funds to 
accelerate basic service delivery 

• Accelerate programmes as per 
Mayoral Lekgotla priority 



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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

The 2015/16 MTREF reflects the reality of the current budgetary pressures. The following budget 
guidelines directly informed the compilation of the budget: 

• Produce a surplus budget and build cash reserves. 

• Resources will be redirected towards the Mayoral priorities. 

• Departments and Entities must ensure that ongoing expenditure is funded with ongoing 
revenues and any reduction in revenues should be followed by a reduction in expenditure. 

• Departments should critically review their current activities and redirect funds towards priority 
areas. 

• Maintain all assets at a level adequate to protect the capital investment and minimize future 
maintenance and replacement costs. 

• Explore alternative options of providing services, thereby ensuring value for money. 

Other strategies and measures implemented to ensure sustainability are as follows: 

• Budget Policy. 

• Revenue Enhancement Strategy. 

• Budget principles and guidelines. 

• Cash-flow management intervention initiatives. 

• Balance sheet restructuring and optimisation. 

• Revenue, Expenditure and Performance Committee (REPCO). 

• A Joint Operating Committee (JOC) for Revenue was established to improve revenue collection 
and synergize revenue collection efforts across the city. 

The City of Tshwane has the following active municipal entities which are found to be viable and 
functioning in compliance with the Municipal Finance Management Act and the Local Government 
Systems Act: 

• Sandspruit Works Association. 

• Housing Company Tshwane. 

• Tshwane Economic Development Agency (TEDA). 

With the promulgation of the 2015 Division of Revenue Bill (DoR Bill) on 25 February 2015, the grant 
allocation (including indirect grants) towards the City of Tshwane amounted to R5,8 billion, R6,2 billion 
and R6,6 billion in the 2015/16, 2016/17 and 2017/18 financial years respectively. For the 2015/16 
financial year, total Capital Grants of R2,5 billion and Operational Grants of R3,3 billion are included in 
the budget. 


page I 43 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The outcome of the budgeting process can be summarised as follows: 


Table 1 : Consolidated overview of the 2015/16 MTREF 



Adjustments 
Budget 2014/15 

Budget 

2015/16 

Budget 

2016/17 

Budget 

2017/18 


R’000 

R’000 

R’000 

R’000 

Revenue 

(25 110 962) 

(26 295 831) 

(28 530 226) 

(30 955 278) 

Expenditure 

24 589 717 

25 710 916 

27 869 289 

30 121 737 

(Surplus)/ Deficit 

(521 245) 

(584 915) 

(660 937) 

(833 541) 

Capital Grants 

(2 623 113) 

2 453 160) 

(2 506 939) 

(2 632 126) 

(Surplus)/ Deficit incl. capital grants 

(3 144 357) 

(3 038 075) 

(3 167 876) 

(3 465 667) 

Total Capital Expenditure 

4 388 781 

3 856 566 

3 991 839 

4 162 126 


The total operating revenue has grown by 4,7% or R1,2 billion for the 2015/16 financial year when 
compared to the 2014/15 Adjustment Budget. For the two outer years, operational revenue will increase 
by 8,5% per annum, equating to a total revenue growth of R5,8 billion over the MTREF when compared 
to the 2014/15 financial year. 

Total operating expenditure for the 2015/16 financial year has been appropriated at R26,3 billion and 
translates into a budgeted surplus of R584,9 million. When compared to the 2014/15 Adjustment Budget, 
operational expenditure has grown by 4,6% in the 201 5/1 6 financial year and by 8,4% and 8,1 % for each 
of the respective outer years of the MTREF. The operating surplus for the two outer years increases to 
R660,9 million and R833,5 million respectively. 

The funding capacity of the capital budget amounts to R3,9 billion, R4,0 billion and R4,2 billion over the 
medium term. Borrowing amounts to R1,2 billion per annum over the medium term and contribute to 
31 ,1%, 30,1%, 28,9% of capital expenditure respectively. Grant funding constitutes 63,6%, 62,8% and 
63,2% over the medium-term. The balance will be funded from own funds (internally generated funds 
and Public Contributions and Donations) which amount to 5,3%, 7,1% and 7,9% for the three years 
respectively. 


page I 44 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.3 OPERATING REVENUE FRAMEWORK (PARENT) 

Maintaining financial viability of the City of Tshwane is critical to the achievement of service delivery and 
economic objectives. Revenue generation is fundamental in strengthening the institutional environment 
for the delivery of municipal basic services and infrastructure. The capacity of generating revenue is 
challenged by poverty and unemployment that is prevalent in the municipal area. 

To address the collection challenge, the City embarked on an Accelerated Revenue Collection 
programme. A Joint Operating Committee (JOC) for Revenue was established to improve revenue 
collection and synergize revenue collection efforts across the city. 

In terms of the MFMA, a credible and funded budget must be tabled based on realistic estimates of 
revenue that are consistent with budgetary resources and collection history. 

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


Table 2: Summary of revenue classified by main revenue source 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Revenue By Source 










Property rates 

3 357 775 

3 999 586 

4 432 509 

4 888 154 

4 888 154 

4 888 154 

5 236 387 

5 763 026 

6 342 328 

Property rates - penalties & collection charges 

Service charges ■ electricity revenue 

7 526 393 

8 133 857 

8 313 878 

9 613 283 

9 613 283 

9 613 283 

10 471 749 

11 307 889 

12 210 920 

Service charges - water revenue 

1 993 600 

2 251 371 

2 522 967 

2 729 355 

2 813 355 

2 813 355 

3 169 195 

3 451 554 

3 759 324 

Service charges - sanitation revenue 

491 606 

560 220 

623 443 

695 345 

695 345 

695 345 

748 908 

816 310 

889 778 

Service charges - refuse revenue 

480 001 

597 961 

768 111 

956 673 

956 673 

956 673 

1 095 779 

1 205 357 

1 325 891 

Service charges - other 

160 002 

114 134 

135 715 

240 237 

252 737 

252 737 

152 581 

159 447 

166 303 

Rental of facilities and equipment 

97 718 

103 459 

109 863 

261 276 

261 276 

261 276 

109 112 

114 022 

118 925 

Interest earned - external investments 

52 185 

62 237 

51 800 

66 548 

66 548 

66 548 

69 774 

106 226 

111 328 

Interest earned - outstanding debtors 

244 643 

253 250 

299 342 

197 376 

197 376 

197 376 

182 050 

191 050 

200 050 

Dividends received 










Fines 

52 347 

37 645 

196 886 

111 402 

199 022 

199 022 

196 691 

196 812 

196 932 

Licences and permits 

52 426 

58 659 

55 801 

58 578 

58 578 

58 578 

57 680 

60 185 

62 687 

Agency services 










Transfers recognised - operational 

2 322 772 

2 592 463 

2 861 382 

3 104 829 

3 121 377 

3 121 377 

3 419 706 

3 716 419 

4 053 363 

Other revenue 

1 730 299 

802 352 

914 878 

1 450 158 

1 407 592 

1 407 592 

815 250 

820 989 

840 561 

Gains on disposal of PPE 

27112 

9 814 

1 693 







Total Revenue (excluding capital transfers and 
contributions) 

18 588 879 

19 577 006 

21 288 268 

24 373 213 

24 531 315 

24 531 315 

25 724 863 

27 909 285 

30 278 390 


page I 45 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

The following table indicates the percentage growth in revenue by main revenue source. 


Table 3: Percentage growth in revenue by main revenue source 


Description 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure Framework 

R thousand 

Adjusted 

Budget 

% 

Budget Year 

2015/16 

% 

Budget Year 

+1 2016/17 

% 

Budget Year 

+2 2017/18 

% 

Revenue By Source 









Property rates 

4 8 88 154 

19,9% 

5 236 387 

20,4% 

5 763 026 

20,6% 

6 342 328 

20,9% 

Property rates - penalties & collection charges 

- 

0,0% 

- 

0,0% 

- 

0,0% 

- 

0,0% 

Service charges - electricity revenue 

9 613 283 

39,2% 

10 471 749 

40,7% 

11 307 889 

40,5% 

12 210 920 

40,3% 

Service charges - water revenue 

2 813 355 

11,5% 

3 169 195 

12,3% 

3 451 554 

12,4% 

3 759 324 

12,4% 

Service charges - sanitation revenue 

695 345 

2,8% 

748 908 

2,9% 

816 310 

2,9% 

889 778 

2,9% 

Sen/ ice charges - refuse revenue 

956 673 

3,9% 

1 095 779 

4,3% 

1 205 357 

4,3% 

1 325 891 

4,4% 

Sen/ ice charges - other 

252 737 

1,0% 

152 581 

0,6% 

159 447 

0,6% 

166 303 

0,5% 

Rental of facilities and equipment 

261 276 

1,1% 

109 112 

0,4% 

114 022 

0,4% 

118 925 

0,4% 

Interest earned - external investments 

66 548 

0,3% 

69 774 

0,3% 

106 226 

0,4% 

111 328 

0,4% 

Interest earned - outstanding debtors 

197 376 

0,8% 

182 050 

0,7% 

191 050 

0,7% 

200 050 

0,7% 

Dividends received 

- 

0,0% 

- 

0,0% 

- 

0,0% 

- 

0,0% 

Fines 

199 022 

0,8% 

196 691 

0,8% 

196 812 

0,7% 

196 932 

0,7% 

Licences and permits 

58 578 

0,2% 

57 680 

0,2% 

60 185 

0,2% 

62 687 

0,2% 

Agency services 

- 

0,0% 

- 

0,0% 

- 

0,0% 

- 

0,0% 

Transfers recognised - operational 

3 121 377 

12,7% 

3 419 706 

13,3% 

3 716 419 

13,3% 

4 053 363 

13,4% 

Other revenue 

1 407 5 92 

5,7% 

815 250 

3,2% 

820 989 

2,9% 

840 56 1 

2,8% 

Gains on disposal ofPPE 

- 

0,0% 

- 

0,0% 

- 

0,0% 

- 

0,0% 

Total Revenue (excluding capital transfers 
and contributions) 

24 531 315 

100,0% 

25 724 863 

100,0% 

27 909 285 

100,0% 

30 278 390 

100,0% 

Total revenue from sen/ice charges 

14 331 392 

58,4% 

15 638 212 

60,8% 

16 940 556 

60,7% 

18 352 217 

60,6% 


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

Furthermore, the Municipality must reflect only revenue and expenditure of “transactions with the outside 
world” on its budget, on the same basis as when compiling its annual financial statements. 

Revenue generated from rates and service charges forms a significant percentage of the revenue 
basket of the City of Tshwane. In the 2014/15 financial year (adjustments budget), revenue from rates 
and service charges totalled R19,2 billion (78,3%) of the total revenue, excluding capital transfers and 
contributions. This figure increases to R20,9 billion, R22,7 billion and R24,7 billion in the respective 
financial years of the 2015/16 MTREF. 

Electricity is the main revenue source, contributing R10,5 billion or 40,7% of the total revenue, and 
escalates to R12,2 billion in 2017/18. 

Property rates are the second largest revenue source, totalling 20,4% of the total revenue of R25, 7 billion, 
and will increase to R6,3 billion by 2017/18. The third-largest source is operating grants, followed by 
water. 


page I 46 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

The following table breaks down the operating grants and subsidies allocated to the Municipality over 
the medium term. 

Table 4: Operating transfers and grant receipts 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

RECEIPTS: 

Operatinq Transfers and Grants 










National Government: 

2 145 194 

2 384 062 

2 732 192 

2 993 903 

3 008 481 

3 008 481 

3 298 840 

3 594 122 

3 925 077 

Local Government Equitable Share 

923 020 

1 040 630 

1 166 964 

1 375 5 18 

1 375 518 

1 375 518 

1 654 390 

1 886 413 

2 131 544 

Fuel Levy 

1 191 521 

1 326 054 

1 308 179 

1 352 410 

1 352 410 

1 352 410 

1 395 849 

1 467 741 

1 538 936 

Finance Management Grant 

5 252 

5 000 

4 500 

4 750 

4 750 

4 750 

3 925 

2 875 

2 650 

Water Services Operating Subsidy Grant 

24 471 

2 227 

- 

300 

- 

- 

- 

- 

- 

Public Transport Infrastructure & Systems Grant 

- 

- 

174 783 

- 

- 

- 

- 

- 

- 

2010 FIFA World Cup Host City Operating Grant 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Urban Settlement Development Grant 

- 

- 

40 000 

- 

- 

- 

- 

- 

- 

Municipal Human Settlement Capacity Grant 

- 

- 

- 

47 506 

47 506 

47 506 

12 831 

12 831 

14 755 

Expanded Public Works Programme Incentive (EPWP) 

930 

10 151 

29 670 

30 760 

30 760 

30 760 

31 143 

- 

- 

Public Transport Network Operations Grant 

- 

- 

- 

138 000 

138 000 

138 000 

161 000 

186 000 

195 300 

Integrated City Development Grant 

- 

- 

8 096 

44 659 

44 659 

44 659 

39 702 

38 262 

41 892 

Municipal Disaster Recovery Grant 

- 

- 

- 

- 

14 878 

14 878 

- 

- 

- 

Provincial Government: 

261 766 

127 943 

103 692 

110 926 

110 355 

110 355 

120 866 

122 297 

128 286 

Primary Health Care 

27325 

29 625 

35 837 

39 967 

39 967 

39 967 

42 085 

44 316 

46 532 

Emergency Medical Services 

47 902 

49 676 

53 750 

56 683 

56 683 

56 683 

59 687 

62 850 

65 993 

HIV and Aids Grant 

5 097 

9 908 

10 403 

10 923 

10 923 

10 923 

11 501 

12 111 

12 717 

Performance Management 

1500 

- 

- 

- 

- 

- 

- 

- 

- 

Housing Top Structure 

146 243 

30 043 

- 

- 

- 

- 

- 

- 

- 

Incorporation of Mets w eding 

21 000 

- 

- 

- 

- 

- 

- 

- 

- 

Sports and Recreation : Community Libraries 

12 700 

5190 

2 702 

2 460 

1 889 

1 889 

6 700 

2 550 

2 550 

Operation Clean Audit (OPCA) 

- 

- 

1 000 

- 

- 

- 

- 

- 

- 

Debtor Book (New) 

- 

3 500 

- 

- 

- 

- 

- 

- 

- 

Gautrans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Research and Technology Development Services 

- 

- 

- 

893 

893 

893 

893 

470 

494 

LED: Tshepo 10 000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

133 

- 

2 116 

- 

689 

689 

- 

- 

- 

DBSA 

- 

- 

780 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Drakensburg Promotions CC. 

133 

- 

- 

- 

- 

- 

- 

- 

- 

Industrial Development Corporation (IDC) 

- 

- 

400 

- 

- 

- 

- 

- 

- 

LGSETA 

- 

- 

936 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

689 

689 

- 

- 

- 

Total Operating Transfers and Grants 

2 407 093 

2 512 005 

2 838 000 

3 104 829 

3 119 525 

3 119 525 

3 419 706 

3 716 419 

4 053 363 


page I 47 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Tariff-setting 

All metropolitan municipalities derive it’s revenue from the provision of mainline goods and services, 
such as water and electricity. A considerable portion of revenue is also derived from property rates, a 
relative stable source, as it is not affected by seasonal trends or economic cycles. 

Tariff-setting plays a major role in ensuring desired levels of revenue. When rates, tariffs and other 
charges are revised, local economic conditions, input costs and the affordability of services are taken 
into account to ensure continuous service delivery. 

The challenge to manage this gap between cost drivers and tariffs levied, and any shortfall must be 
made up by either operational efficiency gains or service level reductions. 

The table below highlights the proposed percentage increase in tariffs per main service category. 

Table 5: Proposed tariff increases over the medium term 


Revenue category 

2015/16 tariff 
increase 

2016/17 tariff 
increase 

2017/18 tariff 
increase 


% 

% 

% 

Sanitation 

9,0 

9,0 

9,0 

Refuse removal 

15,0 

10,0 

10,0 

Water 

13,5 

9,0 

9,0 

Electricity 

12,0 

8,0 

8,0 

Property Rates 

8,0 

10,0 

10,0 


The various tariff proposals are discussed per revenue stream below. 

1.3.1 PROPERTY RATES 

A municipality levy rates on all rateable property in it’s area to fund the non-self-sufficient services. 
Affordability as well as fairness determines the rate ratios between categories of properties. 

For the 2015/16 MTREF, all category’s tariffs are proposed to increase with 8,0% from 1 July 2015. 

The property rates revenue expected for the 2014/15 financial year, including supplementary values, 
was utilised as basis for determining baseline revenue for the draft 2015/16 MTREF. Compared to the 
approved 2014/15 Adjustment Budget, a 7,1% increase in revenue is expected forthe 2015/16 financial 
year, amounting to R5,2 billion. 

The residential tariff is the baseline tariff, which determines the ratios towards some of the other tariffs. 
The rate ratio of residential to agricultural and public benefit organisations is legislatively determined to 
be 1:0,25. 


page I 48 



The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The proposed tariffs over the medium-term are as follows: 

Table 6: Property rates tariffs 


Category 

Tariff 

2014/15 

Tariff 
2015/16 
(8% increase) 

Tariff 
2016/17 
(10% increase) 

Tariff 
2017/18 
(10% increase) 


R 

R 

R 

R 

Agricultural properties 

0,00235 

0,00253 

0,00278 

0,00306 

Business and commercial 
properties 

0,02830 

0,03056 

0,03362 

0,03698 

Educational institutions 

0,02830 

0,03056 

0,03362 

0,03698 

Independent schools PBO 

0,00235 

0,00253 

0,00278 

0,00306 

Industrial properties 

0,02830 

0,03056 

0,03362 

0,03698 

Mining 

0,02830 

0,03056 

0,03362 

0,03698 

Municipal property 

- 

- 

- 

- 

Municipal property 

According 

According to 

According to 

According to 

(rateable) 

to use 
category 

use category 

use category 

use category 

No category 

- 

- 

- 

- 

Non permitted use 

0,07075 

0,07641 

0,08405 

0,09246 

Protected areas 

- 

- 

- 

- 

Public service infrastructure 

- 

- 

- 

- 

Public worship 

- 

- 

- 

- 

Residential properties 

0,00938 

0,01013 

0,01114 

0,01225 

State-owned properties/ 
Government 

0,02830 

0,03056 

0,03362 

0,03698 

Vacant land 

0,06086 

0,06573 

0,07230 

0,07953 


Below is an example of how the monthly amount payable for property rates is calculated. 

Example of a residential property: 

(Value less R75 000) x R0,01013 divided by 12 for monthly property tax. 

For a value of R1 million it will be as follows: 

(R1 ,0 million less R75 000) x R0, 01013 divided by 12 = R780,85 per month. 


page I 49 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following table illustrates the impact in monthly property rates payable for a few values of residential 
properties: 

Table 7: Residential property rates scenarios 


Value of Residential 
Property 

Monthly payment with 
2014/15 tariff of 0,938 cent 

Monthly payment with 
2015/16 tariff of 1,013 cent 

R 

R 

R 

75 000 

* 

* 

100 000 

19,54 

21,10 

300 000 

175,88 

189,94 

600 000 

410,38 

443,19 

1 000 000 

723,04 

780,85 

1 500 000 

1 113,88 

1 202,94 

2 000 000 

1 504,71 

1 625,02 


*The first impermissible value of R15 000 plus the following R60 000 value on all residential properties 
granted by the City, are not taxable. 

Pensioners (60 years of age) as well as physically and mentally disabled persons will still be granted 
rebates as follows (subject to specific conditions): 

• A maximum/total rebate of 50% (on the remaining property tax, after the applicable residential 
rebates have been granted) will be granted to owners of rateable property subject to total 
gross income of the applicant and/or his/her spouse, if any, not to exceed the amount equal to 
twice the annual state pension (2 X R1 41 0,00 or 2 X R1 430,00 if older than 75), as approved 
by the National Government for a financial year. Should the applicant receive more than this, 
but not more than R130 000 a year, a maximum/total rebate of 40%, will be granted. 

• The applicant’s account must be paid in full, or if not, an arrangement to pay the debt should 
be in place. 

Furthermore, registered indigents pay no property rates, irrespective of the value of the property they 
own. 

The approved Property Rates Policy is proposed to be amended with effect from 1 July 2015. More 
information is available under Overview of budget-related-policies, further in the document. 

1 .3.2 SALE OF WATER AND IMPACT OF TARIFF INCREASES 

The level and structure of the water tariffs must ensure that - 

• water tariffs are fully cost-reflective, including the cost of maintenance and renewal of 
purification plants and water networks, and the cost of new infrastructure; 

• water tariffs are structured to protect basic levels of services; and 

• water tariffs are designed to encourage efficient and sustainable consumption (eg through 
increasing block tariffs). 


page I 50 



The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


A tariff increase of 13,5% is therefore proposed from 1 July 2015 based on the input costs with regard to 
Rand Water, Eskom and the required surplus on water services, etc. Electricity forms a large component 
of water distribution costs, in that water needs to be pumped to reservoirs and into it’s towers. 

The water tariff structure will remain unchanged as a rising block tariff with pro-poor lower block tariffs 
and pro-water conservation blocks for higher usage to encourage water savings. Cross subsidisation 
from high water users to low water users ensures that the full cost of all water expenditure is recovered. 

The 13,5% proposed tariff increase applicable to the consumers from 1 July 2015, will generate 
R3,2 billion revenue (excluding internal municipal services). The proposed tariff increases for the outer 
years are 9%. Altogether 1 2 kt water per 30-day period will again be granted free of charge to registered 
indigent households. It should further be noted that free water is also supplied to informal areas by 
water tankers and standpipes. 

The Rand Water tariff guideline regarding a 13,5% increase is subject to any further increase in the 
Eskom tariffs (owing to the impact on Rand Water’s pump costs) still to be approved by NERSA. 


The proposed tariff increases with effect from 1 July for residential and non-residential consumers over 
the medium-term are summarised as follows: 


Table 8: Water tariffs 


CATEGORY 

Tariffs 

Tariffs 

Tariffs 

Tariffs 


2014/15 

2015/16 

2016/17 

2017/18 



(13,5% increase) 

(9% increase) 

(9% increase) 


Per kf 

Per kf 

Per kf 

Per kf 


R 

R 

R 

R 

RESIDENTIAL 





0 - 6 kf per 30 day period 

6,81 

7,73 

8,42 

9,18 

7 - 12 kf per 30 day period 

9,72 

11,03 

12,03 

13,11 

1 3 - 1 8 kf per 30 day period 

12,77 

14,49 

15,80 

17,22 

1 9 - 24 kf per 30 day period 

14,77 

16,76 

18,27 

19,92 

25 - 30 kf per 30 day period 

16,89 

19,17 

20,90 

22,78 

31 - 42 kf per 30 day period 

18,25 

20,71 

22,58 

24,61 

43 - 72 kf per 30 day period 

19,53 

22,17 

24,16 

26,34 

More than 72 kf per 30 day 
period 

20,91 

23,73 

25,87 

28,20 

NON-RESIDENTIAL 





0- 10 000 kf per 30 day period 

14,39 

16,33 

17,80 

19,40 

10 001 - 100 000 kf per 30 
day period 

13,66 

15,50 

16,90 

18,42 

More than 100 000 kf per 30 
day period 

12,73 

14,45 

15,75 

17,17 


page I 51 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following table indicates the impact of the proposed increases in water tariffs on the water charges 
for single-dwelling houses: 

Table 9: Comparison of current water charges and increases (domestic) over the medium-term 



2014/15 

2015/16 


2016/17 


2017/18 


Monthly 

consumption 

k€ 

Amount 

payable 

Amount 

payable 

Difference 

(13,5% 

increase) 

Amount 

payable 

Difference 

(9% 

increase) 

Amount 

payable 

Difference 

(9% 

increase) 


R 

R 

R 

R 


R 


20 

205,34 

233,06 

27,72 

254,04 

20,98 

276,90 

22,86 

30 

365,76 

415,14 

49,38 

452,50 

37,36 

493,22 

40,72 

40 

548,26 

622,28 

74,02 

678,28 

56,00 

739,33 

61,05 

50 

741 ,00 

841 ,04 

100,04 

916,73 

75,69 

999,23 

82,51 

80 

1 337,94 

1 518,56 

180,62 

1 655,23 

136,67 

1 804,20 

148,97 

100 

1 756,14 

1 993,22 

237,08 

2 172,61 

179,39 

2 368,14 

195,53 


In terms of National Treasury’s Circular 54, the accounting officer of a municipality is instructed in terms 
of section 74 of the MFMAto submit to National Treasury the information on drinking water quality and 
waste water management outlined in the circular. 

1 .3.3 SANITATION AND IMPACT OF TARIFF INCREASES 


A tariff increase of 9% per annum over the medium-term is proposed. This is based on the input cost 
as well as the additional interest and redemption required to finance the waste water treatment works 
upgrade and extension programme. 


Sanitation charges are calculated according to the percentage water discharged as indicated in the table 
below, which compares the current and proposed sanitation charges to the proposed tariff increases. 

Table 10: Comparison between current sanitation charges and increases 


CATEGORY 

% 

Discharged 

Tariffs 

2014/15 

Tariffs 

2015/16 

(9% 

increase) 

Tariffs 

2016/17 

(9% 

increase) 

Tariffs 

2017/18 

(9% 

increase) 



Per kf 

R 

Per kt 

R 

Per kt 

R 

Per kf 

R 

RESIDENTIAL 






0 - 6 kt per 30 day period 

98 

5,06 

5,52 

6,01 

6,55 

7 - 12 kf per 30 day period 

90 

6,83 

7,44 

8,11 

8,85 

1 3 - 1 8 kf per 30 day period 

75 

8,81 

9,60 

10,47 

11,41 

1 9 - 24 kf per 30 day period 

60 

8,81 

9,60 

10,47 

11,41 

25 - 30 kf per 30 day period 

52 

8,81 

9,60 

10,47 

11,41 

31 - 42 kf per 30 day period 

10 

8,81 

9,60 

10,47 

11,41 

More than 42 kt per 30 day period 

1 

8,81 

9,60 

10,47 

11,41 


page I 52 




The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


A zero-based tariff is charged for registered indigents for the first 6 kt discharged. 

The total revenue (excluding internal municipal service charges) expected to be generated from 
rendering this service amounts to R748,9 million, R816,3 million and R889,8 million for the 2015/16, 
2016/17 and 2017/18 financial years respectively. 

The following table compares the current sanitation charges and the impact of the proposed tariff 
increases in sanitation tariffs over the medium-term for single-dwelling houses: 

Table 1 1 : Comparison between current sanitation charges and increases, single-dwelling houses 



2014/15 

2015/16 


2016/17 


2017/18 


Monthly 

sanitation 

consumption 

Amount 

payable 

Amount 

payable 

Difference 

(9% 

increase) 

Amount 

payable 

Difference 

(9% 

increase) 

Amount 

payable 

Difference 

(9% 

increase) 

k€ 

R 

R 

R 

R 


R 


5 

24,79 

27,03 

2,23 

29,46 

2,43 

32,11 

2,65 

10 

54,34 

59,23 

4,89 

64,56 

5,33 

70,37 

5,81 

20 

116,85 

127,37 

10,52 

138,83 

11,46 

151,33 

12,49 

30 

165,48 

180,38 

14,89 

196,61 

16,23 

214,31 

17,69 

40 

174,29 

189,98 

15,69 

207,08 

17,10 

225,71 

18,64 

50 

176,76 

192,67 

15,91 

210,01 

17,34 

228,91 

18,90 

80 

179,40 

195,55 

16,15 

213,15 

17,60 

232,33 

19,18 

100 

181,16 

197,47 

16,30 

215,24 

17,77 

234,61 

19,37 


1 .3.4 SALE OF ELECTRICITY AND IMPACT OF TARIFF INCREASES 

Electricity revenue increased by 8,9% compared to the 2014/15 Adjustments Budget. This is owing to 
an expected decline in consumption based on the current trends and an average increase of 12,0% in 
tariffs (the average domestic tariff increases ranges from 8% to 1 2%) for the 201 5/1 6 financial year. The 
proposed tariff increase range between 12% for commercial and 13% to 16% on bulk commercial and 
industrial TOU (time of use) scales subject to load profiles and load factor percentage. The percentage 
increase is based on the Eskom tariff increase and guidelines of NERSA and is subject to NERSA 
approval. 

The tariff structure with regard to households provides for inclining block tariffs. Registered indigents 
are granted 100 kWh free of charge. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The proposed sliding scale tariffs for the 201 5/1 6 financial year that applies to households are as follows: 


Table 12: Sliding scale tariffs 


Tariff Blocks 

Tariff c/kWh 
2014/15 

Tariff c/kWh 
2015/16 

Tariff c/kWh 
2016/17 

Tariff c/kWh 
2017/18 

Block 1 (0 - 100 kWh) 

113,14 

121,96 

131,72 

142,25 

Block 2 (101 -400 kWh) 

129,08 

141,70 

153,04 

165,28 

Block 3 (401 -650kWh) 

137,78 

154,60 

166,97 

180,33 

Block 4 (>650 kWh) 

147,23 

165,20 

178,42 

192,69 


The table below reflects examples of monthly electricity consumption charges for single-dwelling houses. 

Table 13: Comparison between current electricity charges and increases (domestic) 



2014/15 

2015/16 

2016/17 

2017/18 

Monthly 

consumption 

Amount 

payable 

Amount 

payable 

Increase 

Amount 

payable 

Increase 

Amount 

payable 

Increase 

kWh 

R 

R 

R 

R 


R 


100 

113,14 

121,96 

8,82 

131,72 

9,76 

142,25 

10,54 

250 

306,76 

334,51 

27,75 

361,27 

26,76 

390,17 

28,90 

500 

638,16 

701,66 

63,50 

757,79 

56,13 

818,42 

60,62 

750 

992,06 

1 098,76 

106,70 

1 186,66 

87,90 

1 281,59 

94,93 

1 000 

1 360,14 

1 511,76 

151,63 

1 632,70 

120,94 

1 763,32 

130,62 

2 000 

2 832,44 

3 163,76 

331,33 

3 416,86 

253,10 

3 690,21 

273,35 


1 .3.5 REFUSE REMOVAL AND IMPACT OF TARIFF INCREASES 

NT MFMA Circular 66 requires refuse removal tariffs to cover the cost of providing the service and 
appropriately structured cost reflective tariffs must be in place. The tariffs must also maintain a cash- 
backed reserve to cover the future costs of rehabilitating landfill sites. 

A tariff increase of 15% for 2015/16 is proposed to render a stable service to all areas. 

The proposed tariff increase will result in revenue (excluding internal municipal services) to the amount 
of R1 095,8 million, R1 205,4 million and R1 325,9 million being generated for refuse removal during the 
2015/16, 2016/17 and 2017/18 financial years respectively. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

The following table compares current and proposed tariff increases from 1 July (15,0%, 10,0% and 
10,0% for the 2015/16, 2016/17 and 2017/18 financial years respectively): 

Table 14: Comparison of current refuse removal charges and increases 


Service Category 2014/15 2015/16 2016/17 2017/18 



Refuse 

City 

Refuse 

City 

Refuse 

City 

Refuse 

City 


removal 

Cleansing 

removal 

Cleansing 

removal 

Cleansing 

removal 

Cleansing 


Per 

Per 

Per 

Per 

Per 

Per 

Per 

Per 


month 

month 

month 

month 

month 

month 

month 

month 


R 

R 

R 

R 

R 

R 

R 

R 

Weekly service charge 









85 t x 1 day per week 
(black bin) 

33,09 

33,09 

38,05 

38,05 

41,86 

41,86 

46,04 

46,04 

85 t x 2 days per week 
(black bin) 

66,18 

66,18 

76,10 

76,10 

83,72 

83,72 

92,08 

92,08 

120 t x 1 day per week 



53,72 

53,72 

59,09 

59,09 

65,00 

65,00 

240 t x 1 day per week 

93,43 

93,43 

107,44 

107,44 

118,20 

118,20 

130,01 

130,01 

1 1 00 t x 1 day per week 

428,23 

428,23 

492,46 

492,46 

541,72 

541 ,72 

595,89 

595,89 










Daily service 









240 l x 5 days per week 
(green bin) 

467,15 

467,15 

537,22 

537,22 

590,96 

590,96 

650,06 

650,06 

240 l x 6 days per week 
(green bin) 

560,58 

560,58 

644,67 

644,67 

709,16 

709,16 

780,07 

780,07 

240 tx7 days per week 
(green bin) 

654,01 

654,01 

752,11 

752,11 

762,11 

762,11 

838,32 

838,32 

1 1 00 t x 5 days a week 

2 141,15 

2 141,15 

2 462,30 

2 462,30 

2 708,53 

2 708,53 

2 979,38 

2 979,38 

1 100 t x 6 days a week 

2 569,38 

2 569,38 

2 954,76 

2 954,76 

3 250,24 

3 250,24 

3 575,26 

3 575,26 

1 1 00 f x 7 days a week 

2 997,61 

2 997,61 

3 447,22 

3 447,22 

3 791,94 

3 791,94 

4 171,13 

4 171,13 


Refuse removal charges are based on the volume of refuse removed (container size) per week. Tariffs 
for city cleaning are levied on all premises irrespective of who removes the refuse generated at the 
premises. The City of Tshwane reserves the right to determine the type of service, the minimum number 
of containers and the frequency of services per area. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

The amount payable per month from 1 July 2015 will be as follows: 

Table 15: Monthly amount payable for refuse removal 


Container 

Refuse removal 

City Cleansing 

Total payable 

R 

R 

R 

85 l removed once a week 

38,05 

38,05 

76,10 

85 l removed twice a week 

76,10 

76,10 

152,20 

120 l x 1 day per week 

53,72 

53,72 

107,44 

240 1 removed once a week 

107,45 

107,45 

214,90 

1 100 1 removed once a week 

492,47 

492,47 

984,94 


A 240 i container, removed once a week, now costs R1 86,86 and will cost R214,90 from 1 July 2015. 
That is R28,04 more per month, for having refuse removed on a weekly basis. 

Although the proposed tariff increase on refuse removal services is 15,0%, the impact on the total 
account is low, since a relatively small portion of an account goes towards refuse removal. 

1.3.6 OTHER TARIFFS 

Factors such as inflation, economic variations and trends coupled with sustainability usually affect other 
tariffs (such as bus services, rental of community and cultural facilities, building plans, cemeteries, 
etc). Tariff increases are inflation related, approximately in the order of 6,5% on average. Some of the 
charges are above inflation whereas the others remained the same. Also, there are structural changes 
eg bus tariffs to unify A Re Yeng and TBS fare structures and their systems. 

Some of the proposed changes are summarised below: 

Housing and Sustainable Development Department 

• Rentals 

The proposed monthly rental from 1 July 2015 range between R950 - R1 900, depending on the type of 
rental stock/ building, sizes of the units, location of the building and the age of the building. 

Emergency Services Department 

• Emergency Medical and Ambulance Services 

The City of Tshwane renders an emergency medical and ambulance services on behalf of the Gauteng 
Provincial Government (GPG) in terms of a Memorandum of Agreement. The tariffs applicable to the 
emergency medical and ambulance services are gazetted by the GPG and are applied accordingly 
within Tshwane. Persons registered on the Council’s Indigents Register will be exempted from paying 
costs for emergency medical services. Also persons without medical aid such as terminally ill patients, 
children under the age of 6, pensioners, patients with Tuberculosis (TB) and maternity patients. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

• Disaster Management 
These services are free of charge. 

Transport Department 

• Charges payable in respect of Engineering Service Contribution Unit Rates for Roads and 
Stormwater 

The increase in contributions for bulk engineering services for roads and stormwater, for application in 
the 201 5/1 6 financial year, will continue to be done using published CPA indices as per resolution of the 
Council report of June 2005. 

• Integrated Rapid Public Transport Network (IRPTN) 

The A Re Yeng and TBS fare structures and systems has been integrated owing to the fact that the 
corridor, routes and trip distances between the two operations were much different. Also, the same fare 
mechanism will be used by both operations, including concession types and basis for allowing discounts. 
At the same time the computerised system (EMV cards) system had to be simplified to accommodate 
all the changes made. 

The structural changes on TBS and A Re Yeng proposed fares will generally either remain the same or 
decrease and slightly increase in some instances. From 1 July 2015 the Maximum fare will be R24 (for 
Inception Phase in 201 4/1 5 the maximum was R1 2 based on the limited trip distance). 

Environmental Management Department 

The facilities at Wonderboom Nature Reserve have been expanded and now include a lapa and guided 
walks. Tariffs for these activities have therefore been introduced in the proposed structure. 

The Klipkruisfontein Resort is operational and the tariffs will be the same rates as that of the Kwaggaspruit 
Resort. 

The structure of annual tickets at Groenkloof Nature Reserve has been extended by introducing a fee 
for the use of crockery. Also a fee for Guided walks at the Faerie Glen Nature Reserve and shooting of 
films have been introduced. 

Entrance fees for children, persons which are 60 years and above including disabled persons at the 
swimming baths will not increase. 

Marketing, Communication and Events Department 

• Outdoor Advertising 

The estate agent tariff of R1 4 000,00 per branch premises per calendar year amended to R1 200,00 per 
agent per agency per calendar year. This is due to the fact that certain agencies have just a few agents 
whilst others have more agents. 


page I 57 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1 .3.7 OVERALL IMPACT OF TARIFF INCREASES ON HOUSEHOLDS 

The following table indicates the overall expected impact of the tariff increases on a large and small 
household, as well as on a registered indigent household receiving free basic services (no charges 
applicable): 

Table 16: MBRR SA14 - Household bills 


Description 

Rand/cent 

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 

% incr. 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Monthly Account for Household - 'Middle Income 











Range' 











Rates and services charges: 











Property rates 

425,67 

476,75 

444,27 

488,54 

488,54 

488,54 

8,0% 

527,63 

580,39 

638,43 

Electricity: Basic levy 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Electricity: Consumption 

1 081,25 

1 193, 14 

1 271,58 

1360,14 

1 360,14 

1 360, 14 

11,1% 

1 511,76 

1 632,70 

1 763,32 

Water: Basic levy 

~ 

~ 

~ 


~ 

~ 

~ 

~ 

~ 


Water: Consumption 

274,80 

302,28 

332,52 

365,76 

365,76 

365,76 

13,5% 

415,14 

452,50 

493,22 

Sanitation 

121,97 

136,60 

150,45 

165,48 

165,48 

165,48 

9,0% 

180,38 

196,61 

214,31 

Refuse removal 

95,72 

119,64 

149,52 

186,86 

186,86 

186,86 

15,0% 

214,88 

236,37 

260,00 

Other 

- 

- 

- 

- 

- 

- 


- 

- 

- 

sub-total 

1 999,41 

2 228,41 

2 348,34 

2 566,78 

2 566,78 

2 566,78 

11,0% 

2 849,79 

3 098,57 

3 369,28 

VAT on Services 

220,32 

245,23 

266,57 

290,95 

290,95 

290,95 

- 

325,10 

352,55 

382,32 

Total large household bill: 

2 219,73 

2 473,64 

2 614,91 

2 857,73 

2 857,73 

2 857,73 

11,1% 

3 174,89 

3 451,12 

3 751,61 

% increase/-decrease 


11,4% 

5,7% 

9,3% 

- 

- 


11,1% 

8,7% 

8,7% 

Monthly Account for Household - 'Affordable Ranqe' 











Rates and services charges: 











Property rates 

294,69 

330,06 

302,10 

332,21 

332,21 

332,21 

8,0% 

358,79 

394,66 

434,13 

Electricity: Basic levy 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Electricity: Consumption 

514,20 

563,71 

599,20 

638,16 

638,16 

638,16 

10,0% 

701,66 

757,79 

818,42 

Water: Basic levy 

~ 

~ 

~ 

~ 

~ 

~ 

- 

~ 

~ 

~ 

Water: Consumption 

211,40 

232,24 

255,77 

281,31 

281,31 

281,31 

13,5% 

319,29 

348,02 

379,34 

Sanitation 

105,07 

117,67 

129,63 

142,58 

142,58 

142,58 

9,0% 

155,41 

169,40 

184,64 

Refuse removal 

33,90 

42,37 

52,96 

66,18 

66,18 

66,18 

15,0% 

76,10 

83,71 

92,08 

Other 

~ 

~ 

~ 

~ 

~ 

~ 

~ 

~ 

~ 

~ 

sub-total 

1 159,26 

1 286,05 

1 339,66 

1 460,44 

1 460,44 

1 460,44 

10,3% 

1 611,25 

1 753,58 

1 908,61 

VAT on Services 

121,04 

133,84 

145,26 

157,95 

157,95 

157,95 

- 

175,34 

190,25 

206,43 

Total small household bill: 

1 280,30 

1 419,89 

1 484,92 

1 618,39 

1 618,39 

1 618,39 

10,4% 

1 786,59 

1 943,83 

2115,04 

% increase/-decrease 


10,9% 

4,6% 

9,0% 

- 

- 


10,4% 

8,8% 

8,8% 




-0,58 

0,96 

-1,00 






Monthly Account for Household - 'Indiqent' 











Household receivinq free basic services 











Rates and services charges: 











Property rates 

- 

- 

- 

" 

~ 

- 

- 

- 

- 

- 

Electricity: Basic levy 

- 

- 

- 

- 

~ 

- 

- 

- 

- 

- 

Electricity: Consumption 

257,35 

284,63 

303,00 

322,70 

322,70 

322,70 

9,8% 

354,25 

382,59 

413,20 

Water: Basic levy 

~ 

~ 

~ 

~ 

~ 

~ 

- 

~ 

~ 

~ 

Water: Consumption 

79,74 

87,81 

96,52 

106,16 

106,16 

106,16 

13,5% 

120,49 

131,34 

143,16 

Sanitation 

64,21 

71,92 

79,19 

87,10 

87,10 

87,10 

9,0% 

94,94 

103,48 

112,80 

Refuse removal 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

~ 

- 

~ 

~ 

~ 

~ 

~ 

~ 

" 

~ 

sub-total 

401,30 

444,36 

478,71 

515,96 

515,96 

515,96 

10,4% 

569,68 

617,41 

669,16 

VAT on Services 

56,18 

62,21 

67,02 

72,23 

72,23 

72,23 

- 

79,76 

86,44 

93,68 

Total small household bill: 

457,48 

506,57 

545,73 

588,19 

588,19 

588,19 

10,4% 

649,44 

703,84 

762,84 

% increase/-decrease 


10,7% 

7,7% 

7,8% 

" 



10,4% 

8,4% 

8,4% 


Note : Registered indigents of the CoT receives 12 /c£ of water and 100 kWh of electricity free per month. 

Note (Property Rates): 

100% property rate rebate is granted to the registered indigents in terms of the Indigent Policy of the City of Tshwane Metropolitan Municipality. 


page I 58 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.4 OPERATING EXPENDITURE FRAMEWORK (PARENT) 

The following table is a high-level summary of the draft 2015/16 MTREF (classified per main type of 
operating expenditure): 


Table 17: Summary of operating expenditure by standard classification item 


Description 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure Framework 

R thousand 

Adjusted 

Budget 

% 

Budget Year 

2015/16 

% 

Budget Year 

+1 2016/17 

% 

Budget Year 

+2 2017/18 

% 

Expenditure Bv Tvpe 

Employee related costs 

6 368 989 

26,5% 

6 917 257 

27,5% 

7 304 200 

26,8% 

7 713 5 90 

26,2% 

Remuneration of councillors 

105 577 

0,4% 

111 749 

0,4% 

122 674 

0,5% 

134 692 

0,5% 

Debt impairment 

676 196 

2,8% 

1 018 116 

4,0% 

1 697 750 

6,2% 

1 850 881 

6,3% 

Depreciation & asset impairment 

1 121 179 

4,7% 

1 186 841 

4, 7% 

1 262 245 

4,6% 

1 347 661 

4,6% 

Finance charges 

937 010 

3,9% 

1 02 9 202 

4,1% 

1 110 194 

4,1% 

1 193 967 

4,1% 

Bulk purchases 

7 992 756 

33,3% 

8 613 398 

34,3% 

9 321 454 

34,2% 

10 087 228 

34,3% 

Other materials 

316 101 

1,3% 

349 093 

1,4% 

359 556 

1,3% 

369 766 

1,3% 

Contracted services 

2 413 286 

10,1% 

1 939 756 

7, 7% 

1 996 933 

7,3% 

2 056 557 

7,0% 

Transfers and grants 

257 166 

1,1% 

259 298 

1,0% 

267 387 

1,0% 

268 475 

0,9% 

Other expenditure 

3 821 809 

15,9% 

3 715 237 

14,8% 

3 805 956 

14,0% 

4 422 033 

15,0% 

Total Expenditure 

24 010 070 

100 , 0 % 

25 139 948 

100 , 0 % 

27 248 348 

100 , 0 % 

29 444 849 

100 , 0 % 


The draft operating expenditure equates to R25,1 billion in the 2015/16 financial year and escalates 
to R29,4 billion in the 2017/18 financial year, a growth of 17,1% (8,4% from 2015/16 to 2016/17). 
Total operating expenditure for the 2015/16 financial year has increased by 4,7% against the 2014/15 
Adjustments Budget. 

The following graph illustrates the major expenditure items per type. 

Figure 2: Expenditure by major type 



Other expenditure, 
673 109, 26.5% 


related 
costs, 

R6 917 257, 27.5% 


of 

councillors, 
R111 749, 0.4% 


Transfers and 
grants, R259 
1 . 0 % 


Finance charges, 
R1 029 202, 4.1% 


Depreciation & asset 
impairment, 

R1 186 841, 4,7% 


Materials and bulk 


purchases, 
R8 962 


page I 59 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Bulk purchases have significantly increased from 2011/12 to 2017/18, escalating from R6,3 billion to 
R1 0, 1 billion. These increases can be attributed to the substantial increase in the cost of bulk electricity 
from Eskom and water from Rand Water. 

Employee-related costs and bulk purchases are the main cost drivers within the Municipality. Alternative 
operational gains and efficiencies will have to be identified to lessen the impact of these costs in future 
years. 

It should be noted that provision was made for the permanent appointment of about 2 130 Metro Police 
trainees, from February 2015, in terms of the Ward Based Deployment Strategy, which is aimed at 
decreasing crime levels through visible policing. 

Employee-related costs 

In terms of the projected R6,9 billion for the 201 5/1 6 financial year, an indicative salary increase of 5,4% 
has been included and represents 27,5% of the total expenditure budget. 

Remuneration of councillors 

The cost associated with the remuneration of councillors is determined and informed directly by way of 
the Remuneration of Public Office Bearers Act, 1998 (Act 20 of 1998). The determined upper limits of 
salaries, allowances and benefits of members of Council are gazetted annually in December/January. 

Debt impairment 

The Provision for Debt Impairment was determined based on an annual collection rate of 92%. For the 
201 5/1 6 financial year this amount equates to R1 ,0 billion. 

Depreciation and asset impairment 

Provision for depreciation and asset impairment has been informed by the municipality’s asset 
management strategy (Asset Management Policy and Procedures). Budget appropriations in this 
regard amounts to R1 ,2 billion for the 2015/16 financial year and equates to 4,7% of the total operating 
expenditure. 

Finance charges 

The increase in finance charges can be directly attributed to the level of external borrowings. The finance 
charges provided in the MTREF amounts to R1 ,0 billion, R1 ,1 billion and R1 ,2 billion respectively. 

Other materials 

This expenditure group amounts to R349,1 million, an increase of R33,0 million. Other materials consist 
of stationery, cleaning material, coal, consumables, chemicals, etc. 


page I 60 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Bulk purchases 

Compared to the 2014/15 Adjustments Budget, the bulk purchases group of expenditure (Rand Water 
and Eskom), has increased by 7,8% from R8,0 billion to R8,6 billion. The tariff increases with regard to 
Eskom (14,24%) and Rand Water (13,5%) have been provided for. A decline in electricity purchases 
and an increase in Water purchases are expected, based on the 2014/15 trend, which were factored in. 

Contracted services 

This group of expenditure decreased owing to the re-alignment of the budget, and represents 7,7% of 
total expenditure. 

Other expenditure 

This group of expenditure comprises of general related expenditure. It should be noted that in terms 
of NT regulations and formats, repairs and maintenance is divided between other materials, contracted 
services and other expenditure. 

The following figure breaks down the main expenditure categories: 

Figure 3: Main operational expenditure categories 


o 

o 

o 


12 000 000 

10 000 000 

8 000 000 

6 000 000 

4 000 000 

2 000 000 




Employee related 

costs 

Depreciation & 
asset impairment 

Materials and 
bulk purchases 

Other 

expenditure 

B 11/12 Audited Actual 

4 739 894 

1 060 301 

6 787 178 

5 245 160 

B 12/13 Audited Actual 

5 247 101 

1 128 587 

7 241 679 

6 282 356 

B 13/14 Audited Actual 

5 977 333 

1 239 048 

7 471 887 

7 761350 

B 14/15 Original Budget 

6 465 458 

1 113 786 

8 393 623 

7 300 818 

B 14/15 Adjusted Budget 

6 368 989 

1 121 179 

8 308 857 

8 211 045 

B 15/16 Budget Year 

6 917 257 

1 186 841 

8 962 492 

8 073 358 

B 16/17 Budget Year +1 

7 304 200 

1 262 245 

9 681 010 

9 000 893 

B 17/18 Budget Year +2 

7 713 590 

1 347 661 

10 456 994 

9 926 605 


In the above figure, other expenditure includes other material and contracted services. 


page I 61 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1 .4.1 REPAIRS AND MAINTENANCE 

In terms of the National Treasury regulations and formats, repairs and maintenance are divided among 
other materials, contracted services and other expenditure. 

The table below breaks down repairs and maintenance in relation to asset class. 

Table 18: Repairs and maintenance per asset class 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

EXPENDITURE OTHER ITEMS 

Depreciation & asset impairment 

1 060 301 

1 128 587 

1 239 048 

1 113 786 

1 121 179 

1 121 179 

1 186 841 

1 262 245 

1 347 661 

Repairs and Maintenance by Asset Class 

1 195 917 

1 412 290 

1 302 647 

1 544 692 

1 513 235 

1 513 235 

1 513 028 

1 562 590 

1 610 957 

Infrastructure - Road transport 

131 773 

188 529 

118 214 

162 879 

156 798 

156 798 

120 794 

125 022 

129 148 

Infrastructure - Electricity 

300 409 

358 972 

411 507 

288 440 

290 629 

290 629 

386 114 

399 628 

412 816 

Infrastructure - Water 

133 621 

106 040 

54 603 

143 519 

151 599 

151 599 

231 797 

239 910 

247 827 

Infrastructure - Sanitation 

44 993 

48 996 

55 382 

50 564 

65 511 

65 511 

49 337 

51 064 

52 748 

Infrastructure - Other 

13 464 

76 384 

8 307 

37 938 

39 438 

39 438 

13 351 

13 818 

14 274 

Infrastructure 

624 259 

778 921 

648 013 

683 340 

703 974 

703 974 

801 393 

829 442 

856 813 

Community 

183 277 

211 084 

108 951 

217 064 

221 344 

221 344 

202 263 

205 947 

209 543 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inv estment properties 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

388 381 

422 285 

545 683 

644 289 

587 917 

587 917 

509 372 

527 201 

544 600 

TOTAL EXPENDITURE OTHER ITEMS 

2 256 218 

2 540 878 

2 541 695 

2 658 479 

2 634 414 

2 634 414 

2 699 869 

2 824 835 

2 958 618 


In the 2015/16 financial year, 53,0% or R801,4 million of total repairs and maintenance (R1 513,0 million) 
will be spent on infrastructure assets. Electricity has received a significant portion of this allocation, 
48,2% (R386,1 million), followed by water at 28,9% (R231,8 million), road transport at 15,1% (R120,8 
million) and sanitation at 6,2% (R49,3 million). Community assets have been allocated R202,3 million of 
total repairs and maintenance, equating to 13,4%. 

In terms of the National Treasury MFMA Circular 55, only the primary cost related to repairs and 
maintenance was included in the draft 2015/16 MTREF. Repairs and maintenance increase from 
R1 513,0 million (2015/16) to R1 611,0 million in the 2017/18 financial year. Fund transfers from this 
group of expenditure are prohibited in terms of the Budget Policy. 

Furthermore, repairs and maintenance as a percentage of property plant and equipment equate to 
4,5%, 4,2% and 3,9% respectively in the 2015/16, 2016/17 and 2017/18 financial years. It should 
however be noted that the significant increase in property plant and equipment owing to the provision 
made for Tshwane House impact negatively on this percentage. 


page I 62 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.5 CAPITAL EXPENDITURE 

The draft total capital budget equates to R3,9 billion, R4,0 billion and R4,2 billion for the 2015/16, 
2016/17 and 2017/18 financial years respectively. 

The capital budget is funded from the following sources: 

• Internally-generated revenue (including public contributions and donations and CRR): 
R203,4 million. 

• Borrowings: R1 ,2 billion. 

• Grant funding: R2,5 billion. 

The following graph indicates the breakdown of the capital budget per main strategic focus area for the 
2015/16 financial year: 

Figure 4: Draft Capital budget per main strategic focus 


Internally 

Generated Borrowings, 



page I 63 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following table breaks down the budgeted capital expenditure per vote. 

Table 19: 2015/16 medium-term capital budget per vote 


Description 

R thousand 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure Framework 

Adjusted 

Budget 

% 

Budget Year 

2015/16 

% 

Budget Year 

+1 2016/17 

% 

Budget Year 

+2 2017/18 

% 

City Planning and Development 

20 500 

0,47% 

30 000 

0,8% 

10 000 

0,3% 

20 000 

0,5% 

Corporate & Shared Sen/ ices 

18 236 

0,42% 

23 407 

0,6% 

39 900 

1,0% 

35 000 

0,8% 

Economic Development 

2 500 

0,06% 

78 000 

2,0% 

103 000 

2,6% 

103 000 

2,5% 

Emergency Services 

23 037 

0,52% 

6 000 

0,2% 

6 000 

0,2% 

6 000 

0,1% 

Environmental Management 

75 092 

1,71% 

103 000 

2,7% 

127 000 

3,2% 

105 000 

2,5% 

Group Financial Services 

780 

0,02% 

35 250 

0,9% 

25 000 

0,6% 

40 000 

1,0% 

Housing & Human Settlement 

926 921 

21,12% 

670 500 

17,4% 

688 885 

17,3% 

719 258 

17,3% 

Group Information & Communication Technology 

91 800 

2,09% 

172 273 

4,5% 

155 700 

3,9% 

140 5 00 

3,4% 

Metro Police Services 

9 000 

0,21% 

10 000 

0,3% 

10 000 

0,3% 

10 000 

0,2% 

Office of the City Manager 

372 640 

8,49% 

280 000 

7,3% 

280 000 

7,0% 

290 000 

7,0% 

Service Delivery and Transformation Management 

- 

0,00% 

- 

0,0% 

- 

0,0% 

- 

0,0% 

Water and Sanitation Department 

484 746 

11,05% 

355 000 

9,2% 

322 329 

8,1% 

335 688 

8,1% 

Energy and Electricity Department 

625 500 

14,25% 

447 500 

11,6% 

580 171 

14,5% 

659 812 

15,9% 

Transport 

1 561 470 

35,58% 

1 473 085 

38,2% 

1 477 854 

37,0% 

1 531 868 

36,8% 

Other Votes 

176 560 

4,02% 

172 551 

4,5% 

166 000 

4,2% 

166 000 

4,0% 

Total Capital Budget 

4 388 781 

100,0% 

3 856 566 

100,0% 

3 991 839 

100,0% 

4162 126 

100,0% 


Table 20: Renewal of existing assets 



Budget 2015/16 

% 

Budget 2016/17 

% 

Budget 2017/18 

% 

New 

2 192 616 410 

56,85% 

2 242 204 450 

56,17% 

2 260 468 350 

54,31% 

Renewal 

1 663 950 072 

43,15% 

1 749 634 650 

43,83% 

1 901 657 65 0 

45,69% 

Total Capital Budget 

3 856 566 482 

100,00% 

3 991 839 100 

100,00% 

4 162 126 000 

100,00% 


At least 40% of the capital budget must be allocated towards the renewal of existing assets (MFMA 
Circulars 55 and 66). From the above table it can be seen that 43,15%, 43,83% and 45,69% of the 
budget has been allocated for the renewal of existing assets in the 2015/16, 2016/17 and 2017/18 
financial years respectively. 


Further details relating to asset classes and proposed capital expenditure are contained in MBRR Table 
A9 (asset management). In addition to MBRR A9, SA34a, b and c provide a detailed breakdown of the 
capital programme relating to new asset construction, capital asset renewal, and operational repairs and 
maintenance by asset class. 

Some of the main projects and key focus areas of the budget and IDP to be addressed in the 2015/16 
financial year include amongst others: 

City Planning and Development 

• Redevelopment of Caledonian - R30,0 million. 

Economic Development 

• Business Process Outsourcing Park in Hammanskraal - R54,1 million. 

• Brick Making Facility - R4,9 million. 


page I 64 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

• Informal Trade Market (Inner City) - R5,0 million. 

• Tshwane Packaging Facility - R3,0 million. 

• Marketing & Trading Stalls - Cullinan CBD - R3,0 million. 

Energy and Electricity 

• Tshwane Public Lighting Program - R70,0 million. 

• Electricity for All - R1 57,0 million. 

• Electrification of Winterveldt - R30,0 million. 

Environmental Management 

• Development of the Klip-Kruisfontein cemetery - R13,0 million. 

• Development of Tshwane North Cemetery - R8,0 million. 

• Kleinzonderhout Sustainable Agricultural Village - R5,0 million. 

• Access control at the City’s landfill sites - R5,0 million. 

• Stinkwater Sustainable Agricultural Village - R5,0 million. 

• Development of Parks and Traffic Islands - R35,0 million. 

Group Financial Services 

• Improvement in the Supply Chain processes - R30,0 million. 

Health and Social Development 

• New Soshanguve Clinic - R13,0 million. 

• Upgrade and extension of Zithobeni Clinic - R11 ,0 million. 

• Social Development Centre in Hammanskraal - R13,0 million. 

• Social Development Centre in Winterveldt - R10,0 million. 

• Social Development Centre in Mabopane - R10,0 million. 

• New Gazankulu Clinic - R1 9,0 million. 

• Upgrade Workflow System for Health ERP (Biometric System) - R7,0 million. 

Group Information and Communication Technology 

• Interactive Digital Centre - R74,0 million. 

• E-Initiative supporting the Smart City - R1 5,0 million. 

• Computer Equipment Deployment - R15,0 million. 

Housing and Human Settlement 

• Project Linked Housing - Water Provision - R137,6 million. 

• Sewerage - Low Cost Housing - R124,7 million. 

• Roads and Stormwater - Low Cost Housing - R308,0 million. 

• Project Linked Housing - Acquisition of Land - R100,0 million. 


page I 65 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Metro Police Services 

• Purchase of policing equipment - R10,0 million. 

Office of the City Manager 

• Implementation of the Tsosoloso Programme - R100,0 million. 

• City Hall Renovations - R30,0 million. 

• Re Aga Tshwane - R1 50,0 million. 

Sports and Recreation 

• Olievenhoutbosch Multi-Purpose Sport Facility - R5,0 million. 

• Lotus Gardens Multi-Purpose Sport Facility - R5,0 million. 

• Upgrading of Pilditch Stadium - R9,0 million. 

• Upgrading of Zithobeni Sport Stadium - R1 5,0 million. 

• New Ga-Rankuwa Library -R6,0 million. 

• Upgrade Refilwe Stadium - R15,0 million. 

• Greening Sportsfields - R12,0 million. 

Transport 

• Doubling of Simon Vermooten - R25,0 million. 

• Mabopane Station Modal Interchange - R55,0 million. 

• TRT - Transport Infrastructure - R745,6 million (busway; depots; stations and 

non-motorized transport). 

• Flooding backlogs: Networks and Drainage canals - R499,9 million. 

• Upgrading of Road from gravel to tar in Zithobeni - R6,0 million. 

• Upgrading of Road from gravel to tar in Ekangala - R18,0 million. 

• Internal Roads: Northern areas - R25,0 million. 

• Internal Roads: Mamelodi - R50,0 million. 

Water and Sanitation 

• Reservoir Extensions - R57,5 million. 

• New Bulk Infrastructure - R100,0 million. 

• Replacement and Upgrading: Redundant Bulk Pipeline Infrastructure - R59,5 million. 

• Refurbishment of Water Networks and Backlog Eradication - R90,0 million. 

• Replacement, Upgrade, Construct Waste Water Treatment Works Facilities - R90,0 million. 

A breakdown of the capital budget per project over the medium term is given in MBRR SA36. 


page I 66 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following graph breaks down the capital budget to be spent on infrastructure-related projects over 
the period of the MTREF: 


Figure 5: Infrastructure-related projects 


3 500 000 


3 000 000 


2 500 000 


2 000 000 


1 500 000 


1 000 000 


500 000 




2011/12 

Actual 

2012/13 

Actual 

2013/14 

Actual 

2014/15 

Original 

Budget 

2014/15 

Adjustment 

Budget 

2015/16 

Budget 

2016/17 

Budget 

2017/18 

Budget 

□ Infrastructure - Other 

63 319 

141 654 

145 377 

86100 

195 592 

281 307 

317 400 

292 500 

□ Infrastructure - Sanitation 

429 204 

405 192 

456 765 

169 063 

159 063 

115 071 

100 000 

104 788 

□ Infrastructure - Water 

311 617 

460 445 

483 170 

329 683 

325 683 

239 929 

222 329 

230 900 

□ Infrastructure - Electricity 

610 881 

677 052 

420 580 

639 500 

62 2 500 

447 500 

580 171 

659 812 

■ Infrastructure - Road transport 

680 957 

1 417193 

1 514 306 

1 540 720 

1 530 720 

1 418 085 

1 469 354 

1 525 368 



1 .5.1 FUTURE OPERATIONAL COSTS OF NEW INFRASTRUCTURE 


The future operational costs and revenues associated with the capital programme have been included 
in MBRR SA35. 


page I 67 





The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.6 ANNUAL BUDGET TABLES - PARENT MUNICIPALITY 

The following pages present the ten main budget tables as required in terms of section 8 of the Municipal 
Budget and Reporting Regulations. These tables set out the Municipality’s draft 201 5/1 6 MTREF. Each 
table is accompanied by explanatory notes. 

Table 21 : MBRR A1 - Budget summary 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousands 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Financial Performance 










Property rates 

3 357 775 

3 999 586 

4 432 509 

4 888 154 

4 888 154 

4 888 154 

5 236 387 

5 763 026 

6 342 328 

Service charges 

10 651 602 

11 657 542 

12 364 114 

14 234 892 

14 331 392 

14 331 392 

15 638 212 

16 940 556 

18 352 217 

Investment revenue 

52 185 

62 237 

51 800 

66 548 

66 548 

66 548 

69 774 

106 226 

111 328 

Transfers recognised - operational 

2 322 772 

2 592 463 

2 861 382 

3 104 829 

3 121 377 

3 121 377 

3 419 706 

3 716 419 

4 053 363 

Other own revenue 

2 204 545 

1 265 179 

1 578 462 

2 078 790 

2 123 845 

2 123 845 

1 360 783 

1 383 058 

1 419 155 

Total Revenue (excluding capital transfers and 
contributions) 

18 588 879 

19 577 006 

21 288 268 

24 373 213 

24 531 315 

24 531 315 

25 724 863 

27 909 285 

30 278 390 

Employee costs 

4 739 894 

5 247 101 

5 977 333 

6 465 458 

6 368 989 

6 368 989 

6 917 257 

7 304 200 

7 713 590 

Remuneration of councillors 

91 453 

92 573 

96 789 

105 577 

105 577 

105 577 

111 749 

122 674 

134 692 

Depreciation & asset impairment 

1 060 301 

1 128 587 

1 239 048 

1 113 786 

1 121 179 

1 121 179 

1 186 841 

1 262 245 

1 347 661 

Finance charges 

632 351 

731 045 

813 091 

897 759 

937 010 

937 010 

1 029 202 

1 110 194 

1 193 967 

Materials and bulk purchases 

6 787 178 

7 241 679 

7 471 887 

8 393 623 

8 308 857 

8 308 857 

8 962 492 

9 681 010 

10 456 994 

Transfers and grants 

21 496 

17 290 

227 042 

262 327 

257 166 

257 166 

259 298 

267 387 

268 475 

Other expenditure 

4 499 860 

5 441 447 

6 624 428 

6 035 154 

6 911 292 

6 911 292 

6 673 109 

7 500 638 

8 329 471 

Total Expenditure 

17 832 533 

19 899 722 

22 449 618 

23 273 685 

24 010 071 

24 010 071 

25 139 948 

27 248 348 

29 444 849 

Surplus/(Deficit) 

756 346 

(322 716) 

(1 161 350) 

1 099 528 

521 245 

521 245 

584 915 

660 937 

833 541 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Contributions recognised - capital & contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & 

contributions 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Share of surplus/ (deficit) of associate 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) for the year 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Capital expenditure & funds sources 










Capital expenditure 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 749 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Public contributions & donations 

- 

86 435 

93 818 

80 100 

76 100 

76 100 

168 407 

134 900 

130 000 

Borrowing 

- 

2 126 588 

1 493 166 

1 500 000 

1 500 000 

1 500 000 

1 200 000 

1 200 000 

1 200 000 

Internally generated funds 

1 890 203 

185 935 

526 849 

43 487 

189 569 

189 569 

35 000 

150 000 

200 000 

Total sources of capital funds 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Financial position 










Total current assets 

4 822 158 

5 496 257 

4 500 717 

7 072 628 

5 017 017 

5 017 017 

6 131 396 

7 510 734 

9 413 667 

Total non current assets 

21 130 618 

24 318 275 

27 498 590 

31 402 999 

31 227 534 

31 227 534 

34 873 047 

39 135 252 

42 341 433 

Total current liabilities 

5 956 629 

6 498 661 

6 315 625 

6 677 256 

6 101 944 

6 101 944 

5 990 349 

6 423 246 

6 912 710 

Total non current liabilities 

8 069 508 

9 774 978 

11 189 466 

12 137 769 

12 461 347 

12 461 347 

14 313 829 

16 373 624 

17 546 592 

Community wealth/Equity 

11 926 638 

13 540 893 

14 494 215 

19 660 601 

17 681 259 

17 681 259 

20 700 266 

23 849 116 

27 295 799 

Cash flows 










Net cash from (used) operating 

4 051 419 

3 287 714 

3 171 611 

4 466 712 

3 656 722 

3 656 722 

3 702 995 

4 444 662 

4 961 643 

Net cash from (used) investing 

(4 699 169) 

(4 657 905) 

(4 567 113) 

(4 052 714) 

(4 269 057) 

(4 269 057) 

(3 674 875) 

(3 948 147) 

(4 083 666) 

Net cash from (used) financing 

716 124 

1 764 359 

870 629 

889 014 

990 862 

990 862 

648 330 

533 902 

691 089 

Cash/cash equivalents at the year end 

927 954 

1 322 122 

797 248 

2 664 942 

1 175 775 

1 175 775 

1 852 226 

2 882 642 

4 451 708 

Cash backina/surolus reconciliation 










Cash and investments available 

1 015 577 

1 408 662 

837 467 

2 872 319 

1 276 486 

1 276 486 

1 896 336 

2 962 897 

4 536 746 

Application of cash and investments 

2 568 161 

2 550 195 

3 085 548 

2 586 669 

2 764 149 

2 764 149 

2 608 632 

3 029 931 

3 601 649 

Balance - surplus (shortfall) 

(1 552 585) 

(1 141 533) 

(2 248 081) 

285 650 

(1 487 663) 

(1 487 663) 

(712 296) 

(67 034) 

935 097 

Asset manaaement 










Asset register summary (WDV) 

20 948 779 

24 127 526 

27 350 157 

31 051 574 

30 989 593 

30 989 593 

34 667 707 

38 881 823 

42 069 227 

Depreciation & asset impairment 

1 060 301 

1 128 587 

1 239 048 

1 113 786 

1 121 179 

1 121 179 

1 186 841 

1 262 245 

1 347 661 

Renewal of Existing Assets 

2 065 521 

2 402 830 

2 196 120 

2 162 301 

2 231 517 

2 231 517 

1 663 950 

1 749 635 

1 901 658 

Repairs and Maintenance 

1 195 917 

1 412 290 

1 302 647 

1 544 692 

1 513 235 

1 513 235 

1 513 028 

1 562 590 

1 610 957 

Free services 










Cost of Free Basic Services provided 

213 067 

284 932 

387 800 

344 643 

808 174 

808 174 

1 348 264 

1 482 895 

1 630 717 

Revenue cost of free services provided 

411 930 

556 288 

599 130 

993 874 

1 201 740 

1 201 740 

1 865 148 

2 055 053 

2 259 236 

Households below minimum service level 










Water: 

9 

31 

- 

- 

- 

- 

- 

- 

- 

Sanitation/sew erage: 

7 

12 

- 

- 

29 

29 

- 

- 

- 

Energy : 

55 

50 

107 

95 

104 

104 

83 

83 

83 

Refuse: 

114 

131 

120 

92 

~ 

~ 

~ 

- 

~ 


page I 69 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A1 - Budget summary 

1. MBRR A1 is a budget summary and provides a concise overview of the City’s budget from 
all of the major financial perspectives (operating, capital expenditure, financial position, cash 
flow, and MFMA funding compliance). 

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

3. Financial management reforms emphasise the importance of the municipal budget being 
funded. This requires the simultaneous assessment of the financial performance, financial 
position and cash flow budgets, along with the capital budget. The budget summary provides 
key information in this regard. 

4. The 2015/16 financial year indicates a surplus of R584,9 million, R660,9 million and R833,5 
million for the indicated financial years before the transfer of capital grants. 

5. Capital expenditure is balanced by capital funding sources of which - 

• transfers recognised are reflected on the statement of financial performance; 

• borrowing is incorporated in the net cash from financing on the cash flow statement; and 

• internally-generated funds are financed from the accumulated surpluses from previous 
years. The amount is incorporated in the net cash from investing on the cash flow 
budget. 

6. The city has been setting funds aside to expunge bullet long-term loans on their maturity. 

7. Cognisance should be taken of the decrease in Other Revenue of 35,9% when compared to 
the 2014/15 financial year, mainly owing to a once off amount of R500,0 million for the sale of 
land during the 2014/15 financial year. 


page I 70 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 22: MBRR A2 - Budgeted financial performance (revenue and expenditure by standard 
classification) 


Standard Classification Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Revenue - Standard 










Governance and administration 

6 744 031 

6 997 138 

7 507 970 

8 851 027 

8 837 895 

8 837 895 

8 801 188 

9 633 901 

10 534 213 

Executive and council 

68 646 

202 761 

212 009 

153 513 

186 679 

186 679 

115 176 

95 375 

93 375 

Budget and treasury office 

6 486 689 

6 543 786 

7 119 551 

7 721 480 

7 722 155 

7 722 155 

8 373 584 

9 207 139 

10 106 592 

Corporate services 

188 695 

250 591 

176 410 

976 034 

929 061 

929 061 

312 427 

331 387 

334 245 

Community and public safety 

849 563 

847 659 

875 657 

1 226 103 

1 384 697 

1 384 697 

1 104 465 

1 126 491 

1 157 978 

Community and social services 

62 736 

44 108 

30 741 

49 769 

76 522 

76 522 

53 546 

48 970 

39 543 

Sport and recreation 

48 349 

65 708 

46 981 

26 029 

28 018 

28 018 

19 994 

20 394 

21237 

Public safety 

61 681 

51 369 

211 165 

121 694 

225 058 

225 058 

204 695 

205 175 

205 654 

Housing 

600 880 

594 252 

472 902 

911 979 

938 417 

938 417 

704 219 

723 544 

756 779 

Health 

75 917 

92 221 

113 867 

116 632 

116 682 

116 682 

122 011 

128 408 

134 766 

Economic and environmental services 

692 865 

1 314 971 

1 443 291 

1 572 448 

1 579 498 

1 579 498 

1 806 297 

1 814 204 

1 891 852 

Planning and development 

112 366 

125 796 

270 327 

211 492 

211 492 

211492 

205 611 

179 002 

188 597 

Road transport 

579 961 

1 188 372 

1 171 599 

1 360 400 

1 366 600 

1 366 600 

1 600 410 

1 634 913 

1 702 953 

Environmental protection 

539 

804 

1365 

557 

1407 

1407 

276 

289 

301 

Trading services 

11 356 917 

12 378 121 

13 321 159 

15 057 509 

15 136 709 

15 136 709 

16 278 812 

17 645 947 

19 122 380 

Electricity 

8 018 669 

8 456 056 

8 685 043 

10 208 624 

10 201 624 

10 201 624 

10 991 099 

11 900 014 

12 835 810 

Water 

2 090 598 

2 332 177 

2 602 869 

2 833 121 

2 916 821 

2 916 821 

3 225 254 

3 510 309 

3 820 775 

Waste water management 

697 383 

949 848 

1 197 926 

979 669 

979 669 

979 669 

887 831 

947 922 

1 054 077 

Waste management 

550 267 

640 040 

835 321 

1 036 095 

1 038 595 

1 038 595 

1 174 628 

1 287 702 

1 411 719 

Other 

170 161 

190 663 

254 862 

210 526 

215 628 

215 628 

187 260 

195 682 

204 093 

Total Revenue - Standard 

19 813 536 

21 728 552 

23 402 940 

26 917 613 

27 154 428 

27 154 428 

28 178 022 

30 416 224 

32 910 516 

Expenditure ■ Standard 










Governance and administration 

2 706 484 

3 404 415 

4 403 849 

5 117 742 

5 141 034 

5 141 034 

5 130 232 

5 625 564 

6 426 278 

Executive and council 

447 279 

544 472 

808 556 

1 398 270 

1 513 166 

1 513 166 

1 417 378 

1 436 330 

1 509 375 

Budget and treasury office 

638 375 

786 393 

537 597 

629 788 

428 811 

428 811 

691 049 

1 056 241 

1 658 180 

Corporate services 

1 620 830 

2 073 550 

3 057 696 

3 089 684 

3 199 057 

3 199 057 

3 021 805 

3 132 993 

3 258 723 

Community and public safety 

3 011 919 

3 403 843 

3 666 667 

3 460 285 

3 562 516 

3 562 516 

3 705 942 

3 789 836 

3 987 564 

Community and social services 

408 105 

464 389 

485 799 

573 424 

603 280 

603 280 

650 470 

626 103 

655 119 

Sport and recreation 

653 819 

658 627 

620 440 

620 487 

628 091 

628 091 

444 000 

466 314 

489 930 

Public safety 

1 216 347 

1 437 916 

1 750 264 

1 254 375 

1 436 578 

1 436 578 

1 738 320 

1 772 614 

1 869 279 

Housing 

457 776 

539 729 

408 720 

566 047 

467 382 

467 382 

410 760 

437 607 

459 893 

Health 

275 872 

303 183 

401 444 

445 953 

427 184 

427 184 

462 391 

487 198 

513 343 

Economic and environmental services 

1 664 379 

1 891 189 

2 087 070 

2187 190 

2 319 956 

2 319 956 

2 215 748 

2 337 653 

2 452 632 

Planning and development 

272 878 

353 981 

599 259 

600 738 

700 660 

700 660 

683 885 

708 582 

739 250 

Road transport 

1 335 610 

1 495 127 

1 425 957 

1 528 513 

1 567 106 

1 567 106 

1 505 049 

1 600 803 

1 683 586 

Environmental protection 

55 891 

42 081 

61 855 

57 939 

52190 

52 190 

26 813 

28 268 

29 797 

Trading services 

10 279 006 

11 028 920 

12 118 896 

12 295 568 

12 783 954 

12 783 954 

13 895 521 

15 293 515 

16 367 093 

Electricity 

7 262 242 

7 698 533 

8 740 810 

8 723 960 

9 153 758 

9 153 758 

9 536 368 

10 480 135 

11 228 966 

Water 

1 749 058 

1 938 867 

2 220 190 

2 324 748 

2 391 062 

2 391 062 

2 804 912 

3 124 264 

3 365 848 

Waste water management 

375 624 

408 889 

542 255 

607 803 

551 135 

551 135 

553 715 

601 761 

628 540 

Waste management 

892 082 

982 631 

615 641 

639 057 

687 999 

687 999 

1 000 526 

1 087 355 

1 143 739 

Other 

170 745 

171 356 

173 136 

212 900 

202 611 

202 611 

192 505 

201 779 

211 282 

Total Expenditure - Standard 

17 832 533 

19 899 722 

22 449 618 

23 273 685 

24 010 071 

24 010 071 

25 139 948 

27 248 348 

29 444 849 

Surplus/(Deficit) for the year 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 


page I 71 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A2 - Budgeted financial performance (revenue and expenditure by 

standard classification) 

1 . MBRR A2 provides an overview of the budgeted financial performance in relation to revenue 
and expenditure per standard classification. The modified GFS standard classification divides 
the municipal services into 15 functional areas. Municipal revenue, operating expenditure and 
capital expenditure are then classified in terms of each of these functional areas. 

2. It should be noted that the total revenue on this table includes capital revenues (transfers 
recognised - capital) and therefore does not balance with the operating revenue shown on 
MBRR Table A4. 

3. It should be noted that, as a general principle, the revenues for the trading services should 
exceed their expenditures. 

4. Other functions that show a deficit between revenue and expenditure are being financed from 
the property rates revenue and other revenue sources. 


page I 72 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 23: MBRR A3 - Budgeted financial performance (revenue and expenditure by municipal 
vote) 


Vote Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Revenue by Vote 










City Planning and Development 

67 755 

93 952 

147 643 

136 042 

136 042 

136 042 

129 674 

132 283 

139 955 

Corporate & Shared Sen/ ices 

99 489 

96 726 

76 686 

722 892 

722 672 

722 672 

102 508 

86 207 

83 784 

Economic Development 

2 278 

2 349 

44 604 

33 801 

33 801 

33 801 

33 143 

2 000 

2 000 

Emergency Sen/ ices 

47 604 

63 420 

71 178 

70 013 

85 807 

85 807 

70 689 

74 346 

77 983 

Environmental Management 

683 595 

799 770 

996 183 

1 184 002 

1 195 535 

1 195 535 

139 983 

144 667 

149 053 

Group Financial Sen/ ices 

6 539 132 

6 618 108 

7 181 074 

7 788 796 

7 789 501 

7 789 501 

8 449 183 

9 319 205 

10 224 021 

Housing & Human Settlement 

581 853 

576 320 

452 276 

889 541 

915 979 

915 979 

684 246 

702 671 

735 009 

Group Information & Communication Te 

1 065 

49 093 

140 

17 

17 

17 

1 790 

218 

19 

Metro Police Sen/ ices 

173 336 

172 352 

330 253 

253 225 

340 845 

340 845 

202 349 

202 724 

203 099 

Office of the City Manager 

68 639 

198 571 

207 914 

150 000 

182 160 

182 160 

250 000 

280 000 

290 000 

Sen/ ice Delivery and Transformation 

285 954 

100 839 

142 743 

70 756 

82 235 

82 235 

1 441 046 

1 563 573 

1 697 754 

Water and Sanitation Department 

2 786 627 

3 280 193 

3 799 645 

3 811 249 

3 894 949 

3 894 949 

4 111 658 

4 456 740 

4 873 296 

Energy and Electricity Department 

7 824 278 

8 427 727 

8 665 180 

10 207 557 

10 200 557 

10 200 557 

10 840 643 

11 699 537 

12 625 312 

Transport 

507 166 

1 102 175 

1 135 962 

1 282 284 

1 288 484 

1 288 484 

1 485 608 

1 518 595 

1 585 123 

Other Votes 

144 766 

146 959 

151 459 

317 440 

285 844 

285 844 

235 503 

233 456 

224 107 

Total Revenue by Vote 

19 813 536 

21 728 552 

23 402 940 

26 917 613 

27 154 428 

27 154 428 

28 178 022 

30 416 224 

32 910 516 

Expenditure by Vote to be appropriated 










City Planning and Development 

235 888 

216 233 

264 868 

297 219 

306 877 

306 877 

304 449 

317 381 

336 107 

Corporate & Shared Services 

561 227 

657 559 

1 458 383 

1 433 843 

1 452 628 

1 452 628 

1 308 669 

1 354 487 

1 405 816 

Economic Development 

45 865 

168 358 

293 545 

246 001 

330 182 

330 182 

334 225 

343 611 

353 021 

Emergency Sen/ices 

394 382 

448 841 

524 102 

537 494 

550 884 

550 884 

576 004 

608 336 

642 485 

Environmental Management 

1 178 144 

1 231 070 

768 940 

672 987 

761 006 

761 006 

358 187 

376 427 

395 303 

Group Financial Services 

1 061 224 

1 384 647 

1 269 771 

1 303 284 

1 197 963 

1 197 963 

1 465 401 

1 866 024 

2 511 806 

Housing & Human Settlement 

390 573 

490 834 

323 669 

499 701 

352 958 

352 958 

339 409 

363 044 

382 009 

Group Information & Communication Te 

318 615 

403 325 

448 333 

553 174 

618 300 

618 300 

533 650 

553 205 

573 095 

Metro Police Services 

977 861 

1 158 591 

1 533 317 

1 418 259 

1 587 011 

1 587 011 

1 789 763 

1 827 706 

1 928 284 

Office of the City Manager 

97 504 

181 599 

171 654 

232 528 

439 006 

439 006 

264 063 

272 522 

281 126 

Service Delivery and Transformation 

2 841 139 

2 831 585 

2 956 216 

3 118 079 

2 945 563 

2 945 563 

4 432 871 

4 621 491 

4 834 558 

Water and Sanitation Department 

2 018 109 

2 229 655 

2 471 707 

2 566 821 

2 714 391 

2 714 391 

2 914 596 

3 266 700 

3 519 220 

Energy and Electricity Department 

5 993 936 

6 491 812 

7 562 225 

7 611 500 

8 005 939 

8 005 939 

8 136 834 

9 023 573 

9 713 323 

Transport 

894 782 

954 608 

1 080 769 

1 227 723 

1 259 189 

1 259 189 

978 004 

1 046 678 

1 101 101 

Other Votes 

823 284 

1 051 005 

1 322 119 

1 555 073 

1 488 175 

1 488 175 

1 403 824 

1 407 162 

1 467 596 

Total Expenditure by Vote 

17 832 533 

19 899 722 

22 449 618 

23 273 685 

24 010 071 

24 010 071 

25 139 948 

27 248 348 

29 444 849 

Surplus/(Deficit) for the year 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 


Explanatory notes on MBRR A3 - Budgeted financial performance (revenue and expenditure by 
municipal vote) 

MBRR A3 provides an overview of the budgeted financial performance in relation to the revenue 
(including capital transfers and contributions) and expenditure per municipal vote. This table facilitates 
the view of the budgeted operating performance in relation to the City’s organisational structure. This 
indicates the operating surplus or deficit of a vote. 


page I 73 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following table is an analysis of the surplus or deficit for the electricity and water trading services: 

Table 24: Surplus or deficit calculations for the trading services 


R thousand 

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 

Electricity 

Total Revenue (incl capital grants and transfers) 

Operating expenditure 

8 146 658 

7 272 082 

8 616 721 

7 711 940 

8 882 629 

8 767 689 

10 442 508 

8 739 880 

10 435 508 

9 169 924 

10 435 508 

9 169 924 

11 242 177 

9 565 815 

12 172 779 

10 512 297 

13 131 996 

11 264 073 

Surplus/(deficit) for the year 

874 576 

904 781 

114 939 

1 702 628 

1 265 584 

1 265 584 

1 676 363 

1 660 482 

1 867 922 

Percentage Surplus 

10,7% 

10,5% 

1,3% 

16,3% 

12,1% 

12,1% 

14,9% 

13,6% 

14,2% 

Water 

Total Revenue (incl capital grants and transfers) 

Operating expenditure 

2 172 343 

1 759 425 

2 429 044 

1 959 511 

2 737 097 

2 243 215 

2 951 580 

2 352 609 

3 035 280 

2 418 924 

3 035 280 

2 418 924 

3 372 806 

2 853 931 

3 673 840 

3 177 659 

4 001 724 

3 423 977 

Surplus/(deficit) for the year 

412 917 

469 533 

493 882 

598 971 

616 356 

616 356 

518 875 

496 182 

577 747 

Percentage Surplus 

19,0% 

19,3% 

18,0% 

20,3% 

20,3% 

20,3% 

15,4% 

13,5% 

14,4% 


1. The electricity trading surplus has increased from 10,7% in 2011/12 to 14,9% in 2015/16. 

2. The water trading surplus amounts to 15,4%, 13,5% and 14,4% for each of the respective 
medium-term financial years. 

3. Some of the functions of these services have been regionalised (Service Delivery and 
Transformation Management Department) in terms of the organisational structure; however 
the revenue generated by rendering these services has not been regionalised. It should 
furthermore be noted that the financial position above is representative of all revenue and 
expenditure, irrespective of which department is rendering the service. 


page I 74 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 25: MBRR A4 - Budgeted financial performance (revenue and expenditure) 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Revenue Bv Source 










Property rates 

3 357 775 

3 999 586 

4 432 509 

4 888 154 

4 888 154 

4 888 154 

5 236 387 

5 763 026 

6 342 328 

Property rates - penalties & collection charges 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges - electricity revenue 

7 526 393 

8 133 857 

8 313 878 

9 613 283 

9 613 283 

9 613 283 

10 471 749 

11 307 889 

12 210 920 

Service charges - water revenue 

1 993 600 

2 251 371 

2 522 967 

2 729 355 

2 813 355 

2 813 355 

3 169 195 

3 451 554 

3 759 324 

Service charges - sanitation revenue 

491 606 

560 220 

623 443 

695 345 

695 345 

695 345 

748 908 

816 310 

889 778 

Service charges - refuse revenue 

480 001 

597 961 

768 111 

956 673 

956 673 

956 673 

1 095 779 

1 205 357 

1 325 891 

Service charges - other 

160 002 

114 134 

135 715 

240 237 

252 737 

252 737 

152 581 

159 447 

166 303 

Rental of facilities and equipment 

97 718 

103 459 

109 863 

261 276 

261 276 

261 276 

109 112 

114 022 

118 925 

Interest earned - external investments 

52 185 

62 237 

51 800 

66 548 

66 548 

66 548 

69 774 

106 226 

111 328 

Interest earned - outstanding debtors 

244 643 

253 250 

299 342 

197 376 

197 376 

197 376 

182 050 

191 050 

200 050 

Dividends received 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Fines 

52 347 

37 645 

196 886 

Ill 402 

199 022 

199 022 

196 691 

196 812 

196 932 

Licences and permits 

52 426 

58 659 

55 801 

58 578 

58 578 

58 578 

57 680 

60 185 

62 687 

Agency services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers recognised - operational 

2 322 772 

2 592 463 

2 861 382 

3 104 829 

3 121 377 

3 121 377 

3 419 706 

3 716 419 

4 053 363 

Other revenue 

1 730 299 

802 352 

914 878 

1 450 158 

1 407 592 

1 407 592 

815 250 

820 989 

840 561 

Gains on disposal of PPE 

27112 

9 814 

1 693 

- 

- 

- 

- 

- 

- 

Total Revenue (excluding capital transfers 
and contributions) 

18 588 879 

19 577 006 

21 288 268 

24 373 213 

24 531 315 

24 531 315 

25 724 863 

27 909 285 

30 278 390 

Expenditure Bv Type 










Employee related costs 

4 739 894 

5 247 101 

5 977 333 

6 465 458 

6 368 989 

6 368 989 

6 917 257 

7 304 200 

7 713 590 

Remuneration of councillors 

91 453 

92 573 

96 789 

105 577 

105 577 

105 577 

111 749 

122 674 

134 692 

Debt impairment 

821 215 

874 304 

1 304 906 

565 434 

676 196 

676 196 

1 018 116 

1 697 750 

1 850 881 

Depreciation & asset impairment 

1 060 301 

1 128 587 

1 239 048 

1 113 786 

1 121 179 

1 121 179 

1 186 841 

1 262 245 

1 347 661 

Finance charges 

632 351 

731 045 

813 091 

897 759 

937 010 

937 010 

1 029 202 

1 110 194 

1 193 967 

Bulk purchases 

6 258 775 

6 790 326 

7 148 341 

7 983 361 

7 992 756 

7 992 756 

8 613 398 

9 321 454 

10 087 228 

Other materials 

528 402 

451 353 

323 546 

410 262 

316 101 

316 101 

349 093 

359 556 

369 766 

Contracted services 

1 497 052 

1 841 646 

1 759 899 

1 998 479 

2 413 286 

2 413 286 

1 939 756 

1 996 933 

2 056 557 

Transfers and grants 

21 496 

17 290 

227 042 

262 327 

257 166 

257 166 

259 298 

267 387 

268 475 

Other expenditure 

2 069 554 

2 433 236 

3 406 386 

3 471 242 

3 821 809 

3 821 809 

3 715 237 

3 805 956 

4 422 033 

Loss on disposal of PPE 

112 039 

292 262 

153 238 

- 

1 

1 

- 

- 

- 

Total Expenditure 

17 832 533 

19 899 722 

22 449 618 

23 273 685 

24 010 071 

24 010 071 

25 139 948 

27 248 348 

29 444 849 

Surplus/(Deficit) 

756 346 

(322 716) 

(1 161 350) 

1 099 528 

521 245 

521 245 

584 915 

660 937 

833 541 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Contributions recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributed assets 










Surplus/(Deficit) after capital transfers & 

contributions 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Taxation 










Surplus/(Deficit) after taxation 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Attributable to minorities 










Surplus/(Deficit) attributable to 
municipality 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Share of surplus/ (deficit) of associate 










Surplus/(Deficit) for the year 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 


page I 75 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A4 - Budgeted financial performance (revenue and expenditure) 

1. Total revenue equates to R25,7 billion in 2015/16 and escalates to R30,3 billion by 2017/18. 
This represents a year-on-year increase of 8,5% for the 2016/17 and the 2017/18 financial 
years. 

2. Revenue to be generated from property rates represents R5,2 billion in the 2015/16 financial 
year and increases to R6,3 billion by 2017/18. This represents 20,4% of the operating 
revenue base (2015/16) of the City and therefore remains a significant funding source for the 
Municipality. 

3. Service charges related to electricity, water, sanitation, refuse removal and other in total, 
constitute the biggest component of the City’s revenue basket. They total R15,6 billion for the 
2015/16 financial year and increase to R18,4 billion by 2017/18. This growth can mainly be 
attributed to the increase in the bulk prices of electricity and water. For the 2015/16 financial 
year, service charges amount to 60,8% of the total revenue base. 

4. Transfers recognised - operating includes equitable share, fuel levy and other operating 
grants from national and provincial government. 

5. Cognisance should be taken of the decrease in Other Revenue of 35,9% when compared to 
the 2014/15 financial year, mainly owing to a once off amount of R500,0 million for the sale of 
land in the 2014/15 financial year. 


page I 76 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 26: MBRR A5 - Budgeted capital expenditure by vote, standard classification and funding 
source 


Vote Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Capital expenditure - Vote 

Multi-year expenditure to be appropriated 










City Planning and Development 

2 577 

4 904 

2 968 

500 

20 500 

20 500 

30 000 

10 000 

20 000 

Corporate & Shared Services 

886 

13 707 

98 404 

1 000 

18 236 

18 236 

23 407 

39 900 

35 000 

Economic Development 

1 897 

10 944 

1 500 

2 500 

2 500 

2 500 

67 100 

94 500 

92 000 

Emergency Services 

27 468 

30 599 

17 728 

23 037 

23 037 

23 037 

6 000 

6 000 

6 000 

Environmental Management 

83 585 

194 051 

89 095 

44 100 

60 092 

60 092 

98 000 

122 000 

100 000 

Group Financial Services 

22 803 

14 940 

7 894 

750 

780 

780 

35 250 

25 000 

40 000 

Housing & Human Settlement 

607 647 

581 514 

450 138 

901 305 

926 921 

926 921 

670 500 

688 885 

719 258 

Group Information & Communication Te 

150 311 

164 947 

140 555 

91 800 

91 800 

91 800 

96 500 

155 500 

140 500 

Metro Police Services 

24 894 

30 972 

51 033 

9 000 

9 000 

9 000 

10 000 

10 000 

10 000 

Office of the City Manager 

50 304 

196 070 

200 951 

218 450 

371 140 

371 140 

280 000 

280 000 

290 000 

Service Delivery and Transformation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Water and Sanitation Department 

717 021 

865 568 

939 936 

498 746 

484 746 

484 746 

355 000 

322 329 

335 688 

Energy and Electricity Department 

622 893 

702 972 

422 956 

642 500 

625 500 

625 500 

447 500 

580 171 

659 812 

Transport 

690 603 

1 429 377 

1 540 950 

1 561 470 

1 561 470 

1 561 470 

1 473 085 

1 477 854 

1 531 868 

Other Votes 

66 588 

313 373 

246 380 

156 329 

176 560 

176 560 

163 551 

156 000 

166 000 

Capital multi-year expenditure sub-total 

3 069 479 

4 553 939 

4 210 487 

4 151 487 

4 372 281 

4 372 281 

3 755 893 

3 968 139 

4 146 126 

Sinqle-vear expenditure to be appropriated 










City Planning and Development 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Corporate & Shared Services 

- 

3 893 

3 289 

- 

- 

- 

- 

- 

- 

Economic Development 

- 

1 487 

- 

- 

- 

- 

10 900 

8 500 

11 000 

Emergency Services 

13 

1 486 

- 

- 

- 

- 

- 

- 

- 

Environmental Management 

- 

- 

7 986 

15 000 

15 000 

15 000 

5 000 

5 000 

5 000 

Group Financial Services 

- 

- 

6 991 

- 

- 

- 

- 

- 

- 

Housing & Human Settlement 

15 000 

(15 000) 

- 

- 

- 

- 

- 

- 

- 

Group Information & Communication Te 

- 

- 

- 

- 

- 

- 

75 773 

200 

- 

Metro Police Services 

- 

4 698 

(170) 

- 

- 

- 

- 

- 

- 

Office of the City Manager 

- 

- 

- 

1 500 

1 500 

1 500 

- 

- 

- 

Service Delivery and Transformation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Water and Sanitation Department 

24 155 

- 

- 

- 

- 

- 

- 

- 

- 

Energy and Electricity Department 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transport 

5 336 

- 

- 

- 

- 

- 

- 

- 

- 

Other Votes 

877 

- 

- 

- 

- 

- 

9 000 

10 000 

- 

Capital single-year expenditure sub-total 

45 382 

(3 436) 

18 095 

16 500 

16 500 

16 500 

100 673 

23 700 

16 000 

Total Capital Expenditure - Vote 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Capital Expenditure - Standard 










Governance and administration 

218 765 

406 815 

476 059 

336 029 

420 840 

420 840 

381 481 

321 600 

314 500 

Executive and council 

56 455 

209 003 

220 331 

187 229 

254 968 

254 968 

112 801 

93 000 

91 000 

Budget and treasury office 

- 

- 

- 

- 

- 

- 

30 000 

20 000 

25 000 

Corporate services 

162 310 

197 812 

255 727 

148 800 

165 872 

165 872 

238 680 

208 600 

198 500 

Community and public safety 

799 228 

1 059 106 

810 054 

1 096 442 

1 177 005 

1 177 005 

941 500 

943 385 

975 258 

Community and social services 

66 808 

47 252 

26 189 

17 600 

39 448 

39 448 

34 000 

65 500 

60 000 

Sport and recreation 

44 633 

341 839 

230 813 

112 000 

134 400 

134 400 

136 000 

118 000 

129 000 

Public safety 

52 375 

66 256 

68 591 

32 037 

32 037 

32 037 

16 000 

16 000 

16 000 

Housing 

622 647 

566 514 

450 138 

901 305 

926 921 

926 921 

670 500 

688 885 

719 258 

Health 

12 765 

37 245 

34 324 

33 500 

44 200 

44 200 

85 000 

55 000 

51 000 

Economic and environmental services 

692 638 

1 440 995 

1 529 042 

1 565 770 

1 565 770 

1 565 770 

1 554 085 

1 583 854 

1 637 868 

Planning and development 

2 864 

15 622 

2 683 

2 800 

2 800 

2 800 

78 000 

103 000 

103 000 

Road transport 

685 376 

1 417 439 

1 520 066 

1 561 470 

1 561 470 

1 561 470 

1 473 085 

1 477 854 

1 531 868 

Environmental protection 

4 398 

7 934 

6 294 

1 500 

1 500 

1 500 

3 000 

3 000 

3 000 

Trading services 

1 371 793 

1 609 922 

1 376 967 

1 156 246 

1 211 666 

1 211 666 

969 500 

1 132 000 

1 226 500 

Electricity 

622 893 

702 972 

422 956 

642 500 

625 500 

625 500 

447 500 

580 171 

659 812 

Water 

178 328 

203 484 

221 578 

149 600 

145 600 

145 600 

149 929 

142 329 

120 900 

Waste water management 

562 849 

662 084 

718 358 

349 146 

425 566 

425 566 

355 071 

380 000 

424 788 

Waste management 

7 723 

41 383 

14 075 

15 000 

15 000 

15 000 

17 000 

29 500 

21 000 

Other 

32 438 

33 665 

36 460 

13 500 

13 500 

13 500 

10 000 

11 000 

8 000 

Total Capital Expenditure - Standard 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Funded bv: 










National Government 

1 167 094 

2 076 699 

2 097 658 

2 529 271 

2 591 309 

2 591 309 

2 408 542 

2 454 739 

2 604 126 

Provincial Government 

42 563 

60 066 

5 000 

15 129 

27 304 

27 304 

40 551 

52 000 

28 000 

District Municipality 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other transfers and grants 

15 000 

14 780 

12 091 

- 

4 500 

4 500 

4 067 

200 

- 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 749 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Public contributions & donations 

- 

86 435 

93 818 

80 100 

76 100 

76 100 

168 407 

134 900 

130 000 

Borrowing 

- 

2 126 588 

1 493 166 

1 500 000 

1 500 000 

1 500 000 

1 200 000 

1 200 000 

1 200 000 

Internally generated funds 

1 890 203 

185 935 

526 849 

43 487 

189 569 

189 569 

35 000 

150 000 

200 000 

Total Capital Funding 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 


page I 77 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A5 - Budgeted capital expenditure by vote, standard classification 

and funding source 

1 . MBRR A5 is a breakdown of the capital programme in relation to capital expenditure by municipal 
vote (multi-year and single-year appropriations), capital expenditure by standard classification 
and the funding sources necessary to fund the capital budget, including information on capital 
transfers from national and provincial departments. 

2. The MFMA states that a municipality may approve multi-year or single-year capital budget 
appropriations. In relation to multi-year appropriations, for 201 5/1 6, R3 755,9 million has been 
allocated of the total capital budget, which totals 97,4%. 

3. Single-year capital expenditure has been appropriated at R100,7 million for the 2015/16 
financial year and relates to expenditure that will be incurred during the specific budget year 
such as the Interactive Digital Centre and Operation Reclaim. 

4. The capital programme is funded from national and provincial grants and transfers, public 
contributions and donations, borrowing and internally-generated funds. For 2015/16, capital 
transfers total R2,5 billion and escalate to R2,6 billion by 201 7/1 8. Borrowing has been provided 
at R1,2 billion per annum over the medium-term, with internally-generated funding totalling 
R35,0 million, for the 201 5/1 6 financial year. The total own funding amounts to R203,4 million 
(public contributions and donations included). 


page I 78 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 27: MBRR A6 - Budgeted financial position 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

ASSETS 

Current assets 










Cash 

604 103 

686 118 

174 299 

220 000 

200 000 

200 000 

220 000 

242 000 

266 200 

Call investment deposits 

323 852 

636 003 

622 949 

2 444 942 

975 775 

975 775 

1 632 226 

2 640 642 

4 185 508 

Consumer debtors 

2 748 609 

3 130 419 

2 518 812 

3 186 277 

2 528 040 

2 528 040 

2 840 959 

3 112 484 

3 333 139 

Other debtors 

621 502 

524 945 

633 834 

595 008 

665 471 

665 471 

700 669 

709 767 

745 668 

Current portion of long-term receivables 

109 147 

119 303 

162 289 

181 784 

220 344 

220 344 

267 418 

288 703 

314 301 

Inventory 

414 945 

399 468 

388 533 

444 618 

427 386 

427 386 

470 125 

517 137 

568 851 

Total current assets 

4 822 158 

5 496 257 

4 500 717 

7 072 628 

5 017 017 

5 017 017 

6 131 396 

7 510 734 

9 413 667 

Non current assets 










Long-term receivables 

94 216 

104 209 

108 214 

144 047 

137 230 

137 230 

161 230 

173 174 

187 169 

Investments 

87 623 

86 540 

40 219 

207 377 

100 711 

100 711 

44 110 

80 255 

85 038 

Investment property 

986 303 

942 058 

851 178 

943 666 

896 737 

896 737 

947 855 

999 153 

995 316 

Investment in Associate 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Property, plant and equipment 

19 512 410 

22 725 887 

26 107 250 

29 838 835 

29 743 606 

29 743 606 

33 397 210 

37 586 486 

40 850 268 

Agricultural 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangible 

450 066 

459 581 

391 730 

269 073 

349 251 

349 251 

322 642 

296 184 

223 643 

Other non-current assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total non current assets 

21 130 618 

24 318 275 

27 498 590 

31 402 999 

31 227 534 

31 227 534 

34 873 047 

39 135 252 

42 341 433 

TOTAL ASSETS 

25 952 776 

29 814 532 

31 999 307 

38 475 627 

36 244 551 

36 244 551 

41 004 443 

46 645 986 

51 755 100 

LIABILITIES 

Current liabilities 










Bank overdraft 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

475 667 

619 759 

520 078 

792 374 

538 032 

538 032 

586 936 

709 602 

863 077 

Consumer deposits 

403 869 

418 176 

410 025 

482 993 

418 226 

418 226 

426 590 

435 122 

443 825 

Trade and other payables 

5 077 093 

5 460 726 

5 385 522 

5 401 889 

5 145 687 

5 145 687 

4 976 822 

5 278 522 

5 605 808 

Provisions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total current liabilities 

5 956 629 

6 498 661 

6 315 625 

6 677 256 

6 101 944 

6 101 944 

5 990 349 

6 423 246 

6 912 710 

Non current liabilities 










Borrowing 

6 266 261 

7 777 269 

8 787 874 

9 997 223 

9 922 508 

9 922 508 

11 466 383 

13 206 094 

14 047 662 

Provisions 

1 803 247 

1 997 709 

2 401 592 

2 140 546 

2 538 839 

2 538 839 

2 847 446 

3 167 530 

3 498 930 

Total non current liabilities 

8 069 508 

9 774 978 

11 189 466 

12 137 769 

12 461 347 

12 461 347 

14 313 829 

16 373 624 

17 546 592 

TOTAL LIABILITIES 

14 026 137 

16 273 639 

17 505 092 

18 815 025 

18 563 292 

18 563 292 

20 304 178 

22 796 870 

24 459 302 

NET ASSETS 

11 926 638 

13 540 893 

14 494 215 

19 660 601 

17 681 259 

17 681 259 

20 700 266 

23 849 116 

27 295 799 

COMMUNITY WEALTH/EQUITY 










Accumulated Surplus/ (Deficit) 

11 556 485 

13 176 275 

14 245 580 

19 304 554 

17 411 281 

17 411 281 

20 439 821 

23 598 185 

27 054 360 

Reserves 

370 154 

364 618 

248 635 

356 047 

269 978 

269 978 

260 444 

250 931 

241 439 

Minorities' interests 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL COMMUNITY WEALTH/EQUITY 

11 926 638 

13 540 893 

14 494 215 

19 660 601 

17 681 259 

17 681 259 

20 700 266 

23 849 116 

27 295 799 


page I 79 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A6 - Budgeted financial position 

1 . MBRR A6 is consistent with international standards of good financial management practice. 

2. This format of presenting the statement of financial position is aligned to GRAP1, which 
is generally aligned to the international version which presents assets less liabilities as 
“accounting” community wealth. The order of items within each group illustrates items in order 
of liquidity, ie assets readily converted to cash or liabilities immediately required to be met from 
cash appear first. 

3. This table is supported by an extensive table of notes (MBRR SA3) which provides a detailed 
analysis of the major components of a number of items, including - 

• call investment deposits; 

• consumer debtors; 

• property, plant and equipment; 

• trade and other payables; 

• non-current provisions; 

• changes in net assets; and 

• reserves. 

4. Included in the Borrowing and under Assets is the construction cost of Tshwane House as a 
result of the PPP agreement entered into. An amount of R1,8 billion, R2,5 billion and R2,8 
billion for the 2015/16, 2016/17 and 2017/18 financial years respectively have been included. 

5. The municipal equivalent of equity is community wealth or equity. The justification is that 
ownership and the net assets of the Municipality belong to the community. 

6. Any movement on the budgeted financial performance or the capital budget will inevitably 
impact on the budgeted financial position. As an example, the collection rate assumption will 
impact on the cash position of the Municipality and subsequently inform the level of cash and 
cash equivalents at year end. Similarly, the collection rate assumption (92%) should inform 
the budget appropriation for debt impairment which in turn would impact on the provision 
for bad debt. These budget and planning assumptions form a critical link in determining the 
applicability and relevance of the budget as well as the determination of ratios and financial 
indicators. In addition, the funding compliance assessment is informed directly by forecasting 
the statement of financial position. 


page I 80 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 28: MBRR A7 - Budgeted cash flow statement 


Description 

2011/12 

2012/13 

2013/14 


Current Year 2014/15 


2015/16 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 FLOW FROM OPERATING ACTIVITIES 

Receipts 











Property rates, penalties & collection charges 

15 215 094 

15 559 108 

17 921 998 

20 133 932 

20 254 945 

20 254 945 

- 

4 817476 

5 301 984 

5 834 941 

Service charges 

- 

- 

- 

- 

- 

- 

- 

14 387 155 

15 585 311 

16 884 039 

Other revenue 

- 

- 

- 

- 

- 

- 

- 

1 170 004 

1 182 886 

1 209 591 

Government - operating 

- 

- 

- 

3 104 829 

3 121 377 

3 121 377 

- 

3 419 706 

3 716 419 

4 053 363 

Government - capital 

3 547 429 

4 744 008 

4 983 222 

2 544 400 

2 623 113 

2 623 113 

- 

2 453 160 

2 506 939 

2 632 126 

Interest 

52185 

62 237 

51800 

66 548 

66 548 

66 548 

- 

160 799 

201 751 

211 353 

Dividends 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Payments 











Suppliers and employees 

(14 109 443) 

(16 329 304) 

(18 950 311) 

(20 248 565) 

(21 215 085) 

(21 215 085) 

- 

(21 416 806) 

(22 673 048) 

(24 401 328) 

Finance charges 

(632 351) 

(731 045) 

(813 091) 

(897 759) 

(937 010) 

(937 010) 

- 

(1 029 202) 

(1 110 194) 

(1 193 967) 

Transfers and Grants 

(21 496) 

(17 290) 

(22 007) 

(236 673) 

(257 166) 

(257 166) 

- 

(259 298) 

(267 387) 

(268 475) 

NET CASH FROM/(USED) OPERATING ACTIVITIES 

4 051 419 

3 287 714 

3171 611 

4 466 712 

3 656 722 

3 656 722 

- 

3 702 995 

4 444 662 

4 961 643 

CASH FLOWS FROM INVESTING ACTIVITIES 

Receipts 











Proceeds on disposal of PPE 

(27 823) 

(131 772) 

16 160 

- 

- 

- 

- 

- 

- 

- 

Decrease (Increase) in non-current debtors 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Decrease (increase) other non-current receivables 

- 

- 

- 

48 553 

48 553 

48 553 

- 

48 553 

- 

- 

Decrease (increase) in non-current investments 

- 

- 

- 

(100 000) 

(60 492) 

(60 492) 

- 

56 007 

(36 145) 

(4 783) 

Payments 











Capital assets 

(4 671 3 46) 

(4 526 133) 

(4 583 273) 

(4 001 267) 

(4 257 118) 

(4 257118) 

- 

(3 779 435) 

(3 912 002) 

(4 078 883) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

(4 699 169) 

(4 657 905) 

(4 567 113) 

(4 052 714) 

(4 269 057) 

(4 269 057) 

- 

(3 674 875) 

(3 948 147) 

(4 083 666) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Receipts 











Short term loans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing long term/refinancing 

1 022 304 

4 142 000 

1 600 000 

1 500 000 

1 5 00 000 

1 500 000 

- 

1 200 000 

1 200 000 

1 500 000 

Increase (decrease) in consumer deposits 

- 

- 

- 

23 000 

8 201 

8 201 

- 

8 365 

8 532 

8 702 

Payments 











Repay m ent of borrow ing 

(306 180) 

(2 377 641) 

(729 371) 

(633 986) 

(517 338) 

(517 338) 

- 

(560 034) 

(674 630) 

(817 614) 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

716124 

1 764 359 

870 629 

889 014 

990 862 

990 862 

- 

648 330 

533 902 

691 089 

NET INCREASE/ (DECREASE) IN CASH HELD 

68 374 

394 168 

(524 874) 

1 303 011 

378 527 

378 527 


676 450 

1 030 416 

1 569 066 

Cash/cash equivalents at the year begin: 

859 580 

927 954 

1 322 122 

1 361 930 

797 248 

797 248 

- 

1 175 775 

1 852 226 

2 882 642 

Cash/cash equivalents at the year end: 

927 954 

1 322 122 

797 248 

2 664 942 

1 175 775 

1 175 775 

- 

1 852 226 

2 882 642 

4 451 708 


Explanatory notes on MBRR A7 - Budgeted cash flow statement 

1. The budgeted cash flow statement is the first measurement to determine if the budget is 
funded. 

2. The cash flow statement shows the expected level of cash inflow versus cash outflow that is 
likely to result from the implementation of the budget. 

3. The draft 201 5/1 6 MTREF provides for a net increase in cash of R676,5 million, resulting in an 
overall projected positive cash position of R1 852,2 million at year end. 

4. The draft 2015/16 MTREF has been informed by the planning principle of ensuring adequate 
cash reserves over the medium term. 

5. Cash and cash equivalents total R2,9 billion at the end of the 2016/17 financial year and 
escalate to R4,5 billion by 2017/18. 

6. The repayment of borrowing to the amount of R560,0 million, R674,6 million and R817,6 
million for the 2015/16, 2016/17 and 2017/18 financial years respectively is based on the 
capital repayment due in that financial year calculated in terms of the loan agreement. 


page I 81 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 29: MBRR A8 - Cash-backed reserves or accumulated surplus reconciliation 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Cash and investments available 










Cash/cash equivalents at the year end 

927 954 

1 322 122 

797 248 

2 664 942 

1 175 775 

1 175 775 

1 852 226 

2 882 642 

4 451 708 

Other current investments > 90 days 

(0) 

- 

- 

- 

- 

- 

- 

- 

- 

Non current assets - Investments 

87 623 

86 540 

40 219 

207 377 

100 711 

100 711 

44 110 

80 255 

85 038 

Cash and investments available: 

1 015 577 

1 408 662 

837 467 

2 872 319 

1 276 486 

1 276 486 

1 896 336 

2 962 897 

4 536 746 

Application of cash and investments 










Unspent conditional transfers 

317 811 

125 330 

132 498 

- 

13 250 

13 250 

- 

- 

- 

Unspent borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Statutory requirements 

- 

- 

- 

- 

46 835 

46 835 

49 551 

52 276 

55 047 

Other working capital requirements 

1 221 079 

1 784 699 

2 026 359 

1 571 899 

1 924 718 

1 924 718 

1 534 283 

1 565 305 

1 641 751 

Other provisions 

378 486 

194 462 

403 883 

28 495 

93 960 

93 960 

147 827 

153 677 

159 501 

Long term investments committed 

502 477 

340 607 

450 854 

803 928 

612 810 

612 810 

803 928 

1 185 143 

1 671 313 

Reserves to be backed by cash/investments 

148 309 

105 096 

71 953 

182 348 

72 577 

72 577 

73 043 

73 530 

74 037 

Total Application of cash and investments: 

2 568 161 

2 550 195 

3 085 548 

2 586 669 

2 764 149 

2 764 149 

2 608 632 

3 029 931 

3 601 649 


Explanatory notes on MBRR A8 - Cash-backed reserves or accumulated surplus reconciliation 

1 . The cash-backed reserves or accumulated surplus reconciliation are aligned to the requirements 
of MFMA Circular 42 - Funding a Municipal Budget. 

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


page I 82 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 30: MBRR A9 - Asset management 


Description 

2011/12 

2012/13 

2013/14 

Cu 

rent Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcom e 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

CAPITAL EXPENDITURE 










Total New Assets 

1 049 340 

2 147 674 

2 032 462 

2 005 686 

2 157 264 

2 157 264 

2 192 616 

2 242 204 

2 260 468 

Infrastructure - Road transport 

434 553 

1 253 269 

1 381 918 

1 507 470 

1 483 370 

1 483 370 

1 389 635 

1 409 004 

1 464 868 

Infrastructure - Electricity 

320 780 

345 203 

191 232 

165 OOO 

145 500 

145 500 

109 OOO 

182 OOO 

182 OOO 

Infrastructure - Water 

62 596 

39 413 

49 371 

57 500 

57 500 

57 500 

57 500 

45 OOO 

43 OOO 

Infrastructure - Sanitation 

10 199 

4 OOO 

3 919 

1 500 

1 500 

1 500 

- 

- 

- 

Infrastructure - Other 

20 197 

93 348 

97 849 

68 100 

167 592 

167 592 

214 307 

255 900 

252 500 

Infrastructure 

848 326 

1 735 232 

1 724 290 

1 799 570 

1 855 462 

1 855 462 

1 770 442 

1 891 904 

1 942 368 

Community 

102 839 

325 914 

264 224 

141 OOO 

188 592 

188 592 

216 000 

200 500 

173 000 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

53 495 

(2 061) 

(1 832) 

- 

- 

- 

57 100 

91 lOO 

90 100 

Other assets 

44 680 

88 588 

45 780 

65 116 

113 211 

113 211 

18 301 

18 500 

15 OOO 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

- 

- 

- 

- 

- 

- 

130 773 

40 200 

40 OOO 

Total Renewal of Existina Assets 

2 065 521 

2 402 830 

2 196 120 

2 162 301 

2 231 517 

2 231 517 

1 663 950 

1 749 635 

1 901 658 

Infrastructure - Road transport 

246 403 

163 924 

132 388 

33 250 

47 350 

47 350 

28 450 

60 350 

60 500 

Infrastructure - Electricity 

290 101 

331 849 

229 348 

474 500 

477 000 

477 OOO 

338 500 

398 171 

477 812 

Infrastructure - Water 

249 020 

421 032 

433 799 

272 183 

268 183 

268 183 

182 429 

177 329 

187 900 

Infrastructure - Sanitation 

419 005 

401 192 

452 846 

167 563 

157 563 

157 563 

115 071 

lOO OOO 

104 788 

Infrastructure - Other 

43 122 

48 306 

47 528 

18 OOO 

28 000 

28 OOO 

67 OOO 

61 500 

40 OOO 

Infrastructure 

1 247 651 

1 366 304 

1 295 908 

965 496 

978 096 

978 096 

731 450 

797 350 

871 000 

Community 

62 536 

273 238 

268 134 

1 70 OOO 

197 000 

197 OOO 

151 000 

123 OOO 

153 OOO 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

569 191 

568 514 

451 789 

900 805 

926 421 

926 421 

675 500 

696 285 

726 158 

Other assets 

182 219 

193 868 

178 512 

126 OOO 

130 000 

130 OOO 

106 000 

133 OOO 

151 500 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

3 924 

906 

1 777 

- 

- 

- 

- 

- 

- 

Total Capital Expenditure 










Infrastructure - Road transport 

680 957 

1 417 193 

1 514 306 

1 540 720 

1 530 720 

1 530 720 

1 418 085 

1 469 354 

1 525 368 

Infrastructure - Electricity 

610 881 

677 052 

420 580 

639 500 

622 500 

622 500 

447 500 

580 171 

659 812 

Infrastructure - Water 

311 617 

460 445 

483 170 

329 683 

325 683 

325 683 

239 929 

222 329 

230 900 

Infrastructure - Sanitation 

429 204 

405 192 

456 765 

169 063 

159 063 

159 063 

115 071 

100 OOO 

104 788 

Infrastructure - Other 

63 319 

141 654 

145 377 

86 100 

195 592 

195 592 

281 307 

317 400 

292 500 

Infrastructure 

2 095 977 

3 101 536 

3 020 199 

2 765 066 

2 833 558 

2 833 558 

2 501 892 

2 689 254 

2 813 368 

Community 

165 375 

599 153 

532 358 

311 OOO 

385 592 

385 592 

367 OOO 

323 500 

326 000 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

622 686 

566 453 

449 957 

900 805 

926 421 

926 421 

732 600 

787 385 

816 258 

Other assets 

226 899 

282 456 

224 293 

191 116 

243 211 

243 211 

124 301 

151 500 

166 500 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

3 924 

906 

1 777 

- 

- 

- 

130 773 

40 200 

40 OOO 

TOTAL CAPITAL EXPENDITURE - Asset class 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

ASSET REGISTER SUMMARY - PPE (WDV) 










Infrastructure - Road transport 

4 060 554 

4 452 317 

4 493 308 

6 591 434 

5 684 428 

5 684 428 

6 749 101 

7 846 986 

8 978 290 

Infrastructure - Electricity 

3 399 1 74 

3 660 552 

3 770 358 

4 306 527 

4 254 752 

4 254 752 

4 590 728 

5 024 225 

5 528 442 

Infrastructure - Water 

3 957 191 

4 296 855 

4 642 070 

4 731 880 

4 895 498 

4 895 498 

5 075 632 

5 241 754 

5 413 028 

Infrastructure - Sanitation 

- 

- 

- 

447 972 

123 774 

123 774 

210 168 

284 887 

362 856 

Infrastructure - Other 

3 038 837 

4 699 228 

7 702 661 

5 606 625 

7 854 859 

7 854 859 

8 066 059 

8 303 217 

8 510 594 

Infrastructure 

14 455 755 

17 108 952 

20 608 398 

21 684 439 

22 813 311 

22 813 311 

24 691 688 

26 701 068 

28 793 209 

Community 

1 469 361 

2 138 197 

2 516 409 

2 835 730 

2 816 455 

2 816 455 

3 091 992 

3 333 708 

3 572 949 

Heritage assets 

26 059 

25 751 

25 751 

25 686 

25 751 

25 751 

25 751 

25 751 

25 751 

Investment properties 

986 303 

942 058 

851 178 

943 666 

896 737 

896 737 

947 855 

999 153 

995 316 

Other assets 

3 561 235 

3 452 987 

2 956 692 

5 292 980 

4 088 089 

4 088 089 

5 587 779 

7 525 959 

8 458 360 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

450 066 

459 581 

391 730 

269 073 

349 251 

349 251 

322 642 

296 184 

223 643 

TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 

20 948 779 

24 127 526 

27 350 157 

31 051 574 

30 989 593 

30 989 593 

34 667 707 

38 881 823 

42 069 227 

EXPENDITURE OTHER ITEMS 










Depreciation & asset impairment 

1 060 301 

1 128 587 

1 239 048 

1113 786 

1 121 179 

1 121 179 

1 186 841 

1 262 245 

1 347 661 

Repairs and Maintenance bv Asset Class 

1 195 917 

1 412 290 

1 302 647 

1 544 692 

1 513 235 

1 513 235 

1 513 028 

1 562 590 

1 610 957 

Infrastructure - Road transport 

131 773 

188 529 

118 214 

162 879 

156 798 

156 798 

120 794 

125 022 

129 148 

Infrastructure - Electricity 

300 409 

358 972 

411 507 

288 440 

290 629 

290 629 

386 114 

399 628 

412 816 

Infrastructure - Water 

133 621 

106 040 

54 603 

143 519 

151 599 

151 599 

231 797 

239 910 

247 827 

Infrastructure - Sanitation 

44 993 

48 996 

55 382 

50 564 

65 511 

65 511 

49 337 

51 064 

52 748 

Infrastructure - Other 

13 464 

76 384 

8 307 

37 938 

39 438 

39 438 

13 351 

13 818 

14 274 

Infrastructure 

624 259 

778 921 

648 013 

683 340 

703 974 

703 974 

801 393 

829 442 

856 813 

Community 

183 277 

211 084 

108 951 

217 064 

221 344 

221 344 

202 263 

205 947 

209 543 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

388 381 

422 285 

545 683 

644 289 

587 917 

587 917 

509 372 

527 201 

544 600 

TOTAL EXPENDITURE OTHER ITEMS 

2 256 218 

2 540 878 

2 541 695 

2 658 479 

2 634 414 

2 634 414 

2 699 869 

2 824 835 

2 958 618 

Renewal of Existing Assets as % of total capex 

66,3% 

52,8% 

51,9% 

51,9% 

50,8% 

50,8% 

43,1% 

43,8% 

45,7% 

Renewal of Existing Assets as % of deprecn" 

194, 8% 

212,9% 

177,2% 

194, 1% 

199,0% 

199,0% 

140, 2% 

138, 6% 

141,1% 

R&M as a % of PPE 

6,1% 

6, 2% 

5,0% 

5,2% 

5,1% 

5,1% 

4, 5% 

4,2% 

3,9% 

Renewal and R&M as a % of PPE 

16 , 0% 

16,0% 

13, 0% 

12,0% 

12,0% 

12,0% 

9,0% 

9, 0% 

8,0% 


page I 83 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A9 - Asset management 

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

2. In terms of the National Treasury MFMA Circulars 55 and 66, at least 40% of the capital 
budget must be allocated to the renewal of existing assets. Asset renewal equates to 43,2%, 
43,8% and 45,7% of the capital budget for the 2015/16, 2016/17 and 2017/18 financial years 
respectively. Repairs and maintenance as percentages of PPE equate to 4,5%, 4,2% and 3,9% 
for the 2015/16, 2016/17 and 2017/18 financial years respectively. In terms of the National 
Treasury’s MFMA Circular 55, only the primary cost related to repairs and maintenance has 
been included in the MTREF. The increase in property, plant and equipment impact negatively 
on the above percentage owing to the provision made for Tshwane House. 

3. Renewal and repairs and maintenance as percentages of PPE equate to 8,7% on average 
over the medium term (9,0% for 2015/16). It should however be noted that the significant 
increase in PPE, owing to the provision made for Tshwane House, impacts negatively on this 
percentage. 


The following graph provides an analysis between depreciation and operational repairs and maintenance 
over the MTREF. 


Figure 6: Depreciation in relation to repairs and maintenance over the MTREF 



page I 84 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 31 : MBRR A10 - Basic service delivery measurement 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Outcome 

Outcome 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Household service tarqets 










Water: 










Piped water inside dwelling 

750 999 

838 090 

849 070 

857 190 

812 732 

812 732 

822 577 

822 577 

822 577 

Piped water inside yard (but not in dwelling) 

66 465 

- 

- 

- 

- 

- 

- 

- 

- 

Using public tap (at least min. service level) 

4 362 

60 800 

61 586 

60 856 

67 709 

67 709 

62 786 

62 786 

62 786 

Other water supply (at least min. service level) 

- 

- 

28 144 

30 144 

31 095 

31 095 

26 173 

26 173 

26 173 

Minimum Service Level and Above sub-total 

821 826 

898 890 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Using public tap (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other water supply (< min. service level) 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 

No water supply 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Below Minimum Service Level sub-total 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Sanitation/seweraqe: 










Flush toilet (connected to sewerage) 

638 552 

758 260 

762 450 

767 450 

723 935 

723 935 

733 780 

733 780 

733 780 

Flush toilet (with septic tank) 

11 755 

- 

- 

- 

- 

- 

- 

- 

- 

Chemical toilet 

14 158 

- 

- 

- 

- 

- 

1 700 

1 700 

1 700 

Pit toilet (ventilated) 

132 171 

159 920 

176 350 

180 740 

158 965 

158 965 

176 056 

176 056 

176 056 

Other toilet prov isions (> min. service level) 

27 285 

- 

- 

- 

- 

- 

- 

- 

- 

Minimum Service Level and Above sub-total 

823 921 

918 180 

938 800 

948 190 

882 900 

882 900 

911 536 

911 536 

911 536 

Bucket toilet 

- 

- 

- 

- 

9 071 

9 071 

- 

- 

- 

Other toilet provisions (< min. service level) 

- 

- 

- 

- 

7 589 

7 589 

- 

- 

- 

No toilet provisions 

7 119 

11 590 

- 

- 

11 976 

11 976 

- 

- 

- 

Below Minimum Service Level sub-total 

7 119 

11 590 

- 

- 

28 636 

28 636 

- 

- 

- 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Enerqy: 










Electricity (at least min. service level) 

601 125 

665 330 

831 780 

852 980 

807 179 

807 179 

828 300 

828 300 

828 300 

Electricity - prepaid (min. service level) 

175 290 

214 440 

- 

- 

- 

- 

- 

- 

- 

Minimum Service Level and Above sub-total 

776 415 

879 770 

831 780 

852 980 

807 179 

807 179 

828 300 

828 300 

828 300 

Electricity (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Electricity - prepaid (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other energy sources 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 

Below Minimum Service Level sub-total 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Refuse: 










Removed at least once a week 

717 091 

798 290 

818 480 

855 870 

911 536 

911 536 

911 536 

911 536 

911 536 

Minimum Service Level and Above sub-total 

717 091 

798 290 

818 480 

855 870 

911 536 

911 536 

911 536 

911 536 

911 536 

Removed less frequently than once a week 

51 807 

- 

- 

- 

- 

- 

- 

- 

- 

Using communal refuse dump 

4 609 

131 480 

120 320 

92 320 

- 

- 

- 

- 

- 

Using own refuse dump 

44 199 

- 

- 

- 

- 

- 

- 

- 

- 

Other rubbish disposal 

437 

- 

- 

- 

- 

- 

- 

- 

- 

No rubbish disposal 

12 897 

- 

- 

- 

- 

- 

- 

- 

- 

Below Minimum Service Level sub-total 

113 949 

131 480 

120 320 

92 320 

- 

- 

- 

- 

- 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Households receivinq Free Basic Service 










Water (6 kilolitres per household per month) 

89 666 

110 000 

130 000 

230 000 

413 085 

413 085 

413 085 

413 085 

413 085 

Sanitation (free minimum level service) 

89 666 

110 000 

130 000 

140 000 

140 000 

140 000 

120 000 

126 000 

132 000 

Electricity /other energy (50kwh per household per month) 

89 666 

110 000 

130 000 

140 000 

140 000 

140 000 

120 000 

126 000 

132 000 

Refuse (removed at least once a week) 

89 666 

110 000 

130 000 

140 000 

413 085 

413 085 

413 085 

413 085 

413 085 

Cost of Free Basic Services provided (R'000) 










Wafer (6 kilolitres per household per month) 

64 598 

90 078 

123 799 

101 513 

319 667 

319 667 

725 643 

790 951 

862 137 

Sanitation (free sanitation service) 

15 946 

17 316 

22 574 

44 986 

32 203 

32 203 

30 701 

35 137 

40 123 

Electricity/other energy (50kwh per household per month) 

92 069 

115 721 

148 739 

86 959 

87 235 

87 235 

167 490 

189 934 

214 897 

Refuse (removed once a week) 

40 454 

61 817 

92 688 

111 184 

369 069 

369 069 

424 430 

466 873 

513 560 

Total cost of FBS provided (minimum social package) 

213 067 

284 932 

387 800 

344 643 

808 174 

808 174 

1 348 264 

1 482 895 

1 630 717 

Hiqhest level of free service provided 










Property rates (R value threshold) 

150 000 

150 000 

150 000 

150 000 

200 000 

200 000 

200 000 

200 000 

200 000 

Water (kilolitres per household per month) 

12 

12 

12 

12 

12 

12 

12 

12 

12 

Sanitation (kilolitres per household per month) 

6 

6 

6 

6 

6 

6 

6 

6 

6 

Sanitation (Rand per household per month) 

22 

25 

27 

30 

30 

30 

32 

35 

39 

Electricity (kwh per household per month) 

100 

100 

100 

100 

100 

100 

100 

100 

100 

Refuse (average litres per week) 

85 

85 

85 

85 

85 

85 

85 

85 

85 

Revenue cost of free services provided (R'000) 










Property rates (R15 000 threshold rebate) 

16 322 

22 341 

16 634 

73 782 

73 782 

73 782 

82 107 

91 134 

100 191 

Property rates (other exemptions, reductions and rebates) 

146 894 

201 069 

149 702 

295 127 

295 127 

295 127 

328 429 

364 535 

400 762 

Water 

80 546 

108 266 

140 681 

273 721 

380 480 

380 480 

863 690 

941 422 

1 026 151 

Sanitation 

23 623 

32 366 

42 195 

49 985 

33 054 

33 054 

31 512 

36 065 

41 183 

Electricity /other energy 

107 935 

136 303 

167 310 

190 075 

100 283 

100 283 

192 543 

218 344 

247 041 

Refuse 

36 610 

55 943 

82 610 

111 184 

319 014 

319 014 

366 867 

403 553 

443 909 

Municipal Housing - rental rebates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing - top structure subsidies 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

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

411 930 

556 288 

599 130 

993 874 

1 201 740 

1 201 740 

1 865 148 

2 055 053 

2 259 236 


page I 85 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes on MBRR A10 - Basic service delivery measurement 

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

2. The budget provides for 120 000 households to be registered as indigent in 2015/16. This 
target will increase with approximately 8 000 with 2 000 exiting the programme (therefore 
an increase of 6 000 indigent households) per annum. These households are entitled to free 
basic services. 

3. It is anticipated that these free basic services will cost (revenue cost) the Municipality 
R1 865,1 million in 2015/16, increasing to R2 259,2 million in 2017/18. This should be covered 
by the Municipality’s equitable share allocation from national government. 

4. It should be noted that a new calculation method was applied in the 2015/16 financial year, 
therefore not comparable to previous financial years: 

• Services to informal settlements included. 

• Registered indigent households of the city receives 12 kf water and 100 kWh of electricity 
free per month. 

5. The number of households (formal and informal) in Tshwane increased from 606 025 (census 
2001) to 911 536 (census 2011). This indicates a household growth rate of 5,0% per year. 


page I 86 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


1.7 ANNUAL BUDGET TABLES - CONSOLIDATED 
MUNICIPALITY 

Table 32: MBRR A1 - Consolidated budget summary 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousands 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Financial Performance 










Property rates 

3 357 657 

3 999 446 

4 432 342 

4 888 154 

4 888 154 

4 888 154 

5 236 387 

5 763 026 

6 342 328 

Service charges 

10 643 372 

11 629 894 

12 312 129 

14 520 842 

14 617 342 

14 617 342 

15 913 703 

17 257 370 

18 716 554 

Investment revenue 

52 934 

62 828 

52 428 

66 622 

66 824 

66 824 

70 600 

107 170 

112 391 

Transfers recognised - operational 

2 322 772 

2 592 463 

2 861 382 

3 174 408 

3 377 197 

3 377 197 

3 670 241 

3 971 581 

4 312 525 

Other own revenue 

2 544 724 

1 299 242 

1 617 072 

2 289 459 

2 161 444 

2 161 444 

1 404 899 

1 431 078 

1 471 480 

Total Revenue (excluding capital transfers and 
contributions) 

18 921 460 

19 583 872 

21 275 353 

24 939 484 

25 110 962 

25 110 962 

26 295 831 

28 530 226 

30 955 278 

Employee costs 

4 815 285 

5 326 478 

6 085 986 

6 599 935 

6 497 928 

6 497 928 

7 058 527 

7 454 457 

7 871 707 

Remuneration of councillors 

91 453 

92 573 

96 789 

109 043 

109 637 

109 637 

116 298 

127 763 

140 169 

Depreciation & asset impairment 

1 063 046 

1 130 870 

1 242 678 

1 116 341 

1 123 978 

1 123 978 

1 188 780 

1 264 419 

1 350 056 

Finance charges 

633 215 

731 900 

813 986 

898 191 

937 453 

937 453 

1 029 556 

1 110 511 

1 194 244 

Materials and bulk purchases 

6 700 523 

7 144 035 

7 352 789 

8 539 532 

8 454 766 

8 454 766 

9 164 376 

9 903 083 

10 701 273 

Transfers and grants 

21 496 

17 290 

22 007 

262 327 

257 166 

257 166 

259 298 

267 387 

268 475 

Other expenditure 

4 846 902 

5 437 703 

6 830 663 

6 314 587 

7 208 789 

7 208 789 

6 894 081 

7 741 669 

8 595 812 

Total Expenditure 

18 171 921 

19 880 850 

22 444 898 

23 839 956 

24 589 717 

24 589 717 

25 710 916 

27 869 289 

30 121 737 

Surplus/(Deficit) 

749 539 

(296 977) 

(1 169 545) 

1 099 528 

521 245 

521 245 

584 915 

660 937 

833 541 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Contributions recognised - capital & contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & 

contributions 

1 974 196 

1 854 568 

945 127 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Share of surplus/ (deficit) of associate 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) for the year 

1 974 196 

1 854 568 

945 127 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Capital expenditure & funds sources 

Capital expenditure 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 749 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Public contributions & donations 

- 

86 435 

93 818 

80 100 

76 100 

76 100 

168 407 

134 900 

130 000 

Borrowing 

- 

2 126 588 

1 493 166 

1 500 000 

1 500 000 

1 500 000 

1 200 000 

1 200 000 

1 200 000 

Internally generated funds 

1 890 203 

185 935 

526 849 

43 487 

189 569 

189 569 

35 000 

150 000 

200 000 

Total sources of capital funds 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Financial position 










Total current assets 

4 889 807 

5 591 718 

4 590 871 

7 140 067 

5 081 260 

5 081 260 

6 193 667 

7 577 442 

9 485 655 

Total non current assets 

21 158 061 

24 343 083 

27 530 859 

31 450 401 

31 267 027 

31 267 027 

34 914 830 

39 184 461 

42 399 800 

Total current liabilities 

6 018 493 

6 553 414 

6 382 575 

6 74 7 038 

6 172 287 

6 172 287 

6 064 125 

6 501 939 

6 996 519 

Total non current liabilities 

8 072 761 

9 777 846 

11 192 449 

12 141 192 

12 464 770 

12 464 770 

14 316 237 

16 375 466 

17 548 169 

Community wealth/Equity 

11 956 614 

13 603 542 

14 546 706 

19 702 239 

17 711 230 

17 711 230 

20 728 135 

23 884 497 

27 340 768 

Cash flows 










Net cash from (used) operating 

4 041 593 

3 305 617 

3 178 516 

4 467 677 

3 658 620 

3 658 620 

3 701 015 

4 455 759 

4 975 194 

Net cash from (used) investing 

(4 699 771) 

(4 660 467) 

(4 577 985) 

(4 064 055) 

(4 281 925) 

(4 281 925) 

(3 678 806) 

(3 958 889) 

(4 096 302) 

Net cash from (used) financing 

715 515 

1 764 043 

870 314 

888 898 

990 747 

990 747 

648 215 

533 787 

690 974 

Cash/cash equivalents at the year end 

967 778 

1 376 971 

847 816 

2 693 236 

1 203 476 

1 203 476 

1 873 900 

2 904 557 

4 474 421 

Cash backina/surolus reconciliation 










Cash and investments available 

1 055 401 

1 463 512 

888 035 

2 900 613 

1 304 187 

1 304 187 

1 918 010 

2 984 811 

4 559 459 

Application of cash and investments 

2 703 239 

2 537 282 

3 128 984 

2 624 121 

2 805 944 

2 805 944 

2 653 356 

3 077 442 

3 648 366 

Balance - surplus (shortfall) 

(1 647 838) 

(1 073 770) 

(2 240 949) 

276 492 

(1 501 757) 

(1 501 757) 

(735 346) 

(92 631) 

911 093 

Asset manaqement 










Asset register summary (WDV) 

20 976 223 

24 152 316 

27 382 426 

31 098 977 

31 029 086 

31 029 086 

34 709 490 

38 931 032 

42 127 594 

Depreciation & asset impairment 

1 063 046 

1 130 870 

1 242 678 

1 116 341 

1 123 978 

1 123 978 

1 188 780 

1 264 419 

1 350 056 

Renewal of Existing Assets 

2 065 521 

2 402 830 

2 196 120 

2 162 301 

2 231 517 

2 231 517 

1 663 950 

1 749 635 

1 901 658 

Repairs and Maintenance 

1 195 917 

1 412 290 

1 302 647 

1 544 692 

1 513 235 

1 513 235 

1 513 028 

1 562 590 

1 610 957 

Free services 










Cost of Free Basic Services provided 

213 067 

284 932 

387 800 

344 643 

808 174 

808 174 

1 348 264 

1 482 895 

1 630 717 

Revenue cost of free services provided 

411 930 

556 288 

599 130 

993 874 

1 201 740 

1 201 740 

1 865 148 

2 055 053 

2 259 236 

Households below minimum service level 










Water: 

9 

31 

- 

- 

- 

- 

- 

- 

- 

Sanitation/sewerage: 

7 

12 

- 

- 

29 

29 

- 

- 

- 

Energy: 

55 

50 

107 

95 

104 

104 

83 

83 

83 

Refuse: 

114 

131 

120 

92 

~ 

~ 

~ 

~ 

~ 


page I 87 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A1 - Consolidated Budget summary 

1. MBRR A1 is a budget summary and provides a concise overview of the City’s budget from 
all of the major financial perspectives (operating, capital expenditure, financial position, cash 
flow, and MFMA funding compliance). 

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

3. Financial management reforms emphasise the importance of the municipal budget being 
funded. This requires the simultaneous assessment of the financial performance, financial 
position and cash flow budgets, along with the capital budget. The budget summary provides 
key information in this regard. 

4. The 2015/16 financial year indicates a surplus of R584,9 million, R660,9 million and R833,5 
million for the indicated financial years before the transfer of capital grants. 

5. Capital expenditure is balanced by capital funding sources of which - 

• transfers recognised are reflected on the statement of financial performance; 

• borrowing is incorporated in the net cash from financing on the cash flow statement; and 

• internally-generated funds are financed from the accumulated surpluses from previous 
years. The amount is incorporated in the net cash from investing on the cash flow 
budget. 

6. The city has been setting funds aside to expunge bullet long-term loans on their maturity. 

7. Cognisance should be taken of the decrease in Other Revenue of 35,0% when compared to 
the 2014/15 financial year, mainly owing to a once off amount of R500,0 million for the sale of 
land during the 2014/15 financial year. 


page I 88 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 33: MBRR A2 - Consolidated budgeted financial performance (revenue and expenditure 
by standard classification) 


Standard Classification Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Revenue ■ Standard 










Governance and administration 

6 744 031 

6 997 138 

7 507 970 

8 851 027 

8 837 895 

8 837 895 

8 801 188 

9 633 901 

10 534 213 

Executive and council 

68 646 

202 761 

212 009 

153 513 

186 679 

186 679 

115 176 

95 375 

93 375 

Budget and treasury office 

6 486 689 

6 543 786 

7 119 551 

7 721 480 

7 722 155 

7 722 155 

8 373 584 

9 207 139 

10 106 592 

Corporate services 

188 695 

250 591 

176 410 

976 034 

929 061 

929 061 

312 427 

331 387 

334 245 

Community and public safety 

865 863 

847 659 

875 657 

1 255 937 

1 418 391 

1 418 391 

1 131 882 

1 158 753 

1 194 463 

Community and social services 

62 736 

44 108 

30 741 

49 769 

76 522 

76 522 

53 546 

48 970 

39 543 

Sport and recreation 

48 349 

65 708 

46 981 

26 029 

28 018 

28 018 

19 994 

20 394 

21 237 

Public safety 

61 681 

51 369 

211 165 

121 694 

225 058 

225 058 

204 695 

205 175 

205 654 

Housing 

617 180 

594 252 

472 902 

941 814 

972 111 

972 111 

731 636 

755 806 

793 264 

Health 

75 917 

92 221 

113 867 

116 632 

116 682 

116 682 

122 011 

128 408 

134 766 

Economic and environmental services 

692 865 

1 313 853 

1 441 328 

1 620 022 

1 636 589 

1 636 589 

1 863 543 

1 871 731 

1 949 717 

Planning and development 

112 366 

124 677 

268 364 

259 065 

268 582 

268 582 

262 857 

236 529 

246 462 

Road transport 

579 961 

1 188 372 

1 171 599 

1 360 400 

1 366 600 

1 366 600 

1 600 410 

1 634 913 

1 702 953 

Environmental protection 

539 

804 

1 365 

557 

1407 

1407 

276 

289 

301 

Trading services 

11 673 197 

12 384 987 

13 308 244 

15 546 372 

15 625 572 

15 625 572 

16 765 118 

18 177 098 

19 704 918 

Electricity 

8 018 669 

8 456 056 

8 685 043 

10 208 624 

10 201 624 

10 201 624 

10 991 099 

11 900 014 

12 835 810 

Water 

2 406 878 

2 339 042 

2 589 954 

3 321 984 

3 405 684 

3 405 684 

3 711 560 

4 041 460 

4 403 313 

Waste water management 

697 383 

949 848 

1 197 926 

979 669 

979 669 

979 669 

887 831 

947 922 

1 054 077 

Waste management 

550 267 

640 040 

835 321 

1 036 095 

1 038 595 

1 038 595 

1 174 628 

1 287 702 

1411 719 

Other 

170 161 

190 663 

254 862 

210 526 

215 628 

215 628 

187 260 

195 682 

204 093 

Total Revenue - Standard 

20 146 117 

21 734 299 

23 388 061 

27 483 884 

27 734 074 

27 734 074 

28 748 991 

31 037 165 

33 587 404 

Expenditure - Standard 










Governance and administration 

2 706 484 

3 404 415 

4 403 849 

5 117 742 

5 141 034 

5 141 034 

5 130 232 

5 625 564 

6 426 278 

Executive and council 

447 279 

544 472 

808 556 

1 398 270 

1 513 166 

1 513 166 

1 417 378 

1 436 330 

1 509 375 

Budget and treasury office 

638 375 

786 393 

537 597 

629 788 

428 811 

428 811 

691 049 

1 056 241 

1 658 180 

Corporate services 

1 620 830 

2 073 550 

3 057 696 

3 089 684 

3 199 057 

3 199 057 

3 021 805 

3 132 993 

3 258 723 

Community and public safety 

3 018 338 

3 403 843 

3 666 667 

3 490 120 

3 596 209 

3 596 209 

3 733 359 

3 822 098 

4 024 049 

Community and social services 

408 105 

464 389 

485 799 

573 424 

603 280 

603 280 

650 470 

626 103 

655 119 

Sport and recreation 

653 819 

658 627 

620 440 

620 487 

628 091 

628 091 

444 000 

466 314 

489 930 

Public safety 

1 216 347 

1 437 916 

1 750 264 

1 254 375 

1 436 578 

1 436 578 

1 738 320 

1 772 614 

1 869 279 

Housing 

464 195 

539 729 

408 720 

595 882 

501 075 

501 075 

438 177 

469 869 

496 378 

Health 

275 872 

303 183 

401 444 

445 953 

427 184 

427 184 

462 391 

487 198 

513 343 

Economic and environmental services 

1 664 459 

1 891 189 

2 087 070 

2 234 764 

2 377 046 

2 377 046 

2 272 994 

2 395 180 

2 510 497 

Planning and development 

272 957 

353 981 

599 259 

648 312 

757 750 

757 750 

741 132 

766 110 

797 114 

Road transport 

1 335 610 

1 495 127 

1 425 957 

1 528 513 

1 567 106 

1 567 106 

1 505 049 

1 600 803 

1 683 586 

Environmental protection 

55 891 

42 081 

61 855 

57 939 

52 190 

52190 

26 813 

28 268 

29 797 

Trading services 

10 611 895 

11 010 047 

12114 175 

12 784 430 

13 272 817 

13 272 817 

14 381 827 

15 824 667 

16 949 631 

Electricity 

7 262 242 

7 698 533 

8 740 810 

8 723 960 

9 153 758 

9 153 758 

9 536 368 

10 480 135 

11 228 966 

Water 

2 081 947 

1 919 994 

2 215 469 

2 813 610 

2 879 925 

2 879 925 

3 291 217 

3 655 415 

3 948 386 

Waste water management 

375 624 

408 889 

542 255 

607 803 

551 135 

551 135 

553 715 

601 761 

628 540 

Waste management 

892 082 

982 631 

615 641 

639 057 

687 999 

687 999 

1 000 526 

1 087 355 

1 143 739 

Other 

170 745 

171 356 

173 136 

212 900 

202 611 

202 611 

192 505 

201 779 

211 282 

Total Expenditure - Standard 

18171 921 

19 880 850 

22 444 898 

23 839 956 

24 589 717 

24 589 717 

25 710 916 

27 869 289 

30 121 737 

Surplus/(Deficit) for the year 

1 974 196 

1 853 450 

943 164 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 


page I 89 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A2 - Consolidated budgeted financial performance (revenue and 

expenditure by standard classification) 

1 . MBRR A2 provides an overview of the budgeted financial performance in relation to revenue 
and expenditure per standard classification. The modified GFS standard classification divides 
the municipal services into 15 functional areas. Municipal revenue, operating expenditure and 
capital expenditure are then classified in terms of each of these functional areas. 

2. It should be noted that the total revenue on this table includes capital revenues (transfers 
recognised - capital) and therefore does not balance with the operating revenue shown on 
MBRR Table A4. 

3. It should be noted that, as a general principle, the revenues for the trading services should 
exceed their expenditures. 

4. Other functions that show a deficit between revenue and expenditure are being financed from 
the property rates revenue and other revenue sources. 


Table 34: MBRR A3 - Consolidated budgeted financial performance (revenue and expenditure 
by municipal vote) 


Vote Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Revenue by Vote 










City Planning and Development 

67 755 

93 952 

147 643 

136 042 

136 042 

136 042 

129 674 

132 283 

139 955 

Corporate & Shared Services 

99 489 

96 726 

76 686 

722 892 

722 672 

722 672 

102 508 

86 207 

83 784 

Economic Development 

2 278 

1230 

42 641 

81 375 

90 891 

90 891 

90 390 

59 527 

59 865 

Emergency Services 

47 604 

63 420 

71 178 

70 013 

85 807 

85 807 

70 689 

74 346 

77 983 

Environmental Management 

683 595 

799 770 

996 183 

1 184 002 

1 195 535 

1 195 535 

139 983 

144 667 

149 053 

Group Financial Services 

6 539 132 

6 618 108 

7 181 074 

7 788 796 

7 789 501 

7 789 501 

8 449 183 

9 319 205 

10 224 021 

Housing & Human Settlement 

598 154 

576 320 

452 276 

919 376 

949 673 

949 673 

711 662 

734 934 

771 494 

Group Information & Communication Te 

1 065 

49 093 

140 

17 

17 

17 

1 790 

218 

19 

Metro Police Services 

173 336 

172 352 

330 253 

253 225 

340 845 

340 845 

202 349 

202 724 

203 099 

Office of the City Manager 

68 639 

198 571 

207 914 

150 000 

182 160 

182 160 

250 000 

280 000 

290 000 

Service Delivery and Transformation 

285 954 

100 839 

142 743 

70 756 

82 235 

82 235 

1 441 046 

1 563 573 

1 697 754 

Water and Sanitation Department 

3 102 907 

3 287 059 

3 786 730 

4 300 111 

4 383 811 

4 383 811 

4 597 964 

4 987 891 

5 455 834 

Energy and Electricity Department 

7 824 278 

8 427 727 

8 665 180 

10 207 557 

10 200 557 

10 200 557 

10 840 643 

11 699 537 

12 625 312 

Transport 

507 166 

1 102 175 

1 135 962 

1 282 284 

1 288 484 

1 288 484 

1 485 608 

1 518 595 

1 585 123 

Other Votes 

144 766 

146 959 

151 459 

317 440 

285 844 

285 844 

235 503 

233 456 

224 107 

Total Revenue by Vote 

20 146 117 

21 734 299 

23 388 061 

27 483 884 

27 734 074 

27 734 074 

28 748 991 

31 037 165 

33 587 404 

Expenditure bv Vote to be appropriated 










City Planning and Development 

235 888 

216 233 

264 868 

297 219 

306 877 

306 877 

304 449 

317 381 

336 107 

Corporate & Shared Services 

561 227 

657 559 

1 458 383 

1 433 843 

1 452 628 

1 452 628 

1 308 669 

1 354 487 

1 405 816 

Economic Development 

45 945 

168 358 

293 545 

293 575 

387 272 

387 272 

391 472 

401 138 

410 886 

Emergency Services 

394 382 

448 841 

524 102 

537 494 

550 884 

550 884 

576 004 

608 336 

642 485 

Environmental Management 

1 178 144 

1 231 070 

768 940 

672 987 

761 006 

761 006 

358 187 

376 427 

395 303 

Group Financial Services 

1 061 224 

1 384 647 

1 269 771 

1 303 284 

1 197 963 

1 197 963 

1 465 401 

1 866 024 

2 511 806 

Housing & Human Settlement 

396 992 

490 834 

323 669 

529 536 

386 651 

386 651 

366 826 

395 306 

418 494 

Group Information & Communication Te 

318 615 

403 325 

448 333 

553 174 

618 300 

618 300 

533 650 

553 205 

573 095 

Metro Police Services 

977 861 

1 158 591 

1 533 317 

1 418 259 

1 587 011 

1 587 011 

1 789 763 

1 827 706 

1 928 284 

Office of the City Manager 

97 504 

181 599 

171 654 

232 528 

439 006 

439 006 

264 063 

272 522 

281 126 

Service Delivery and Transformation 

2 841 139 

2 831 585 

2 956 216 

3 118 079 

2 945 563 

2 945 563 

4 432 871 

4 621 491 

4 834 558 

Water and Sanitation Department 

2 350 998 

2 210 782 

2 466 986 

3 055 683 

3 203 253 

3 203 253 

3 400 902 

3 797 851 

4 101 758 

Energy and Electricity Department 

5 993 936 

6 491 812 

7 562 225 

7 611 500 

8 005 939 

8 005 939 

8 136 834 

9 023 573 

9 713 323 

Transport 

894 782 

954 608 

1 080 769 

1 227 723 

1 259 189 

1 259 189 

978 004 

1 046 678 

1 101 101 

Other Votes 

823 284 

1 051 005 

1 322 119 

1 555 073 

1 488 175 

1 488 175 

1 403 824 

1 407 162 

1 467 596 

Total Expenditure by Vote 

18 171 921 

19 880 850 

22 444 898 

23 839 956 

24 589 717 

24 589 717 

25 710 916 

27 869 289 

30 121 737 

Surplus/(Deficit) for the year 

1 974 196 

1 853 450 

943 164 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 


page I 90 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A3 - Consolidated budgeted financial performance (revenue and 
expenditure by municipal vote) 

MBRR A3 provides an overview of the budgeted financial performance in relation to the revenue 
(including capital transfers and contributions) and expenditure per municipal vote. This table facilitates 
the view of the budgeted operating performance in relation to the City’s organisational structure. This 
indicates the operating surplus or deficit of a vote. 

Table 35: MBRR A4 - Consolidated budgeted financial performance (revenue and expenditure) 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Revenue By Source 










Property rates 

3 357 657 

3 999 446 

4 432 342 

4 888 154 

4 888 154 

4 888 154 

5 236 387 

5 763 026 

6 342 328 

Property rates - penalties & collection charges 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges - electricity revenue 

7 523 804 

8 131 247 

8 310 983 

9 613 283 

9 613 283 

9 613 283 

10 471 749 

11 307 889 

12 210 920 

Service charges - water revenue 

1 954 999 

2 189 901 

2 433 816 

2 915 881 

2 999 881 

2 999 881 

3 386 947 

3 701 968 

4 047 301 

Service charges - sanitation revenue 

524 567 

596 651 

663 504 

745 935 

745 935 

745 935 

806 647 

882 710 

966 138 

Service charges - refuse revenue 

480 001 

597 961 

768 111 

956 673 

956 673 

956 673 

1 095 779 

1 205 357 

1 325 891 

Service charges - other 

160 002 

114 134 

135 715 

289 070 

301 570 

301 570 

152 581 

159 447 

166 303 

Rental of facilities and equipment 

100 016 

105 914 

112 857 

268 884 

264 965 

264 965 

112 907 

118 026 

123 141 

Interest earned - external investments 

52 934 

62 828 

52 428 

66 622 

66 824 

66 824 

70 600 

107 170 

112 391 

Interest earned - outstanding debtors 

265 721 

276 806 

326 816 

227 379 

227 253 

227 253 

216 338 

228 764 

241 531 

Dividends received 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Fines 

4 556 

37 645 

196 886 

Ill 402 

199 022 

199 022 

196 691 

196 812 

196 932 

Licences and permits 

52 426 

58 659 

55 801 

58 578 

58 578 

58 578 

57 680 

60 185 

62 687 

Agency services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers recognised - operational 

2 322 772 

2 592 463 

2 861 382 

3 174 408 

3 377 197 

3 377 197 

3 670 241 

3 971 581 

4 312 525 

Other revenue 

2 094 893 

810 404 

923 020 

1 623 216 

1 411 626 

1 411 626 

821 284 

827 292 

847 189 

Gains on disposal of PPE 

27 112 

9 814 

1 693 

- 

- 

- 

- 

- 

- 

Total Revenue (excluding capital transfers 
and contributions) 

18 921 460 

19 583 872 

21 275 353 

24 939 484 

25 110 962 

25 110 962 

26 295 831 

28 530 226 

30 955 278 

Expenditure By Type 










Employee related costs 

4 815 285 

5 326 478 

6 085 986 

6 599 935 

6 497 928 

6 497 928 

7 058 527 

7 454 457 

7 871 707 

Remuneration of councillors 

91 453 

92 573 

96 789 

109 043 

109 637 

109 637 

116 298 

127 763 

140 169 

Debt impairment 

903 950 

951 619 

1 400 623 

650 518 

761 280 

761 280 

1 063 228 

1 745 377 

1 901 033 

Depreciation & asset impairment 

1 063 046 

1 130 870 

1 242 678 

1 116 341 

1 123 978 

1 123 978 

1 188 780 

1 264 419 

1 350 056 

Finance charges 

633 215 

731 900 

813 986 

898 191 

937 453 

937 453 

1 029 556 

1 110 511 

1 194 244 

Bulk purchases 

6 172 120 

6 692 682 

7 028 473 

8 129 270 

8 138 665 

8 138 665 

8 795 118 

9 521 345 

10 307 108 

Other materials 

528 402 

451 353 

324 316 

410 262 

316 101 

316 101 

369 258 

381 738 

394 166 

Contracted services 

1 567 845 

1 855 351 

1 875 767 

2 002 023 

2 419 396 

2 419 396 

1 975 982 

2 027 236 

2 089 774 

Transfers and grants 

21 496 

17 290 

22 007 

262 327 

257 166 

257 166 

259 298 

267 387 

268 475 

Other expenditure 

2 263 069 

2 335 538 

3 400 973 

3 662 046 

4 028 112 

4 028 112 

3 854 871 

3 969 055 

4 605 005 

Loss on disposal of PPE 

112 039 

295 194 

153 300 

- 

1 

1 

- 

- 

- 

Total Expenditure 

18 171 921 

19 880 850 

22 444 898 

23 839 956 

24 589 717 

24 589 717 

25 710 916 

27 869 289 

30 121 737 

Surplus/(Deficit) 

749 539 

(296 977) 

(1 169 545) 

1 099 528 

521 245 

521 245 

584 915 

660 937 

833 541 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Contributions recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributed assets 










Surplus/(Deficit) after capital transfers & 

contributions 

1 974 196 

1 854 568 

945 127 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Taxation 


1 118 

1 963 







Surplus/(Deficit) after taxation 

1 974 196 

1 853 450 

943 164 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Attributable to minorities 










Surplus/(Deficit) attributable to 
municipality 

1 974 196 

1 853 450 

943 164 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Share of surplus/ (deficit) of associate 










Surplus/(Deficit) for the year 

1 974 196 

1 853 450 

943 164 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 


page I 91 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A4 - Consolidated budgeted financial performance (revenue and 

expenditure) 

1. Total revenue equates to R26,3 billion in 2015/16 and escalates to R31,0 billion by 2017/18. 
This represents a year-on-year increase of 8,5% for the 2016/17 and the 2017/18 financial 
years. 

2. Revenue to be generated from property rates represents R5,2 billion in the 2015/16 financial 
year and increases to R6,3 billion by 2017/18. This represents 19,9% of the operating 
revenue base (2015/16) of the City and therefore remains a significant funding source for the 
Municipality. 

3. Service charges related to electricity, water, sanitation, refuse removal and other in total, 
constitute the biggest component of the City’s revenue basket. They total R1 5,9 billion for the 
2015/16 financial year and increase to R18,7 billion by 2017/18. This growth can mainly be 
attributed to the increase in the bulk prices of electricity and water. For the 2015/16 financial 
year, service charges amount to 60,5% of the total revenue base. 

4. Transfers recognised - operating includes equitable share, fuel levy and other operating 
grants from national and provincial government. 

5. Cognisance should be taken of the decrease in Other Revenue of 35,0% when compared to 
the 2014/15 financial year, mainly owing to a once off amount of R500,0 million for the sale of 
land in the 2014/15 financial year. 


page I 92 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 36: MBRR A5 - Consolidated budgeted capital expenditure by vote, standard classification 
and funding 


Vote Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Capital expenditure - Vote 

Multi-vear expenditure to be appropriated 










City Planning and Development 

2 577 

4 904 

2 968 

500 

20 500 

20 500 

30 000 

10 000 

20 000 

Corporate & Shared Services 

886 

13 707 

98 404 

1 000 

18 236 

18 236 

23 407 

39 900 

35 000 

Economic Development 

1 897 

10 944 

1 500 

2 500 

2 500 

2 500 

67 100 

94 500 

92 000 

Emergency Services 

27 468 

30 599 

17 728 

23 037 

23 037 

23 037 

6 000 

6 000 

6 000 

Environmental Management 

83 585 

194 051 

89 095 

44 100 

60 092 

60 092 

98 000 

122 000 

100 000 

Group Financial Services 

22 803 

14 940 

7 894 

750 

780 

780 

35 250 

25 000 

40 000 

Housing & Human Settlement 

607 647 

581 514 

450 138 

901 305 

926 921 

926 921 

670 500 

688 885 

719 258 

Group Information & Communication Te 

150 311 

164 947 

140 555 

91 800 

91 800 

91 800 

96 500 

155 500 

140 500 

Metro Police Services 

24 894 

30 972 

51 033 

9 000 

9 000 

9 000 

10 000 

10 000 

10 000 

Office of the City Manager 

50 304 

196 070 

200 951 

218 450 

371 140 

371 140 

280 000 

280 000 

290 000 

Service Delivery and Transformation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Water and Sanitation Department 

717 021 

865 568 

939 936 

498 746 

484 746 

484 746 

355 000 

322 329 

335 688 

Energy and Electricity Department 

622 893 

702 972 

422 956 

642 500 

625 500 

625 500 

447 500 

580 171 

659 812 

Transport 

690 603 

1 429 377 

1 540 950 

1 561 470 

1 561 470 

1 561 470 

1 473 085 

1 477 854 

1 531 868 

Other Votes 

66 588 

313 373 

246 380 

156 329 

176 560 

176 560 

163 551 

156 000 

166 000 

Capital multi-year expenditure sub-total 

3 069 479 

4 553 939 

4 210 487 

4 151 487 

4 372 281 

4 372 281 

3 755 893 

3 968 139 

4 146 126 

Sinqle-vear expenditure to be appropriated 










City Planning and Development 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Corporate & Shared Services 

- 

3 893 

3 289 

- 

- 

- 

- 

- 

- 

Economic Development 

- 

1 487 

- 

- 

- 

- 

10 900 

8 500 

11 000 

Emergency Services 

13 

1 486 

- 

- 

- 

- 

- 

- 

- 

Environmental Management 

- 

- 

7 986 

15 000 

15 000 

15 000 

5 000 

5 000 

5 000 

Group Financial Services 

- 

- 

6 991 

- 

- 

- 

- 

- 

- 

Housing & Human Settlement 

15 000 

(15 000) 

- 

- 

- 

- 

- 

- 

- 

Group Information & Communication Te 

- 

- 

- 

- 

- 

- 

75 773 

200 

- 

Metro Police Services 

- 

4 698 

(170) 

- 

- 

- 

- 

- 

- 

Office of the City Manager 

- 

- 

- 

1 500 

1 500 

1 500 

- 

- 

- 

Service Delivery and Transformation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Water and Sanitation Department 

24 155 

- 

- 

- 

- 

- 

- 

- 

- 

Energy and Electricity Department 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transport 

5 336 

- 

- 

- 

- 

- 

- 

- 

- 

Other Votes 

877 

- 

- 

- 

- 

- 

9 000 

10 000 

- 

Capital single-year expenditure sub-total 

45 382 

(3 436) 

18 095 

16 500 

16 500 

16 500 

100 673 

23 700 

16 000 

Total Capital Expenditure - Vote 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Capital Expenditure - Standard 










Governance and administration 

218 765 

406 815 

476 059 

336 029 

420 840 

420 840 

381 481 

321 600 

314 500 

Executive and council 

56 455 

209 003 

220 331 

187 229 

254 968 

254 968 

112 801 

93 000 

91 000 

Budget and treasury office 

- 

- 

- 

- 

- 

- 

30 000 

20 000 

25 000 

Corporate services 

162 310 

197 812 

255 727 

148 800 

165 872 

165 872 

238 680 

208 600 

198 500 

Com m unity and public safety 

799 228 

1 059 106 

810 054 

1 096 442 

1 177 005 

1 177 005 

941 500 

943 385 

975 258 

Community and social services 

66 808 

47 252 

26 189 

17 600 

39 448 

39 448 

34 000 

65 500 

60 000 

Sport and recreation 

44 633 

341 839 

230 813 

112 000 

134 400 

134 400 

136 000 

118 000 

129 000 

Public safety 

52 375 

66 256 

68 591 

32 037 

32 037 

32 037 

16 000 

16 000 

16 000 

Housing 

622 647 

566 514 

450 138 

901 305 

926 921 

926 921 

670 500 

688 885 

719 258 

Health 

12 765 

37 245 

34 324 

33 500 

44 200 

44 200 

85 000 

55 000 

51 000 

Economic and environmental services 

692 638 

1 440 995 

1 529 042 

1 565 770 

1 565 770 

1 565 770 

1 554 085 

1 583 854 

1 637 868 

Planning and development 

2 864 

15 622 

2 683 

2 800 

2 800 

2 800 

78 000 

103 000 

103 000 

Road transport 

685 376 

1 417 439 

1 520 066 

1 561 470 

1 561 470 

1 561 470 

1 473 085 

1 477 854 

1 531 868 

Environmental protection 

4 398 

7 934 

6 294 

1 500 

1 500 

1 500 

3 000 

3 000 

3 000 

Trading services 

1 371 793 

1 609 922 

1 376 967 

1 156 246 

1 211 666 

1 211 666 

969 500 

1 132 000 

1 226 500 

Electricity 

622 893 

702 972 

422 956 

642 500 

625 500 

625 500 

447 500 

580 171 

659 812 

Water 

178 328 

203 484 

221 578 

149 600 

145 600 

145 600 

149 929 

142 329 

120 900 

Waste water management 

562 849 

662 084 

718 358 

349 146 

425 566 

425 566 

355 071 

380 000 

424 788 

Waste management 

7 723 

41 383 

14 075 

15 000 

15 000 

15 000 

17 000 

29 500 

21 000 

Other 

32 438 

33 665 

36 460 

13 500 

13 500 

13 500 

10 000 

11 000 

8 000 

Total Capital Expenditure - Standard 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

Funded by: 










National Government 

1 167 094 

2 076 699 

2 097 658 

2 529 271 

2 591 309 

2 591 309 

2 408 542 

2 454 739 

2 604 126 

Prov incial Government 

42 563 

60 066 

5 000 

15 129 

27 304 

27 304 

40 551 

52 000 

28 000 

District Municipality 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other transfers and grants 

15 000 

14 780 

12 091 

- 

4 500 

4 500 

4 067 

200 

- 

Transfers recognised - capital 

1 224 657 

2 151 546 

2 114 749 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Public contributions & donations 

- 

86 435 

93 818 

80 100 

76 100 

76 100 

168 407 

134 900 

130 000 

Borrowing 

- 

2 126 588 

1 493 166 

1 500 000 

1 500 000 

1 500 000 

1 200 000 

1 200 000 

1 200 000 

Internally generated funds 

1 890 203 

185 935 

526 849 

43 487 

189 569 

189 569 

35 000 

150 000 

200 000 

Total Capital Funding 

3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 


page I 93 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A5 - Consolidated budgeted capital expenditure by vote, standard 

classification and funding source 

1 . MBRR A5 is a breakdown of the capital programme in relation to capital expenditure by municipal 
vote (multi-year and single-year appropriations), capital expenditure by standard classification 
and the funding sources necessary to fund the capital budget, including information on capital 
transfers from national and provincial departments. 

2. The MFMA states that a municipality may approve multi-year or single-year capital budget 
appropriations. In relation to multi-year appropriations, for 201 5/1 6, R3 755,9 million has been 
allocated of the total capital budget, which totals 97,4%. 

3. Single-year capital expenditure has been appropriated at R100,7 million for the 2015/16 
financial year and relates to expenditure that will be incurred during the specific budget year 
such as the Interactive Digital Centre and Operation Reclaim. 

4. The capital programme is funded from national and provincial grants and transfers, public 
contributions and donations, borrowing and internally-generated funds. For 2015/16, capital 
transfers total R2,5 billion and escalate to R2,6 billion by 201 7/1 8. Borrowing has been provided 
at R1,2 billion per annum over the medium-term, with internally-generated funding totalling 
R35,0 million, for the 201 5/1 6 financial year. The total own funding amounts to R203,4 million 
(public contributions and donations included). 


page I 94 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 37: MBRR A6 - Consolidated budgeted financial position 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

ASSETS 

Current assets 










Cash 

643 927 

740 968 

224 867 

247 794 

227 201 

227 201 

241 124 

263 309 

288 248 

Call investment deposits 

323 852 

636 003 

622 949 

2 445 442 

976 275 

976 275 

1 632 776 

2 641 247 

4 186 173 

Consumer debtors 

2 734 235 

3 146 868 

2 534 752 

3 203 668 

2 543 150 

2 543 150 

2 857 768 

3 130 896 

3 353 398 

Other debtors 

658 210 

543 371 

652 312 

613 612 

683 754 

683 754 

720 978 

732 308 

770 460 

Current portion of long-term receivables 

112 121 

122 270 

164 075 

181 784 

220 344 

220 344 

267 418 

288 703 

314 301 

Inventory 

417 462 

402 239 

391 916 

447 768 

430 536 

430 536 

473 603 

520 978 

573 075 

Total current assets 

4 889 807 

5 591 718 

4 590 871 

7 140 067 

5 081 260 

5 081 260 

6 193 667 

7 577 442 

9 485 655 

Non current assets 










Long-term receivables 

94 216 

104 226 

108 214 

144 047 

137 230 

137 230 

161 230 

173 174 

187 169 

Investments 

87 623 

86 540 

40 219 

207 377 

100 711 

100 711 

44 110 

80 255 

85 038 

Investment property 

1 002 174 

955 258 

864 678 

968 363 

918 743 

918 743 

957 381 

1 016 989 

1 023 152 

Investment in Associate 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Property, plant and equipment 

19 523 983 

22 737 314 

26 125 715 

29 858 641 

29 760 320 

29 760 320 

33 427 936 

37 616 264 

40 879 135 

Agricultural 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangible 

450 066 

459 744 

392 034 

271 973 

350 024 

350 024 

324 173 

297 778 

225 307 

Other non-current assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total non current assets 

21 158 061 

24 343 083 

27 530 859 

31 450 401 

31 267 027 

31 267 027 

34 914 830 

39 184 461 

42 399 800 

TOTAL ASSETS 

26 047 868 

29 934 802 

32 121 730 

38 590 469 

36 348 287 

36 348 287 

41 108 496 

46 761 903 

51 885 456 

LIABILITIES 

Current liabilities 










Bank overdraft 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

476 258 

620 201 

520 693 

792 690 

538 347 

538 347 

587 251 

709 917 

863 393 

Consumer deposits 

406 953 

421 670 

413 751 

486 962 

422 201 

422 201 

430 766 

439 525 

448 647 

Trade and other payables 

5 133 671 

5 511 543 

5 448 131 

5 463 001 

5 209 333 

5 209 333 

5 041 703 

5 347 660 

5 679 168 

Provisions 

1 611 

- 

- 

4 385 

2 405 

2 405 

4 405 

4 837 

5 312 

Total current liabilities 

6 018 493 

6 553 414 

6 382 575 

6 747 038 

6 172 287 

6 172 287 

6 064 125 

6 501 939 

6 996 519 

Non current liabilities 










Borrowing 

6 269 514 

7 780 137 

8 790 854 

9 999 396 

9 924 681 

9 924 681 

11 468 241 

13 207 636 

14 048 889 

Provisions 

1 803 247 

1 997 709 

2 401 595 

2 141 796 

2 540 089 

2 540 089 

2 847 996 

3 167 830 

3 499 280 

Total non current liabilities 

8 072 761 

9 777 846 

11 192 449 

12 141 192 

12 464 770 

12 464 770 

14 316 237 

16 375 466 

17 548 169 

TOTAL LIABILITIES 

14 091 254 

16 331 260 

17 575 025 

18 888 230 

18 637 057 

18 637 057 

20 380 362 

22 877 406 

24 544 688 

NET ASSETS 

11 956 614 

13 603 542 

14 546 706 

19 702 239 

17 711 230 

17 711 230 

20 728 135 

23 884 497 

27 340 768 

COMMUNITY WEALTH/EQUITY 










Accumulated SurplusZ(Deficit) 

11 586 460 

13 234 309 

14 293 456 

19 334 078 

17 433 329 

17 433 329 

20 463 076 

23 628 951 

27 094 714 

Reserves 

370 154 

364 618 

248 635 

356 047 

269 978 

269 978 

260 444 

250 931 

241 439 

Minorities' interests 

- 

4 615 

4 615 

12 114 

7 922 

7 922 

4 615 

4 615 

4 615 

TOTAL COMMUNITY WEALTH/EQUITY 

11 956 614 

13 603 542 

14 546 706 

19 702 239 

17 711 230 

17 711 230 

20 728 135 

23 884 497 

27 340 768 


page I 95 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A6 - Consolidated Budgeted financial position 

1 . MBRR A6 is consistent with international standards of good financial management practice. 

2. This format of presenting the statement of financial position is aligned to GRAP1, which 
is generally aligned to the international version which presents assets less liabilities as 
“accounting” community wealth. The order of items within each group illustrates items in order 
of liquidity, ie assets readily converted to cash or liabilities immediately required to be met from 
cash appear first. 

3. This table is supported by an extensive table of notes (MBRR SA3) which provides a detailed 
analysis of the major components of a number of items, including - 

• call investment deposits; 

• consumer debtors; 

• property, plant and equipment; 

• trade and other payables; 

• non-current provisions; 

• changes in net assets; and 

• reserves. 

4. Included in the Borrowing and under Assets is the construction cost of Tshwane House as a 
result of the PPP agreement entered into. An amount of R1,8 billion, R2,5 billion and R2,8 
billion for the 2015/16, 2016/17 and 2017/18 financial years respectively have been included. 

5. The municipal equivalent of equity is community wealth or equity. The justification is that 
ownership and the net assets of the Municipality belong to the community. 

6. Any movement on the budgeted financial performance or the capital budget will inevitably 
impact on the budgeted financial position. As an example, the collection rate assumption will 
impact on the cash position of the Municipality and subsequently inform the level of cash and 
cash equivalents at year end. Similarly, the collection rate assumption (92%) should inform 
the budget appropriation for debt impairment which in turn would impact on the provision 
for bad debt. These budget and planning assumptions form a critical link in determining the 
applicability and relevance of the budget as well as the determination of ratios and financial 
indicators. In addition, the funding compliance assessment is informed directly by forecasting 
the statement of financial position. 


page I 96 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 38: MBRR A7 - Consolidated budgeted cash flows 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 

Framework 

R thousand 

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 

CASH FLOW FROM OPERATING ACTIVITIES 

Receipts 










Property rates, penalties & collection charges 

15 055 620 

15 700 846 

17 811 442 

20 133 932 

20 254 945 

20 254 945 

4 817 476 

5 301 984 

5 834 941 

Sen/ ice charges 

- 

- 

- 

409 359 

236 419 

236 419 

14 588 169 

15 814 615 

17 166 431 

Other revenue 

- 

- 

- 

4 613 

7 271 

7 271 

1 178 291 

1 191 564 

1 218 917 

Government - operating 

2 322 772 

2 462 714 

2 866 274 

3 166 498 

3 377 197 

3 377 197 

3 666 857 

3 971 581 

4 312 525 

Government - capita 1 

1 224 657 

2 043 863 

2 118 287 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Interest 

52 934 

62 828 

52 428 

96 624 

96 600 

96 600 

193 141 

236 858 

250 790 

Dividends 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Payments 










Suppliers and employees 

(13 959 680) 

(16 215 444) 

(18 833 921) 

(20 752 885) 

(21 742 305) 

(21 742 305) 

(21 907 225) 

(23 189 885) 

(24 977 818) 

Finance charges 

(633 215) 

(731 900) 

(813 986) 

(898 191) 

(937 453) 

(937 453) 

(1 029 5 56) 

(1 110 511) 

(1 194 244) 

Transfers and Grants 

(21 496) 

(17 290) 

(22 007) 

(236 673) 

(257 166) 

(257 166) 

(259 298) 

(267 387) 

(268 475) 

NET CASH FROM/(USED) OPERATING ACTIVITIES 

4 041 593 

3 305 617 

3 178 516 

4 467 677 

3 658 620 

3 658 620 

3 701 015 

4 455 759 

4 975 194 

CASH FLOWS FROM INVESTING ACTIVITIES 

Receipts 










Proceeds on disposal of PPE 

(27 823) 

(131 772) 

16 160 

- 

- 

- 

- 

- 

- 

Decrease (Increase) in non-current debtors 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Decrease (increase) other non-current receivables 

- 

- 

- 

48 553 

48 553 

48 553 

48 553 

- 

- 

Decrease (increase) in non-current investments 

- 

- 

- 

(100 000) 

(60 492) 

(60 492) 

56 007 

(36 145) 

(4 783) 

Payments 










Capital assets 

(4 671 948) 

(4 528 695) 

(4 594 145) 

(4 012 608) 

(4 269 986) 

(4 269 986) 

(3 783 366) 

(3 922 744) 

(4 091 520) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

(4 699 771) 

(4 660 467) 

(4 577 985) 

(4 064 055) 

(4 281 925) 

(4 281 925) 

(3 678 806) 

(3 958 889) 

(4 096 302) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Receipts 










Short term loans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing long term/refinancing 

1 022 304 

4 142 000 

1 600 000 

1 500 000 

1 500 000 

1 500 000 

1 200 000 

1 200 000 

1 500 000 

Increase (decrease) in consumer deposits 

- 

- 

- 

23 200 

8 401 

8 401 

8 565 

8 732 

8 902 

Payments 










Repayment of borrowing 

(306 788) 

(2 377 957) 

(729 686) 

(634 301) 

(517 654) 

(517 654) 

(560 350) 

(674 945) 

(817 929) 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

715 515 

1 764 043 

870 314 

888 898 

990 747 

990 747 

648 215 

533 787 

690 974 

NET INCREASE/ (DECREASE) IN CASH HELD 

57 337 

409 193 

(529 155) 

1 292 520 

367 442 

367 442 

670 424 

1 030 656 

1 569 865 

Cash/cash equivalents at the year begin: 

910 442 

967 778 

1 376 971 

1 400 716 

836 034 

836 034 

1 203 476 

1 873 900 

2 904 557 

Cash/ cash equivalents at the year end: 

967 778 

1 376 971 

847 816 

2 693 236 

1 203 476 

1 203 476 

1 873 900 

2 904 557 

4 474 421 


Explanatory notes to MBRR A7 - Consolidated budgeted cash flow statement 

1. The budgeted cash flow statement is the first measurement to determine if the budget is 
funded. 

2. The cash flow statement shows the expected level of cash inflow versus cash outflow that is 
likely to result from the implementation of the budget. 

3. The draft 201 5/1 6 MTREF provides for a net increase in cash of R670,4 million, resulting in an 
overall projected positive cash position of R1 873,9 million at year end. 

4. The draft 2015/16 MTREF has been informed by the planning principle of ensuring adequate 
cash reserves over the medium term. 

5. Cash and cash equivalents total R2,9 billion at the end of the 2016/17 financial year and 
escalate to R4,5 billion by 2017/18. 

6. The repayment of borrowing to the amount of R560,4 million, R674,9 million and 
R817,9 million for the 2015/16, 2016/17 and 2017/18 financial years respectively is based on 
the capital repayment due in that financial year calculated in terms of the loan agreement. 


page I 97 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 39: MBRR A8 - Consolidated cash-backed reserves or accumulated surplus reconciliation 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Cash and investments available 










Cash/ cash equivalents at the year end 

967 778 

1 376 971 

847 816 

2 693 236 

1 203 476 

1 203 476 

1 873 900 

2 904 557 

4 474 421 

Other current investments > 90 days 

0 

- 

- 

1 0) 

0 

(0) 

0 

(0) 

(0) 

Non current assets - Investments 

87 623 

86 540 

40 219 

207 377 

100 711 

100 711 

44 110 

80 255 

85 038 

Cash and investments available: 

1 055 401 

1 463 512 

888 035 

2 900 613 

1 304 187 

1 304 187 

1 918 010 

2 984 811 

4 559 459 

Application of cash and investments 










Unspent conditional transfers 

319 664 

126 494 

134 328 

- 

13 250 

13 250 

- 

- 

- 

Unspent borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Statutory requirements 

- 

- 

- 

- 

46 835 

46 835 

49 551 

52 276 

55 047 

Other working capital requirements 

1 354 303 

1 770 622 

2 067 966 

1 609 351 

1 966 513 

1 966 513 

1 579 008 

1 612 817 

1 688 468 

Other provisions 

378 486 

194 462 

403 883 

28 495 

93 960 

93 960 

147 827 

153 677 

159 501 

Long term investments committed 

502 477 

340 607 

450 854 

803 928 

612 810 

612 810 

803 928 

1 185 143 

1 671 313 

Reserves to be backed by cash/investments 

148 309 

105 096 

71 953 

182 348 

72 577 

72 577 

73 043 

73 530 

74 037 

Total Application of cash and investments: 

2 703 239 

2 537 282 

3 128 984 

2 624 121 

2 805 944 

2 805 944 

2 653 356 

3 077 442 

3 648 366 

Surplus(shortfall) 

(1 647 838) 

(1 073 770) 

(2 240 949) 

276 492 

(1 501 757) 

(1 501 757) 

(735 346) 

(92 631) 

911 093 


Explanatory notes to MBRR A8 - Consolidated cash-backed reserves or accumulated surplus 
reconciliation 

1 . The cash-backed reserves or accumulated surplus reconciliation are aligned to the requirements 
of MFMA Circular 42 - Funding a Municipal Budget. 

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


page I 98 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 40: MBRR A9 - Consolidated asset management 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

CAPITAL EXPENDITURE 










Total New Assets 

1 049 340 

2 147 674 

2 032 462 

2 005 686 

2 1 57 264 

2 157 264 

2 192 616 

2 242 204 

2 260 468 

Infrastructure - Road transport 

434 553 

1 253 269 

1 381 918 

1 507 470 

1 483 370 

1 483 370 

1 389 635 

1 409 004 

1 464 868 

Infrastructure - Electricity 

320 780 

345 203 

191 232 

165 000 

145 500 

145 500 

109 OOO 

182 000 

182 000 

Infrastructure - Water 

62 596 

39 413 

49 371 

57 500 

57 500 

57 500 

57 500 

45 OOO 

43 OOO 

Infrastructure - Sanitation 

10 199 

4 000 

3 919 

1 500 

1 500 

1 500 

- 

- 

- 

Infrastructure - Other 

20 197 

93 348 

97 849 

68 100 

167 592 

167 592 

214 307 

255 900 

252 500 

Infrastructure 

848 326 

1 735 232 

1 724 290 

1 799 570 

1 855 462 

1 855 462 

1 770 442 

1 891 904 

1 942 368 

Community 

102 839 

325 914 

264 224 

141 000 

188 592 

188 592 

216 OOO 

200 500 

173 000 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inv estment properties 

53 495 

(2 061) 

(1 832) 

- 

- 

- 

57 100 

91 100 

90 lOO 

Other assets 

44 680 

88 588 

45 780 

65 116 

113 211 

113 211 

18 301 

18 500 

15 000 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

- 

- 

- 

- 

- 

- 

130 773 

40 200 

40 000 

Total Renewal of Existina Assets 

2 065 521 

2 402 830 

2 196 120 

2 162 301 

2 231 517 

2 231 517 

1 663 950 

1 749 635 

1 901 658 

Infrastructure - Road transport 

246 403 

163 924 

132 388 

33 250 

47 350 

47 350 

28 450 

60 350 

60 500 

Infrastructure - Electricity 

290 lOI 

331 849 

229 348 

474 500 

477 000 

477 000 

338 500 

398 171 

477 812 

Infrastructure - Water 

249 020 

421 032 

433 799 

272 183 

268 183 

268 183 

182 429 

177 329 

187 900 

Infrastructure - Sanitation 

419 005 

401 192 

452 846 

167 563 

157 563 

157 563 

115 071 

100 OOO 

104 788 

Infrastructure - Other 

43 122 

48 306 

47 528 

18 000 

28 000 

28 OOO 

67 000 

61 500 

40 000 

Infrastructure 

1 247 651 

1 366 304 

1 295 908 

965 496 

978 096 

978 096 

731 450 

797 350 

871 000 

Community 

62 536 

273 238 

268 134 

170 000 

197 000 

197 OOO 

151 OOO 

123 OOO 

153 000 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inv estment properties 

569 191 

568 514 

451 789 

900 805 

926 421 

926 421 

675 500 

696 285 

726 158 

Other assets 

182 219 

193 868 

178 512 

126 000 

130 000 

130 OOO 

106 OOO 

133 000 

151 500 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

3 924 

906 

1 777 

- 

- 

- 

- 

- 

- 

Total Capital Expenditure 










Infrastructure - Road transport 

680 957 

1 417 193 

1 514 306 

1 540 720 

1 530 720 

1 530 720 

1 418 085 

1 469 354 

1 525 368 

Infrastructure - Electricity 

610 881 

677 052 

420 580 

639 500 

622 500 

622 500 

447 500 

580 171 

659 812 

Infrastructure - Water 

311 617 

460 445 

483 170 

329 683 

325 683 

325 683 

239 929 

222 329 

230 900 

Infrastructure - Sanitation 

429 204 

405 192 

456 765 

169 063 

159 063 

159 063 

115 071 

100 000 

104 788 

Infrastructure - Other 

63 319 

141 654 

145 377 

86 100 

195 592 

195 592 

281 307 

317 400 

292 500 

Infrastructure 

2 095 977 

3 101 536 

3 020 199 

2 765 066 

2 833 558 

2 833 558 

2 501 892 

2 689 254 

2 813 368 

Community 

165 375 

599 153 

532 358 

311 000 

385 592 

385 592 

367 OOO 

323 500 

326 000 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inv estment properties 

622 686 

566 453 

449 957 

900 805 

926 421 

926 421 

732 600 

787 385 

816 258 

Other assets 

226 899 

282 456 

224 293 

191 116 

243 211 

243 211 

124 301 

151 500 

166 500 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

3 924 

906 

1 777 

- 

- 

- 

130 773 

40 200 

40 000 

TOTAL CAPITAL EXPENDITURE - Asset class 

3 114 860 

4 550 503 

4 228 583 

4 1 67 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 

ASSET REGISTER SUMMARY - PPE (WDV) 










Infrastructure - Road transport 

4 060 554 

4 452 317 

4 493 308 

6 591 434 

5 684 428 

5 684 428 

6 749 lOI 

7 846 986 

8 978 290 

Infrastructure - Electricity 

3 399 174 

3 660 552 

3 770 358 

4 306 527 

4 254 752 

4 254 752 

4 590 728 

5 024 225 

5 528 442 

Infrastructure - Water 

3 968 631 

4 306 309 

4 650 177 

4 740 874 

4 904 492 

4 904 492 

5 097 748 

5 262 070 

5 431 344 

Infrastructure - Sanitation 

- 

- 

- 

447 972 

123 774 

123 774 

210 168 

284 887 

362 856 

Infrastructure - Other 

3 038 969 

4 701 202 

7 713 020 

5 617 437 

7 862 579 

7 862 579 

8 074 669 

8 312 680 

8 521 146 

In fra s true ture 

14 467 328 

17 120 379 

20 626 863 

21 704 244 

22 830 025 

22 830 025 

24 722 414 

26 730 847 

28 822 077 

Community 

1 469 361 

2 138 197 

2 516 409 

2 835 730 

2 816 455 

2 816 455 

3 091 992 

3 333 708 

3 572 949 

Heritage assets 

26 059 

25 751 

25 751 

25 686 

25 751 

25 751 

25 751 

25 751 

25 751 

Investment properties 

1 002 174 

955 258 

864 678 

968 363 

918 743 

918 743 

957 381 

1 016 989 

1 023 152 

Other assets 

3 561 235 

3 452 987 

2 956 692 

5 292 980 

4 088 089 

4 088 089 

5 587 779 

7 525 959 

8 458 360 

Agricultural Assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 

450 066 

459 744 

392 034 

271 973 

350 024 

350 024 

324 173 

297 778 

225 307 

TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 

20 976 223 

24 152 316 

27 382 426 

31 098 977 

31 029 086 

31 029 086 

34 709 490 

38 931 032 

42 127 594 

EXPENDITURE OTHER ITEMS 










Depreciation & asset impairment 

1 063 046 

1 130 870 

1 242 678 

1 116 341 

1 123 978 

1 123 978 

1 188 780 

1 264 419 

1 350 056 

Repairs and Maintenance bv Asset Class 

1 195 917 

1 412 290 

1 302 647 

1 544 692 

1 513 235 

1 513 235 

1 513 028 

1 562 590 

1 610 957 

Infrastructure - Road transport 

131 773 

188 529 

118 214 

162 879 

156 798 

156 798 

120 794 

125 022 

129 148 

Infrastructure - Electricity 

300 409 

358 972 

411 507 

288 440 

290 629 

290 629 

386 114 

399 628 

412 816 

Infrastructure - Water 

133 621 

106 040 

54 603 

143 519 

151 599 

151 599 

231 797 

239 910 

247 827 

Infrastructure - Sanitation 

44 993 

48 996 

55 382 

50 564 

65 511 

65 511 

49 337 

51 064 

52 748 

Infrastructure - Other 

13 464 

76 384 

8 307 

37 938 

39 438 

39 438 

13 351 

13 818 

14 274 

Infrastructure 

624 259 

778 921 

648 013 

683 340 

703 974 

703 974 

801 393 

829 442 

856 813 

Community 

183 277 

211 084 

108 951 

217 064 

221 344 

221 344 

202 263 

205 947 

209 543 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inv estment properties 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

388 381 

422 285 

545 683 

644 289 

587 917 

587 917 

509 372 

527 201 

544 600 

TOTAL EXPENDITURE OTHER ITEMS 

2 258 963 

2 543 160 

2 545 325 

2 661 033 

2 637 213 

2 637 213 

2 701 808 

2 827 010 

2 961 012 

Renewal of Existing Assets as % of total capex 

66,3% 

52,8% 

51,9% 

51,9% 

50,8% 

50,8% 

43,1% 

43,8% 

45,7% 

Renewal of Existing Assets as % of deprecn" 

194,3% 

212,5% 

176,7% 

193, 7% 

198,5% 

198,5% 

140,0% 

138,4% 

140,9% 

R&M as a % of PPE 

6,1% 

6,2% 

5,0% 

5,2% 

5,1% 

5,1% 

4,5% 

4,2% 

3,9% 

Renewal and R&M as a % of PPE 

16,0% 

16,0% 

13,0% 

12,0% 

12,0% 

12,0% 

9,0% 

9,0% 

8,0% 


page I 99 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A9 - Consolidated asset management 

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

2. In terms of the National Treasury MFMA Circulars 55 and 66, at least 40% of the capital 
budget must be allocated to the renewal of existing assets. Asset renewal equates to 43,1%, 
43,8% and 45,7% of the capital budget for the 2015/16, 2016/17 and 2017/18 financial years 
respectively. Repairs and maintenance as percentages of PPE equate to 4,5%, 4,2% and 3,9% 
for the 2015/16, 2016/17 and 2017/18 financial years respectively. In terms of the National 
Treasury’s MFMA Circular 55, only the primary cost related to repairs and maintenance has 
been included in the MTREF. The increase in property, plant and equipment impact negatively 
on the above percentage owing to the provision made for Tshwane House. 

3. Renewal and repairs and maintenance as percentages of PPE equate to 8,7% on average 
over the medium term (9,0% for 2015/16). It should however be noted that the significant 
increase in PPE, owing to the provision made for Tshwane House, impacts negatively on this 
percentage. 


page I 100 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 41 : MBRR A10 - Consolidated basic service delivery measurement 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Outcome 

Outcome 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Household service tarqets 










Water: 










Piped water inside dwelling 

750 999 

838 090 

849 070 

857 190 

812 732 

812 732 

822 577 

822 577 

822 577 

Piped water inside yard (but not in dwelling) 

66 465 

- 

- 

- 

- 

- 

- 

- 

- 

Using public tap (at least min. service level) 

4 362 

60 800 

61 586 

60 856 

67 709 

67 709 

62 786 

62 786 

62 786 

Other water supply (at least min. service level) 

- 

- 

28 144 

30 144 

31 095 

31 095 

26 173 

26 173 

26 173 

Minimum Service Level and Above sub-total 

821 826 

898 890 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Using public tap (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other water supply (< min. service level) 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 

No water supply 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Below Minimum Service Level sub-total 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

San i tatio n/seweraq e: 










Flush toilet (connected to sewerage) 

638 552 

758 260 

762 450 

767 450 

723 935 

723 935 

733 780 

733 780 

733 780 

Flush toilet (with septic tank) 

11 755 

- 

- 

- 

- 

- 

- 

- 

- 

Chemical toilet 

14 158 

- 

- 

- 

- 

- 

1 700 

1 700 

1 700 

Pit toilet (ventilated) 

132 171 

159 920 

176 350 

180 740 

158 965 

158 965 

176 056 

176 056 

176 056 

Other toilet prov isions (> min. service level) 

27 285 

- 

- 

- 

- 

- 

- 

- 

- 

Minimum Service Level and Above sub-total 

823 921 

918 180 

938 800 

948 190 

882 900 

882 900 

911 536 

911 536 

911 536 

Bucket toilet 

- 

- 

- 

- 

9 071 

9 071 

- 

- 

- 

Other toilet provisions (< min. service level) 

- 

- 

- 

- 

7 589 

7 589 

- 

- 

- 

No toilet provisions 

7 119 

11 590 

- 

- 

11 976 

11 976 

- 

- 

- 

Below Minimum Service Level sub-total 

7 119 

11 590 

- 

- 

28 636 

28 636 

- 

- 

- 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Energy: 










Electricity (at least min. service level) 

601 125 

665 330 

831 780 

852 980 

807 179 

807 179 

828 300 

828 300 

828 300 

Electricity - prepaid (min. service level) 

175 290 

214 440 

- 

- 

- 

- 

- 

- 

- 

Minimum Service Level and Above sub-total 

776 415 

879 770 

831 780 

852 980 

807 179 

807 179 

828 300 

828 300 

828 300 

Electricity (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Electricity - prepaid (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other energy sources 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 

Below Minimum Service Level sub-total 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Refuse: 










Removed at least once a week 

717 091 

798 290 

818 480 

855 870 

911 536 

911 536 

911 536 

911 536 

91 1 536 

Minimum Service Level and Above sub-total 

717 091 

798 290 

818 480 

855 870 

911 536 

911 536 

911 536 

911 536 

911 536 

Removed less frequently than once a week 

51 807 

- 

- 

- 

- 

- 

- 

- 

- 

Using communal refuse dump 

4 609 

131 480 

120 320 

92 320 

- 

- 

- 

- 

- 

Using own refuse dump 

44 199 

- 

- 

- 

- 

- 

- 

- 

- 

Other rubbish disposal 

437 

- 

- 

- 

- 

- 

- 

- 

- 

No rubbish disposal 

12 897 

- 

- 

- 

- 

- 

- 

- 

- 

Below Minimum Service Level sub-total 

113 949 

131 480 

120 320 

92 320 

- 

- 

- 

- 

- 

Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Households receivina Free Basic Service 










Water (6 kilolitres per household per month) 

89 666 

1 10 000 

130 000 

230 000 

413 085 

413 085 

413 085 

413 085 

413 085 

Sanitation (free minimum level service) 

89 666 

110 000 

130 000 

140 000 

140 000 

140 000 

120 000 

126 000 

132 000 

Electricity /other energy (50kwh per household per month) 

89 666 

110 000 

130 000 

140 000 

140 000 

140 000 

120 000 

126 000 

132 000 

Refuse (removed at least once a week) 

89 666 

110 000 

130 000 

140 000 

413 085 

413 085 

413 085 

413 085 

413 085 

Cost of Free Basic Services provided (R'000) 










Water (6 kilolitres per household per month) 

64 598 

90 078 

123 799 

101 513 

319 667 

319 667 

725 643 

790 951 

862 137 

Sanitation (free sanitation service) 

15 946 

17 316 

22 574 

44 986 

32 203 

32 203 

30 701 

35 137 

40 123 

Electricity /other energy (50kwh per household per month) 

92 069 

115 721 

148 739 

86 959 

87 235 

87 235 

167 490 

189 934 

214 897 

Refuse (removed once a week) 

40 454 

61 817 

92 688 

111 184 

369 069 

369 069 

424 430 

466 873 

513 560 

Total cost of FBS provided (minimum social package) 

213 067 

284 932 

387 800 

344 643 

808 174 

808 174 

1 348 264 

1 482 895 

1 630 717 

Hiahest level of free service provided 










Property rates (R value threshold) 

150 000 

150 000 

150 000 

150 000 

200 000 

200 000 

200 000 

200 000 

200 000 

Water (kilolitres per household per month) 

12 

12 

12 

12 

12 

12 

12 

12 

12 

Sanitation (kilolitres per household per month) 

6 

6 

6 

6 

6 

6 

6 

6 

6 

Sanitation (Rand per household per month) 

22 

25 

27 

30 

30 

30 

32 

35 

39 

Electricity (kwh per household per month) 

100 

100 

100 

100 

100 

100 

100 

100 

100 

Refuse (average litres per week) 

85 

85 

85 

85 

85 

85 

85 

85 

85 

Revenue cost of free services provided (R'000) 










Property rates (R15 000 threshold rebate) 

16 322 

22 341 

16 634 

73 782 

73 782 

73 782 

82 107 

91 134 

100 191 

Property rates (other exemptions, reductions and rebates) 

146 894 

201 069 

149 702 

295 127 

295 127 

295 127 

328 429 

364 535 

400 762 

Water 

80 546 

108 266 

140 681 

273 721 

380 480 

380 480 

863 690 

941 422 

1 026 151 

Sanitation 

23 623 

32 366 

42 195 

49 985 

33 054 

33 054 

31 512 

36 065 

41 183 

Electricity /other energy 

107 935 

136 303 

167 310 

190 075 

100 283 

100 283 

192 543 

218 344 

247 041 

Refuse 

36 610 

55 943 

82 610 

111 184 

319 014 

319 014 

366 867 

403 553 

443 909 

Municipal Housing - rental rebates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing - top structure subsidies 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

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

411 930 

556 288 

599 130 

993 874 

1 201 740 

1 201 740 

1 865 148 

2 055 053 

2 259 236 


page I 101 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Explanatory notes to MBRR A10 - Consolidated basic service delivery measurement 

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

2. The budget provides for 120 000 households to be registered as indigent in 2015/16. This 
target will increase with approximately 8 000 with 2 000 exiting the programme (therefore 
an increase of 6 000 indigent households) per annum. These households are entitled to free 
basic services. 

3. It is anticipated that these free basic services will cost (revenue cost) the Municipality 
R1 865,1 million in 2015/16, increasing to R2 259,2 million in 2017/18. This should be covered 
by the Municipality’s equitable share allocation from national government. 

4. It should be noted that a new calculation method was applied in the 2015/16 financial year, 
therefore not comparable to previous financial years: 

• Services to informal settlements included. 

• Registered indigent households of the city receives 12 kf water and 100 kWh of electricity 
free per month. 

5. The number of households (formal and informal) in Tshwane increased from 606 025 (census 
2001) to 911 536 (census 2011). This indicates a household growth rate of 5,0% per year. 


page I 102 




PART 2 

PPORT1NG DOCUMENTATION 






'V 


s 




-Tj 









The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.1 OVERVIEW OF THE ANNUAL BUDGET PROCESS 

The goal of strengthening the link between the government’s priorities and spending plans is to enhance 
service delivery that aims to improve the quality of life for all. 

Enhanced political oversight of the budget process is therefore the key to strengthening the link between 
competing priorities, spending plans and fiscal realities. Section 53 of the MFMA requires the Executive 
Mayor of the Municipality to provide general political guidance in the budget process and to set priorities 
guiding budget preparation. In addition, Chapter 2 of the Municipal Budget and Reporting Regulations 
states that the Executive Mayor must establish a budget steering committee to provide the Executive 
Mayor with technical assistance in discharging the responsibilities set out in section 53 of the Act. 

The primary aims of the BSC are to ensure that - 

• the proposals made by departments or regions and municipal entities will assist to achieve the 
set commitments as contained in the 2011/16 approved IDP; 

• the City takes note in their planning of shifts in the development trajectory of the City as 
articulated in the Tshwane Vision 2055 outcomes; 

• the proposed spending in line with the business plans will achieve the City’s priorities; and 

• the available resources are allocated in line with the City’s priorities. 

In preparation for the 2015/16 MTREF departments were invited to present their proposed business 
plans and draft budget, including inter alia the following at the Committee: 

• The key functions carried out by the department. 

• Achievements since the approval of the 2011/16 IDP. 

• Challenges faced in the 201 4/1 5 financial year in relation to carrying out the mandate. 

• Summary of the planned key outputs leading up to the end of the term. 

The outcomes and recommendations of the BSC confirmed the operationalisation of the strategic 
priorities of the City against the proposed programmes, projects and draft financial allocations. 

The Tshwane Vision 2055 and the IDP are the primary reference points for preparing the MTREF. 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.1 .1 BUDGET PROCESS OVERVIEW 

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

The Executive Mayor tabled the required IDP and budget time schedule in Council on 28 August 2014. 
Key dates that apply to the planning and budgeting process are the following: 

Table 42: Summary of budget time schedule 


MILESTONES (2015/16 MTREF) 

TIMEFRAMES 

Mid-year Review by National Treasury 

26 January 2015 

Approval of the Adjustment Budget 

26 February 2015 

Budget Steering Committee Hearings 

12 - 13 and 16 -17 February 2015 

Mayoral Lekgotla 

20 - 22 February 2015 

Tabling of the draft 201 5/1 6 MTREF 

26 March 2015 

Public consultation and outreach 

April 2015 

Approval of Municipal Entities budgets by Board 

30 April 2015 

State of the Capital Address by Executive Mayor 

14 May 2015 

Delivery of the Budget Speech 

22 May 2015 

Approval of the Medium-term Budget, IDP and Tariffs 

28 May 2015 


2.1.2 INTEGRATED DEVELOPMENT PLAN AND SERVICE DELIVERY AND 
BUDGET IMPLEMENTATION PLAN 

The City’s IDP is it’s principal strategic planning instrument. It directly guides and informs the City’s 
planning, budget, management and development actions. This framework is rolled out as objectives, key 
performance indicators and targets for implementation which directly inform the Service Delivery and 
Budget Implementation Plan. This IDP is the fourth revision of the 2011-2016 IDP adopted by Council in 
May 2011 . It contains six strategic objectives which address the City’s strategy to achieve its mandate. 
While the IDP presents the strategic intent of the City, there is also an understanding of challenges in 
order to achieve the strategic objectives. The ultimate objective remains the approved implementation 
of the Municipality’s five-year strategy and ensuring improved responsiveness to community needs over 
time. The process was influenced by various factors, including legislative requirements, stakeholder 
participation, policy imperatives and financial factors. 

The Census 2011 data provided insight on some of the development challenges facing the City. They 
need to be overcome, while some other challenges are yet unknown and may arise owing to national 
and international economic and social events. In the interim, the City has, developed a draft long- 
term strategy to achieve its outcomes and long-term vision, ie the Tshwane Vision 2055 and Growth 
and Development Strategy. These outcomes are the guiding principles that will frame the approach to 
planning in response to changing circumstances. 

The IDP has been taken into a business and financial planning process leading up to the 2015/16 
MTREF, based on the approved 2014/1 5 MTREF, mid-year review and adjustment budget. The business 
planning process has subsequently been refined in the light of current economic circumstances and the 
resulting revenue projections. 

page I 106 



The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.1.3 FINANCIAL MODELLING AND KEY PLANNING DRIVERS 

The Long-term Financial Model (LTFM) essentially informs the compilation of the MTREF with the 
emphasis on affordability and long-term sustainability. Although the LTFM is predominantly a financial 
planning tool to ensure long-term financial sustainability for the organisation, the financial planning 
process and LTFM run in parallel to ensure that the strategies and direction of the Municipality are at all 
times informed by best practice. One of the salient features of the LTFM is the attentiveness to ultimate 
sustainability, not only from a municipal finance perspective, but also in relation to service delivery in line 
with the GDS imperatives or priorities that drive the five-year Integrated Development Plan. 

As with any organisation, municipalities can experience sustainability challenges if they do not have 
robust financial planning, management and governance in place that require consistent annual budgets 
and detailed quarterly financial position reviews. 

Long-term financial planning is currently moving towards planning for achieving the Tshwane Vision 
2055. The strategy further entail targeting a 1 00% spending of the capital budget, growth and a positive 
economic environment for investors. 

Furthermore, the financial implications of the following programmes, which are part of the Tshwane 
Vision 2055, will form part of the future planning processes: 

• Green economy. 

• Enhancing residential precincts. 

• Tshwane International Convention Centre. 

• Symbio City. 

• Pedestrianisation. 

• Upgrading the inner city- beautification of Paul Kruger Street. 

• Densification and mixed-use development. 

• West Capital Development. 

• Upgrading the inner city- Lilian Ngoyi Square. 

2.1.4 COMMUNITY CONSULTATION 

The tabling of the draft budget in Council was followed by the publication of the budget documentation 
and consultative meetings were scheduled in a regional manner and were widely advertised in the 
media, including newspapers, notices at libraries, the City of Tshwane website, etc. 

In order to ensure effective participation and consultation: 

• The draft IDP and budget were placed on the council website for perusal and comments. 

• All libraries and customer care centres had copies available. 

• It was widely advertised in the media and on bill boards. 

All documents in the appropriate format (electronic and printed) were provided to the National Treasury 
and other national and provincial departments in accordance with section 23 of the MFMA, to provide 
an opportunity for them to make inputs. 


page I 107 











The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.2 OVERVIEW OF ALIGNMENT OF ANNUAL BUDGET WITH 
1DP 


The Municipal Systems Act (MSA) states that each municipal council must, within a prescribed period 
after the shift of its elected term, adopt a single, inclusive and strategic plan for the development of 
the municipality which (a) links, integrates and co-ordinates plans and takes into account proposals 
for the development of the municipality; (b) aligns the resources and capacity of the municipality with 
the implementation of the plan; and (c) forms the policy framework and general basis on which annual 
budgets must be based. 

In terms of the Municipal Systems Act (MSA) and Municipal Finance Management Act (MFMA), the City 
has in line with legislation developed five year IDPs and their annual revised plans. This IDP is the final 
revision of the 2011/16 IDP which was adopted by Council in May 2011. The document is supported 
by the Service Delivery Budget and Implementation Plan, the Medium Term Budget and Revenue 
Framework for the 2015/18 financial years, as well as departmental management plans which captures 
the core operations for departments and enables institutional performance monitoring. All of the plans 
presented in this review are premised on the principles and the outcomes of Tshwane Vision 2055. 


The diagram below demonstrates that Tshwane Vision 2055 is the compass document which guides all 
of the work that the City does. This plan is translated into the 5 year Integrated Development Plan which 
is reviewed. It also depicts the relationship between the above-mentioned plans. 


Figure 7: Relationship between City of Tshwane Plans 



Strategic Focus of the 2011/ 16 IDP 

In 2011 , when the five year IDP was approved the theme: “Consolidating service delivery, accelerating 
sen/ice delivery and strengthening the foundations fora new Tshwane: a city of excellence” was agreed 
upon. To achieve the aspirations of the theme, strategic objectives and indicators were identified and 
these remain as per the amendment of the 2013/14 IDP as follows: 

Provide sustainable services infrastructure and human settlement 


page I 109 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Promote shared economic growth and job creation 

Ensure sustainable, safer communities and integrated social development 

Promote good governance and an active citizenry 

Improved financial sustainability 

Continued institutional development, transformation and innovation 

Subsequently, through the development of Tshwane Vision 2055, the City has set a long term development 
agenda which will guide all future initiatives of the City. The long term vision of the City is as follows: 

In 2055, Tshwane is liveable, resilient and inclusive whose citizens enjoy a high quality of life, have 
access to social, economic and enhanced political freedoms and where citizens are partners in the 
development of the African Capital City of excellence. 

The Vision has set six outcomes which need to be achieved over the next four decades. These are: 
Outcome 1 : A resilient and resource efficient City 

Outcome 2: Agrowing economy that is inclusive, diversified and competitive 
Outcome 3: A City with quality infrastructure development that supports liveable communities 
Outcome 4: An equitable City that supports happiness, social cohesion, safety and healthy citizens 
Outcome 5: An African Capital City that promotes excellence and innovative governance solutions 
Outcome 6: South Africa’s Capital with an activist citizenry that is engaging, aware of their rights and 
presents themselves as partners in tackling societal challenges 

The alignment between the Tshwane Vision 2055 Outcomes and the approved Strategic Objectives of 
the IDP is depicted in the diagram below. 


page 1110 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Figure 8: Alignment of the Tshwane Vision 2055 outcomes with the 2011/16 IDP approved 
strategic objectives 


Outcome 1: A 
resilient and 
resource efficient 
City 


SOI: 

Provide 

sustainable 

services 

infrastructure and 
human 
settlement 


TSHWANE VISION 2055 OUTCOMES 


Outcome 2: A 
growing economy 
that is inclusive, 
diversified and 
competitive 


S02: 

Promote shared 
economic growth 
and job creation 


Outcome S: 

Quality 
infrastructure 
development 
that supports 
liveable 
communities 


Outcome 4: An 
equitable city that 
supports human 
happiness, social 
cohesion, safety 
and healthy 
citizens 


Ensure sustainable, safer cities and 
integrated social development 


Outcome 5: An 
African Capital City 
that promotes 
excellence and 
Innovative 
governance 
solutions 


S05 

Improve financial 
sustainability 

SO 6: Continue 
institutional 
development, 
transformation and 
innovation 


V 


Outcome 6: South 
Africa’s Capital 
with an activist 
citizenry that is 
engaging, aware of 
their rights, and 
presents 
themselves as 
partners in tackling 
societal challenges 


SO 4: 

Promote Good 
governance and 
active citizenry 


Table 43: MBRR SA4- Reconciliation between the IDP strategic objectives and budgeted revenue 


Strategic Objective 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 


Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

R thousand 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Provide sustainable services infrastructure and human 

11 261 585 

12 131 137 

13 040 626 

14 859 313 

14 911 013 

14 911 013 

16 157 700 

17 501 537 

18 938 965 

settlement 










Promote shared economic growth and job creation 

28 537 

22 808 

63 149 

39 590 

47 644 

47 644 

44 531 

13 106 

13 270 

Ensure sustainable, safer communities and integrated 
social development 

533 431 

560 720 

661 129 

617 767 

725 496 

725 496 

667 276 

685 264 

705 121 

Promote good governance and an active citizenry 

49 494 

40 371 

35 451 

78 620 

202 610 

202 610 

58 570 

40 243 

35 796 

Improved financial sustainability 

6 574 090 

6 647 743 

7 219 497 

7 973 119 

7 927 041 

7 927 041 

8 581 056 

9 451 414 

10 356 319 

Continued institutional development, transformation and 

innovation 

141 741 

174 227 

268 416 

804 803 

717 512 

717 512 

215 729 

217 722 

228 920 

Allocations to other priorities 










Total Revenue (excluding capital transfers and cont 

18 588 879 

19 577 006 

21 288 268 

24 373 213 

24 531 315 

24 531 315 

25 724 863 

27 909 285 

30 278 390 


page 


I 111 







The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 44: MBRR SA5 - Reconciliation between the IDP strategic objectives and budgeted 
operating expenditure 


Strategic Objective 

R thousand 

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 

Provide sustainable services infrastructure and human 

11 738 882 

12 727 738 

14 466 540 

14 637 441 

15 204 779 

15 204 779 

15 824 076 

17 324 627 

18 485 614 

settlement 










Promote shared economic growth and job creation 

437 195 

536 583 

693 778 

870 506 

1 063 846 

1 063 846 

836 792 

865 197 

894 823 

Ensure sustainable, safer communities and integrated 

2 442 324 

2 634 828 

3 036 809 

2 839 094 

3 023 942 

3 023 942 

3 620 842 

3 709 683 

3 908 380 

social development 










Promote good governance and an active citizenry 

1 168 765 

1 490 394 

1 854 597 

2 613 377 

2 645 948 

2 645 948 

2 558 313 

2 621 453 

2 745 579 

Improved financial sustainability 

1 124 192 

1 465 923 

1 323 221 

1 426 184 

1 248 214 

1 248 214 

1 537 362 

1 934 160 

2 575 899 

Continued institutional development, transformation and 

921 174 

1 044 256 

1 074 672 

887 082 

823 342 

823 342 

762 562 

793 227 

834 554 

Allocations to other priorities 










Total Expenditure 

17 832 533 

19 899 722 

22 449 618 

23 273 685 

24 010 071 

24 010 071 

25 139 948 

27 248 348 

29 444 849 


Table 45: MBRR SA6 - Reconciliation between the IDP strategic objectives and budgeted capital 
expenditure 


Strategic Objective 

R thousand 

Goal 

Code 

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 

Provide sustainable services infrastructure and human settlement 

A 

2 693 222 

3 629 012 

3 369 494 

3 618 121 

3 707 157 

3 707 157 

3 143 085 

3 339 739 

3 495 626 

Promote shared economic growth and job creation 

B 

30 025 

26 623 

35 094 

32 120 

32 120 

32120 

119 000 

123 000 

113 000 

Ensure sustainable, safer communities and integrated social 

C 

136 246 

380 152 

296 878 

134 287 

175 878 

175 878 

170 000 

158 500 

193 000 

development 











Promote good governance and an active citizenry 

D 

222 230 

353 978 

399 358 

252 500 

281 500 

281 500 

197 500 

231 500 

241 500 

Improved financial sustainability 

E 

20 484 

127 632 

85171 

79 130 

79 130 

79 130 

195 773 

121 200 

108 000 

Continued institutional development, transformation and innovation 

F 

12 654 

33 106 

42 588 

51 829 

112 996 

112 996 

31 208 

17 900 

11 000 

Allocations to other priorities 











Total Capital Expenditure 


3 114 860 

4 550 503 

4 228 583 

4 167 987 

4 388 781 

4 388 781 

3 856 566 

3 991 839 

4 162 126 


page 1112 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.3 MEASURABLE PERFORMANCE OBJECTIVES AND 
INDICATORS 

The Performance Management System is one of the mechanisms through which the City aims to 
improve organisational and individual performance to enhance service delivery. This tool not only 
monitors implementation of programs and projects against the set target, it also seeks to establish a 
culture of evaluation to ensure that the interventions implemented are effective and relevant to the goals 
of an institution. 

The City’s process of establishing and developing the performance management system ensures 
integration between strategic planning and performance management by linking the planned programmes 
to indicators and targets used to measure performance. In addition, the process promotes alignment 
between planned organisational performance, as reflected in the IDP and organisational scorecard and 
individual performance as contained in the individual scorecards. 

Various pieces of legislation exist to govern the performance management of local government. These 
include the following: 

• Local Government: Municipal Systems Act, 2000 (Act 32 of 2000). 

• Municipal Planning and Performance Management Regulations, 2001. 

• Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003). 

• Municipal Performance Regulations for Municipal Managers and Managers Directly 
Accountable to Municipal Managers, 2006. 

As part of the reporting processes, in addition to quarterly reports, the City compiles midyear and annual 
reports on service delivery performance related to the achievement of targets and indicators. All the 
quarterly reports for the Service Delivery and Budget Implementation Plan are prepared and submitted 
to the provincial and national treasuries and the Department of Local Government and Housing. 

The City of Tshwane has established the necessary structures to manage and operationalise performance 
management in line with legislative requirements and good practice. The roles and responsibilities of the 
different structures are defined as follows: 

• Group Audit, Risk and Compliance (internal audit). 

• Audit and Performance Committee (APC). 

• Executive Mayor and members of the Mayoral Committee. 

• Council and Section 79 Committees. 

Performance management in the City continues to evolve. It is a critical tool for measuring the City’s 
progress against its short- and medium-term goals as well as its long-term outcomes. 


page 1113 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

2.3.1 PERFORMANCE INDICATORS AND BENCHMARKS 

The following table indicates the performance indicators and benchmarks: 

Table 46: MBRR SA8 - Performance indicators and benchmarks 


Description of financial indicator 

Basis of calculation 

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 

Borrowina Manaaement 











Credit Rating 


AA3 (Stable) 

A A3 (Stable) 

A1- 

Prime-1. za 

Prime-1. za 

Prime-1, za 




Capital Charges to Operating 
Expenditure 

Interest & Principal Paid /Operating 
Expenditure 

5,3% 

15,6% 

6,9% 

6,6% 

6,1% 

6,1% 

6,3% 

6,6% 

6,8% 

Capital Charges to Own Revenue 

Finance charges & Repayment of 
borrowing /Own Revenue 

5,8% 

18,3% 

8,4% 

7,2% 

6,8% 

6,8% 

7,1% 

7,4% 

7,7% 

Borrowed funding of 'own' capital 
expenditure 

Borrowing/Capital expenditure excl. 
transfers and grants and contributions 

54,1% 

179,1% 

79,2% 

97,2% 

88,8% 

88,8% 

97,2% 

88,9% 

107,1% 

Safety of Capital 











Gearing 

Long Term Borrowing/ Funds & 

Reserves 

1692,9% 

2133,0% 

3534,4% 

2807,8% 

3675,3% 

3675,3% 

4402,6% 

5262,8% 

5818,3% 

Liquidity 











Current Ratio 

Current assets/current liabilities 

0,8 

0,8 

0,7 

1,1 

0,8 

0,8 

1,0 

1,2 

1,4 

Current Ratio adjusted for aged 

debtors 

Current assets less debtors > 90 

days/current liabilities 

0,8 

0,8 

0,2 

0,6 

0,2 

0,2 

0,4 

0,6 

0,8 

Liquidity Ratio 

Monetary Assets/Current Liabilities 

0,2 

0,2 

0,1 

0,4 

0,2 

0,2 

0,3 

0,4 

0,6 

Revenue Management 











Annual Debtors Collection Rate 

(Payment Level %) 

Last 12 Mths Receipts/Last 12 Mths 
Billing 


108,6% 

99,4% 

106,7% 

105,5% 

105,6% 

105,6% 

92,2% 

92,0% 

Current Debtors Collection Rate 


108,6% 

99,4% 

106,7% 

105,3% 

105,4% 

105,4% 

92,0% 

92,0% 

92,0% 

(Cash receipts % of Ratepayer & 
Other revenue) 











Outstanding Debtors to Revenue 

Longstanding Debtors Recovered 

Total Outstanding Debtors to Annual 

Revenue 

Debtors >12 Mths Recovered/Total 

Debtors >12 Months Old 

19,2% 

19,8% 

16,1% 

16,9% 

14,5% 

14,5% 

15,4% 

15,4% 

15,1% 

Creditors Manaqement 











Creditors System Efficiency 

% of Creditors Paid Within Terms 

(within MFM A' s 65(e)) 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

Creditors to Cash and Investments 


482,5% 

396,6% 

653,1% 

198,9% 

432,5% 

432, 5% 

266,0% 

181,3% 

124,7% 

Other Indicators 












Total Volume Losses (kW) 

908 355 000 

1 107 059 543 

1 401 294 674 

1 223 540 000 

1 223 540 000 

1 223 540 000 

1 211 305 000 

1 199 190 000 

1 199 190 000 

Electricity Distribution Losses (2) 

Total Cost of Losses (Rand WO) 

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

376 

623 

819 

791 

791 

791 

846 

905 

905 


purchased and generated 

12,1% 

11,0% 

14,3% 

10,0% 

10,0% 

10,0% 

10,0% 

9,0% 

9,0% 


Total Volume Losses (kt) 

70 167 000 

75 112 366 

59 240 906 

83 009 000 

83 009 000 

83 009 000 

83 009 000 

82 179 000 

82 179 000 

Water Distribution Losses (2) 

Total Cost of Losses (Rand WO) 

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

256 

376 

326 

457 

457 

457 

493 

537 

537 


purchased and generated 

25,5% 

23,6% 

20,7% 

23,6% 

23,5% 

23,5% 

23,1% 

22,6% 

22,1% 

Employee costs 

Employee costs/(Total Revenue - 
capital revenue) 

25,5% 

26,8% 

28,1% 

26,5% 

26,0% 

26,0% 

26,9% 

26,2% 

25,5% 

Remuneration 

Total remuneration/(Total Revenue - 
capital revenue) 

26,4% 

28,2% 

29,6% 

27,3% 

26,7% 

26,7% 

28,3% 

27,5% 

26,8% 

Repairs & Maintenance 

R&M/(Total Revenue excluding capital 
revenue) 

6,4% 

7,2% 

6,1% 

6,3% 

6,2% 

6,2% 

5,9% 

5,6% 

5,3% 

Finance charges & Depreciation 

FC&D/(Total Revenue - capital 
revenue) 

9,1% 

9,5% 

9,6% 

8,3% 

8,4% 

8,4% 

8,6% 

8,5% 

8,4% 

IDP regulation financial viability 

indicators 











/. Debt coverage 

(Total Operating Revenue - Operating 
Grants)/ Debt sen/ ice payments due 
within financial year) 

6,7 

21,7 

26,3 

36,4 

36,4 

36,4 

25,5 

23,5 

25,5 

ii.O/S Service Debtors to Revenue 

Total outstanding service 

debtors/annual revenue received tor 

services 

24,7% 

24,0% 

19,6% 

20,4% 

17,5% 

17,5% 

18,2% 

18,0% 

17,7% 

Hi. Cost coverage 

(Available cash + lnvestments)/monthly 
fixed operational expenditure 

0,7 

1,0 

0,5 

1,6 

0,7 

0,7 

1,0 

1,4 

2,0 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.3. 1.1 Borrowing management 

The borrowing strategy of the City is to access funding at the best and most competitive market 
conditions, including the longest available durations. Therefore, the City will utilize any of the funding 
mechanisms at it’s disposal or a combination thereof, to borrow funds as long as its funding strategy is 
satisfied. 

The City is in the process of implementing it’s loan optimization strategy with the aim of creating capacity 
for future borrowings, reducing the overall cost of borrowing, and to achieve an optimal loan portfolio. 

Borrowing of R1 ,2 billion per annum, over the medium term, is included in the draft 2015/16 MTREF. 

The City has been setting funds aside to expunge bullet long-term loans on their maturity and continues 
to build up on these funds for the same purpose. Invested funds are currently being managed by the 
City. 

2.3.1 .2 Liquidity 

Current ratio is a measure of current assets divided by current liabilities. The current ratio amounts to 
1,0, 1,1 and 1 ,3 for the 2015/16, 2016/17 and 2017/18 financial years respectively. 

Liquidity ratio is a measure of the Municipality’s ability to utilise cash and cash equivalents to immediately 
extinguish or retire its current liabilities. 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 ,0. 

2.3.1 .3 Revenue management 

To address the collection challenge, the City embarked on an Accelerated Revenue Collection 
programme. A Joint Operating Committee (JOC) for Revenue was established to improve revenue 
collection and synergize revenue collection efforts across the city. 

2.3.1 .4 Creditors’ management 

The City has ensured that creditors with completed and approved documents are paid within the 
legislated 30 days of statement, while SMMEs are paid within 15 days. Although the liquidity ratio is of 
concern, the Municipality has ensured 100% compliance with this legislative obligation by applying daily 
cash flow management. 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.3.1 .5 Other indicators 

• Electricity distribution losses remain a challenge, although management has established 
various forums to address this. Initiatives to ensure that these losses are managed down 
include, among others, pre-paid metering, managing illegal connections and electricity theft. 

• The City has embarked on a strategy to manage water distribution losses. This plan introduced 
monthly water loss meetings that deal with matters related to the rehabilitation of obsolete 
distribution networks, water leakage detection, and water pressure management. The 
incorporation of the Metsweding areas contributed to higher percentages of both electricity 
and water distribution losses. This increases the challenge to bring about lower losses. 

• Employee costs amount to 27,5% for the 2015/16 financial year and 26,8% on average over 
the medium-term. This ratio is maintained within a limit of 28,0%. Overtime is below 5% of 
employee costs which is the limit as indicated in MFMA Circular 66. 

• Repairs and maintenance as a percentage of operating revenue amounts to 5,9% in the 
2015/16 financial year. 

2.3.2 Free basic services: Basic social services package (applicable to registered 
indigent households) 

The social package assists residents who have difficulty paying for services and are registered as 
indigent households in terms of the City’s Indigent Policy. 

The target is to register 1 20 000 indigent households for the greater Tshwane area by 201 6. This target 
will increase with approximately 8 000 with 2 000 exiting the programme per annum (6 000 additional 
indigent households). In terms of the Municipality’s Indigent Policy, registered households are entitled 
to 12 kl free water, 100 kWh of free electricity, 5,88 kl (98% of 6 kl water) of free sanitation, free waste 
removal equivalent to 85 I or 240 I (roling out of 240 I throughout the city) once a week, and not paying 
any property rates. 

MBRR A10 (Basic Service Delivery Measurement) contains further detail related to the number of 
households receiving free basic services, the cost and highest level of these services, and the revenue 
cost associated with them. 

2.3.3 Providing clean water and managing waste water (Blue Drop and Green Drop 
performance rating) 

The City of Tshwane is the water services authority in its area of jurisdiction in terms of the Water 
Services Act, 1997 (Act 108 of 1997). It also performs the functions of the water services provider 
in Tshwane, with the exception of Winterveld, Mabopane and Ga-Rankuwa, where a municipal entity 
owned and controlled by the City, Sandspruit Works Association, performs these functions on behalf of 
the Municipality. 

The Department of Water Affairs introduced a Blue Drop and Green Drop performance rating system to 
evaluate the drinking water and waste water management in cities and towns. 

The City of Tshwane was awarded four Blue Drop awards for excellence in drinking water quality supply 
systems, which are Central Tshwane: Rietvlei (Platinum) 99,2%, North Tshwane: Roodeplaat (Platinum) 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

96,88%, Central Business Centre: Finley Fountains (Platinum) 97,02% and Bronkhorstspruit 95,33% for 
the 2012 Blue Drop Audit. The overall municipal score for the City was 90,41%. The former Kungwini 
Local Municipality, now incorporated into the City of Tshwane with effect from 1 July 2012, received an 
overall score of 95,76% and the former Nokeng Tsa Taemane Local Municipality, also incorporated at 
the same time, received a score of 90,75%. 

The City is determined to improve these supply systems in order to ensure excellence in the quality 
management of drinking water. 

The City of Tshwane’s Waste Water Treatment Works (WWTWs) received an average municipal Green 
Drop score of 63,8% for the 2011 Green Drop assessment. The waste water treatment works of the former 
Kungwini Local Municipality received an average municipal Green Drop score of 29,3% and the former 
Nokeng Tsa Taemane Local Municipality a score of 70,5% for the 2011 Green Drop assessment. On 19 
May 2011, the municipalities of Metsweding, Kungiwini and Nokeng Tsa Taemane were incorporated 
into the City of Tshwane. The 2013 Green Drop Score, which is not yet officially published, increased 
to 81 .63% with a huge effort from the Water and Sanitation Division. However, the Water and Sanitation 
Division faces various challenges to increase the Green Drop score for the greater City of Tshwane and 
to successfully receive Green Drop Certifications in all the waste water treatment works. A thorough 
strategic review of the greater City of Tshwane waste water treatment works was completed in 2011 and 
an upgrade programme compiled to comply with the waste water treatment limits. A total investment of 
more than R2,0 billion over the next five years is needed to upgrade and extend the WWTWs to comply 
with standards and meet expected growth in waste water volumes. This programme forms part of the 
MTREF. 

The Water Safety Plan Version 2 for the City of Tshwane had been finalised and signed off in January 
2013. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.4 OVERVIEW OF BUDGET-RELATED-POL1C1ES 

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

2.4.1 REVIEW OF CREDIT CONTROL AND INDIGENT-RELATED PROCEDURES 
OR POLICIES 

The Credit Control and Debt Collection Policy was approved by Council on 30 August 2012. 

The approved policy is in line with section 97(1) of the Local Government: Municipal Systems Act, 2000 
(Act 32 of 2000) which requires that a credit control and debt collection policy must provide credit control 
procedures and instructions as well as debt control procedures and mechanisms. It must also make 
provision for indigent debt that is consistent with its rates and tariff policies and any national indigent 
policy. 

The City approved the Indigent Policy on 28 June 2012. 

2.4.2 MUNICIPAL PROPERTY RATES POLICY 

The Development Investment Incentives Policy of the city will be considered by Council in March 2015. 
In order to comply to the property rates incentives of the policy, the approved Property Rates Policy of 
the city needed to be amended accordingly. 

The approved Property Rates Policy and by-laws were amended to effect changes in categories of 
property owners, in accordance with the Development Investment Incentives Policy of the city. The 
following paragraphs were added to the policy: 

■ “5.2.6 OWNERS OF LAND ALIENATED BY THE MUNICIPALITY AFTER JANUARY 201 5 

Defined Owners of land alienated by the Municipality will be granted rebates in terms 
of the Development Investment Incentives Policy of the City. 

■ 5.2.7 OWNERS OF CATALYTIC INVESTMENT PROPERTIES 

Owners of Catalytic Investment Properties will be granted rebates in terms of the 
Development Investment Incentives Policy of the City.” 

The Municipal Property Rates Amended Act, 2014 - Sect. 8 and 78, was promulgated on 18 August 
2014 and again amended and promulgated on 28 November 2014. 

Section 8 was amended to the effect that municipalities must determine the following categories of 
property, provided that such property category exists within the municipal jurisdiction: 

a) Residential properties 

b) Industrial properties 

c) Business and Commercial properties 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


d) Agricultural properties 

e) Mining properties 

f) Properties owned by an organ of state and used for public service purposes 

g) Public service infrastructure properties 

h) Properties owned by public benefit organisations and used for specified public benefit activities 

i) Properties used for multiple purposes, subject to section 9 

j) Any other category of property as may be determined by the Minister, with the concurrence of 

the Minister of Finance, by Notice in the Gazette. 

In addition to these categories, a municipality may determine additional categories of rate-able property, 
including vacant land, provided that, with the exception of vacant land, the determination of such property 
categories does not circumvent the categories of rate-able property above. 

Where a municipality can, on good cause, show that there is a need to sub-categorise the above 
categories, it must apply to the Minister in writing at least 15 months prior to the implementation date. 

Section 93B determines that the provisions of section 8 must be applied by a municipality within seven 
years of the date of commencement of this Act. The City of Tshwane will not implement the section 8 
provisions for the 201 5/1 6 financial year. 

2.4.3 ASSET MANAGEMENT, INFRASTRUCTURE INVESTMENT AND FUNDING 
POLICY 

Long-term financial planning recognises the effect of long-lived assets (through proper maintenance 
and timely replacement) on financial sustainability. Section 78(1) of the MFMA requires that the assets 
and liabilities of the municipality must be managed effectively and that assets must be safeguarded and 
maintained to the extent necessary. The National Treasury’s MFMA Circular 58 of 14 December 2011 
draws particular attention to underspending on repairs and maintenance, which can shorten the life of 
assets and increase long-term maintenance and refurbishment costs, resulting in the deterioration of 
service reliability. Provision for depreciation and asset impairment has been informed by the Municipality’s 
Asset Management Strategy. 

2.4.4 ADJUSTMENT BUDGET POLICY 

The Adjustment Budget Policy forms part of the Budget Policy. The adjustments budget process is 
governed by various provisions in the MFMA and aims to instil and establish an increased level of 
discipline, responsibility and accountability in the financial management practices of municipalities. To 
ensure that the City continues to deliver on its core mandate and achieves its developmental goals, the 
mid-year review and adjustment budget process will be used to ensure that underperforming functions 
are identified and that funds are redirected to performing functions. 

2.4.5 SUPPLY CHAIN MANAGEMENT POLICY 

The Supply Chain Management Policy was amended and adopted by the Council on 31 July 2013. This 
policy is currently under review. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.4.6 BUDGET POLICY 

The Budget Policy, which includes the Fund Transfer Policy, aims to empower senior managers with 
an efficient financial and budgetary amendment and control system to ensure optimum service delivery 
within the legislative framework of the MFMA and the City’s system of delegations. 

The Budget Policy approved by the Council on 29 May 2014 was reviewed and minor amendments 
were approved by Council in May 2015. 

2.4.7 CASH MANAGEMENT AND INVESTMENT POLICY 

The City’s strategy towards cash backing of the capital reserves, capital provisions and unspent 
conditional grants, as well as external borrowing, aims to ensure the City’s sustainability over the 
medium to longer term. The strategy is informed, amongst others, by the relevant GRAP accounting 
standards, sections 18 and 19 of the MFMA, and National Treasury Circular 48. 

It is therefore imperative that departments first spend external funds (grant funding) received on a 
project before spending internal funds provided by the City. This is to prevent any unspent external funds 
from resorting back to the National Revenue Fund. 

Cash back strategy 

The following cash flow management processes and systems are in place: 

• Monthly cash flow statements are compiled daily based on daily projected and actual committed 
cash revenue and payments on the SAP system. 

• Quarterly and annually projected cash flow statements are regularly prepared in advance. 

• The monthly cash flow status of the City, including the status on certain critical dates of the 
following calendar month, is submitted on a monthly basis to the MMC for Finance. 

• This information is also included in the monthly corporate financial report which is submitted to 
the Mayoral Committee and, at the end of each quarter, to the Council. 

The above-mentioned reports are based on actual and projected cash revenue and payments of which 
the projections are based on previous actual payment history information within the framework of the 
cash-flow statement included in the annual budget. 

2.4.8 TARIFF POLICIES 

The Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) requires municipalities to adopt 
and implement a tariff policy. 

The City’s tariff policies provide a broad framework within which the Council can determine fair, 
transparent and affordable charges that also promote sustainable service delivery, and it allows for 
cross-subsidisation between consumer categories. 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.4.9 LONG-TERM FINANCIAL MODEL 

The Long-term Financial Model has directly informed the compilation of the 2015/16 MTREF with the 
emphasis on affordability and long-term sustainability. The model dictates the approach to longer-term 
financial modelling and the outcomes are filtered into the budget process. The Business Planning and 
Consolidation (BPC) (full implementation anticipated for June 2015) offers a strong multi-user platform 
that is fully integrated with Microsoft Excel. This tool consolidates the following Budget Office processes: 

• Long-term financial modelling and forecasting. 

• Preparation and consolidation of the medium-term revenue and expenditure budget. 

• Management reporting. 

• Regulatory and statutory reporting requirements as contained in the MFMA and determined 
by the National Treasury. 

2.4.10 THE FOLLOWING BUDGET-RELATED POLICIES ARE AVAILABLE ON 
THE CITY’S WEBSITE: 

• Budget Policy. 

• Credit Control and Debt Collection Policy. 

• Indigent Policy. 

• Property Rates Policy. 

• Indigent Exit Programme. 

• Supply Chain Management Policy. 


page 


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2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.5 OVERVIEW OF BUDGET ASSUMPTIONS 

2.5.1 EXTERNAL FACTORS 

Global economic growth is expected to remain sluggish over the period ahead, rising from 3,3% in 201 4 
to 3,5% this year. This trend reflects a confluence of unfavourable global and domestic circumstances 
which impact on all spheres of government. 

Electricity shortages hold back growth in manufacturing and mining, and also inhibit investment in 
housing and raise costs for businesses and households. Mainly for this reason, local projected economic 
growth for 2015 is only 2%, down from 2,5% indicated in October last year. Growth is expected to rise 
to 3% by 201 7. 

Owing to the economic slowdown, prudent financial management will require restrained expenditure to 
ensure that cash outflows remain within the affordability parameters of the City’s finances. 

2.5.2 GENERAL INFLATION OUTLOOK AND ITS IMPACT ON THE MUNICIPAL 
ACTIVITIES 

Consumer price inflation peaked at 6,6% in June last year. It has subsequently declined to just 4,0% in 
March 2015, and is expected to average 4,3% in 2015, laying a foundation for economic growth. 

2.5.3 CREDIT RATING OUTLOOK 

On 3 March 2015 Moody’s assigned the following credit rating: 

Table 47: National Scale Ratings 


Rating Type 

Long Term 

Short Term 

Category 

Rating Outlook 

Rating Action 

Issuer 

A3.za 

P-2.za 

Investment Grade 

Stable 

Affirmation 


This newly assigned credit rating is a one notch downgrade of the City’s credit profile in Moody’s opinion, 
in comparison with the previous rating of A2.za long term. This is because Moody’s downgraded the 
rating of the City by one notch on 10 November 2014, following the weakening of South Africa’s credit 
profile as captured by the downgrade of the sovereign rating to Baa2 from a Baal with a stable outlook. 

However, the current rating of A3.za is a third tier investment grade rating whose status presents 
above-average creditworthiness relative to peer Metros, whereas the rating of P-2.za represents an 
above-average ability to repay short term senior unsecured debt obligations relative to peer Metros. 
This means that the City of Tshwane has an above-average ability to clear its short term debt without 
straining its cash resources. 

Moody’s assigned a stable outlook to the City, which is in line with the sovereign rating. 


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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.5.4 INTEREST RATES FOR BORROWING AND INVESTMENT OF FUNDS 

The City’s strategy is to access funds at competitive terms and conditions and on the longest available 
duration, with the objective of ensuring that the liability exposures taken up match the useful lives of the 
assets financed through these liabilities. 

The City has an existing DMTN Program through which it raises bonds, and the bond market remains 
an option for the City to access long term borrowing. Similarly, the bank loans’ market also remains 
an available option for the City. Therefore, the City has an opportunity to utilize any of the financing 
mechanism at it’s disposal, or a combination thereof, as long as such a mechanism supports it”s funding 
strategy. 

Borrowing of R1 ,2 billion per annum over the medium term is included in the draft 201 5/1 6 MTREF. 

The City is in the process of implementing it’s loan optimization strategy with the aim of creating capacity 
for future borrowings, to reduce the overall cost of borrowing and achieve an optimal loan portfolio. 

In addition to that, the City has been setting funds aside to expunge bullet long-term loans on their 
maturity, and it continues to build up on these funds for the same purpose. 

2.5.5 COLLECTION RATE FOR REVENUE SERVICES 

The rate of revenue collection is currently expressed as a percentage of annual billings. Cash flow is 
assumed to be 92% of billings, and arrear debt collected. 

2.5.6 GROWTH OR DECLINE IN THE TAX BASE OF THE MUNICIPALITY 

Debtors’ revenue is assumed to increase at a rate that is influenced by the consumer debtors’ collection 
rate, tariff or rate pricing, real growth rate of the City, household formation growth rate and the poor 
household change rate. 

Household formation is the key factor in measuring municipal revenue and expenditure growth, as 
servicing “households” is a greater municipal service factor than servicing individuals. Household 
formation rates are assumed to convert to household dwellings. In addition, the change in the number of 
poor households influences the net revenue benefit derived from household formation growth. 

2.5.7 SALARY INCREASES 

A salary and wage increase of 5,4% was provided for in the budget, in terms of the latest directive from 
SALGA, however the salary and wage negotiations has not been finalised. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.5.8 IMPACT OF NATIONAL, PROVINCIAL AND LOCAL POLICIES 

Integration of service delivery between national, provincial and local government is critical to ensure 
focused service delivery, therefore various measures have been implemented to align IDPs as well as 
provincial and national strategies around priority spatial interventions. The following national priorities 
form the basis of all integration initiatives: 

• Igniting growth and job creation. 

• Investing in improving potential GDP growth, while taking necessary measures to promote 
inclusivity. 

• Narrowing inequality, especially between poor and upper-income groups. 

• Implementing our economic and social policies more effectively. 

• Fixing the education system. 

• Enhancing the labour relations system based on lessons from the recent past. 

• Helping small and medium-sized businesses to grow, employ and export. 

• Increasing exports to narrow current account imbalances. 

• Radically improving the living conditions of poor communities. 

To achieve these priorities, mechanisms are in place to ensure integrated planning and the execution of 
various development programmes. The focus will be on strengthening the link between policy priorities 
and expenditure and thereby ensuring that the national, provincial and local objectives are achieved. 

2.5.9 ABILITY OF THE MUNICIPALITY TO SPEND AND DELIVER ON THE 
PROGRAMMES 

With the compilation of the 2015/16 MTREF, current spending was assessed to determine whether 
the spending programme gives effect to the developmental objectives and priorities and to reprioritise 
funding towards accelerating basic service delivery. 


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\ 'Ym -»* 

‘ 

’ 

i 

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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.6 OVERVIEW OF BUDGET FUNDING 

2.6.1 MEDIUM-TERM OUTLOOK: OPERATING REVENUE 

Tariff setting plays a major role in ensuring desired revenue levels. The City derives most of its operational 
revenue from providing goods and services such as water, electricity, sanitation and refuse removal. 
Property rates, operating and capital grants from organs of state and other minor charges (such as 
building plan fees, rentals, outdoor advertising, etc) also contribute to the City of Tshwane’s coffers. 

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

• Growth and economic development in the city. 

• Revenue management and enhancement. 

• Annual collection rate for consumer revenue. 

• National Treasury guidelines. 

• Approval of electricity tariff increases by the National Electricity Regulator of South Africa. 

• Achievement of full cost recovery of specific user charges. 

• Determining the tariff escalation rate by establishing or calculating revenue requirements. 

• The Property Rates Policy in terms of the Municipal Property Rates Act, 2004 (Act 6 of 2004). 

• The ability to extend new services and obtain cost recovery levels. 

The above principles guide the annual increase in the tariffs charged to consumers and ratepayers, 
aligned to the economic forecasts. 

The following table is a breakdown of the operating revenue over the medium term. 


Table 48: Breakdown of 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 

% 

Financial Performance 

Property rates 

5 236 387 

20,4% 

5 763 026 

20,6% 

6 342 328 

20,9% 

Service charges 

15 638 212 

60,8% 

16 940 556 

60,7% 

18 352 217 

60,6% 

Investment revenue 

69 774 

0,3% 

106 226 

0,4% 

111 328 

0,4% 

Transfers recognised - operational 

3 419 706 

13,3% 

3 716 419 

13,3% 

4 053 363 

13,4% 

Other own revenue 

1 360 783 

5,3% 

1 383 058 

5,0% 

1 419 155 

4,7% 

Total Revenue (excluding capital transfers 

25 724 863 

100,0% 

27 909 285 

100,0% 

30 278 390 

100,0% 

and contributions) 

Total Expenditure 

Transfers recognised - capital 

25 139 948 

2 453 160 


27 248 348 

2 506 939 


29 444 849 

2 632 126 


Surplus/(Deficit) 

3 038 075 


3 167 876 


3 465 667 



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The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following graph is a breakdown of the operational revenue per main category for the 2015/16 
financial year. 

Figure 9: Breakdown of operating revenue over the 2015/16 MTREF 


Service charges. 
60 . 8 s /, 



Property rates. 
20 , 4 % _ 


Investment revenue. 

0 . 3 % 


5 . 3 % 


T ransfers 
recognised - 
operational. 

13 . 3 % 


Revenue to be generated from property rates is R5,2 billion in the 2015/16 financial year, which 
represents 20,4% of the operating revenue base of the city, and increases to R6,3 billion by 201 7/1 8. 

Service charges related to electricity, water, sanitation, refuse removal and other in total constitute the 
biggest component of the City’s revenue basket, totalling R1 5,6 billion for the 201 5/1 6 financial year and 
increasing to R1 8,4 billion by 201 7/1 8. For the 201 5/1 6 financial year, service charges amount to 60,8% 
of the total revenue base. 

Operational grants and subsidies amount to R3,4 billion, R3,7 billion and R4,1 billion for each of the 
respective financial years of the MTREF, or to 13,3%, 13,3% and 13,4% of operating revenue. 

Investment revenue contributes marginally to the City’s revenue base, with a budget allocation of R69,8 
million, R106,2 million and R111 ,3 million for the respective financial years of the 2015/16 MTREF. 

The actual performance against the budget will be carefully monitored. Any variances in this regard will 
be addressed as part of the mid-year review and adjustment budget. 


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The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following tables provide detailed investment information and investment particulars by maturity. 

Table 49: MBRR SA15 - Investment particulars by type 


Investment type 

R thousand 

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 

Parent municipality 

Securities - National Government 










Listed Corporate Bonds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Deposits - Bank 

84 590 

85 830 

39 508 

206 667 

100 000 

100 000 

43 993 

80 138 

84 921 

Deposits - Public Investment Commissioners 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Deposits - Corporation for Public Deposits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Bankers Acceptance Certificates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Negotiable Certificates of Deposit - Banks 

323 852 

636 003 

622 949 

2 444 942 

975 775 

975 775 

1 632 226 

2 640 642 

4 185 508 

Guaranteed Endowment Policies (sinking) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Repurchase Agreements - Banks 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Municipal Bonds 

3 033 

711 

711 

711 

711 

711 

117 

117 

117 

Municipality sub-total 

411 474 

722 544 

663 167 

2 652 319 

1 076 486 

1 076 486 

1 676 336 

2 720 897 

4 270 546 

Entities sub-total 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Consolidated total: 

411 474 

722 544 

663 167 

2 652 319 

1 076 486 

1 076 486 

1 676 336 

2 720 897 

4 270 546 


Table 50: MBRR SA16 - Investment particulars by maturity 


Investments by Maturity 

tame of institution & investment ID 

Period of 

Investment 

Type of 

Investment 

Capital 

Guarantee 

(Yes / No) 

Variable or 

Fixed 

interest rate 

Interest Rate 

3. 

Commission 

Paid (Rands) 

Commission 

Recipient 

Expiry date 

of 

investment 

Opening 

balance 

Interest to 

be realised 

Partial / 

Premature 

Withdrawal 

(4) 

Investment 

Top Up 

Closing 

Balance 

Yrs/Months 


Parent municipality 














Call Investment deposits < 90 days 









1 63 2 226 




1 632 226 

ABSA Bank Ltd 

32 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

28 711 

1419 



30130 

ABSA Bank Ltd 33 

Unknown 

Money Market 

No 

Variable 

6% 



On Call 

10 061 

497 



10 559 

ABSA Bank Ltd 

34 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

7 536 

372 



7 908 

ABSA Bank Ltd 

35 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

166 

8 



174 

Investec Bank 

37 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

25135 

1242 



26 377 

Investec Bank 

38 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

8 034 

397 



8 431 

Investec Bank 

39 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

1076 

53 



1 129 

Investec Bank 

108 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

29 275 

1447 



30 723 

Standard Bank 

40 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

90 823 

4 489 



95 313 

Standard Bank 

41 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

2 819 

139 



2 958 

Sanlam 

26 

28 Y 

Insurance Policy 

No 

Variable 

4% 

0 

0 

2015.12.07 

- 

- 



- 

Sanlam 

27 

28 Y 

Insurance Policy 

No 

Variable 

4% 

0 

0 

2016.01.01 

- 

146 



146 

Knysna Stock 

24 

28Y3M 

Municipal Stock 

Yes 

Fixed 

16% 

0 

0 

2018.12.31 

711 

117 



827 

Stanlib 

260 

Unknown 

Money Market 

No 

Variable 

5% 

0 

0 

On Call 

67 286 

3 326 



70 612 

Bonds - Sinking Fund 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

376 667 

10 694 



387 361 

Bonds - Sinking Fund (Outstanding FY 2015/16) 




0,06 

0 

0 

On Call 

696 034 

19 761 



715 796 

TOTAL INVESTMENTS AND INTEREST 








2 976 560 

44110 

- 

- 

3 020 670 


The focus of the draft 2015/16 MTREF is to ensure that the City is financially sustainable and viable 
through: 


• Revising the level of expenditure to create a surplus. 

• Revising the level of borrowing. 

• Accelerating revenue collection. 

• Implementing operational efficiencies. 

The MTREF provides for a budgeted surplus of R3,0 billion, R3,2 billion and R3,5 billion respectively in 
each of the three financial years. 


page I 129 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.6.2 MEDIUM-TERM OUTLOOK: CAPITAL REVENUE 

The following table is a breakdown of the funding composition of the 2015/16 medium-term capital 
programme. 

Table 51 : Sources of capital revenue over the MTREF 


Vote Description 

R thousand 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure Framework 

Adjusted 

Budget 

% 

Budget Year 

2015/16 

% 

Budget Year 

+1 2016/17 

% 

Budget Year 

+2 2017/18 

National Government 

2 591 309 


2 408 542 


2 454 739 


2 604 126 

Provincial Government 

27 304 


40 551 


52 000 


28 000 

District Municipality 

- 


- 


- 


- 

Other transfers and grants 

4 500 


4 067 


200 


- 

Transfers recognised - capital 

2 623 113 

59,77% 

2 453 160 

63,61% 

2 506 939 

62,80% 

2 632 126 

Public contributions & donations 

76 100 

1,73% 

168 407 

4,37% 

134 900 

3,38% 

130 000 

Borrowing 

1 500 000 

34, 18% 

1 200 000 

31, 12% 

1 200 000 

30,06% 

1 200 000 

Internally generated funds 

189 569 

4,32% 

35 000 

0,91% 

150 000 

3,76% 

200 000 

Total Capital Funding 

4 388 781 

100,00% 

3 856 566 

100,00% 

3 991 839 

100,00% 

4 162126 


The table above is graphically represented as follows for the 2014/15 financial year. 


Figure 10: Sources of capital revenue for the 2015/16 financial year 


□ Borrowing 
R1 200 000 
31,12% 


Internally 
generated funds 
R35 000 
0.91% 


Pu 

contributions & 
donations 
R168 407 
4,37% 



□ Transfers 
recognised - 
capital 
R2 453 160 
63,61% 


Capital grants and receipts equates to 63,6% or R2,5 billion of the total funding source for the 2015/16 
financial year. 


Borrowing as a funding source for the capital programme amounts to R1,2 billion per annum totalling 
31,1%, 30,1% and 28,8% of the total funding of the capital budget for each of the respective financial 
years of the MTREF. 


page I 130 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


The following table is a detailed analysis of the City’s borrowing liability. 

Table 52: MBRR SA17 - Detail of borrowings 


Borrowing - Categorised by type 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Parent municipality 

Long-Term Loans (annuity /reducing balance) 

5 856 161 

5 355 948 

4 835 389 

4 489 881 

4 451 908 

4 451 908 

4 921 166 

5 331 941 

5 871 343 

Long-Term Loans (non-annuity) 

131 537 

131 311 

1 730 229 

128 332 

1 728 332 

1 728 332 

3 228 332 

3 228 332 

3 228 332 

Local registered stock 

98 052 

100 005 

5 

- 

(5) 

(5) 

- 

- 

- 

Instalment Credit 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Financial Leases 

180 512 

13 144 

44 324 

64 011 

336 

336 

437 

568 

739 

PPP liabilities 

- 

- 

- 

595 000 

301 938 

301 938 

1 176 449 

2 505 253 

2 807 249 

Finance Granted By Cap Equipment Supplier 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Marketable Bonds 

- 

2 176 861 

2 177 926 

4 720 000 

3 440 000 

3 440 000 

2 140 000 

2 140 000 

2 140 000 

Non-Marketable Bonds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Bankers Acceptances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Financial derivatives 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other Securities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Municipality sub-total 

6 266 261 

7 777 269 

8 787 874 

9 997 223 

9 922 508 

9 922 508 

11 466 383 

13 206 094 

14 047 662 

Entities sub-total 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Borrowing 

6 266 261 

7 777 269 

8 787 874 

9 997 223 

9 922 508 

9 922 508 

11 466 383 

13 206 094 

14 047 662 


The following graph illustrates the growth in outstanding borrowing for the period of 2011/12 to 2017/18. 

Figure 11: Growth in outstanding borrowing (long-term liabilities) 



11 466 383 1 3 206 094 


2017/18 
Budget 
14 047 662 


page I 131 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


To determine the credibility of the internally generated funding source, it becomes necessary to review 
the cash flow budget as well as the cashbacked reserves and accumulated funds reconciliation. Internally 
generated funds (including public contributions and donations and the LG SETA allocation) consist of 
R35,0 million, R1 50,0 million and R200,0 million for the 201 5/1 6, 201 6/1 7 and 2017/1 8 financial years 
respectively. 

Table 53: MBRR SA18 - Capital transfers and grant receipts 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Capital Transfers and Grants 










National Government: 

1 238 786 

1 994 572 

2 131 690 

2 529 271 

2 547 271 

2 547 271 

2 408 542 

2 454 739 

2 604 126 

Urban Settlement Development Grant 

891 081 

1 051 070 

1 250 611 

1 469 450 

1 469 450 

1 469 450 

1 500 683 

1 574 837 

1 664 734 

Public Transport Infrastructure & Systems Grant 

200 000 

748 702 

598 395 

867 571 

867 571 

867 571 

770 609 

759 902 

799 392 

Intergrated National Electrification Programme 

21 000 

30 000 

65 000 

32 000 

32 000 

32 000 

37 000 

40 000 

60 000 

Electricity Demand Side Management 

44 000 

11000 

- 

- 

- 

- 

- 

- 

- 

Water Affairs 

705 

1800 

14 000 

- 

- 

- 

- 

- 

- 

Neighbourhood Development Partnership Grant 

82 000 

152 000 

203 184 

150 000 

175 000 

175 000 

100 000 

80 000 

80 000 

Finance Management Grant 

- 

- 

500 

250 

250 

250 

250 

- 

- 

Expanded Public Works Programme Incentive Grant 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Energy Efficiency and Demand Side Management 

- 

- 

- 

10 000 

3 000 

3 000 

- 

- 

- 

Provincial Government: 

38 468 

41 969 

14 098 

15129 

27 200 

27 200 

40 551 

40 000 

28 000 

Sport and Recreation: HM Pitje Stadium 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Community Libraries 

- 

- 

1 398 

3 129 

4 000 

4 000 

7 551 

8 000 

6 000 

Housing 

38 468 

41 969 

- 

- 

- 

- 

- 

- 

- 

Housing: Acquisition of Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Gautrans Job Creation 

- 

- 

12 200 

12 000 

12 000 

12 000 

- 

- 

- 

Social Infrastructure Grant 

- 

- 

500 

- 

11200 

11200 

33 000 

32 000 

22 000 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

- 

2 293 

99 

- 

4 500 

4 500 

1 773 

200 

- 

Ringfencing of Bulk Containers Cost for Blue IQ 

- 

- 

- 

- 

- 

- 

- 

- 

- 

DBSA/SANBI Groen Sebenza 

- 

- 

99 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

4 500 

4 500 

- 

- 

- 

Housing Delft Grant 

- 

2 293 

- 

- 

- 

- 

- 

- 

- 

Smart Connect Grant 

- 

- 

- 

- 

- 

- 

1 773 

200 

- 

Total Capital Transfers and Grants 

1 277 254 

2 038 834 

2 145 888 

2 544 400 

2 578 971 

2 578 971 

2 450 866 

2 494 939 

2 632 126 

TOTAL RECEIPTS OF TRANSFERS & GRANTS 

3 684 347 

4 550 839 

4 983 888 

5 649 229 

5 698 496 

5 698 496 

5 870 572 

6 211 358 

6 685 489 


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. Cash received from operating activities is used to provide working capital and to temporarily 
fund capital expenditure in advance of external borrowing. Operational cash flow deficits and surpluses 
are forecasted and managed on a daily basis within available cash resources and banking facilities. The 
table below is consistent with international standards of good financial management practice reporting. 

Some specific features include the following: 

• Clear separation of receipts and payments within each cash flow category. 

• Clear separation of capital and operating receipts from government, which also enables cash 
from “ratepayers and others” to be provided for as cash inflow based on actual performance - 
in other words, the actual collection rate of billed revenue. 


page I 132 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


• Separation of borrowing and loan repayments (no set-off) assists with assessing compliance 

with the MFMA regarding the use of long-term borrowing (debt). 

Table 54: MBRR A7 - Budgeted cash flow statement 


Description 

2011/12 

2012/13 

2013/14 


Current Year 2014/15 


2015/16 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 FLOW FROM OPERATING ACTIVITIES 

Receipts 











Property rates, penalties <S collection charges 

15 215 094 

15 559 108 

17 921 998 

20 133 932 

20 254 945 

20 254 945 

- 

4 817 476 

5 301 984 

5 834 941 

Service charges 

- 

- 

- 

- 

- 

- 

- 

14 387 155 

15 585 311 

16 884 039 

Other revenue 

- 

- 

- 

- 

- 

- 

- 

1 170 004 

1 182 886 

1 209 591 

Government - operating 

- 

- 

- 

3 104 829 

3 121 377 

3 121 377 

- 

3 419 706 

3 716 419 

4 053 363 

Government - capital 

3 547 429 

4 744 008 

4 983 222 

2 544 400 

2 623 113 

2 623 113 

- 

2 453 160 

2 506 939 

2 632 126 

Interest 

52 185 

62 237 

51 800 

66 548 

66 548 

66 548 

- 

160 799 

201 751 

211353 

Dividends 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Payments 











Suppliers and employees 

(14 109 443) 

(16 329 304) 

(18 950 311) 

(20 248 565) 

(21 215 085) 

(21 215 085) 

- 

(21 416 806) 

(22 673 048) 

(24 401 328) 

Finance charges 

(632 351) 

(731 045) 

(813 091) 

(897 759) 

(937 010) 

(937 010) 

- 

(1 029 202) 

(1 110 194) 

(1 193 967) 

Transfers and Grants 

(21 496) 

(17 290) 

(22 007) 

(236 673) 

(257 166) 

(257 166) 

- 

(259 298) 

(267 387) 

(268 475) 

NET CASH FR0M/(USED) OPERATING ACTIVITIES 

4 051 419 

3 287 714 

3171 611 

4 466 712 

3 656 722 

3 656 722 

- 

3 702 995 

4 444 662 

4 961 643 

CASH FLOWS FROM INVESTING ACTIVITIES 

Receipts 











Proceeds on disposal of PPE 

(27 823) 

(131 772) 

16 160 

- 

- 

- 

- 

- 

- 

- 

Decrease (Increase) in non-current debtors 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Decrease (increase) other non-current receivables 

- 

- 

- 

48 553 

48 553 

48 553 

- 

48 553 

- 

- 

Decrease (increase) in non-current investments 

- 

- 

- 

(100 000) 

(60 492) 

(60 492) 

- 

56 007 

(36 145) 

(4 783) 

Payments 











Capital assets 

(4 671 346) 

(4 526 133) 

(4 583 273) 

(4 001 267) 

(4 257 118) 

(4 257 118) 

- 

(3 779 435) 

(3 912 002) 

(4 078 883) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

(4 699 169) 

(4 657 905) 

(4 567 113) 

(4 052 714) 

(4 269 057) 

(4 269 057) 

- 

(3 674 875) 

(3 948 147) 

(4 083 666) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Receipts 











Short term loans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing long term/refinancing 

1 022 304 

4 142 000 

1 600 000 

1 500 000 

1 500 000 

1 500 000 

- 

1 200 000 

1 200 000 

1 500 000 

Increase (decrease) in consumer deposits 

- 

- 

- 

23 000 

8 201 

8 201 

- 

8 365 

8 532 

8 702 

Payments 











Repayment of borrowing 

(306 180) 

(2 377 641) 

(729 371) 

(633 986) 

(517 338) 

(517 338) 

- 

(560 034) 

(674 630) 

(817 614) 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

716 124 

1 764 359 

870 629 

889 014 

990 862 

990 862 

- 

648 330 

533 902 

691 089 

NET INCREASE/ (DECREASE) IN CASH HELD 

68 374 

394 168 

(524 874) 

1 303 011 

378 527 

378 527 


676 450 

1 030 416 

1 569 066 

Cash/cash equivalents at the year begin: 

859 580 

927 954 

1 322 122 

1 361 930 

797 248 

797 248 

- 

1 175 775 

1 852 226 

2 882 642 

Cash/cash equivalents at the year end: 

927 954 

1 322 122 

797 248 

2 664 942 

1 175 775 

1 175 775 

- 

1 852 226 

2 882 642 

4 451 708 


The table above indicates an increase in cash held for the period under review. Various cost efficiencies 
and savings were implemented to ensure that the City could meet its operational expenditure 
commitments. It is projected that cash and cash equivalents at year end will increase to R1 ,9 billion, 
R2,9 billion and R4,5 billion by the end of 201 5/1 6, 201 6/1 7 and 201 7/1 8 respectively. 


page I 133 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.6.4 CASHBACKED RESERVES OR ACCUMULATED SURPLUS 
RECONCILIATION 

Table 55: MBRR A8 - Cashbacked reserves or accumulated surplus reconciliation 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Cash and investments available 










Cash/ 'cash equivalents at the year end 

927 954 

1 322 122 

797 248 

2 664 942 

1 175 775 

1 175 775 

1 852 226 

2 882 642 

4 451 708 

Other current investments > 90 days 

(0) 

- 

- 

- 

- 

- 

- 

- 

- 

Non current assets - Investments 

87 623 

86 540 

40 219 

207 377 

100 711 

100 711 

44 110 

80 255 

85 038 

Cash and investments available: 

1 015 577 

1 408 662 

837 467 

2 872 319 

1 276 486 

1 276 486 

1 896 336 

2 962 897 

4 536 746 

Application of cash and investments 










Unspent conditional transfers 

317 811 

125 330 

132 498 

- 

13 250 

13 250 

- 

- 

- 

Unspent borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Statutory requirements 

- 

- 

- 

- 

46 835 

46 835 

49 551 

52 276 

55 047 

Other working capital requirements 

1 221 079 

1 784 699 

2 026 359 

1 571 899 

1 924 718 

1 924 718 

1 534 283 

1 565 305 

1 641 751 

Other provisions 

378 486 

194 462 

403 883 

28 495 

93 960 

93 960 

147 827 

153 677 

159 501 

Long term investments committed 

502 477 

340 607 

450 854 

803 928 

612 810 

612 810 

803 928 

1 185 143 

1 671 313 

Reserves to be backed by cash/investments 

148 309 

105 096 

71 953 

182 348 

72 577 

72 577 

73 043 

73 530 

74 037 

Total Application of cash and investments: 

2 568 161 

2 550 195 

3 085 548 

2 586 669 

2 764 149 

2 764 149 

2 608 632 

3 029 931 

3 601 649 


From the table above it is clear that the available cash and investments total R1 ,9 billion for the 201 5/1 6 
financial year and increase to R4,5 billion by 201 7/1 8, including the projected cash and cash equivalents 
as determined by the cash flow forecast. The application of this funding is broken down as follows: 


• Unspent conditional transfers (grants) are automatically assumed to be an obligation because 
the Municipality has received government transfers in advance of meeting the conditions. In 
terms of the Division of Revenue Act (DoRA), unless there are special circumstances, the 
Municipality is obligated to return unspent conditional grant funds to the national revenue fund 
at the end of the financial year. The Municipality is required to supply the relevant transferring 
authority with a detailed analysis of the unspent grants as well as an action plan for spending 
the grants. For the 201 5/1 6 financial year, no provision has been made for this liability because 
the total unspent conditional grant liability of R13,3 million has been factored into the City’s 
2014/15 adjustment budget. The City has received the necessary rollover approval from the 
relevant transferring authority, because the funding appropriation relating to the unspent 
conditional grants could be justified. 

• There is no unspent borrowing from the previous financial years because any reduction in 
spending on the capital programme will result in an adjusted funding mix with regard to own 
funding. 

• The main purpose of other working capital is to ensure that sufficient funds are available to 
meet obligations as they fall due. A key challenge is the mismatch in timing between receiving 
funds from debtors and payments due to employees and creditors. High levels of debtor non- 
payment and receipt delays will require more working capital, which could result in cash flow 
challenges. 

• Long-term investments consist primarily of sinking funds for the repayment of future borrowings. 
The sinking fund value is held within long-term investments and must be “held to maturity”. It is 
not to be utilised for any other purposes. 


page I 134 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


• Most reserve fund cashbacking is discretionary in nature, but the reserve funds are not 

available to support a budget unless they are cashbacked. Currently, the reserve funds are 
not fully cashbacked. The level of cashbacking is directly informed by the Municipality’s Cash 
Backing Policy. 

As part of the budgeting and planning guidelines that informed the compilation of the 2015/16 MTREF, 
the objective of the medium-term framework was to achieve a funded budget in 2017/18, aligned with 
Sections 1 8 and 1 9 of the MFMA. 

Figure 12: Cash and cash equivalents or cashbacked reserves and accumulated funds 


4 000 000 


3 000 000 


2 000 000 


o 1 000 000 

o 

o 

or. 


(1 000 000) 


(2 000 000) 



2011/12 

2012/13 

2013/14 

2014/15 

2014/15 

2015/16 

2016/17 

2017/18 


Actual 

Actual 

Actual 

Budget 

Adjusted 

Budget 

Budget 

Budget 

Cash/cash equivalents at the year begin 

859 580 

927 954 

1 322 122 

1 361 930 

797 248 

1 175 775 

1 852 226 

2 882 642 

Surplus/fehortfell)- Recon. Of funds & 
reservces 

(1 552 585) 

(1 141 533) 

{2 248 081) 

285 650 

(1 487 663) 

(712 296) 

(67 034) 

935 097 



Funding compliance measurement 

The National Treasury requires that the Municipality assesses its financial sustainability against 14 
different measures that examine various aspects of the Municipality’s financial health. These measures 
are given in the table below. All the information comes directly from the annual budgeted statements for 
financial performance, financial position and cash flows. The table essentially measures the degree to 
which the proposed budget complies with the funding requirements of the MFMA. Each of the measures 
is discussed below. 


page I 135 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 56: MBRR SA10 - Funding compliance measurement 


Description 

MFMA 

section 

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 

Funding measures 











Cash/cash equivalents at the year end - R'000 

18(1)b 

927 954 

1 322 122 

797 248 

2 664 942 

1 175 775 

1 175 775 

1 852 226 

2 882 642 

4 451 708 

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

18(1)b 

(1 552 585) 

(1 141 533) 

(2 248 081) 

285 650 

(1 487 663) 

(1 487 663) 

(712 296) 

(67 034) 

935 097 

Cash year end/monthly employee/supplier payments 

18(1)b 

0,7 

1,0 

0,5 

1,6 

0,7 

0,7 

1,0 

1,4 

2,0 

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

m 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Service charge rev % change - macro CPIX target ex elusive 

m 1)n(2) 

N.A. 

5,8% 

1,3% 

7,9% 

(5,5%) 

(6,0%) 

2,6% 

2,8% 

2,8% 

Cash receipts % of Ratepayer & Other revenue 

18(1)a,(2) 

94,0% 

92,0% 

97,5% 

95,0% 

94,9% 

94,9% 

91,6% 

91,6% 

91,6% 

Debt impairment expense as a % of total billable revenue 

18(1)a,(2) 

5,9% 

5,6% 

7,8% 

3,0% 

3,5% 

3,5% 

4,9% 

7,5% 

7,5% 

Capital payments % of capital expenditure 

18(1)c;19 

150,0% 

99,5% 

108,4% 

96,0% 

97,0% 

97,0% 

98,0% 

98,0% 

98,0% 

Borrowing receipts % of capital expenditure (ex cl. transfers) 

18(1)c 

54,1% 

172,7% 

75,7% 

92,4% 

85,0% 

85,0% 

85,5% 

80,8% 

98,0% 

Grants % of Govt, legislated/gazetted allocations 

18(1)a 







100,1% 

100,0% 

100,0% 

Current consumer debtors % change - incr(decr) 

18(1)a 

N.A. 

8,5% 

(12,2%) 

19,6% 

(13,9%) 

(13,9%) 

11,6% 

7,9% 

6,9% 

Long term receivables % change - incr(decr) 

18(1)a 

N.A. 

10,6% 

3,8% 

33,1% 

(4,7%) 

(4,7%) 

17,5% 

7,4% 

8,1% 

R&M % of Property Plant & Equipment 

WDM 

6,1% 

6,2% 

5,0% 

5,2% 

5,1% 

5,1% 

4,5% 

4,2% 

3,9% 

Asset renewal % of capital budget 

WDM 

66,3% 

52,8% 

51,9% 

51,9% 

50,8% 

50,8% 

43,1% 

43,8% 

45,7% 


2.6.5. 1 Cash or cash-equivalent position 

The City’s forecasted cash position was discussed as part of the budgeted cash flow statement. A 
“positive” cash position for each year of the MTREF would generally be a minimum requirement, 
subject to the planned application of these funds, such as cashbacking of reserves and working capital 
requirements. The forecasted cash and cash equivalents at year end for the 2015/16 MTREF indicate 
R1,9 billion, R2,9 billion and R4,5 billion for each respective financial year. 

2.6.5. 2 Cash plus investments less application of funds 

This measure indicates how the Municipality has applied the available cash and investments identified in 
the budgeted cash flow statement. The detailed reconciliation of the cashbacked reserves or surpluses 
is contained in MBRR A8 above. 

2.6.5.3 Monthly average payments covered by cash or cash equivalents 

This measures the ability of the Municipality to honour short term obligations. The ratio has increased 
from the 2011/12 to 2015/16 period, moving from 0,7 to 1,0. The Municipality’s improving cash position 
causes the ratio to move upwards to 2,0 for the period ending 2017/18. This indicates that the Municipality 
will be able to meet monthly payments when they are due. 

2.6.5.4 Surplus or deficit excluding depreciation offsets 

A surplus or deficit is achieved by offsetting the amount of depreciation related to externally funded 
assets. For the 2015/16 MTREF, the indicative outcome is a surplus of R3,0 billion, R3,2 billion and 
R3,5 billion. The community therefore contributes sufficiently through rates and service charges to the 
economic benefit that they receive. 


page I 136 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2. 6. 5. 5 Property rates or service charge revenue as a percentage increase less macro-inflation 
target 

This measure indicates whether the Municipality contributes appropriately to achieving national inflation 
targets. It is based on the increase in “revenue”, which will include both the tariff change and any 
assumptions about real growth such as new property development, services consumption growth, etc. 

The factor is calculated by deducting the maximum macroeconomic inflation target increase (between 
3% and 6%). The result is an approximation of the real increase in revenue. From the table above, it can 
be seen that the percentage growth totals are 2,6%, 2,8% and 2,8% for the respective financial years 
of the 2014/15 MTREF. 

2.6.5. 6 Cash receipts as a percentage of ratepayers and other revenue 

This factor is a macro-measure of the rate at which funds are “collected”. This measure analyses the 
underlying assumed collection rate for the MTREF to determine the relevance and credibility of the 
assumptions contained in the budget. It can be seen that the outcome is at 91 ,6% for the medium-term. 

2.6.5.7 Debt impairment expense as a percentage of billable revenue 

This factor measures whether the provision for debt impairment is being adequately funded. It is based 
on the underlying assumption that the provision for debt impairment (doubtful and bad debts) has to be 
increased to offset undercollection of billed revenues. The provision has been appropriated at 4,9%, 
7,5% and 7,5% for the 2015/16, 2016/17 and 2017/18 financial years respectively. 

2.6.5.8 Capital payments as a percentage of capital expenditure 

This measure determines whether the timing of payments has been considered when forecasting the 
cash position. It can be seen that a 98,0% timing discount per year has been factored into the cash 
position forecasted over the MTREF. The Municipality aims to keep this at an achievable level (based 
on historic performance trends) through strict compliance with the legislative requirement that debtors 
should be paid within 30 days. 

2.6.5.9 Borrowing as a percentage of capital expenditure (excluding transfers, grants 
and contributions) 


This measurement determines the proportion of a municipality’s “own-funded" capital expenditure budget 
that is being funded from borrowed funds to confirm MFMA compliance. Externally funded expenditure 
(by transfers, grants and contributions) has been excluded. It can be seen that borrowing equates to 
85,5%, 80,8% and 98,0% of own-funded capital per annum over the medium-term. 

2.6.5. 1 0 T ransfers or grants revenue as a percentage of government transfers or grants available 

This measurement mainly ensures that all available transfers from the national and provincial government 
have been budgeted for. A percentage of less than 100% could indicate that not all grants as contained 
in the Division of Revenue Act (DoRA) have been budgeted for. The City has budgeted for all transfers. 


page I 137 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.6.5. 1 1 Consumer debtors change (Current and non-current) 

These measures ascertain whether budgeted reductions of outstanding debtors are realistic. There 
are two measures shown for this factor: the change in current debtors and the change in long-term 
receivables, both from the budgeted financial position. 

2.6.5.12 Repairs and maintenance expenditure level 

This measure is important within the context of funding measures criteria. This is because a trend 
indicating that insufficient funds are being committed to asset repair could also indicate that the overall 
budget is not credible and/or sustainable in the medium to long term because the revenue budget is 
not being protected. Details of the City’s strategy pertaining to asset management and repairs and 
maintenance are contained in MBRR SA34c. 

2.6.5.13 Asset renewal/rehabilitation expenditure level 

This measure has a similar objective to the previous objective relating to repairs and maintenance. A 
requirement of the detailed capital budget (since MFMA Circular 28, which was issued in December 
2005) is to categorise each capital project as a new asset or a renewal or rehabilitation project. The 
objective is to summarise and understand the proportion of budgets being provided for new assets as 
well as asset sustainability. A declining or low level of renewal funding may indicate that a budget is 
not credible and/or sustainable and future revenue is not being protected, similar to the justification for 
“repairs and maintenance” budgets. Further details in this regard are contained in MBRR SA34b. It is 
clear from the table above that the City is investing in the renewal of its assets, because an average of 
44,2% for 2015/16 (43,1%, 43,8% and 45,7% for the applicable three years respectively) is maintained 
over the medium term. 


page I 138 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.7 EXPENDITURE ON GRANTS AND RECONCILIATIONS 
OF UNSPENT FUNDS 

Table 57: MBRR SA19 - Expenditure on transfers and grant programmes 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

EXPENDITURE: 

Ooeratina expenditure of Transfers and Grants 










National Government: 

2 135 750 

2 458 595 

2 737 970 

2 993 903 

3 009 978 

3 009 978 

3 298 840 

3 594 122 

3 925 077 

Local Government Equitable Share 

923 020 

1 040 630 

1 166 964 

1 375 518 

1 375 518 

1 375 518 

1 654 390 

1 886 413 

2 131 544 

Fuel Levy 

1 191 521 

1 326 054 

1 308 179 

1 352 410 

1 352 410 

1 352 410 

1 395 849 

1 467 741 

1 538 936 

Finance Management Grant 

5 116 

3 096 

4 012 

4 750 

5 425 

5 425 

3 925 

2 875 

2 650 

Water Services Operating Subsidy Grant 

6 926 

2 319 

5 

300 

- 

- 

- 

- 

- 

Public Transport Infrastructure & Systems Grant 

3 645 

38 179 

178 366 

- 

- 

- 

- 

- 

- 

2010 FIFA World Cup Host City Operating Grant 

2 461 

- 

- 

- 

- 

- 

- 

- 

- 

Urban Settlement Development Grant 

3 060 

48 317 

39 178 

- 

822 

822 

- 

- 

- 

Municipal Human Settlement Capacity Grant 

- 

- 

- 

47 506 

47 506 

47 506 

12 831 

12 831 

14 755 

Expanded Public Works Programme Incentive (EPWP) 

- 

- 

33 170 

30 760 

30 760 

30 760 

31 143 

- 

- 

Public Transport Network Operations Grant 

- 

- 

- 

138 000 

138 000 

138 000 

161 000 

186 000 

195 300 

Integrated City Development Grant 

- 

- 

8 096 

44 659 

44 659 

44 659 

39 702 

38 262 

41 892 

Municipal Disaster Recovery Grant 

- 

- 

- 

- 

14 878 

14 878 

- 

- 

- 

Provincial Government: 

187 023 

133 868 

121 563 

110 926 

110 710 

110 710 

120 866 

122 297 

128 286 

Primary Health Care 

27 325 

29 625 

35 837 

39 967 

39 967 

39 967 

42 085 

44 316 

46 532 

Emergency Medical Services 

35 483 

49 676 

53 750 

56 683 

56 683 

56 683 

59 687 

62 850 

65 993 

HIV and Aids Grant 

5 310 

5 797 

14 604 

10 923 

10 923 

10 923 

11 501 

12 111 

12 717 

Performance Management 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing Top Structure 

93 057 

45 364 

- 

- 

- 

- 

- 

- 

- 

Incorporation of Metsw eding 

20 000 

- 

- 

- 

- 

- 

- 

- 

- 

Sports and Recreation : Community Libraries 

5 848 

3 406 

2 569 

2 460 

2 021 

2 021 

6 700 

2 550 

2 550 

Operation Clean Audit (OPCA) 

- 

- 

1 000 

- 

- 

- 

- 

- 

- 

Debtor Book (New) 

- 

- 

2 275 

- 

- 

- 

- 

- 

- 

Gautrans 

- 

- 

2 778 

- 

222 

222 

- 

- 

- 

Research and Technology Development Services 

- 

- 

- 

893 

893 

893 

893 

470 

494 

LED: Tshepo 10 000 

- 

- 

8 750 

- 

- 

- 

- 

- 

- 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

- 

- 

1 849 

- 

689 

689 

- 

- 

- 

DBSA 

- 

- 

780 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Drakensburg Promotions CC. 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Industrial Development Corporation (IDC) 

- 

- 

400 

- 

- 

- 

- 

- 

- 

LG SETA 

- 

- 

669 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

689 

689 

- 

- 

- 

Total operating expenditure of Transfers and Grants: 

2 322 772 

2 592 463 

2 861 382 

3 104 829 

3 121 377 

3 121 377 

3 419 706 

3 716 419 

4 053 363 

Capital expenditure of Transfers and Grants 










National Government: 

1 167 094 

2 076 699 

2 097 581 

2 529 271 

2 591 309 

2 591 309 

2 408 542 

2 454 739 

2 604 126 

Urban Settlement Development Grant 

877 903 

1 012 871 

1 206 603 

1 469 450 

1 513 458 

1 513 458 

1 500 683 

1 574 837 

1 664 734 

Public Transport Infrastructure & Systems Grant 

158 745 

832 598 

610 929 

867 571 

867 571 

867 571 

770 609 

759 902 

799 392 

Intergrated National Electrification Programme 

19 861 

30 000 

65 000 

32 000 

32 000 

32 000 

37 000 

40 000 

60 000 

Electricity Demand Side Management 

46 361 

10 623 

- 

- 

- 

- 

- 

- 

- 

Water Affairs 

15 597 

- 

14 000 

- 

- 

- 

- 

- 

- 

Neighbourhood Development Partnership Grant 

48 304 

183 447 

198 964 

150 000 

175 000 

175 000 

100 000 

80 000 

80 000 

Finance Management Grant 

323 

1 434 

753 

250 

280 

280 

250 

- 

- 

Ex panded Public Works Programme Incentive Grant 

- 

5 726 

925 

- 

- 

- 

- 

- 

- 

Energy Efficiency and Demand Side Management 

- 

- 

407 

10 000 

3 000 

3 000 

- 

- 

- 

Provincial Government: 

42 563 

61 847 

2 841 

15 129 

27 304 

27 304 

40 551 

52 000 

28 000 

Sport and Recreation: HM Pitje Stadium 

- 

443 

- 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Community Libraries 

4 095 

3 761 

2 341 

3 129 

4 104 

4 104 

7 551 

8 000 

6 000 

Housing 

38 468 

56 305 

- 

- 

- 

- 

- 

- 

- 

Housing: Acquisition of Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Gautrans Job Creation 

- 

1 337 

- 

12 000 

12 000 

12 000 

- 

12 000 

- 

Social Infrastructure Grant 

- 

- 

500 

- 

11 200 

11 200 

33 000 

32 000 

22 000 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

15 000 

13 000 

14 250 

- 

4 500 

4 500 

4 067 

200 

- 

Ringfencing of Bulk Containers Cost for Blue IQ 

15 000 

13 000 

11 999 

- 

- 

- 

- 

- 

- 

DBSA/SANBI Groen Sebenza 

- 

- 

91 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

4 500 

4 500 

- 

- 

- 

Housing Delft Grant 

- 

- 

2 160 

- 

- 

- 

2 293 

- 

- 

Smart Connect Grant 

- 

- 

- 

- 

- 

- 

1 773 

200 

- 

Total capital expenditure of Transfers and Grants 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 

3 547 429 

4 744 008 

4 976 054 

5 649 229 

5 744 490 

5 744 490 

5 872 866 

6 223 358 

6 685 489 


page I 139 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 58: MBRR SA20 - Reconciliation between transfers, grant receipts and unspent funds 


Description 

R thousand 

2011/12 

Audited 

Outcome 

2012/13 

Audited 

Outcome 

2013/14 

Audited 

Outcome 

Cu 

Original 

Budget 

rent Year 201 

Adjusted 

Budget 

1/15 

Full Year 

Forecast 

2015/16 M 

Expe 
Budget Year 

2015/16 

edium Term R 

nditure Frame 

Budget Year 

+1 2016/17 

evenue & 

work 

Budget Year 

+2 2017/18 

Operatinq transfers and qrants: 

National Government: 










Balance unspent at beginning of the year 

74 455 

68 622 

5 302 

- 

1497 

1 497 

- 

- 

- 

Current year receipts 

2 145 194 

2 384 062 

2 732 192 

2 993 903 

3 008 481 

3 008 481 

3 298 840 

3 594 122 

3 925 077 

Conditions met - transferred to revenue 

2 151 027 

2 447 382 

2 736 818 

2 993 903 

3 009 978 

3 009 978 

3 298 840 

3 594 122 

3 925 077 

Conditions still to be met - transferred to liabilities 

68 622 

5 302 

676 

- 

- 

- 

- 

- 

- 

Provincial Government: 










Balance unspent at beginning of the year 

16 027 

107 297 

90 159 

- 

355 

355 

- 

- 

- 

Current year receipts 

261 766 

127 943 

103 692 

110 926 

110 355 

110 355 

120 866 

122 297 

128 286 

Conditions met - transferred to revenue 

170 496 

145 081 

122 449 

110 926 

110 710 

110 710 

120 866 

122 297 

128 286 

Conditions still to be met - transferred to liabilities 

107 297 

90 159 

71 402 

- 

- 

- 

- 

- 

- 

District Municipality: 










Balance unspent at beginning of the year 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Current year receipts 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions met ■ transferred to revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions still to be met - transferred to liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 










Balance unspent at beginning of the year 

1 116 

- 

- 

- 

- 

- 

- 

- 

- 

Current year receipts 

133 

- 

2 116 

- 

689 

689 

- 

- 

- 

Conditions met ■ transferred to revenue 

1 249 

- 

2 116 

- 

689 

689 

- 

- 

- 

Conditions still to be met - transferred to liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total operating transfers and grants revenue 

2 322 772 

2 592 463 

2 861 382 

3 104 829 

3 121 377 

3 121 377 

3 419 706 

3 716 419 

4 053 363 

Total operating transfers and grants ■ CTBM 

175 919 

95 461 

72 078 

- 

- 

- 

- 

- 

- 

Capital transfers and qrants: 

National Government: 










Balance unspent at beginning of the year 

15 759 

45 702 

17 727 

- 

44 038 

44 038 

- 

- 

- 

Current year receipts 

1 238 786 

1 994 572 

2 131 690 

2 529 271 

2 547 271 

2 547 271 

2 408 542 

2 454 739 

2 604 126 

Conditions met - transferred to revenue 

1 208 843 

2 022 548 

2 102 199 

2 529 271 

2 591 309 

2 591 309 

2 408 542 

2 454 739 

2 604 126 

Conditions still to be met - transferred to liabilities 

45 702 

17 727 

47 218 

- 

- 

- 

- 

- 

- 

Provincial Government: 










Balance unspent at beginning of the year 

35 385 

73 038 

144 

- 

104 

104 

- 

12 000 

- 

Current year receipts 

38 468 

41 969 

14 098 

15 129 

27 200 

27 200 

40 551 

40 000 

28 000 

Conditions met ■ transferred to revenue 

814 

114 863 

1 315 

15129 

27 304 

27 304 

40 551 

52 000 

28 000 

Conditions still to be met - transferred to liabilities 

73 038 

144 

12 927 

- 

- 

- 

- 

- 

- 

District Municipality: 










Balance unspent at beginning of the year 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Current year receipts 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions met ■ transferred to revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions still to be met - transferred to liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 










Balance unspent at beginning of the year 

40 004 

25 005 

13 163 

- 

- 

- 

2 293 

- 

- 

Current y ear receipts 

- 

2 293 

99 

- 

4 500 

4 500 

1 773 

200 

- 

Conditions met - transferred to revenue 

15 000 

14135 

11 158 

- 

4 500 

4 500 

4 067 

200 

- 

Conditions still to be met - transferred to liabilities 

25 005 

13 163 

2105 

- 

- 

- 

- 

- 

- 

Total capital transfers and grants revenue 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Total capital transfers and grants ■ CTBM 

143 745 

31 034 

62 250 

- 

- 

- 

- 

- 

- 

TOTAL TRANSFERS AND GRANTS REVENUE 

3 547 429 

4 744 008 

4 976 054 

5 649 229 

5 744 490 

5 744 490 

5 872 866 

6 223 358 

6 685 489 

TOTAL TRANSFERS AND GRANTS ■ CTBM 

319 664 

126 494 

134 328 

- 

- 

- 

- 

- 

- 


page I 140 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.8 TRANSFERS AND GRANTS MADE BY THE MUNICIPALITY 

Table 59: MBRR SA21 - Transfers and grants made by the municipality 


Description 

R thousand 

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 

Cash Transfers to Entities/Other External Mechanisms 

- 

- 

205 035 

236 673 

231 512 

231 512 

235 090 

242 090 

242 090 

Municipal Entity 

Total Cash Transfers To Entities/Em s' 

- 

- 

205 035 

236 673 

231 512 

231 512 

235 090 

242 090 

242 090 











Total Cash Transfers To Groups Of Individuals: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL CASH TRANSFERS AND GRANTS 

- 

- 

205 035 

236 673 

231 512 

231 512 

235 090 

242 090 

242 090 

Groups of Individuals 

21 496 

17 290 

22 007 

25 654 

25 654 

25 654 

24 208 

25 297 

26 385 

Grants-in-Aid: Assessment Rates 

Total Non-Cash Grants To Groups Of Individuals: 

21 496 

17 290 

22 007 

25 654 

25 654 

25 654 

24 208 

25 297 

26 385 

TOTAL NON-CASH TRANSFERS AND GRANTS 

21 496 

17 290 

22 007 

25 654 

25 654 

25 654 

24 208 

25 297 

26 385 

TOTAL TRANSFERS AND GRANTS 

21 496 

17 290 

227 042 

262 327 

257 166 

257 166 

259 298 

267 387 

268 475 


page I 141 




The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.9 COUNCILLOR AND EMPLOYEE BENEFITS 

Table 60: MBRR SA22 - Summary of councillor and staff benefits 


Summary of Employee and Councillor 

remuneration 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 


A 

B 

C 

D 

E 

F 

G 

H 

/ 

Councillors (Political Office Bearers plus Other) 










Basic Salaries and Wages 

60 436 

90 230 

94 547 

103 077 

103 077 

103 077 

109 249 

120 174 

132 192 

Pension and UIF Contributions 

25 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 










Motor Vehicle Allowance 

28 945 

69 

73 

- 

- 

- 

- 

- 

- 

Cellphone Allowance 

Housing Allowances 

Other benefits and allowances 

- 

2 274 

2168 

- 

- 

- 

- 

- 

- 

Sub Total - Councillors 

89 405 

92 573 

96 789 

103 077 

103 077 

103 077 

109 249 

120 174 

132 192 

% increase 


3,5% 

4,6% 

6,5% 

- 

- 

6,0% 

10,0% 

10,0% 

Senior Manaqers of the Municipality 










Basic Salaries and Wages 

27 618 

43 822 

50 601 

46 453 

43 181 

43 181 

50 618 

53 959 

57 521 

Pension and UIF Contributions 

1 801 


- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 










Overtime 










Performance Bonus 










Motor Vehicle Allowance 

4 169 

3 018 

3 445 

- 

- 

- 

- 

- 

- 

Cellphone Allowance 

Housing Allowances 

540 

585 

702 

1017 

741 

741 

784 

827 

870 

Other benefits and allowances 

Payments in lieu of leave 

Long sen/ ice awards 

Post-retirement benefit obligations 

7173 

494 

394 







Sub Total - Senior Managers of Municipality 

41 301 

47 919 

55143 

47 470 

43 922 

43 922 

51 402 

54 786 

58 391 

% increase 


16,0% 

15,1% 

(13,9%) 

(7,5%) 

- 

17,0% 

6,6% 

6,6% 

Other Municipal Staff 










Basic Salaries and Wages 

3 003 359 

3 317 865 

3 752 576 

4 276 539 

4 200 195 

4 200 195 

4 555 383 

4 819 200 

5 098 296 

Pension and UIF Contributions 

685 018 

827 561 

911 275 

1 017 674 

989 365 

989 365 

1 086 474 

1 149 489 

1 216 159 

Medical Aid Contributions 

253 310 

276 214 

341 614 

387 441 

381 199 

381 199 

386 466 

408 881 

432 596 

Overtime 

302 507 

270 646 

303 652 

169 351 

187 582 

187 582 

187 582 

187 582 

187 582 

Performance Bonus 

475 

299 

246 

171 

169 

169 

169 

169 

169 

Motor Vehicle Allowance 

242 535 

255 494 

282 517 

286 525 

283 782 

283 782 

308 762 

326 670 

345 617 

Cellphone Allowance 

15 983 

17 230 

20 324 

20 605 

21 519 

21 519 

20 480 

21 182 

21 868 

Housing Allowances 

21 984 

22 624 

22 557 

22 058 

21 904 

21 904 

23 914 

25 301 

26 768 

Other benefits and allowances 

189 944 

229 063 

308 457 

259 246 

261 612 

261 612 

317 889 

332 948 

348 881 

Payments in lieu of leave 

Long sen/ ice awards 

Post-retirement benefit obligations 

54 440 

167 731 

200 793 

62 360 

61 838 

61 838 

229 686 

237 724 

245 569 

Sub Total - Other Municipal Staff 

4 769 556 

5 384 728 

6 144 010 

6 501 970 

6 409 164 

6 409 164 

7 116 804 

7 509 147 

7 923 506 

% increase 


12,9% 

14,1% 

5,8% 

(1,4%) 

- 

11,0% 

5,5% 

5,5% 

Total Parent Municipality 

4 900 262 

5 525 220 

6 295 941 

6 652 517 

6 556 163 

6 556 163 

7 277 455 

7 684 107 

8 114 089 



12,8% 

13,9% 

5,7% 

(1,4%) 

- 

11,0% 

5,6% 

5,6% 

TOTAL MANAGERS AND STAFF 

4 810 857 

5 432 647 

6 199 153 

6 549 440 

6 453 086 

6 453 086 

7 168 206 

7 563 933 

7 981 897 


page I 143 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 61 : MBRR SA23 - Salaries, allowances and benefits (political office bearers/ 

councillors/senior managers) 




Salary 


Allowances 

Performance 



Disclosure of Salaries, Allowances & Benefits 1. 

No. 


Contributions 


Bonuses 

In-kind 

benefits 

Total 

Package 

Rand per annum 



1. 




2. 

Councillors 








Speaker 

1 

1 046 191 

- 

- 



1 046 191 

Chief Whip 

1 

980 804 

- 

- 



980 804 

Executive Mayor 

1 

1 295 403 

- 

- 



1 295 403 

Deputy Executive Mayor 

- 

- 

- 

- 



- 

Executive Committee 

10 

9 808 040 

- 

- 



9 808 040 

Total for all other councillors 

209 

96 118 680 

- 

- 



96 118 680 

Total Councillors 

222 

109 249 118 

- 

- 



109 249 118 

Senior Manaqers of the Municipality 








Chief Finance Officer 

1 

2 014 949 

- 

- 

- 


2 014 949 

City Manager (CM) 

1 

3 052 954 

- 

- 

- 


3 052 954 

Strategic Executive Head: Office of the Executive Mayor 

1 

1 111 308 

- 

- 

- 


1 111 308 

Strategic Executive Head: Oftice of the Speaker 

1 

1 581 539 

- 

- 

- 


1 581 539 

Strategic Executive Head: Office of the Chief Whip 

1 

1 581 536 

- 

- 

- 


1 581 536 

Strategic Executive Director: Community and Business Safety 

1 

1 581 536 

- 

- 

- 


1 581 536 

Deputy City Manager: Strategy Development and Implementation 

1 

2 451 294 

- 

- 

- 


2 451 294 

Deputy City Manager: Operations and Sen/ ice Delivery 

1 

2 016 009 

- 

- 

- 


2 016 009 

Deputy City Manager: Infrastructure and Program Management 

1 

2 016 009 

- 

- 

- 


2 016 009 

Sen/ice Delivery Coordinator and Transformation Manager 

1 

2 016 005 

- 

- 

- 


2 016 005 

Chief Audit Executive 

1 

1 581 525 

- 

- 

- 


1 581 525 

Chief of Police 

1 

1 119 914 

- 

- 

- 


1 119 914 

Strategic Executive Director: City Manager Support 

1 

1 139 989 

- 

- 

- 


1 139 989 

Strategic Executive Director: Corporate and Shared Sen/ices 

1 

1 600 000 

- 

- 

- 


1 600 000 

Strategic Executive Director: Legal Sen/ ices 

1 

1 924 515 

- 

- 

- 


1 924 515 

Chief Information Officer 

1 

1 111 308 

- 

- 

- 


1 1ll 308 

Chief of Emergency Sen/ ices 

1 

1 152 200 

- 

- 

- 


1 152 200 

List of each offical with packages >= senior manager 








Strategic Executive Director: City Planning and Development 

1 

1 139 989 

- 

- 

- 


1 139 989 

Strategic Executive Director: Economic Development 

1 

1 139 989 

- 

- 

- 


1 139 989 

Strategic Executive Director: City Strategies and Performance Management 

1 

1 633 192 

- 

- 

- 


1 633 192 

Strategic Executive Director: Communications, Marketing and Events 

1 

1 139 989 

- 

- 

- 


1 139 989 

Strategic Executive Director: Research and Innovation 

1 

1 139 989 

- 

- 

- 


1 139 989 

Strategic Executive Director: Sport and Recreation 

1 

1 388 210 

- 

- 

- 


1 388 210 

Strategic Executive Director: Environmental Management 

1 

1 521 581 

- 

- 

- 


1 521 581 

Strategic Executive Director: Health and Social Development 

1 

1 648 596 

- 

- 

- 


1 648 596 

Strategic Executive Director: Service Infrastructure 

1 

1 601 850 

- 

- 

- 


1 601 850 

Strategic Executive Director: Transport 

1 

1 825 904 

- 

- 

- 


1 825 904 

Strategic Executive Director: Housing and Human Settlement 

1 

1 649 806 

- 

- 

- 


1 649 806 

Total Senior Managers of the Municipality 

28 

50 618 471 

- 

- 

- 


50 618 471 









TOTAL COST OF COUNCILLOR, DIRECTOR and EXECUTIVE 
REMUNERATION (Parent) 

250 

159 867 589 

- 

- 

- 


159 867 589 


page I 144 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 62: MBRR SA24 - Summary of personnel numbers 


Summary of Personnel Numbers 

Number 

2013/14 

Current Year 2014/15 

Budget Year 2015/16 

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) 

210 

- 

210 

210 

- 

210 

209 

- 

209 

Board Members of municipal entities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Municipal employees 










Municipal Manager and Senior Managers 

112 

10 

88 

126 

1 

125 

114 

1 

113 

Other Managers 

946 

538 

- 

1 016 

645 

- 

1311 

900 

- 

Professionals 

2186 

1 114 

2 

2 424 

1286 

5 

2 787 

1406 

4 

Finance 

338 

168 

- 

375 

201 

- 

418 

225 

- 

Spatial/town planning 

203 

112 

- 

231 

157 

- 

279 

169 

- 

Information Technology 

36 

15 

- 

63 

29 

- 

84 

28 

- 

Roads 

175 

60 

- 

200 

71 

- 

223 

84 

- 

Electricity 

158 

115 

- 

175 

137 

- 

195 

155 

- 

Water 

217 

63 

- 

255 

83 

- 

307 

98 

- 

Sanitation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Refuse 

5 

5 

- 

5 

5 

- 

27 

14 

- 

Other 

1054 

576 

2 

1 120 

603 

5 

1254 

633 

4 

Technicians 

9 096 

5 883 

17 

9 337 

6 008 

25 

11 147 

6 225 

20 

Finance 

84 

62 

- 

100 

69 

- 

112 

47 

- 

Spatial/town planning 

121 

129 

- 

137 

131 

- 

223 

125 

- 

Information Technology 

130 

48 

- 

145 

57 

- 

220 

78 

- 

Roads 

370 

160 

17 

385 

177 

25 

446 

187 

20 

Electricity 

1 089 

824 

- 

1 110 

851 

- 

1 338 

872 

- 

Water 

396 

219 

- 

415 

232 

- 

447 

249 

- 

Sanitation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Refuse 

43 

40 

- 

50 

45 

- 

112 

62 

- 

Other 

6 863 

4 401 

- 

6 995 

4 446 

- 

8 249 

4 605 

- 

Clerks (Clerical and administrative) 

4 295 

3 227 

55 

4 375 

3 267 

55 

5 573 

3 514 

64 

Sen/ ice and sales workers 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Skilled agricultural and fishery workers 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Craft and related trades 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Plant and Machine Operators 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Elementary Occupations 

6 746 

5 947 

3 547 

6 805 

6 102 

3 604 

8 360 

6 427 

1 126 

TOTAL PERSONNEL NUMBERS 

23 591 

16 719 

3 919 

24 293 

17 309 

4 024 

29 501 

18 473 

1 536 

% increase 




3,0% 

3,5% 

2,7% 

21,4% 

6,7% 

(61,8%) 

Total municipal employees headcount 

- 

- 

3 485 

- 

- 

3 709 

29 292 

18 473 

1 327 

Finance personnel headcount 

1 498 

995 

43 

1 587 

1 264 

20 

1 392 

1 276 

17 

Human Resources personnel headcount 

283 

138 

1 

286 

153 

1 

315 

158 

4 


page I 145 





2.10 MONTHLY TARGETS FOR REVENUE, EXPENDITURE AND CASH FLOW 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


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page I 147 


Table 64: MBRR SA26 - Budgeted monthly revenue and expenditure (municipal vote) 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 148 


Table 65: MBRR SA27 - Budgeted monthly revenue and expenditure (standard classification) 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 149 


Table 66: MBRR SA28 - Budgeted monthly capital expenditure (municipal vote) 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Medium Term Revenue and Expenditure 

Framework 

Budget Year 

+2 2017/18 

20 000 

35 000 

92 000 

6 000 

100 000 

40 000 

719 258 

140 500 

10 000 

290 000 

335 688 

659 812 

1 531 868 

166 000 

4 146 126 

11000 

5 000 

16 000 | 

4 162 126 

Budget Year 

+1 2016/17 

10 000 

39 900 

94 500 

6 000 

122 000 

25 000 

688 885 

155 500 

10 000 

280 000 

322 329 

580 171 

1 477 854 

156 000 

3 968 139 

8 500 

5 000 

200 

10 000 

23 700 | 

3 991 839 

Budget Year 

2015/16 

30 000 

23 407 

67 100 

6 000 

98 000 

35 250 

670 500 

96 500 

10 000 

280 000 

355 000 

447 500 

1 473 085 

163 551 

3 755 893 

10 900 

5 000 

75 773 

9 000 

100 673 | 

3 856 566 

Budget Year 2015/16 

June 

4 000 

1 951 

11450 

5 300 

4 600 

126 542 

3 500 

23 333 

30 913 

32 050 

321 949 

13 613 

579 200 

1 650 

386 

1 800 

3 836 | 

583 036 

May 

4 000 

1 951 

7 050 

5 800 

2 500 

128 792 

500 

23 333 

6 690 

51 450 

135 542 

16 213 

383 820 

1 750 

1 800 

3 550 | 

387 370 

April 

4 000 

1 951 

5 850 

1 700 

8 310 

3 550 

128 792 

10 000 

1000 

23 333 

14 300 

62 650 

135 110 

16 113 

416 658 

1 750 

1 000 

1 600 

4 350 | 

421 008 

March 

4 000 

1 951 

10 350 

1 500 

11450 

2 500 

38 183 

2 000 

1 000 

23 333 

17257 

46 900 

147 800 

16113 

324 337 

750 

1200 

1 950 | 

326 287 

Feb. 

3 000 

1 951 

10 350 

1 000 

8 900 

2 500 

38183 

14 000 

4 000 

23 333 

14 030 

65 800 

69 746 

15 513 

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CM 

C'- 

CM 

3 055 | 

275 360 

2T 

CO 

3 

c 

CO 

3 000 

1 951 

1 350 

300 

9 140 

3 550 

38183 

13 000 

23 333 

27 145 

29 600 

62 700 

14 013 

CO o o 

CO 1 1 CO I I | | | | I I I I I o 

cm co 

C- 

CM 

CM 

2 550 | 

229 815 

Dec. 

3 000 

1 951 

5 250 

450 

15 900 

2 500 

17183 

7 500 

23 333 

17403 

27 700 

177 288 

15113 

o o o o 

i-- I I jo i o I I I I I I I I I 

co r^ o co 

co 

2 250 | 

316 820 

Nov. 

2 000 

1 951 

5 950 

650 

11900 

2 500 

17183 

6 000 

3 000 

23 333 

25 091 

39 300 

132 900 

15 713 

287 470 

1 750 

200 

1 950 | 

289 420 

October 

2 000 

1 951 

5 000 

400 

5 850 

3 550 

17183 

4 000 

1000 

23 333 

44 484 

38 900 

108 500 

15 513 

271 663 

1 000 

505 

300 

1 805 | 

273 468 

Sept. 

1 000 

1 951 

4 500 

8 300 

2 500 

40 093 

4 500 

23 333 

81 697 

32 850 

111 600 

9 713 

CO 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 

o 

CM 

CM 

co 

i 

322 036 

August 

1 951 

2 850 

2 500 

40 093 

31 500 

23 333 

74 135 

17 050 

69 950 

7 513 

270 874 

1 000 

1 000 1 

271 874 

July 

1 951 

4 300 

2 500 

40 093 

23 333 

1 855 

3 250 

8 413 

85 694 

74 378 

74 378 

160 072 

Description 

R thousand 

1 Multi-vear expenditure to be aoDrooriated 1 

City Planning and Development 

Corporate & Shared Services 

Economic Development 

Emergency Services 

Environmental Management 

Group Financial Services 

Housing & Human Settlement 

Group Information & Communication Te 

Metro Police Services 

Office of the City Manager 

Service Delivery and Transformation 

Water and Sanitation Department 

Energy and Electricity Department 

Transport 

Other Votes 

Capital multi-year expenditure sub-total 

Sinale-vear expenditure to be appropriated 

City Planning and Development 

Corporate & Shared Services 

Economic Development 

Emergency Services 

Environmental Management 

Group Financial Services 

Housing & Human Settlement 

Group Information & Communication Te 

Metro Police Services 

Office of the City Manager 

Service Delivery and Transformation 

Water and Sanitation Department 

Energy and Electricity Department 

Transport 

Other Votes 

Capital single-year expenditure sub-total 

Total Capital Expenditure 


page I 150 


Table 67: MBRR SA29 - Budgeted monthly capital expenditure (standard classification) 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 151 


Table 68: MBRR SA30 - Budgeted monthly cash flow 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 




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page I 152 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.11 CONTRACTS WITH FUTURE BUDGETARY IMPLICATIONS 

In terms of the City’s Supply Chain Management Policy, no contracts are awarded beyond the medium- 
term revenue and expenditure framework (three years). To ensure adherence to this contractual 
limitation, all reports submitted to either the Bid Evaluation or the Adjudication Committee must obtain 
formal financial comments from the Budget Office of the Financial Services Department. 


page I 153 





The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.12 CAPITAL EXPENDITURE DETAILS 

The following three tables present details of the City’s capital expenditure programme, firstly on new 
assets, then on the renewal of assets, and finally on the repair and maintenance of assets. 


Table 69: MBRR SA34a - Capital expenditure on new assets by asset class 


Description 




nt Year 2014/15 


Original 

Budget 


Adj usted 
Budget 


2015/16 Medium Term Revenue & 
Expenditure Framework 


by Asset Class/Sub-class 


I nfrastr u ctu re 

Infrastructure - Road transport 
Roads, Pavements & Bridges 
Storm water 
Infrastructure - Electricity 
Generation 

Transmission & Reticulation 
Street Lighting 
Infrastructure - Water 
Dams & Reservoirs 
Water purification 
Reticulation 

Infrastructure - Sanitation 
R etic u / at ion 
Sewerage purification 
Infrastructure - Other 
Waste Management 
Transportation 
Gas 
Other 


nunity 


Parks & gardens 
Sportsfields & stadia 
Sw imming pools 
Community halls 
Libraries 

Recreational facilities 
Fire, safety & emergency 
Security and policing 

Clinics 

Museums & Art Galleries 

Cemeteries 

Social rental housing 

Other 


Heritage assets 

Buildings 

Other 


Investment properties 

Housing dev elopment 
Other 


Other assets 

General v ehicles 

Specialised v ehicles 

Plant & equipment 

Computers - hardw are/equipment 

Furniture and other office equipment 

Abattoirs 

Markets 

Civic Land and Buildings 
Other Buildings 
Other Land 

Surplus Assets - (Inv estment or Inver 
Other 


Agricultural assets 

List sub-class 


List sub-class 


Intangibles 

Computers - softw are & programming 
Other (list sub-class) 


848 326 


434 553 
270 028 
164 526 
320 780 
218 232 
95 351 
7 197 
62 596 
46 441 

16 155 
lO 199 
lO 199 

20 197 
3 371 
lO 372 


102 839 


560 
9 741 


I 735 232 


1 724 290 


1 799 570 


1 855 462 


1 855 462 


1 770 442 


1 253 269 
968 983 
284 286 
345 203 
213 991 
126 112 
5 099 
39 413 


163 
4 OOO 
4 OOO 

93 348 
32 428 
13 037 


f 381 918 
1 070 774 
311 144 
191 232 
177 190 

6 043 

7 998 
49 371 
49 315 


3 919 
3 919 

97 849 
6 363 
28 784 


264 224 


1 507 470 
1 293 821 
213 649 
165 OOO 
146 500 
18 500 

57 500 
57 500 


1 500 
t 500 


68 100 
15 600 


141 000 


1 483 370 
1 267 121 
216 249 
145 500 
134 OOO 
11 500 

57 500 
57 500 


1 500 
1 500 


167 592 
15 600 


1 483 370 
1 267 121 
216 249 
145 500 
134 OOO 
11 500 

57 500 
57 500 


1 500 
1 500 


167 592 
15 600 


188 592 


1 389 635 
812 293 
577 342 
109 OOO 
108 OOO 
1 OOO 

57 500 
57 500 


214 307 
5 OOO 


216 000 


32 226 
9 907 
2 499 


26 032 
9 907 
4 922 


6 OOO 
lO OOO 


16 831 
12 529 


1 409 004 
981 902 
427 102 
182 000 
180 OOO 
2 OOO 

45 OOO 
45 OOO 


255 900 
5 OOO 
4 500 


22 000 
lO OOO 


1 942 368 


1 464 868 
1 129 868 
335 OOO 
182 OOO 
180 OOO 
2 OOO 

43 OOO 
43 OOO 


252 500 
5 OOO 
4 500 


173 000 


16 OOO 
lO OOO 


Total Capital Expenditure on 


1 049 340 


2 147 674 


2 032 462 


2 005 686 


2 157 264 2 157 264 


2 192 616 


2 242 204 


2 260 468 


Specialised vehicles 

Refuse 

Conserv ancy 
Ambulances 


( 90 ) 

( 90 ) 


page I 155 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 70: MBRR SA34b - Capital expenditure on the renewal of existing assets by asset class 


Description 

2011/12 

2012/13 

2013/14 

Cu 

rrent Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Capital expenditure on renewal of 










existina assets bv Asset Class/Sub- 










class 










Infrastructure 

1 247 651 

1 366 304 

1 295 908 

965 496 

978 096 

978 096 

731 450 

797 350 

871 000 

Infrastructure - Road transport 

246 403 

163 924 

132 388 

33 250 

47 350 

47 350 

28 450 

60 350 

60 500 

Roads, Pavements & Bridges 

219 262 

125 559 

93 967 

33 250 

47 350 

47 350 

26 150 

46 550 

38 650 

Storm water 

27 141 

38 364 

38 421 

- 

- 

- 

2 300 

13 800 

21 850 

Infrastructure - Electricity 

290 lOI 

331 849 

229 348 

474 500 

477 OOO 

477 OOO 

338 500 

398 171 

477 812 

Generation 

161 227 

193 840 

118 198 

345 OOO 

308 OOO 

308 OOO 

225 OOO 

271 500 

329 500 

Transmission & Reticulation 

91 629 

82 880 

63 991 

89 500 

114 OOO 

1 14 OOO 

43 500 

49 671 

36 312 

Street Lighting 

37 245 

55 129 

47 159 

40 OOO 

55 000 

55 OOO 

70 OOO 

77 OOO 

112 OOO 

Infrastructure - Water 

249 020 

421 032 

433 799 

272 183 

268 183 

268 183 

182 429 

177 329 

187 900 

Dams & Reservoirs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Water purification 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Reticulation 

249 020 

421 032 

433 799 

272 183 

268 183 

268 183 

182 429 

177 329 

187 900 

Infrastructure - Sanitation 

419 005 

401 192 

452 846 

167 563 

157 563 

157 563 

115 071 

lOO OOO 

104 788 

Reticulation 

367 558 

373 610 

417 733 

145 992 

135 992 

135 992 

90 OOO 

80 OOO 

80 OOO 

Sewerage purification 

51 446 

27 583 

35 113 

21 571 

21 571 

21 571 

25 071 

20 OOO 

24 788 

Infrastructure - Other 

43 122 

48 306 

47 528 

18 OOO 

28 OOO 

28 000 

67 OOO 

61 500 

40 OOO 

Waste Management 

9 475 

15 160 

11 689 

- 

- 

- 

12 OOO 

24 500 

16 OOO 

Transportation 

4 977 

6 262 

1 884 

18 OOO 

28 OOO 

28 OOO 

55 OOO 

7 OOO 

4 OOO 

Gas 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

28 670 

26 884 

33 954 

~ 

~ 

~ 

~ 

30 OOO 

20 OOO 

Community 

62 536 

273 238 

268 134 

170 000 

197 000 

197 000 

151 000 

123 000 

153 000 

Parks & gardens 

4 267 

82 393 

26 655 

20 OOO 

20 OOO 

20 OOO 

35 OOO 

40 OOO 

40 OOO 

SportsHelds & stadia 

1 135 

1 290 

- 

- 

- 

- 

- 

- 

30 OOO 

Sw imming pools 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Community halls 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Libraries 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Recreational facilities 

- 

- 

(1 697) 

- 

- 

- 

- 

- 

- 

Fire, safety & emergency 

596 

- 

792 

- 

- 

- 

2 OOO 

- 

- 

Security and policing 

1 858 

1 385 

42 543 

- 

2 000 

2 OOO 

- 

- 

- 

Buses 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Clinics 

3 023 

946 

- 

- 

- 

- 

7 OOO 

- 

- 

Museums & Art Galleries 

1 352 

1 963 

- 

- 

- 

- 

- 

- 

- 

Cemeteries 

- 

- 

877 

- 

- 

- 

7 OOO 

3 OOO 

3 OOO 

Social rental housing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

50 304 

185 261 

198 964 

150 OOO 

175 OOO 

1 75 000 

lOO OOO 

80 OOO 

80 OOO 

Heritaqe assets 










Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

569 191 

568 514 

451 789 

900 805 

926 421 

926 421 

675 500 

696 285 

726 158 

Housing development 

569 191 

568 514 

451 789 

900 805 

926 421 

926 421 

670 500 

688 885 

719 258 

Other 

- 

- 

- 

- 

- 

- 

5 OOO 

7 400 

6 900 

Other assets 

182 219 

193 868 

178 512 

126 000 

130 000 

130 000 

106 000 

133 000 

151 500 

General vehicles 

- 

11 527 

84 775 

- 

4 OOO 

4 OOO 

- 

30 OOO 

30 OOO 

Specialised v ehicles 

25 477 

22 495 

- 

- 

- 

- 

- 

- 

- 

Plant & equipment 

2 651 

4 515 

3 477 

1 OOO 

1 OOO 

1 OOO 

3 000 

3 OOO 

3 OOO 

Computers - hardw are/equipment 

5 917 

4 756 

19 880 

30 OOO 

30 OOO 

30 OOO 

15 000 

20 OOO 

25 OOO 

Furniture and other office equipment 

396 

6 982 

6 172 

13 000 

13 OOO 

13 OOO 

13 OOO 

13 OOO 

13 OOO 

Abattoirs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Markets 

8 545 

19 450 

2 450 

- 

- 

- 

- 

- 

- 

Civic Land and Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other Buildings 

25 820 

23 940 

19 197 

67 700 

67 700 

67 700 

38 500 

11 500 

20 OOO 

Other Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus Assets - (Investment or Invent 


- 

- 

- 

- 

- 

- 

- 

- 

Other 

113 412 

lOO 202 

42 561 

14 300 

14 300 

14 300 

36 500 

55 500 

60 500 

Aaricultural assets 










List sub-class 










Bioloaical assets 










List sub-class 










Intanqibles 

3 924 

906 

1 777 







Computers - software & programming 

3 924 

906 

1 777 

- 

- 

- 

- 

- 

- 

Other (list sub-class) 




















Total Capital Expenditure on renewal 

2 065 521 

2 402 830 

2 196 120 

2 162 301 

2 231 517 

2 231 517 

1 663 950 

1 749 635 

1 901 658 


page I 156 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 71 : MBRR SA34c - Repairs and maintenance expenditure by asset class 


Description 

2011/12 

2012/13 

2013/14 

Cu 

rrent Year 2014/15 

2015/16 M 

Expe 

edium Term Revenue & 

nditure Framework 

R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Reoairs and maintenance 










expenditure bv Asset Class/Sub- 










class 










Infrastructure 

624 259 

778 921 

648 013 

683 340 

703 974 

703 974 

801 393 

829 442 

856 813 

Infrastructure - Road transport 

131 773 

188 529 

118 214 

162 879 

156 798 

156 798 

120 794 

125 022 

129 148 

Roads, Pavements & Bridges 

98 122 

138 123 

97 508 

123 107 

117 027 

117 027 

lOI 028 

104 564 

108 015 

Storm water 

33 651 

50 407 

20 706 

39 771 

39 771 

39 771 

19 766 

20 458 

21 133 

Infrastructure - Electricity 

300 409 

358 972 

411 507 

288 440 

290 629 

290 629 

386 114 

399 628 

412 816 

Generation 

49 650 

73 920 

78 406 

76 557 

76 557 

76 557 

74 019 

76 609 

79 137 

Transmission & Reticulation 

178 273 

190 566 

287 207 

189 955 

191 045 

191 045 

289 193 

299 315 

309 192 

Street Lighting 

72 486 

94 487 

45 894 

21 928 

23 026 

23 026 

22 903 

23 704 

24 487 

Infrastructure - Water 

133 621 

106 040 

54 603 

143 519 

151 599 

151 599 

231 797 

239 910 

247 827 

Dams & Reservoirs 

9 999 

6 181 

4 256 

11 602 

11 602 

11 602 

4 743 

4 909 

5 071 

Water purification 

5 844 

6 545 

lO 403 

7 431 

9 531 

9 531 

8 898 

9 209 

9 513 

Reticulation 

117 778 

93 313 

39 945 

124 486 

130 466 

130 466 

218 157 

225 793 

233 244 

Infrastructure - Sanitation 

44 993 

48 996 

55 382 

50 564 

65 511 

65 511 

49 337 

51 064 

52 748 

R etic ulation 

12 598 

9 943 

11 457 

16 426 

16 373 

16 373 

11 018 

11 404 

11 780 

Sewerage purification 

32 395 

39 053 

43 925 

34 138 

49 138 

49 138 

38 318 

39 660 

40 968 

Infrastructure - Other 

13 464 

76 384 

8 307 

37 938 

39 438 

39 438 

13 351 

13 818 

14 274 

Waste Management 

13 464 

76 384 

8 307 

37 938 

39 438 

39 438 

13 351 

13 818 

14 274 

Transportation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Gas 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 


~ 

~ 


~ 

~ 

C o m m u n i tv 

183 277 

211 084 

108 951 

217 064 

221 344 

221 344 

202 263 

205 947 

209 543 

Parks & gardens 

92 067 

107 311 

34 254 

34 962 

34 084 

34 084 

32 910 

34 062 

35 187 

Sports fields & stadia 

2 858 

3 113 

252 

198 

198 

198 

198 

205 

212 

Sw imming pools 

- 

- 

17 

- 

- 

- 

- 

- 

- 

Community halls 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Libraries 

369 

351 

- 

- 

- 

- 

- 

- 

- 

Recreational facilities 

23 491 

23 235 

15 087 

14 239 

13 409 

13 409 

12 925 

13 377 

13 818 

Fire, safety & emergency 

13 690 

17 144 

15 289 

17 OIO 

20 904 

20 904 

15 449 

15 990 

16 517 

Security and policing 

35 537 

46 979 

32 976 

42 532 

43 546 

43 546 

32 520 

33 659 

34 770 

Buses 

86 

- 

3 563 

80 

4 161 

4 161 

3 882 

4 018 

4 151 

Clinics 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Museums & Art Galleries 

6 

- 

O 

4 

4 

4 

- 

- 

- 

C em eteries 

13 920 

11 694 

6 588 

6 399 

6 399 

6 399 

6 361 

6 584 

6 801 

Social rental housing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

1 253 

1 257 

925 

lOI 639 

98 639 

98 639 

98 018 

98 053 

98 088 

Heritaqe assets 










Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 










Housing dev elopment 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

336 873 

344 770 

473 613 

558 518 

501 559 

501 559 

435 605 

450 852 

465 732 

General vehicles 

140 572 

155 027 

185 910 

231 746 

201 266 

201 266 

198 820 

205 778 

212 569 

Specialised v ehicles 

1 OOO 

1 122 

- 

- 

- 

- 

- 

- 

- 

Plant & equipment 

26 381 

26 354 

29 129 

78 885 

54 104 

54 104 

34 141 

35 336 

36 503 

Computers - hardw are/equipment 

2 633 

5 500 

5 337 

3 792 

5 142 

5 142 

3 309 

3 425 

3 538 

Furniture and other office equipment 

16 833 

14 298 

14 515 

18 195 

17 885 

17 885 

14 388 

14 892 

15 383 

Abattoirs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Markets 

3 

77 

- 

- 

- 

- 

- 

- 

- 

Civ ic Land and Buildings 

2 450 

3 108 

1 544 

2 769 

1 506 

1 506 

1 491 

1 543 

1 594 

Other Buildings 

106 106 

IIO 411 

129 480 

121 408 

122 353 

122 353 

102 851 

106 452 

109 965 

Other Land 

25 053 

lO 943 

85 789 

89 268 

87 580 

87 580 

76 018 

78 680 

81 276 

Surplus Assets - (Investment or Invent 


- 

- 

- 

- 

- 

- 

- 

- 

Other 

15 842 

17 928 

21 909 

12 456 

11 724 

11 724 

4 587 

4 747 

4 904 

Aqricultural assets 










List sub-class 










Bioloaical assets 










List sub-class 










Intanqibles 

51 508 

77 515 

72 069 

85 770 

86 357 

86 357 

73 767 

76 349 

78 869 

Computers - softw are & programming 

51 508 

77 515 

72 069 

85 770 

86 357 

86 357 

73 767 

76 349 

78 869 

Other (list sub-class) 

- 

- 

- 

- 

- 

- 

- 

- 

- 











Total Repairs and Maintenance Exper 

1 195 917 

1 412 290 

1 302 647 

1 544 692 

1 513 235 

1 513 235 

1 513 028 

1 562 590 

1 610 957 


:ialised vehicle 


Refuse 

Conserv ancy 
Ambulances 


page I 157 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 72: MBRR SA34d - Depreciation by asset class 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Outcom e 

Outcom e 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Depreciation bv Asset Ciass/Sub- 










class 










Infrastructure 

566 051 

525 994 

885 531 

738 892 

723 875 

723 875 

769 946 

850 359 

910 945 

Infrastructure - Road transport 

256 845 

255 126 

274 674 

411 717 

391 045 

391 045 

436 409 

464 619 

493 901 

Roads, Pavements & Bridges 

184 552 

197 042 

211 268 

354 625 

335 801 

335 801 

258 027 

325 203 

378 356 

Storm water 

72 294 

58 084 

63 406 

57 092 

55 244 

55 244 

1 78 382 

139 416 

1 15 545 

Infrastructure - Electricity 

107 786 

126 423 

326 782 

1 70 890 

159 027 

159 027 

137 716 

183 454 

213 642 

Generation 

66 953 

76 153 

229 511 

131 341 

112 915 

112 915 

102 479 

142 767 

164 972 

Transmission & Reticulation 

32 992 

39 024 

54 415 

28 860 

32 061 

32 061 

13 695 

16 339 

12 405 

Street Lighting 

7 842 

11 246 

42 856 

lO 689 

14 051 

14 051 

21 542 

24 348 

36 265 

Infrastructure - Water 

76 035 

74 803 

107 180 

88 099 

83 200 

83 200 

73 837 

70 302 

74 763 

Dams & Reservoirs 

11 332 

6 376 

lO 939 

15 365 

14 689 

14 689 

17 695 

14 229 

13 923 

Water purification 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Reticulation 

64 704 

68 426 

96 240 

72 734 

68 511 

68 511 

56 142 

56 072 

60 840 

Infrastructure - Sanitation 

104 727 

65 826 

101 323 

45 178 

40 635 

40 635 

35 413 

31 621 

33 929 

Reticulation 

92 174 

61 345 

93 534 

39 413 

35 124 

35 124 

27 697 

25 297 

25 903 

Sewerage purification 

12 553 

4 481 

7 789 

5 764 

5 511 

5 511 

7 716 

6 324 

8 026 

Infrastructure - Other 

20 657 

3 817 

75 572 

23 008 

49 967 

49 967 

86 571 

100 364 

94 709 

Waste Management 

4 191 

1 282 

9 384 

4 169 

3 985 

3 985 

5 232 

9 328 

6 800 

Transportation 

5 007 

520 

15 943 

4 810 

7 153 

7 153 

16 926 

3 636 

2 752 

Gas 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

11 459 

2 015 

50 245 

14 029 

38 829 

38 829 

64 413 

87 399 

85 157 

Communitv 

64 321 

67 816 

135 713 

83 107 

98 505 

98 505 

112 943 

102 293 

105 556 

Parks & gardens 

1 660 

9 326 

6 795 

5 344 

5 109 

5 109 

10 771 

12 648 

12 952 

Sportsfields & stadia 

12 395 

25 123 

41 793 

19 240 

24 116 

24 116 

28 005 

19 921 

24 284 

Swimming pools 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Community halls 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Libraries 

6 498 

3 648 

6 636 

5 344 

5 109 

5 109 

1 846 

6 957 

5 181 

Recreational facilities 

- 

1 121 

2 093 

- 

- 

- 

3 077 

3 162 

3 238 

Fire, safety & emergency 

232 

283 

1 457 

- 

- 

- 

615 

- 

- 

Security and policing 

723 

157 

lO 845 

1 069 

1 022 

1 022 

3 077 

3 162 

3 238 

Buses 

218 

- 

- 

- 

- 

- 

- 

- 

- 

Clinics 

4 965 

4 046 

lO 003 

lO 689 

13 080 

13 080 

26 158 

22 134 

24 608 

Museums & Art Galleries 

526 

222 

- 

- 

- 

- 

- 

- 

- 

Cemeteries 

13 012 

2 011 

2 162 

1 336 

5 363 

5 363 

8 617 

9 012 

6 152 

Social rental housing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

24 093 

21 879 

53 928 

40 084 

44 706 

44 706 

30 775 

25 297 

25 903 

Heritacje assets 










Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

759 

2 855 

(4 100) 

240 717 

236 668 

236 668 

225 454 

248 976 

264 297 

Housing development 

759 

2 855 

(4 100) 

240 717 

236 668 

236 668 

206 343 

217 830 

232 889 

Other 

- 

- 

- 

- 

- 

- 

19 111 

31 146 

31 408 

Other assets 

385 484 

463 917 

143 540 

51 071 

62 132 

62 132 

38 253 

47 905 

53 911 

General vehicles 

- 

46 576 

54 253 

- 

1 022 

1 022 

- 

9 486 

9 714 

Specialised v ehicles 

87 243 

57 526 

(58) 

32 

31 

31 

- 

- 

- 

Plant & equipment 

4 504 

7 416 

2 225 

267 

255 

255 

923 

949 

971 

Computers - hardw are/equipment 

lO 052 

7 812 

12 723 

8 017 

7 664 

7 664 

4 616 

6 324 

8 095 

Furniture and other office equipment 

21 035 

66 563 

26 050 

12 791 

13 972 

13 972 

7 940 

8 221 

7 771 

Abattoirs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Markets 

18 682 

34 459 

2 717 

1 470 

1 405 

1 405 

1 693 

1 739 

1 295 

Civic Land and Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other Buildings 

50 781 

77 464 

18 136 

24 673 

34 130 

34 130 

11 848 

3 636 

6 476 

Other Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus Assets - (Inv estment or Invent 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

193 186 

166 102 

27 494 

3 821 

3 653 

3 653 

11 233 

17 549 

19 589 

Aoricultural assets 










List sub-class 










Bioloqical assets 










List sub-class 










Intanqibles 

43 686 

68 005 

78 364 




40 245 

12 711 

12 952 

Computers - software & programming 

Other (list sub-class) 

43 686 

68 005 

78 364 

~ 

~ 

~ 

40 245 

12 711 

12 952 











Total Depreciation 

1 060 301 

1 128 587 

1 239 048 

1 113 786 

1 121 179 

1 121 179 

1 186 841 

1 262 245 

1 347 661 


Specialised vehicles 

87 243 

57 526 

(58) 

32 

31 

31 

_ 

_ 

_ 

Refuse 

Conserv ancy 

Ambulances 

87 243 

57 526 

(58) 

32 

31 

31 

- 

- 

- 


page I 158 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 73: MBRR SA35 - Future financial implications of the capital budget 


Vote Description 

2015/16 Medium Term Revenue & 

Expenditure Framework 


Forecasts 


R thousand 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Forecast 

2018/19 

Forecast 

2019/20 

Forecast 

2020/21 

Present 

value 

Capital expenditure 








City Planning and Development 

30 000 

10 000 

20 000 

- 

- 

- 


Corporate & Shared Services 

23 407 

39 900 

35 000 

40 000 

50 000 

50 000 


Economic Development 

78 000 

103 000 

103 000 

30 000 

40 000 

40 000 


Emergency Services 

6 000 

6 000 

6 000 

20 000 

20 000 

20 000 


Environmental Management 

103 000 

127 000 

105 000 

89 500 

79 500 

43 500 


Group Financial Services 

35 250 

25 000 

40 000 

25 000 

30 000 

30 000 


Housing & Human Settlement 

670 500 

688 885 

719 258 

719 258 

719 258 

719 258 


Group Information & Communication Te 

172 273 

155 700 

140 500 

135 000 

135 000 

135 000 


Metro Police Services 

10 000 

10 000 

10 000 

30 000 

30 000 

30 000 


Office of the City Manager 

280 000 

280 000 

290 000 

290 000 

290 000 

290 000 


Sen/ ice Delivery and Transformation 

- 

- 

- 

- 

- 

- 


Water and Sanitation Department 

355 000 

322 329 

335 688 

300 000 

315 000 

315 000 


Energy and Electricity Department 

447 500 

580 171 

659 812 

654 500 

695 000 

695 000 


Transport 

1 473 085 

1 477 854 

1 531 868 

1 556 868 

1 636 868 

1 636 868 


Other Votes 

List entity summary if applicable 

172 551 

166 000 

166 000 

214 000 

123 500 

27 000 


Total Capital Expenditure 

Future operational costs bv vote 

City Planning and Development 

Corporate & Shared Services 

Economic Development 

Emergency Sen/ ices 

Environmental Management 

Group Financial Services 

Housing & Human Settlement 

Group Information & Communication Te 

Metro Police Services 

Office of the City Manager 

Sen/ice Delivery and Transformation 

Water and Sanitation Department 

Energy and Electricity Department 

Transport 

Other Votes 

List entity summary if applicable 

3 856 566 

3 991 839 

4 162 126 

4 104 126 

4 164 126 

4 031 626 


Total future operational costs 

Future revenue bv source 

Property rates 

Property rates - penalties & collection charges 

Service charges - electricity revenue 

Sen/ ice charges - water revenue 

Sen/ ice charges - sanitation revenue 

Sen/ice charges - refuse revenue 

Sen/ ice charges - other 

Rental of facilities and equipment 

List other revenues sources if applicable 

List entity summary if applicable 








Total future revenue 

- 

- 

- 

- 

- 

- 

- 

Net Financial Implications 

3 856 566 

3 991 839 

4 162 126 

4 104 126 

4 164 126 

4 031 626 

- 


page I 159 


Table 74: MBRR SA36 - Detailed capital budget per municipal vote 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


I 

f 

New or 

renewal 

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5 000 

20 000 

30 000 

5 000 

6 000 

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i« 

8000 

5 000 

30000 

5 000 

4 900 

87 100 

is 

1'1 1 1 ''''6 !l!!!!!s 

03 8 10 £ 

I 

1 

1 

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8 000 

5 000 

500 

500 

20 000 

300 

300 

4 000 

1 164 

8 572 

4 500 

500 

1000 

1000 

20 000 

I 1 

3 024 

3 149 

887 

496 

491 

483 

26 453 

58 322 

4 431 

(1 097) 

(14) 

9 398 

1 153 

2 150 

500 

1000 

2 000 

i 

1 

ill 8 § 1 § § iii i § 1 . • 8 § !§§!!§§§ 1 8 

£ 03 - " s'-" - - " » s ® n » a § s s » 


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5 

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fils 

s « s 

8 8 

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S25 50.277 E28 11.859, S25 49. 173 

E28 16.183, S25 34.002 E27 59.631, 

S25 46.701 E28 15.463, S25 42.769 

E28 12.685, S25 27.467 E28 06.790, 

S25 37.459 E28 05.675, S25 44.098 E 

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page I 160 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


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page I 161 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 162 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 163 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


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page I 164 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


II 


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page I 165 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


II 


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page I 166 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


( : 

11 

lillliililiiiiiMiiiiiiiiiiiiiilin i i i 1 1 1 1 1 1 1 1 1 ! 1 ! 

1 

I 

29 

29 

52 

52 

15, 18, 23, 40 

15, 18 23, 40 

15, 18, 23, 40 

25 

25 

10, 17 

10, 17 

73, 74 

73,74 

73, 74 

8 95 

42,56 

42,56 

5 

5 

74, 75 

74, 75 

74, 75 

30, 31, 32 

30, 31, 32 

30, 31, 32 

30, 31, 32 

64,65 

6, 10, 15, 16, 17, 18 23, 28, 38, 4t 

6, 10, 15, 16, 17, 18 23, 28, 38, 41 

19, 20, 21, 22, 30, 31, 32 

19, 20, 21, 22, 30, 31, 32 

19, 20, 21, 22, 30, 31, 32 

19, 20, 21, 22, 30, 31, 32 

57, 65, 69 

57, 65, 69 

8 13, 95 

8 13, 95 

8 13, 95 

11, 26, 29, 88, 94 

11, 26, 29, 88, 94 

11, 26, 29, 88, 94 

11, 26, 29, 88, 94 

19, 20, 21, 22 

19, 20, 21, 22 

19, 20, 21, 22 

1 

ll 

i 

i 


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'V.cv,', ” £ 8 8 S ^ 

1 ' 

s 

P 

2 000 

2 000 

40 000 

10 000 

5 000 

100 

12 000 

15 000 

10 000 

10 000 

100 000 

1000 

1 ' § 1 1 ' 1 ' 

" a " s “ 

}i 

55000 

550 

20000 

200 

1000 

1000 

25 000 

20000 

1000 

• ■ 5 1 £ - ! ■ 

§ fe 8! 

1 

1 

1 

i! 

28 000 

8 000 

3 000 

2 000 

136 000 

279 327 

600 

26 000 

127 349 

r 

12 872 

1 119 

7 200 

8 184 

100 

5101 

14 519 

4 676 

104 796 

87 046 

11821 

9 434 

9 705 

27 769 

8 613 

Si 

4 000 

3 000 

30 000 

400 

1000 

5 000 

100 

15 000 

15 000 

5 000 

15 000 

I 

-91386.739,-2821375.050 

-91386. 739; -2821375. 050 

Tshwane Wide 

-94028.013;-2858128. 592 

25°43'43’S 28°22'6"E 

25°43'4TS 28°22'6”E 

25°43'43"S 28°22'6"E 

28:07:30 E, 25:27:15 S 

28:07:30 £ 25:27:15 S 

25:24:00 S, 28:07:00 E 

25:24:00 S, 28:07:00 E 

28:19:52 E& 25:24:31 S 

28:15:43 E, 25:22:39 S 

28:15:43 E, 25:22:39 S 

28:15:43 E, 25:22:39 S 

25:35:49 S, 27:59:00 E 

25:35:49 S, 27:59:00 E 

25:33:11 S, 27:5 9:31 E 

25:33:11 S, 27:5 9:31 E 

25:36:30 S, 28:01:00 E 

25:30:30 S, 28:03:00 E 

25:36:30 S, 28:01:00 E 

25:30:30 S, 28:03:00 E 

25:36:30 S, 28:01:00 E 

25:30:30 S, 28:03:00 E 

28'11'00'E; 25'50'00S 

28'11'00'E; 25'50'00S 

25°23'00"S 28°09'00"E 

25 °28'14’S 28°05'49"E 

25-28'14'S 28°05'49-E 

25°28'14"S 28°05'49"E 

25°28'14"S 28°05'49"E 

Asset Sub-Class 

3 

ft tit mi 1 1 1 

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Provide Bus And Taxi Lay-Bye’s & Shelters 

lllilii 1: 

llliinmiHi 

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111!!;;; 

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1 ' 

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S 

I 

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page I 167 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 168 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 169 


Table 75: MBRR SA37 - Projects delayed from previous financial year 


The City of Tshwane Metropolitan Municipality 


2015/16 Medium-term 


Revenue and Expenditure Framework 


(MTREF) 



page I 170 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.13 STATUS OF COMPLIANCE WITH LEGISLATION 

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

In-year reporting 

Reporting to the National Treasury in electronic format is fully complied with on a monthly basis. Section 
71 reporting to the Executive Mayor (within ten working days) includes monthly publishing on the City 
of Tshwane’s website. Furthermore, in compliance with the National Treasury regulation published in 
Government Gazette 321 41 , the monthly in-year financial reports are submitted to the Executive Mayor 
and on a quarterly basis to the Council. 

Internship programme 

With effect from 1 July 2014, the City employed 6 Financial Management Interns. Currently the City is 
in the process to re-affirm it’s commitment to the Municipal Financial Management Intern Programme 
(MFMIP) as approved by Council on the 27 November 2003 to appoint 8 Financial Management Interns 
and to request approval to increase the number of interns to 15 in the current MFMIP. 

Budget and Treasury Office 

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

Audit Committee: 

An audit committee has been established. 

SDBIP 

The SDBIP document is at a draft stage and will be finalised after approval of the 2015/16 MTREF. 

MFMA Regulations on municipal minimum competency levels 

The City of Tshwane took a structured approach through which the targeted group completed the 
required unit standards training through an external service provider. All subsequent appointments as 
required to complete the minimum competency requirements were within a specified timeframe as part 
of their performance agreements. 

The Tshwane Leadership and Training Academy regularly reports to the National Treasury concerning 
this process and progress made in this regard. 


page I 171 





The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.14 MUNICIPALITY SUPPORTING TABLES 


Table 76: MBRR SA1 - Supporting detail to budgeted financial performance 



page I 173 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 77: MBRR SA1 - Consolidated supporting detail to budgeted financial performance 



page I 174 


Table 78: MBRR SA2 - Matrix financial performance budget (revenue source/expenditure type and department) 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 175 


Table 79: MBRR SA2 - Consolidated Matrix Financial Performance Budget (revenue source/expenditure type and department) 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 176 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 80: MBRR SA3 - Supporting detail to statement of financial position 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousand 










ASSETS 










Call investment deposits 










Call deposits < 90 days 

323 852 

636 003 

622 949 

2 444 942 

975 775 

975 775 

1 632 226 

2 640 642 

4 185 508 

Other current investments > 90 days 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Call investment deposits 

323 852 

636 003 

622 949 

2 444 942 

975 775 

975 775 

1 632 226 

2 640 642 

4 185 508 

Consumer debtors 










Consumer debtors 

5 336 498 

6 483 715 

7 092 062 

7 163 576 

7 379 845 

7 379 845 

7 910 879 

9 080 154 

10 351 690 

Less: Provision for debt impairment 

(2 587 889) 

(3 353 296) 

(4 573 250) 

(3 977 299) 

(4 851 804) 

(4 851 804) 

(5 069 920) 

(5 967 670) 

(7 018 551) 

Total Consumer debtors 

2 748 609 

3 130 419 

2 518 812 

3 186 277 

2 528 040 

2 528 040 

2 840 959 

3 112 484 

3 333 139 

Debt impairment provision 










Balance at the beginning of the year 

1 932 890 

2 587 889 

3 353 296 

3 811 865 

4 525 609 

4 525 609 

4 851 804 

5 069 920 

5 967 670 

Contributions to the provision 

654 999 

765 407 

1 172 313 

565 434 

676 196 

676 196 

1 018 116 

1 697 750 

1 850 881 

Bad debts written off 

- 

- 

- 

(400 000) 

(350 000) 

(350 000) 

(800 000) 

(800 000) 

(800 000) 

Balance at end of year 

2 587 889 

3 353 296 

4 525 609 

3 977 299 

4 851 804 

4 851 804 

5 069 920 

5 967 670 

7 018 551 

Property, plant and eauipment (PPE) 










PPE at cost/v aluation (ex cl. finance leases) 

25 077 791 

29 542 862 

34 054 998 

38 153 291 

38 443 779 

38 443 779 

42 300 346 

46 292 185 

50 454 311 

Leases recognised as PPE 

392 780 

189 360 

135 105 

802 704 

518 107 

518 107 

1 457 468 

2 870 578 

3 282 171 

Less: Accumulated depreciation 

5 958 162 

7 006 336 

8 082 854 

9 117 160 

9 218 280 

9 218 280 

10 360 603 

11 576 278 

12 886 215 

Total Property, plant and equipment (PPE) 

19 512 410 

22 725 887 

26 107 250 

29 838 835 

29 743 606 

29 743 606 

33 397 210 

37 586 486 

40 850 268 

LIABILITIES 










Current liabilities - Borrowing 










Short term loans (other than bank overdraft) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Current portion of long-term liabilities 

475 667 

619 759 

520 078 

792 374 

538 032 

538 032 

586 936 

709 602 

863 077 

Total Current liabilities - Borrowing 

475 667 

619 759 

520 078 

792 374 

538 032 

538 032 

586 936 

709 602 

863 077 

Trade and other pavables 










Trade and other creditors 

4 477 438 

5 243 420 

5 207 107 

5 299 518 

5 085 602 

5 085 602 

4 927 271 

5 226 246 

5 550 761 

Unspent conditional transfers 

317 811 

125 330 

132 498 

- 

13 250 

13 250 

- 

- 

- 

VAT 

281 845 

91 975 

45 916 

102 371 

46 835 

46 835 

49 551 

52 276 

55 047 

Total Trade and other payables 

5 077 093 

5 460 726 

5 385 522 

5 401 889 

5 145 687 

5 145 687 

4 976 822 

5 278 522 

5 605 808 

Non current liabilities - Borrowing 










Borrow ing 

6 085 749 

7 764 125 

8 787 664 

9 338 213 

9 620 234 

9 620 234 

10 289 497 

10 700 272 

11 239 675 

Finance leases (including PPP asset element) 

180 512 

13 144 

210 

659 01 1 

302 274 

302 274 

1 176 886 

2 505 822 

2 807 988 

Total Non current liabilities - Borrowing 

6 266 261 

7 777 269 

8 787 874 

9 997 223 

9 922 508 

9 922 508 

11 466 383 

13 206 094 

14 047 662 

Provisions - non-current 










Retirement benefits 

1 587 377 

1 755 108 

1 955 901 

1 840 771 

2 017 738 

2 017 738 

2 247 424 

2 485 148 

2 730 718 

List other major provision items 

Clearing of Alien Vegatation 

25 362 

26 436 

44 179 

29 424 

46 609 

46 609 

49 312 

52 025 

54 782 

Rehabilitation of Landfill Sites 

184 606 

210 325 

373 677 

263 077 

442 641 

442 641 

514 594 

589 784 

668 208 

Rehabilitation of Quarries 

5 903 

5 840 

27 835 

7 274 

31 851 

31 851 

36 116 

40 573 

45 222 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Provisions - non-current 

1 803 247 

1 997 709 

2 401 592 

2 140 546 

2 538 839 

2 538 839 

2 847 446 

3 167 530 

3 498 930 

CHANGES IN NET ASSETS 










Accumulated Surplus/(Deficit) 










Accumulated S urplus/( Deficit) - opening balance 

1 877 166 

1 1 068 766 

13 176 275 

15 661 249 

14 245 580 

14 245 580 

17 411 281 

20 439 821 

23 598 185 

GRAP adjustments 

347 121 

273 144 

- 

- 

- 

- 

- 

- 

- 

Restated balance 

2 224 287 

11 341 910 

13 176 275 

15 661 249 

14 245 580 

14 245 580 

17 411 281 

20 439 821 

23 598 185 

Surplus/ (Deficit) 

1 981 003 

1 828 830 

953 322 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Appropriations to Reserves 

- 

5 535 

115 983 

177 377 

130 623 

130 623 

130 466 

130 487 

130 508 

Transfers from Reserves 

(3 065) 

- 

- 

(178 000) 

(109 280) 

(109 280) 

(140 000) 

(140 000) 

(140 000) 

Depreciation offsets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other adjustments 

7 354 260 

- 

- 

- 

- 

- 

- 

- 

- 

Accumulated Surplus/(Deficit) 

11 556 485 

13 176 275 

14 245 580 

19 304 554 

17 411 281 

17 411 281 

20 439 821 

23 598 185 

27 054 360 

Reserves 










Housing Development Fund 

128 851 

156 443 

156 443 

156 443 

156 443 

156 443 

156 443 

156 443 

156 443 

Capital replacement 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Self-insurance 

109 653 

58 164 

25 021 

135 415 

25 644 

25 644 

26 110 

26 597 

27 105 

COID Reserve 

131 649 

150 012 

67 172 

64 189 

87 892 

87 892 

77 892 

67 892 

57 892 

Revaluation 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Total Reserves 

370 154 

364 618 

248 635 

356 047 

269 978 

269 978 

260 444 

250 931 

241 439 

TOTAL COMMUNITY WEALTH/EQUITY 

1 1 926 638 

1 3 540 893 

14 494 215 

19 660 601 

17 681 259 

17 681 259 

20 700 266 

23 849 1 1 6 

27 295 799 


page 


I 177 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 81 : MBRR SA3 - Consolidated supporting detail to budgeted financial position 


Description 

R thousand 

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 

ASSETS 

Call investment deposits 










Call deposits < 90 days 

323 852 

636 003 

622 949 

2 445 442 

976 275 

976 275 

1 632 776 

2 641 247 

4 186 173 

Other current investments > 90 days 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Call investment deposits 

323 852 

636 003 

622 949 

2 445 442 

976 275 

976 275 

1 632 776 

2 641 247 

4 186 173 

Consumer debtors 










Consumer debtors 

5 679 638 

6 500 164 

7 108 002 

7 180 967 

7 394 954 

7 394 954 

7 927 688 

9 098 566 

10 371 949 

Less: Provision for debt impairment 

(2 945 403) 

(3 353 296) 

(4 573 250) 

(3 977 299) 

(4 851 804) 

(4 851 804) 

(5 069 920) 

(5 967 670) 

(7 018 551) 

Total Consumer debtors 

2 734 235 

3 146 868 

2 534 752 

3 203 668 

2 543 150 

2 543 150 

2 857 768 

3 130 896 

3 353 398 

Debt impairment provision 










Balance at the beginning of the year 

1 932 890 

2 587 889 

3 353 296 

3 811 865 

4 525 609 

4 525 609 

4 851 804 

5 069 920 

5 967 670 

Contributions to the provision 

654 999 

765 407 

1 172 313 

565 434 

676 196 

676 196 

1 018 116 

1 697 750 

1 850 881 

Bad debts written off 

- 

- 

- 

(400 000) 

(350 000) 

(350 000) 

(800 000) 

(800 000) 

(800 000) 

Balance at end of year 

2 587 889 

3 353 296 

4 525 609 

3 977 299 

4 851 804 

4 851 804 

5 069 920 

5 967 670 

7 018 551 

Property, plant and equipment (PPE) 










PPE at cosi/valuation (ex cl. finance leases) 

25 108 252 

29 659 172 

34 198 637 

38 173 097 

38 460 493 

38 460 493 

42 331 071 

46 321 964 

50 483 179 

Leases recognised as PPE 

544 185 

84 478 

9 932 

802 704 

518 107 

518 107 

1 457 468 

2 870 578 

3 282 171 

Less: Accumulated depreciation 

6 128 454 

7 006 336 

8 082 854 

9 117 160 

9 218 280 

9 218 280 

10 360 603 

11 576 278 

12 886 215 

Total Property, plant and equipment (PPE) 

19 523 983 

22 737 314 

26 125 715 

29 858 641 

29 760 320 

29 760 320 

33 427 936 

37 616 264 

40 879 135 

LIABILITIES 

Current liabilities - Borrowinq 










Short term loans (other than bank overdraft) 

- 

- 

- 

315 

315 

315 

315 

315 

315 

Current portion of long-term liabilities 

476 258 

620 201 

520 693 

792 374 

538 032 

538 032 

586 936 

709 602 

863 077 

Total Current liabilities - Borrowing 

476 258 

620 201 

520 693 

792 690 

538 347 

538 347 

587 251 

709 917 

863 393 

Trade and other pavables 










Trade and other creditors 

4 532 158 

5 291 937 

5 264 815 

5 360 630 

5 149 249 

5 149 249 

4 992 152 

5 295 384 

5 624 121 

Unspent conditional transfers 

319 664 

126 494 

134 328 

- 

13 250 

13 250 

- 

- 

- 

VAT 

281 849 

93 111 

48 988 

102 371 

46 835 

46 835 

49 551 

52 276 

55 047 

Total Trade and other payables 

5 133 671 

5 511 543 

5 448 131 

5 463 001 

5 209 333 

5 209 333 

5 041 703 

5 347 660 

5 679 168 

Non current liabilities - Borrowinq 










Borrow ing 

6 093 939 

7 766 930 

8 790 153 

9 340 386 

9 622 407 

9 622 407 

10 291 355 

10 701 814 

1 1 240 902 

Finance leases (including PPP asset element) 

175 575 

13 207 

701 

659 01 1 

302 274 

302 274 

1 176 886 

2 505 822 

2 807 988 

Total Non current liabilities - Borrowing 

6 269 514 

7 780 137 

8 790 854 

9 999 396 

9 924 681 

9 924 681 

11 468 241 

13 207 636 

14 048 889 

Provisions - non-current 










Retirement benefits 

1 587 377 

1 755 108 

1 955 901 

1 840 771 

2 017 738 

2 017 738 

2 247 424 

2 485 148 

2 730 718 

List other major provision items 










Clearing of Alien Vegatation 

184 606 

26 436 

44 179 

29 424 

46 609 

46 609 

49 312 

52 025 

54 782 

Rehabilitation of Landfill Sites 

5 903 

210 325 

373 677 

263 077 

442 641 

442 641 

514 594 

589 784 

668 208 

Rehabilitation of Quarries 

25 362 

5 840 

27 835 

7 274 

31 851 

31 851 

36 116 

40 573 

45 222 

Other 

- 

- 

3 

1 250 

1 250 

1 250 

550 

300 

350 

Total Provisions - non-current 

1 803 247 

1 997 709 

2 401 595 

2 141 796 

2 540 089 

2 540 089 

2 847 996 

3 167 830 

3 499 280 

CHANGES IN NET ASSETS 

Accumulated Surplus/fDeficit) 










Accumulated Surplus/ (Deficit) - opening balance 

1 915 999 

11 073 381 

13 238 924 

15 702 886 

14 275 550 

14 275 550 

17 439 150 

20 475 203 

23 643 154 

GRAP adjustments 

345 070 

306 558 

- 

- 

- 

- 

- 

- 

- 

Restated balance 

2 261 070 

11 379 939 

13 238 924 

15 702 886 

14 275 550 

14 275 550 

17 439 150 

20 475 203 

23 643 154 

Surplus/(Deficit) 

1 974 196 

1 853 450 

943 164 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Appropriations to Reserves 

- 

5 535 

115 983 

177 377 

130 623 

130 623 

130 466 

130 487 

130 508 

Transfers from Reserves 

(3 065) 

- 

- 

(178 000) 

(109 280) 

(109 280) 

(140 000) 

(140 000) 

(140 000) 

Depreciation offsets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other adjustments 

7 354 260 

- 

- 

- 

- 

- 

- 

- 

- 

Accumulated Surplus/(Deficit) 

11 586 460 

1 3 238 924 

14 298 071 

19 346 192 

17 441 251 

17 441 251 

20 467 690 

23 633 566 

27 099 329 

Reserves 










Housing Development Fund 

128 851 

156 443 

156 443 

156 443 

156 443 

156 443 

156 443 

156 443 

156 443 

Capital replacement 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Self-insurance 

109 653 

58 164 

25 021 

135 415 

25 644 

25 644 

26 110 

26 597 

27 105 

COID Reserve 

131 649 

150 012 

67 172 

64 189 

87 892 

87 892 

77 892 

67 892 

57 892 

Revaluation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Reserves 

370 154 

364 618 

248 635 

356 047 

269 978 

269 978 

260 444 

250 931 

241 439 

TOTAL COMMUNITY WEALTH/EQUITY 

11 956 614 

1 3 603 542 

14 546 706 

19 702 239 

17 711 230 

17 711 230 

20 728 135 

23 884 497 

27 340 768 


page I 178 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 82: MBRR SA4 - Consolidated Reconciliation of IDP strategic objectives and budget 
(revenue) 


Strategic Objective 

R thousand 

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 

Provide sustainable services infrastructure and human 

11 594 166 

12 138 003 

13 090 860 

15 425 584 

15 490 659 

15 490 659 

16 728 669 

18 122 478 

19 615 852 

settlement 










Promote shared economic growth and job creation 

28 537 

22 808 

0 

39 590 

47 644 

47 644 

44 531 

13 106 

13 270 

Ensure sustainable, safer communities and integrated 

533 431 

560 720 

661 129 

617 767 

725 496 

725 496 

667 276 

685 264 

705 121 

social development 










Promote good governance and an active citizenry 

49 494 

40 371 

35 451 

78 620 

202 610 

202 610 

58 570 

40 243 

35 796 

Improved financial sustainability 

6 574 090 

6 647 743 

7 219 497 

7 973 119 

7 927 041 

7 927 041 

8 581 056 

9 451 414 

10 356 319 

Continued institutional development, transformation and 

141 741 

174 227 

268 416 

804 803 

717 512 

717 512 

215 729 

217 722 

228 920 

innovation 










Allocations to other priorities 










Total Revenue (excluding capital transfers and cont 

18 921 460 

19 583 872 

21 275 353 

24 939 484 

25 110 962 

25 110 962 

26 295 831 

28 530 226 

30 955 278 


Table 83: MBRR SA5 - Consolidated Reconciliation of IDP strategic objectives and budget 
(operating expenditure) 


Strategic Objective 

R thousand 

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 

Provide sustainable services infrastructure and human 

12 078 270 

12 708 865 

14 461 820 

15 203 712 

15 784 425 

15 784 425 

16 395 045 

17 945 568 

19 162 502 

settlement 










Promote shared economic growth and job creation 

437 195 

536 583 

693 778 

870 506 

1 063 846 

1 063 846 

836 792 

865 197 

894 823 

Ensure sustainable, safer communities and integrated 

2 442 324 

2 634 828 

3 036 809 

2 839 094 

3 023 942 

3 023 942 

3 620 842 

3 709 683 

3 908 380 

social development 










Promote good governance and an active citizenry 

1 168 765 

1 490 394 

1 854 597 

2 613 377 

2 645 948 

2 645 948 

2 558 313 

2 621 453 

2 745 579 

Improved financial sustainability 

1 124 192 

1 465 923 

1 323 221 

1 426 184 

1 248 214 

1 248 214 

1 537 362 

1 934 160 

2 575 899 

Continued institutional development, transformation and 

921 174 

1 044 256 

1 074 672 

887 082 

823 342 

823 342 

762 562 

793 227 

834 554 

Allocations to other priorities 










Total Expenditure 

18 171 921 

19 880 850 

22 444 898 

23 839 956 

24 589 717 

24 589 717 

25 710 916 

27 869 289 

30 121 737 


page I 179 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 84: MBRR SA8 - Consolidated performance indicators and benchmarks 


Description of financial indicator 

Basis of calculation 

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 

Borrowinq Manaqement 











Credit Rating 


AA3 (Stable) 

AA3 (Stable) 

A1- 

Prime-1, za 

Prime-1, za 

Prime-1. za 




Capital Charges to Operating 
Expenditure 

Interest & Principal Paid /Operating 
Expenditure 

5,2% 

15,6% 

6,9% 

6,4% 

5,9% 

5,9% 

6,2% 

6,4% 

6,7% 

Capital Charges to Own Revenue 

Finance charges & Repayment of 
borrowing /Own Revenue 

5,7% 

18,3% 

8,4% 

7,0% 

6,7% 

6,7% 

7,0% 

7,3% 

7,6% 

Borrowed funding of 'own' capital 
expenditure 

Borrow ing/Capitai expenditure excl. 
transfers and grants and contributions 

54,1% 

179,1% 

79,2% 

97,2% 

88,8% 

88,8% 

97,2% 

88,9% 

107, 1% 

Safety of Capital 











Gearing 

Long Term Borrowing/ Funds & 

Reserves 

1693,8% 

2133,8% 

3535,6% 

2808,4% 

3676,1% 

3676,1% 

4403,3% 

5263,4% 

5818,8% 

Liquidity 











Current Ratio 

Current assets/current liabilities 

0,8 

0,9 

0,7 

1,1 

0,8 

0,8 

1,0 

1,2 

1,4 

Current Ratio adjusted lor aged 

debtors 

Current assets less debtors > 90 

days/current liabilities 

0,8 

0,9 

0,2 

0,6 

0,3 

0,3 

0,4 

0,6 

0,8 

Liquidity Ratio 

Monetary Assets/Current Liabilities 

0,2 

0,2 

0,1 

0,4 

0,2 

0,2 

0,3 

0,4 

0,6 

Revenue Manaqement 











Annual Debtors Collection Rate 

(Payment Level %) 

Last 12 Mths Receipts/Last 12 Mths 
Billing 


107,5% 

100,5% 

106,4% 

106,1% 

105,3% 

105,3% 

92,0% 

91,7% 

Current Debtors Collection Rate 


107,5% 

100,5% 

106,4% 

105,8% 

105,1% 

105,1% 

91,8% 

91,7% 

91,8% 

(Cash receipts % of Ratepayer & 
Other revenue) 











Outstanding Debtors to Revenue 

Total Outstanding Debtors to Annual 

Revenue 

19,0% 

20,0% 

16,3% 

16,6% 

14,3% 

14,3% 

15,2% 

15,2% 

14,9% 

Longstanding Debtors Recovered 

Debtors > 12 Mths Recovered/Total 

Debtors >12 Months Old 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

Creditors Manaqement 











Creditors System Efficiency 

% of Creditors Paid Within Terms 

(within MFMA' s 65(e)) 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

Creditors to Cash and Investments 


468,3% 

384,3% 

621,0% 

199,0% 

427,9% 

427,9% 

266,4% 

182,3% 

125,7% 

Other Indicators 












Total Volume Losses (kW) 

908 355 000 

1 107 059 543 

1 401 294 674 

1 223 540 000 

1 223 540 000 

1 223 540 000 

1 211 305 000 

1 199 190 000 

1 199 190 000 

Electricity Distribution Losses (2) 

Total Cost of Losses (Rand WO) 

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

376 

623 

819 

791 

791 

791 

846 

905 

905 


purchased and generated 

12,1% 

11,0% 

14,3% 

10,0% 

10,0% 

10,0% 

10,0% 

9,0% 

9,0% 


Total Volume Losses (kt) 

70 167 000 

75 112 366 

59 240 906 

83 009 000 

83 009 000 

83 009 000 

83 009 000 

82 179 000 

82 179 000 

Water Distribution Losses (2) 

Total Cost of Losses (Rand WO) 

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

256 

376 

326 

457 

457 

457 

493 

537 

537 


purchased and generated 

25,5% 

23,6% 

20,7% 

23,6% 

23,5% 

23,5% 

23,1% 

22,6% 

22,1% 

Employee costs 

Employee costs/(Total Revenue - 
capital revenue) 

25,4% 

27,2% 

28,6% 

26,5% 

25,9% 

25,9% 

26,8% 

26,1% 

25,4% 

Remuneration 

Total remuneration/ (Total Revenue - 
capital revenue) 

26,3% 

28,6% 

30,1% 

27,2% 

26,6% 

26,6% 

28,2% 

27,5% 

26,7% 

Repairs & Maintenance 

R&M/(Total Revenue excluding capital 
revenue) 

6,3% 

7,2% 

6,1% 

6,2% 

6,0% 

6,0% 

5,8% 

5,5% 

5,2% 

Finance charges & Depreciation 

FC&D/(Total Revenue - capital 
revenue) 

9,0% 

9,5% 

9,7% 

8,1% 

8,2% 

8,2% 

8,4% 

8,3% 

8,2% 

IDP requlation financial viability 

indicators 











/. Debt coverage 

(Total Operating Revenue - Operating 
Grants)/Debt service payments due 
within financial year) 

6,8 

21,7 

25,2 

35,4 

35,4 

35,4 

24,8 

23,0 

24,9 

ii.O/S Service Debtors to Revenue 

Total outstanding service 

debtors/annual revenue received ibr 

services 

24,9% 

24,2% 

19,9% 

20,3% 

17,4% 

17,4% 

18,1% 

17,9% 

17,6% 

Hi. Cost coverage 

(Available cash + lnvestments)/monthly 
fixed operational expenditure 

0,7 

1,1 

0,5 

1,5 

0,7 

0,7 

1,0 

1,4 

2,0 


page I 180 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 85: MBRR SA9 - Social, economic and demographic statistics and assumptions 


Description of economic indicator 

Basis of calculation 

2001 Census 

2007 Survey 

2011 Census 

2011/12 

2012/13 

2013/14 

Current Year 

2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Outcome 

Outcome 

Outcome 

Original 

Budget 

Outcome 

Outcome 

Outcome 

Demographies 












Population 

Census 201 1 

1986 

2 346 

2 921 

2 921 

2 921 

2 921 

2 921 

2 921 

2 921 

2 921 

Females aged 5 - 14 

Census 2011 

171 

251 

200 

200 

200 

200 

200 

200 

200 

200 

Males aged 5 - 14 

Census 201 1 

161 

236 

204 

204 

204 

204 

204 

204 

204 

204 

Females aged 15-34 

Census 2011 

416 

441 

583 

583 

583 

583 

583 

583 

583 

583 

Males aged 15-34 

Census 201 1 

391 

415 

603 

603 

603 

603 

603 

603 

603 

603 

Unemployment 

Census 2011 

306 

334 

345 

345 

345 

345 

345 

345 

345 

345 

Monthly household income (no. of 












households) 












No income 

Census 2011 

92 522 

- 

135 819 

135 819 

135 819 

13 5 819 

135 819 

13 5 819 

13 5 819 

135 819 

R1 - R1 600 

Census 201 1 

185 450 

- 

161 342 

161 342 

161 342 

161 342 

161 342 

161 342 

161 342 

161 342 

R1 601 - R3 200 

Census 2011 

93 352 

- 

141 288 

141 288 

141 288 

141 288 

141 288 

141 288 

141 288 

141 288 

R3 201 - R6 400 

Census 201 1 

80 288 

- 

121 234 

121 234 

121 234 

121 234 

121 234 

121 234 

121 234 

121 234 

R6 401 - R12 800 

Census 2011 

69 247 

- 

107 561 

107 561 

107 561 

107 561 

107 561 

107 561 

107 561 

107 561 

R12 801 - R25 600 

Census 201 1 

52 129 

- 

103 004 

103 004 

103 004 

103 004 

103 004 

103 004 

103 004 

103 004 

R25 601 - R51 200 

Census 2011 

22176 

- 

84 773 

84 773 

84 773 

84 773 

84 773 

84 773 

84 773 

84 773 

R52 201 - R102 400 

Census 201 1 

5 839 

- 

41019 

41 019 

41 019 

41 019 

41 019 

41 019 

41 019 

41019 

R102 401 - R204 800 

Census 2011 

2 974 

- 

10 938 

10938 

10 938 

10 938 

10 938 

10 938 

10 938 

10 938 

R204 801 - R409 600 

Census 201 1 

2 048 

- 

4 558 

4 558 

4 558 

4 558 

4 558 

4 558 

4 558 

4 558 

R409 601 - R819 200 

Census 2011 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

> R819 200 

Census 201 1 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Unspecified 












Poverty profiles (no. of households) 












< R2 060 per household per month 












Insert description 

Indigent policy 

See Note 

See Note 

See Note 

See Note 

See Note 

See Note 

See Note 

See Note 

See Note 

See Note 

Household/demoqraphics (000) 












Number of people in municipal area 

Census 201 1 

1986 

2 346 

2 921 

2 921 

2 921 

2 921 

2 921 

2 921 

2 921 

2 921 

Number of poor people in municipal area 

Census 2011 

1986 

2 346 

2 921 

2 921 

2 921 

2 921 

2 921 

1325 

1325 

2 921 

Number of households in municipal area 

Census 201 1 

606 

687 

912 

912 

912 

912 

912 

912 

912 

912 

Number of poor households in municipal area 

Census 2011 

371 

- 

413 

413 

413 

413 

413 

413 

413 

413 

Definition of poor household (R per month) 

Census 201 1 

~ 

~ 

~ 

2100 

2 280 

2 520 

2 740 

2 860 

2 980 

3100 

Housing statistics 












Formal 

Census 2011 

455 731 

486 141 

735 231 

735 231 

73 5 231 

735 231 

735 231 

735 231 

735 231 

735 231 

Informal 

Census 201 1 

150 294 

200 499 

176 305 

176 305 

176 305 

176 305 

176 305 

176 305 

176 305 

176 305 

Total number of households 


606 025 

686 640 

911 536 

911 536 

911 536 

911 536 

911 536 

911 536 

911 536 

911 536 

Dwellings provided by municipality 


- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Dwellings provided by province/s 


- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Dwellings provided by private sector 


- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total new housing dwellings 


- 


~ 

~ 

~ 

~ 

~ 

~ 

" 

~ 

Economic 












Infiation/infiation outlook (CPIX) 





5,5% 

5,9% 

5,1% 

6,2% 

5,8% 

5,5% 

5,3% 

Interest rate - borrowing 





10,5% 

9,0% 

9,0% 

9,0% 

10,5% 

10,5% 

10,5% 

Interest rate - investment 





8,0% 

8,0% 

8,0% 

8,0% 

8,0% 

8,0% 

8,0% 

Remuneration increases 





7,5% 

6,5% 

6,9% 

6,8% 

5,8% 

6,4% 

6,4% 

Consumption growth (electricity) 





0,0% 

0,5% 

0,0% 

0,0% 

-2,7% 

0,0% 

0,0% 

Consumption growth (water) 





0,0% 

3,0% 

0,0% 

1,5% 

0,5% 

0,0% 

0,0% 

Collection rates 












Property tax/service charges 





94,0% 

94,0% 

94,0% 

94,0% 

92,0% 

92,0% 

92,0% 

Rental of facilities & equipment 





100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

f 00, 0% 

100,0% 

Interest - external investments 





100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

100,0% 

Interest - debtors 





50,0% 

50,0% 

50,0% 

50,0% 

50,0% 

50,0% 

50,0% 

Revenue from agency services 





0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 

0,0% 


page I 181 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 85: MBRR SA9 - Social, economic and demographic statistics and assumptions 
(continued) 




2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Total municipal services 









Outcome 

Outcome 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 













Water: 











Piped water inside dwelling 

750 999 

838 090 

849 070 

857 190 

812 732 

812 732 

822 577 

822 577 

822 577 


Piped water inside yard (but not in dwelling) 

66 465 

- 

- 

- 

- 

- 

- 

- 

- 


Using public tap (at least min.service level) 

4 362 

60 800 

61 586 

60 856 

67 709 

67 709 

62 786 

62 786 

62 786 


Other water supply (at least min.service level) 

- 

- 

28 144 

30 144 

31 095 

31 095 

26 173 

26 173 

26 173 


Minimum Service Level and Above sub-total 

821 826 

898 890 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 


Using public tap (< min.service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Other water supply (< min.service level) 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 


No water supply 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Below Minimum Service Level sub-total 

9 214 

30 880 

- 

- 

- 

- 

- 


- 


Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 













Flush toilet (connected to sewerage) 

638 552 

758 260 

762 450 

767 450 

723 935 

723 935 

733 780 

733 780 

733 780 


Flush toilet (with septic tank) 

11 755 

- 

- 

- 

- 

- 

- 

- 

- 


Chemical toilet 

14 158 

- 

- 

- 

- 

- 

1 700 

1 700 

1 700 


Pit toilet (ventilated) 

132 171 

159 920 

176 35 0 

180 740 

158 965 

158 965 

176 056 

176 056 

176 056 


Other toilet prov isions (> min.service level) 

27 285 

- 

- 

- 



- 

- 



Minimum Service Level and Above sub-total 

823 921 

918 180 

93 8 800 

948 190 

882 900 

882 900 

911 536 

911 536 

911 536 


Bucket toilet 

- 

- 

- 

- 

9 071 

9 071 

- 

- 

- 


Other toilet provisions (< min.service level) 

- 

- 

- 

- 

7 589 

7 589 

- 

- 

- 


No toilet provisions 

7 119 

11 590 

- 

- 

11 976 

11 976 

- 

- 

- 


Below Minimum Service Level sub-total 

7 119 

11 590 

- 

- 

28 636 

28 636 

- 

- 

- 


Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 


Energy: 











Electricity (at least min.service level) 

601 125 

665 330 

831 780 

852 980 

807 179 

807 179 

828 300 

828 300 

828 300 


Electricity - prepaid (min.service level) 

175 290 

214 440 

- 

- 

- 

- 

- 

- 

- 


Minimum Service Level and Above sub-total 

776 415 

879 770 

831 780 

852 980 

807 179 

807 179 

828 300 

828 300 

828 300 


Electn'city (< min.service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Electricity - prepaid (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Other energy sources 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 


Below Minimum Service Level sub-total 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 


Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 


Refuse: 











Removed at least once a week 

717 091 

798 290 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 


Minimum Service Level and Above sub-total 

717 091 

798 290 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 


Removed less frequently than once a week 

51 807 

- 

- 

- 

- 

- 

- 

- 

- 


Using communal refuse dump 

4 609 

131 480 

- 

- 

- 

- 

- 

- 

- 


Using own refuse dump 

44 199 

- 

- 

- 

- 

- 

- 

- 

- 


Other rubbish disposal 

437 

- 

- 

- 

- 

- 

- 

- 

- 


No rubbish disposal 

12 897 

- 

- 

- 

- 

- 

- 

- 

- 


Below Minimum Service Level sub-total 

113 949 

131 480 

- 



- 

- 

- 

- 


Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 

Municipal in-house services 


2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 


Outcome 

Outcome 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 













Water: 











Piped water inside dwelling 

664 933 

787 740 

660 048 

806 840 

726 672 

726 672 

738 775 

738 775 

738 775 


Piped water inside yard (but not in dwelling) 

66 465 

- 

- 

- 

- 

- 

- 

- 

- 


Using public tap (at least min.service level) 

4 362 

60 800 

61 586 

60 856 

62 786 

62 786 

62 786 

62 786 

62 786 


Other water supply (at least min.service level) 

- 

- 

28 144 

30 144 

26 173 

26 173 

26 173 

26 173 

26 173 


Minimum Service Level and Above sub-total 

735 760 

848 5 40 

749 778 

897 840 

815 631 

815 631 

827 734 

827 734 

827 734 


Using public tap (< min.service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Other water supply (< min.service level) 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 


No water supply 

- 

- 

- 

- 

- 

- 

- 

- 



Below Minimum Service Level sub-total 

9 214 

30 880 

- 

- 

- 

- 

- 

- 

- 


Total number of households 

744 974 

879 420 

749 778 

897 840 

815 631 

815 631 

827 734 

827 734 

827 734 













Flush toilet (connected to sewerage) 

638 552 

758 260 

762 450 

775 840 

723 935 

723 935 

733 780 

733 780 

733 780 


Flush toilet (with septic tank) 

11 755 

- 

- 

- 

- 

- 

- 

- 

- 


Chemical toilet 

14 158 

- 

- 

- 

- 

- 

1 700 

1 700 

1 700 


Pit toilet (ventilated) 

132 171 

159 920 

176 350 

172 350 

158 965 

158 965 

176 056 

176 056 

176 056 


Other toilet prov isions (> min.service level) 

27 285 

- 

- 

- 

- 

- 

- 

- 



Minimum Service Level and Above sub-total 

823 921 

918 180 

938 800 

948 190 

882 900 

882 900 

911 536 

911 536 

911 536 


Bucket toilet 

- 

- 

- 

- 

9 071 

9 071 

- 

- 

- 


Other toilet provisions (< min.service level) 

- 

- 

- 

- 

7 589 

7 589 

- 

- 

- 


No toilet prov isions 

7 119 

11 590 

- 

- 

11 976 

11 976 

- 

- 

- 


Below Minimum Service Level sub-total 

7 119 

11 590 


- 

28 636 

28 636 

- 


- 


Total number of households 

831 040 

929 770 

938 800 

948 190 

911 536 

911 536 

911 536 

911 536 

911 536 


Energy: 











Electricity (at least min.service level) 

601 125 

665 330 

641 200 

657 648 

695 594 

695 594 

715 262 

715 262 

715 262 


Electn'city - prepaid (min.service level) 

175 290 

214 440 

- 

- 

- 

- 

- 

- 

- 


Minimum Service Level and Above sub-total 

776 415 

879 770 

641 200 

657 648 

695 594 

695 594 

715 262 

715 262 

715 262 


Electn'city (< min.service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Electricity - prepaid (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

- 

- 


Other energy sources 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 


Below Minimum Service Level sub-total 

54 625 

50 000 

107 020 

95 210 

104 357 

104 357 

83 236 

83 236 

83 236 


Total number of households 

831 040 

929 770 

748 220 

752 858 

799 951 

799 951 

798 498 

798 498 

798 498 


Refuse: 











Removed at least once a week 

717 091 

798 290 

611 300 

64f 000 

911 536 

911 536 

911 536 

911 536 

911 536 


Minimum Service Level and Above sub-total 

717 091 

798 290 

611 300 

641 000 

911 536 

911 536 

911 536 

911 536 

911 536 


Removed less frequently than once a week 

51 807 

- 

- 

- 

- 

- 

- 

- 

- 


Using communal refuse dump 

4 609 

131 480 

120 320 

92 320 

- 

- 

- 

- 

- 


Using own refuse dump 

44 199 

- 

- 

- 

- 

- 

- 

- 

- 


Other rubbish disposal 

437 

- 

- 

- 

- 

- 

- 

- 

- 


No rubbish disposal 

12 897 

- 

- 

- 

- 

- 

- 

- 

- 


Below Minimum Service Level sub-total 

113 949 

131 480 

120 320 

92 320 

- 


- 


- 


Total number of households 

831 040 

929 770 

731 620 

733 320 

911 536 

911 536 

911 536 

911 536 

911 536 


page I 182 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 85: MBRR SA9 - Social, economic and demographic statistics and assumptions 
(continued) 



page I 183 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 86: MBRR SA10 - Consolidated funding measurement 


Description 

MFMA 

section 

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 

Fundina measures 











Cash/cash equivalents at the year end - R'000 

18(1)b 

967 778 

1 376 971 

847 816 

2 693 236 

1 203 476 

1 203 476 

1 873 900 

2 904 557 

4 474 421 

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

18(1)b 

(1 647 838) 

(1 073 770) 

(2 240 949) 

276 492 

(1 501 757) 

(1 501 757) 

(735 346) 

(92 631) 

911 093 

Cash year end/monthly employee/supplier payments 

18(1)b 

0,7 

1,1 

0,5 

1,5 

0,7 

0,7 

1,0 

1,4 

2,0 

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


1 974 196 

1 854 568 

945 127 

3 643 928 

3 144 357 

3 144 357 

3 038 075 

3 167 876 

3 465 667 

Sen/ ice charge rev % change - macro CPIX target exclusive 

1S(1)a,(2) 

N.A. 

5,6% 

1,1% 

9,9% 

(8.5%) 

(6,0%) 

2,4% 

2,8% 

2,9% 

Cash receipts % of Ratepayer & Other revenue 

18(1)1,(21 

91,1% 

92,8% 

97,0% 

94,7% 

94,6% 

94,6% 

91,3% 

91,2% 

91,3% 

Debt impairment expense as a % of total billable revenue 

18(1)1, (2) 

6,5% 

6,1% 

8,4% 

3,4% 

3,9% 

3,9% 

5,0% 

7,6% 

7,6% 

Capital payments % of capital expenditure 

18(1)c;19 

150,0% 

99,5% 

108,6% 

96,3% 

97,3% 

97,3% 

98,1% 

98,3% 

98,3% 

Borrowing receipts % of capital expenditure (excl. transfers) 

18(1)c 

54,1% 

172,7% 

75,7% 

92,4% 

85,0% 

85,0% 

85,5% 

80,8% 

98,0% 

Grants % of Govt, legislated/gazetted allocations 

18(1)a 







104,3% 

104,1% 

103,9% 

Current consumer debtors % change - incr(decr) 

18(1)a 

N.A. 

8,8% 

(12,1%) 

19,3% 

(13,8%) 

(13,8%) 

11,6% 

7,9% 

6,9% 

Long term receivables % change - incr(decr) 

18(1)a 

N.A. 

10,6% 

3,8% 

33,1% 

(4,7%) 

(4,7%) 

17,5% 

7,4% 

8,1% 

R&M % of Property Plant & Equipment 

20(1)(vi) 

6,1% 

6,2% 

5,0% 

5,2% 

5,1% 

5,1% 

4,5% 

4,2% 

3,9% 

Asset renewal % of capital budget 

20(1) (vi) 

66,3% 

52,8% 

51,9% 

51,9% 

50,8% 

50,8% 

43,1% 

43,8% 

45,7% 


page I 184 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 87: Supporting SA11 - Property rates summary 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Valuation: 










Date of valuation: 

01/07/2007 

01/07/2007 

01/07/2007 

01/07/2013 






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. of data collectors (FTE) 

No. of internal valuers (FTE) 

No. of external valuers (FTE) 

No. of additional valuers (FTE) 

Valuation appeal board established? (Y/N) 

Implementation time of new valuation roll (mths) 

2008/09 

2008/09 

2008/09 

2013/14 



2013/14 



No. of properties 




603 064 

603 064 

603 064 

624 652 

- 

- 

No. of sectional title values 




138 331 

138 331 

138 331 

140 484 

- 

- 

No. of unreasonably difficult properties s7(2) 




- 

- 

- 

- 

- 

- 

No. of supplementary valuations 




74 496 

74 496 

74 496 

- 

- 

- 

No. of valuation roll amendments 




- 

- 

- 

- 

- 

- 

No. of objections by rate payers 




- 

3 475 

3 475 

- 

- 

- 

No. of appeals by rate payers 




3 475 

97 

97 

- 

- 

- 

No. of successful objections 




97 

- 

- 

- 

- 

- 

No. of successful objections > 10% 




- 

- 

- 

- 

- 

- 

Supplementary valuation 




- 

- 

- 

- 

- 

- 

Public service infrastructure value (Rm) 




- 

- 

- 

- 

- 

- 

Municipality owned property value (Rm) 




- 

- 

- 

- 

- 

- 

Valuation reductions: 










Valuation reducti'ons-public infrastructure (Rm) 




609 

609 

609 

628 

- 

- 

Valuation reducti'ons-nature reserves/park (Rm) 




- 

- 

- 

- 

- 

- 

Valuation reductions-mineral rights (Rm) 




- 

- 

- 

- 

- 

- 

Valuation reductions-RI 5,000 threshold (Rm) 




7 937 

7 937 

7 937 

8 105 

- 

- 

Valuation reductions-public worship (Rm) 




3 323 

3 323 

3 323 

3 477 

- 

- 

Valuation reductions-other (Rm) 




32 493 

32 493 

32 493 

33 482 

- 

- 

Total valuation reductions: 

- 

- 

- 

44 362 

44 362 

44 362 

45 692 

- 

- 

Total value used for rating (Rm) 




338 335 

338 335 

338 335 

339 833 

- 

- 

Total land value (Rm) 




8 792 

8 792 

8 792 

- 

- 

- 

Total value of improvements (Rm) 




- 

- 

- 

- 

- 

- 

Total market value (Rm) 




329 424 

329 424 

329 424 

339 833 

“ 

_ 

Ratinq: 










Residential rate used to determine rate for other 

categories? (Y/N) 

Differential rates used? (Y/N) 

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

Special rating area used? (Y/N) 

Phasing-in properties s21 (number) 

Rates policy accompanying budget? (Y/N) 

Fixed amount minimum value (R'000) 

Non-residential prescribed ratio si 9? (%) 










Rate revenue: 










Rate revenue budget (R '000) 




4 888 154 

4 888 154 

4 888 154 

5 236 387 

5 763 026 

6 342 328 

Rate revenue expected to collect (R'000) 




4 643 746 

4 692 627 

4 692 627 

4 817 476 

5 301 984 

5 834 941 

Expected cash collection rate (%) 




95,0% 

96,0% 

96,0% 

92,0% 

92,0% 

92,0% 

Special rating areas (R'000) 




- 

- 

- 

- 

- 

- 

Rebates, exemptions - indigent (R'000) 




- 

- 

- 

- 

- 

- 

Rebates, exemptions - pensioners (R'000) 




- 

- 

- 

- 

- 

- 

Rebates, exemptions - bona fide farm. (R'000) 




- 

- 

- 

- 

- 

- 

Rebates, exemptions - other (R'000) 




- 

- 

- 

- 

- 

- 

Phase-in reductions/discounts (R'000) 




- 

- 

- 

- 

- 

- 

Total rebates, exemptns,reductns, discs (R'000) 






- 

- 

~ 



page I 185 


Table 88: Supporting SA12a - Property rates by category (current year) 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Mining 

Props. 

21 


0,009380 

1 179 

1 120 

95,0% 




Public 

benefit 

organs. 

32 

2 2 

0,002350 

1 039 

987 

95,0% 




National 

Monum/ts 



0,0% 



Protect. 

Areas 



o 

o' 



Section 

8(2)(n) (note 
1) 




0,0% 




State trust 

land 

' 

0 

V/N 

V/N 

0 

o 

o" 



Comm. 

Land 

24 573 

8 792 

8 792 

8 792 

0,060860 

535 129 

508 373 

95,0% 



Formal & 

Informal 

Settle. 



0,0% 



Private 

owned 

towns 

251 

o to 

CO IN 

CO 

2 2 

0,070750 

23 367 

22 199 

95,0% 




Public 

service infra. 

2 804 

609 

609 

V/N 

V/N 

609 

0,0% 



Muni props. 

17 853 

1 

N/A 

N/A 

o 

o" 



State-owned 

1 414 

13 364 

N/A 

N/A 

4 794 

0,028300 

365 907 

347 611 

95,0% 



Farm props. 

17 930 

23 

21 462 

N/A 

N/A 

21 442 

0,002350 

50 388 

47 869 

95,0% 




Bus. & 

Comm. 

10 728 

2 514 

52 054 

N/A 

N/A 

52 054 

0,028300 

1 473 291 

1 399 626 

95,0% 



Indust. 

3 065 

531 

9 254 

N/A 

N/A 

9 254 

0,028300 

261 924 

248 828 

95,0% 



Resi. 

524 391 

135 262 

74 496 

3 475 

97 

5 

4 

Market 

Land & improved 

0 

Yes 

No 

Variable 

7 937 

3 323 

32 493 

231 975 

N/A 

N/A 

231 975 

0,009380 

2 175 930 

2 067 133 

95,0% 



Description 

1 Current Year 2014/15 1 

1 Valuation: 1 

No. of properties 

No. of sectional title property values 

No. of unreasonably difficult properties s7(2) 

No. of supplementary valuations 

Supplementary valuation (Rm) 

No. of valuation roll amendments 

No. of objections by rate-payers 

No. of appeals by rate-payers 

No. of appeals by rate-payers finalised 

No. of successful objections 

No. of successful objections > 10% 

Estimated no. of properties not valued 

Years since last valuation (select) 

Frequency of valuation (select) 

Method of valuation used (select) 

Base of valuation (select) 

Phasing-in properties s21 (number) 

Combination of rating types used? (Y/N) 

Flat rate used? (Y/N) 

Is balance rated by uniform rate/variable rate? 

Valuation reductions: 

Valuation reductions-public infrastructure (Rm) 

Valuation reductions-nature reserves/park (Rm) 

Valuation reductions-mineral rights (Rm) 

Valuation reductions-RI 5,000 threshold (Rm) 

Valuation reductions-public worship (Rm) 

Valuation reductions-other (Rm) 

Total valuation reductions: 

Total value used for rating (Rm) 

Total land value (Rm) 

Total value of improvements (Rm) 

Total market value (Rm) 

Rating: 

Average rate 

Rate revenue budget (R WO) 

Rate revenue expected to collect (R'000) 

Expected cash collection rate (%) 

Special rating areas (R'000) 

Rebates, exemptions - indigent (R'000) 

Rebates, exemptions - pensioners (R'000) 

Rebates, exemptions - bona tide form. (R'000) 

Rebates, exemptions - other (R'000) 

Phase-in reductions/discounts (R'000) 

Total rebates, exemptns,reductns, discs (R’000) 


page I 186 


Table 89: Supporting SA12b - Property rates by category (budget year) 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Mining 

Props. 

o 

CM 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 

9 

V/N 

V/N 

9 

0,010130 

164 

151 

92,0% 



Public 

benefit 

organs. 

31 

5 115 

0,002538 

1 059 

974 

92,0% 



National 

Monum/ts 



0,0% 

i i i i i 


Protect. 

Areas 

31 


O 

o' 



Section 

8(2)(n) (note 

D 



, . 

0,0% 

i i i i i 


State trust 

land 

727 

8 617 

N/A 

N/A 

8 617 

O 

o' 




Comm. 

Land 

24 481 

8 161 

N/A 

N/A 

8 161 

0,065729 

513 634 

472 543 

92,0% 




Formal & 

Informal 

Settle. 



, . 

O 

o' 




Private 

owned 

towns 

294 

N/A 

N/A 

oN 

O 

O' 




Public 

service infra. 

2 824 

628 

N/A 

N/A 

0,0% 




Muni props. 

23 020 

1 

N/A 

N/A 

o 

o' 




State-owned 

686 

4 783 

N/A 

N/A 

4 783 

0,030564 

139 971 

128 773 

92,0% 




Farm props. 

§ 05 i * i * i i i i i i i i i i i i 

oo 

21 273 

N/A 

N/A 

21 273 

0,002538 

51 541 

47 417 

92,0% 




Bus. & 

Comm. 

Ik 1111 i i i i i i 

O CM 

54 635 

N/A 

N/A 

54 635 

0,030564 

1 624 363 

1 494 414 

92,0% 




Indust. 

3 115 

539 

9 456 

N/A 

N/A 

9 456 

0,030564 

276 691 

254 555 

92,0% 




Resi. 

540 357 

137 188 

2 

4 

Market 

Land & improved 

0 

Yes 

No 

Variable 

8 105 

3 477 

33 482 

232 464 

N/A 

N/A 

232 464 

0,010130 

2 628 965 

2 418 648 

92,0% 



Description 

iBudaet Year 2015/16 1 

1 Valuation: 1 

No. of properties 

No. of sectional title property values 

No. of unreasonably difficult properties s7(2) 

No. of supplementary valuations 

Supplementary valuation (Rm) 

No. of valuation roll amendments 

No. of objections by rate-payers 

No. of appeals by rate-payers 

No. of appeals by rate-payers finalised 

No. of successful objections 

No. of successful objections > 10% 

Estimated no. of properties not valued 

Years since last valuation (select) 

Frequency of valuation (select) 

Method of valuation used (select) 

Base of valuation (select) 

Phasing-in properties s21 (number) 

Combination of rating types used? (Y/N) 

Flat rate used? (Y/N) 

Is balance rated by uniform rate/variable rate? 

Valuation reductions: 

Valuation reductions-public infrastructure (Rm) 

Valuation reducions-nature reserves/park (Rm) 

Valuation reductions-mineral rights (Rm) 

Valuation reductions-RI 5,000 threshold (Rm) 

Valuation reductions-public worship (Rm) 

Valuation reductions-other (Rm) 

Total valuation reductions: 

Total value used for rating (Rm) 

Total land value (Rm) 

Total value of improvements (Rm) 

Total market value (Rm) 

Rating: 

Average rate 

Rate revenue budget (R WO) 

Rate revenue expected to collect (R'000) 

Expected cash collection rate (%) 

Special rating areas (R'000) 

Rebates, exemptions - indigent (RWO) 

Rebates, exemptions - pensioners (R'000) 

Rebates, exemptions - bona fide farm. (R'000) 

Rebates, exemptions - other (R'000) 

Phase-in reductions/discounts (R'000) 

Total rebates, exemptns.reductns, discs (R'000) 


page I 187 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 90: Supporting SA13(a) - Service tariffs by category 



2. Forty to Fifty percent 

3. The 35% rebate was replaced by a lower tariff in the 2014/15 MTREF 


page I 188 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 91 : Supporting SA13(b) - Service tariffs by category - explanatory 


Description 

Provide description of tariff structure 

2011/12 

2012/13 

2013/14 

Current 

Year 

2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

where appropriate 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Exemptions, reductions and rebates (Rands) 









R15 000 threshhold rebate 









General residential rebate 


15 000 

15 000 

15 000 

15 000 

15 000 

15 000 

15 000 

Indigent rebate or exemption 

Note 1 

35 000 

35 000 

60 000 

60 000 

60 000 

60 000 

60 000 

Pensioners/social grants rebate or exemption 

Note 2 








Temporary relief rebate or exemption 









Bona fide farmers rebate or exemption 

Legislative rate ratio of 1 : 0.25 applies 








Other rebates or exemptions 

Note 3 








Water tariffs 









This tariffs are applicable to a conventional 

0 to 6 kl per 30 day period (200 1 a day) 

512 

563 

619 

681 

773 

842 

918 

metering, prepaid yard metering, assumed and 

7 to 12 kl per 30 day period 

731 

804 

884 

972 

1 103 

1 203 

1 311 

shared consumption billing. This tariffs is 
applicable to a consumer in a dwelling-house for 

13 to 18 kl per 30 day period 

959 

1 055 

1 161 

1 277 

1 449 

1 580 

1 722 

water consumed since the previous meter 

19 kl to 24 kl per 30 day period 

1 110 

1 221 

1 343 

1 477 

1 676 

1 827 

1 992 

reading. 

25 to 30 kl per 30 day period 

1 268 

1 395 

1 535 

1 689 

1 917 

2 090 

2 278 


31 to 42 kl per 30 day period 

1 371 

1 508 

1 659 

1 825 

2 071 

2 258 

2 461 


43 to 72 kl per 30 day period 

1 467 

1 614 

1 775 

1 953 

2 217 

2 416 

2 634 


More than 72 kl per 30 day period 

1 571 

1 728 

1 901 

2 091 

2 373 

2 587 

2 820 

Waste water tariffs 









This tariffs are applicable all consumers in a 

0 to 6 kl per 30 day period (98%) 

372 

417 

460 

506 

552 

602 

656 

dwelling-house supplied with water and that 

7 to 12 kl per 30 day period (90%) 

503 

564 

621 

683 

744 

811 

884 

discharge waste water into the municipality's 
sewer system. The quanity of wastewater 

13 to 18 kl per 30 day period (75%) 

650 

728 

801 

881 

960 

1 046 

1 141 

discharged since the previous water meter 

19 to 24 kl per 30 day period (60%) 

650 

728 

801 

881 

960 

1 046 

1 141 

reading is calculated as a % of water supplied. 

25 to 30 kl per 30 day period (52%) 

650 

728 

801 

881 

960 

1 046 

1 141 


31 to 42 kl per 30 day period (10%) 

650 

728 

801 

881 

960 

1 046 

1 141 


More than 72 kl per 30 day period (1%) 

650 

728 

801 

881 

960 

1 046 

1 141 

Electricity tariffs 









For a connection with a conventional meter, 









energy consumed since the previous meter 
reading is charged for the month or part of a 
month, and for a prepaid meter the energy 
charged for all kWh purchased in a calender 

month. 









Flat rate tariff - meter/prepaid (c/kwh) 









Meter - IBT Block 1 (c/kwh) 

1 - 100 kWh 

97 

102 

107 

113 

122 

132 

142 

Meter - IBT Block 2 (c/kwh) 

101 - 400 kWh 

103 

114 

121 

129 

142 

153 

165 

Meter - IBT Block 3 (c/kwh) 

401 - 650 kWh 

108 

120 

128 

138 

155 

167 

180 

Meter - IBT Block 4 (c/kwh) 

>650 kWh 

116 

128 

137 

147 

165 

178 

193 

Basic charges 









Life line prepaid 









This scale will apply to premises situated within 
legally established townships where electrical 
power is supplied at low voltage to the following 
groups of cinsumers with a main circuit-breaker 
size of not more than 20 amperes in the case of a 
single phase connection, where a life-line 
connection has been taken that is metered by a 
prepaid meter. 









Life-line tariff prepaid 









Meter - IBT Block 1 (c/kwh) 

1 - 100 kWh 

110 

107 

113 

113 

122 

132 

142 

Meter - IBT Block 2 (c/kwh) 

101 - 400 kWh 

116 

119 

127 

127 

142 

153 

165 

Meter - IBT Block 3 (c/kwh) 

401 - 650 kWh 

121 

126 

134 

136 

155 

167 

180 

Meter - IBT Block 4 (c/kwh) 

>650 kWh 

128 

133 

142 

144 

165 

178 

193 


page I 189 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 92: MBRR SA15 - Consolidated investment particulars by type 


Investment type 

R thousand 

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 

Parent municipality 










Securities - National Government 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Listed Corporate Bonds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Deposits - Bank 

84 590 

85 830 

39 508 

206 667 

100 000 

100 000 

43 993 

80 138 

84 921 

Deposits - Public Investment Commissioners 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Deposits - Corporation for Public Deposits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Bankers Acceptance Certificates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Negotiable Certificates of Deposit - Banks 

323 852 

636 003 

622 949 

2 444 942 

975 775 

975 775 

1 632 226 

2 640 642 

4 185 508 

Guaranteed Endowment Policies (sinking) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Repurchase Agreements - Banks 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Municipal Bonds 

3 033 

711 

711 

711 

711 

711 

117 

117 

117 

Municipality sub-total 

411 474 

722 544 

663 167 

2 652 319 

1 076 486 

1 076 486 

1 676 336 

2 720 897 

4 270 546 

Entities 










Securities - National Government 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Listed Corporate Bonds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Deposits - Bank 

- 

- 

- 

500 

500 

500 

550 

605 

666 

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 

- 

- 

- 

500 

500 

500 

550 

605 

666 

Consolidated total: 

411 474 

722 544 

663 167 

2 652 819 

1 076 986 

1 076 986 

1 676 886 

2 721 502 

4 271 211 


Table 93: MBRR SA16 - Consolidated Investment particulars by maturity 


Investments by Maturity 

Name of institution & investment ID 

Period of 

Investment 

Investment 

Capital 

Guarantee 

(Yes / No) 

Variable or 

interest rate 

Interest Rate 

3. 

Commission 

Paid (Rands) 

Commission 

Recipient 

Expiry date 

of 

investment 

Opening 

balance 

Interest to 

be realised 

Partial / 

Premature 

Withdrawal 

(4) 

Investment 

Closing 

Yrs/Months 


Parent municipality 














Call Investment deposits < 90 days 









1 632 226 




1 632 226 

ABSA Bank Ltd 32 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

28 711 

1419 



30 130 

ABSA Bank Ltd 33 

Unknown 

Money Market 

No 

Variable 

6% 



On Call 

10 061 

497 



10 559 

ABSA Bank Ltd 34 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

7 536 

372 



7 908 

ABSA Bank Ltd 35 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

166 

8 



174 

Investec Bank 37 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

25 135 

1 242 



26 377 

Investec Bank 38 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

8 034 

397 



8 431 

Investec Bank 39 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

1 076 

53 



1 129 

Investec Bank 108 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

29 275 

1 447 



30 723 

Standard Bank 40 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

90 823 

4 489 



95 313 

Standard Bank 41 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

2 819 

139 



2 958 

Sanlam 26 

28 Y 

Insurance Policy 

No 

Variable 

4% 

0 

0 

2015.12.07 

- 

- 



- 

Sanlam 27 

28 Y 

Insurance Policy 

No 

Variable 

4% 

0 

0 

2016.01.01 

- 

146 



146 

Knysna Stock 24 

28Y3M 

Municipal Stock 

Yes 

Fixed 

16% 

0 

0 

2018.12.31 

711 

117 



827 

Stanlib 260 

Unknown 

Money Market 

No 

Variable 

5% 

0 

0 

On Call 

67 286 

3 326 



70 612 

Bonds - Sinking Fund 

Unknown 

Money Market 

No 

Variable 

6% 

0 

0 

On Call 

376 667 

10 694 



387 361 

Bonds - Sinking Fund (Outstanding FY 2015/16) 





0,06 

0 

0 

On Call 

696 034 

19 761 



715 796 

Municipality sub-total 









2 976 560 

44110 

- 

- 

3 020 670 

Entities 














Call investment deposits 













- 

Investments 













- 

Entities sub-total 














TOTAL INVESTMENTS AND INTEREST 









2 976 560 

44 110 

- 

- 

3 020 670 


page I 190 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 94: MBRR SA17 - Consolidated borrowing 


Borrowing - Categorised by type 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

Parent municipality 










Long-Term Loans (annuity/reducing balance) 

5 856 161 

5 355 948 

4 835 389 

4 489 881 

4 451 908 

4 451 908 

4 921 166 

5 331 941 

5 871 343 

Long-Term Loans (non-annuity) 

131 537 

131 311 

1 730 229 

128 332 

1 728 332 

1 728 332 

3 228 332 

3 228 332 

3 228 332 

Local registered stock 

98 052 

100 005 

5 

- 

(5) 

(5) 

- 

- 

- 

Instalment Credit 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Financial Leases 

180 512 

13 144 

44 324 

64 011 

336 

336 

437 

568 

739 

PPP liabilities 

- 

- 

- 

595 000 

301 938 

301 938 

1 176 449 

2 505 253 

2 807 249 

Finance Granted By Cap Equipment Supplier 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Marketable Bonds 

- 

2 176 861 

2 177 926 

4 720 000 

3 440 000 

3 440 000 

2 140 000 

2 140 000 

2 140 000 

Non-Marketable Bonds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Bankers Acceptances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Financial derivatives 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other Securities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Municipality sub-total 

6 266 261 

7 777 269 

8 787 874 

9 997 223 

9 922 508 

9 922 508 

11 466 383 

13 206 094 

14 047 662 

Entities 










Long-Term Loans (annuity/reducing balance) 

3 253 

2 868 

2 980 

2173 

2 173 

2173 

1 858 

1 542 

1 227 

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 

3 253 

2 868 

2 980 

2 173 

2 173 

2 173 

1 858 

1 542 

1 227 

Total Borrowing 

6 269 514 

7 780 137 

8 790 854 

9 999 396 

9 924 681 

9 924 681 

11 468 241 

13 207 636 

14 048 889 


page I 191 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 95: MBRR SA18 - Consolidated transfers and grant receipts 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

RECEIPTS: 

Ooeratinq Transfers and Grants 










National Government: 

2 145 194 

2 384 062 

2 732 192 

2 993 903 

3 008 481 

3 008 481 

3 298 840 

3 594 122 

3 925 077 

Local Government Equitable Share 

923 020 

1 040 630 

1 166 964 

1 375 518 

1 375 518 

1 375 518 

1 654 390 

1 886 413 

2 131 544 

Fuel Levy 

1 191 521 

1 326 054 

1 308 179 

1 352 410 

1 352 410 

1 352 410 

1 395 849 

1 467 741 

1 538 936 

Finance Management Grant 

5 252 

5 000 

4 500 

4 750 

4 750 

4 750 

3 925 

2 875 

2 650 

Water Services Operating Subsidy Grant 

24 471 

2 227 

- 

300 

- 

- 

- 

- 

- 

Public Transport Infrastructure & Systems Grant 

- 

- 

174 783 

- 

- 

- 

- 

- 

- 

2010 FIFA World Cup Host City Operating Grant 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Urban Settlement Development Grant 

- 

- 

40 000 

- 

- 

- 

- 

- 

- 

Municipal Human Settlement Capacity Grant 

- 

- 

- 

47 506 

47 506 

47 506 

12 831 

12 831 

14 755 

Expanded Public Works Programme Incentive (EPWP) 

930 

10 151 

29 670 

30 760 

30 760 

30 760 

31 143 

- 

- 

Public Transport Network Operations Grant 

- 

- 

- 

138 000 

138 000 

138 000 

161 000 

186 000 

195 300 

Integrated City Dev elopment Grant 

- 

- 

8 096 

44 659 

44 659 

44 659 

39 702 

38 262 

41 892 

Municipal Disaster Recovery Grant 

- 

- 

- 

- 

14 878 

14 878 

- 

- 

- 

Provincial Government: 

261 766 

127 943 

103 692 

110 926 

110 355 

110 355 

120 866 

122 297 

128 286 

Primary Health Care 

27 325 

29 625 

35 837 

39 967 

39 967 

39 967 

42 085 

44 316 

46 532 

Emergency Medical Services 

47 902 

49 676 

53 750 

56 683 

56 683 

56 683 

59 687 

62 850 

65 993 

HIV and Aids Grant 

5 097 

9 908 

10 403 

10 923 

10 923 

10 923 

11 501 

12 111 

12 717 

Performance Management 

1 500 

- 

- 

- 

- 

- 

- 

- 

- 

Housing Top Structure 

146 243 

30 043 

- 

- 

- 

- 

- 

- 

- 

Incorporation of Metsw eding 

21 000 

- 

- 

- 

- 

- 

- 

- 

- 

Sports and Recreation : Community Libraries 

12 700 

5 190 

2 702 

2 460 

1 889 

1 889 

6 700 

2 550 

2 550 

Operation Clean Audit (OPCA) 

- 

- 

1 000 

- 

- 

- 

- 

- 

- 

Debtor Book (New) 

- 

3 500 

- 

- 

- 

- 

- 

- 

- 

Gautrans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Research and Technology Development Services 

- 

- 

- 

893 

893 

893 

893 

470 

494 

LED: Tshepo 10 000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

133 

- 

2 116 

69 579 

256 510 

256 510 

250 535 

255 162 

259 162 

DBSA 

- 

- 

780 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Drakensburg Promotions CC. 

133 

- 

- 

- 

- 

- 

- 

- 

- 

Industrial Development Corporation (IDC) 

- 

- 

400 

- 

- 

- 

- 

- 

- 

Housing Company Tshwane 

- 

- 

- 

22 079 

29 847 

29 847 

23 445 

28 072 

32 072 

TEDA 

- 

- 

- 

47 500 

53 033 

53 033 

54 150 

54 150 

54 150 

Sandspruit 

- 

- 

- 

- 

172 940 

172 940 

172 940 

172 940 

172 940 

LGSETA 

- 

- 

936 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

689 

689 

- 

- 

- 

Total Operating Transfers and Grants 

2 407 093 

2 512 005 

2 838 000 

3 174 408 

3 375 346 

3 375 346 

3 670 241 

3 971 581 

4 312 525 

Capital Transfers and Grants 










National Government: 

1 238 786 

1 994 572 

2 131 690 

2 529 271 

2 547 271 

2 547 271 

2 408 542 

2 454 739 

2 604 126 

Urban Settlement Development Grant 

891 081 

1 051 070 

1 250 611 

1 469 450 

1 469 450 

1 469 450 

1 500 683 

1 574 837 

1 664 734 

Public Transport Infrastructure & Systems Grant 

200 000 

748 702 

598 395 

867 571 

867 571 

867 571 

770 609 

759 902 

799 392 

Intergrated National Electrification Programme 

21 000 

30 000 

65 000 

32 000 

32 000 

32 000 

37 000 

40 000 

60 000 

Electricity Demand Side Management 

44 000 

11 000 

- 

- 

- 

- 

- 

- 

- 

Water Affairs 

705 

1 800 

14 000 

- 

- 

- 

- 

- 

- 

Neighbourhood Development Partnership Grant 

82 000 

152 000 

203 184 

150 000 

175 000 

175 000 

100 000 

80 000 

80 000 

Finance Management Grant 

- 

- 

500 

250 

250 

250 

250 

- 

- 

Expanded Public Works Programme Incentive Grant 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Energy Efficiency and Demand Side Management 

- 

- 

- 

10 000 

3 000 

3 000 

- 

- 

- 

Provincial Government: 

38 468 

41 969 

14 098 

15 129 

27 200 

27 200 

40 551 

40 000 

28 000 

Sport and Recreation: HM Pitje Stadium 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Community Libraries 

- 

- 

1 398 

3 129 

4 000 

4 000 

7 551 

8 000 

6 000 

Housing 

38 468 

41 969 

- 

- 

- 

- 

- 

- 

- 

Housing: Acquisition of Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Gautrans Job Creation 

- 

- 

12 200 

12 000 

12 000 

12 000 

- 

- 

- 

Social Infrastructure Grant 

- 

- 

500 

- 

11 200 

11 200 

33 000 

32 000 

22 000 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

- 

2 293 

99 

- 

4 500 

4 500 

1 773 

200 

- 

Ringfencing of Bulk Containers Cost for Blue IQ 

- 

- 

- 

- 

- 

- 

- 

- 

- 

DBSA/SANBI Groen Sebenza 

- 

- 

99 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

4 500 

4 500 

- 

- 

- 

Housing Delft Grant 

- 

2 293 

- 

- 

- 

- 

- 

- 

- 

Smart Connect Grant 

- 

- 

- 

- 

- 

- 

1 773 

200 

- 

Total Capital Transfers and Grants 

1 277 254 

2 038 834 

2 145 888 

2 544 400 

2 578 971 

2 578 971 

2 450 866 

2 494 939 

2 632 126 

TOTAL RECEIPTS OF TRANSFERS & GRANTS 

3 684 347 

4 550 839 

4 983 888 

5 718 808 

5 954 317 

5 954 317 

6 121 107 

6 466 520 

6 944 651 


page I 192 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 96: MBRR SA19 - Consolidated expenditure on transfers and grant programmes 


Description 

2011/12 

2012/13 

2013/14 

Cu 

rent Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

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 

EXPENDITURE: 

Ooeratinq expenditure of Transfers and Grants 










National Government: 

2 135 750 

2 458 595 

2 737 970 

2 993 903 

3 009 978 

3 009 978 

3 298 840 

3 594 122 

3 925 077 

Local Government Equitable Share 

923 020 

1 040 630 

1 166 964 

1 375 518 

1 375 518 

1 375 518 

1 654 390 

1 886 413 

2 131 544 

Fuel Levy 

1 191 521 

1 326 054 

1 308 179 

1 352 410 

1 352 410 

1 352 410 

1 395 849 

1 467 741 

1 538 936 

Finance Management Grant 

5 116 

3 096 

4 012 

4 750 

5 425 

5 425 

3 925 

2 875 

2 650 

Water Services Operating Subsidy Grant 

6 926 

2 319 

5 

300 

- 

- 

- 

- 

- 

Public Transport Infrastructure & Systems Grant 

3 645 

38 179 

178 366 

- 

- 

- 

- 

- 

- 

2010 FIFA World Cup Host City Operating Grant 

2 461 

- 

- 

- 

- 

- 

- 

- 

- 

Urban Settlement Development Grant 

3 060 

48 317 

39 178 

- 

822 

822 

- 

- 

- 

Municipal Human Settlement Capacity Grant 

- 

- 

- 

47 506 

47 506 

47 506 

12 831 

12 831 

14 755 

Expanded Public Works Programme Incentive (EPWP) 

- 

- 

33 170 

30 760 

30 760 

30 760 

31 143 

- 

- 

Public Transport Network Operations Grant 

- 

- 

- 

138 000 

138 000 

138 000 

161 000 

186 000 

195 300 

Integrated City Development Grant 

- 

- 

8 096 

44 659 

44 659 

44 659 

39 702 

38 262 

41 892 

Municipal Disaster Recovery Grant 

- 

- 

- 

- 

14 878 

14 878 

- 

- 

- 

Provincial Government: 

187 023 

133 868 

121 563 

110 926 

110 710 

110 710 

120 866 

122 297 

128 286 

Primary Health Care 

27 325 

29 625 

35 837 

39 967 

39 967 

39 967 

42 085 

44 316 

46 532 

Emergency Medical Services 

35 483 

49 676 

53 750 

56 683 

56 683 

56 683 

59 687 

62 850 

65 993 

HIV and Aids Grant 

5 310 

5 797 

14 604 

10 923 

10 923 

10 923 

11 501 

12 111 

12 717 

Performance Management 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing Top Structure 

93 057 

45 364 

- 

- 

- 

- 

- 

- 

- 

Incorporation of Metsweding 

20 000 

- 

- 

- 

- 

- 

- 

- 

- 

Sports and Recreation : Community Libraries 

5 848 

3 406 

2 569 

2 460 

2 021 

2 021 

6 700 

2 550 

2 550 

Operation Clean Audit (OPCA) 

- 

- 

1 000 

- 

- 

- 

- 

- 

- 

Debtor Book (New) 

- 

- 

2 275 

- 

- 

- 

- 

- 

- 

Gautrans 

- 

- 

2 778 

- 

222 

222 

- 

- 

- 

Research and Technology Development Services 

- 

- 

- 

893 

893 

893 

893 

470 

494 

LED: Tshepo 10 000 

- 

- 

8 750 

- 

- 

- 

- 

- 

- 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

- 

- 

1 849 

69 579 

256 510 

256 510 

255 799 

268 807 

282 903 

DBSA 

- 

- 

780 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Drakensburg Promotions CC. 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Industrial Development Corporation (IDC) 

- 

- 

400 

- 

- 

- 

- 

- 

- 

Housing Company Tshwane 

- 

- 

- 

22 079 

29 847 

29 847 

35 359 

36 243 

37 547 

TED A 

- 

- 

- 

47 500 

53 033 

53 033 

47 500 

50 113 

52 869 

Sandspruit 

- 

- 

- 

- 

172 940 

172 940 

172 940 

182 452 

192 487 

LGSETA 

- 

- 

669 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

689 

689 

- 

- 

- 

Total operating expenditure of Transfers and Grants: 

2 322 772 

2 592 463 

2 861 382 

3 174 408 

3 377 197 

3 377 197 

3 675 505 

3 985 226 

4 336 266 

Capital expenditure of Transfers and Grants 










National Government: 

1 167 094 

2 076 699 

2 097 581 

2 529 271 

2 591 309 

2 591 309 

2 408 542 

2 454 739 

2 604 126 

Urban Settlement Development Grant 

877 903 

1 012 871 

1 206 603 

1 469 450 

1 513 458 

1 513 458 

1 500 683 

1 574 837 

1 664 734 

Public Transport Infrastructure & Systems Grant 

158 745 

832 598 

610 929 

867 571 

867 571 

867 571 

770 609 

759 902 

799 392 

Interg rated National Electrification Programme 

19 861 

30 000 

65 000 

32 000 

32 000 

32 000 

37 000 

40 000 

60 000 

Electricity Demand Side Management 

46 361 

10 623 

- 

- 

- 

- 

- 

- 

- 

Water Affairs 

15 597 

- 

14 000 

- 

- 

- 

- 

- 

- 

Neighbourhood Development Partnership Grant 

48 304 

183 447 

198 964 

150 000 

175 000 

175 000 

100 000 

80 000 

80 000 

Finance Management Grant 

323 

1 434 

753 

250 

280 

280 

250 

- 

- 

Expanded Public Works Programme Incentive Grant 

- 

5 726 

925 

- 

- 

- 

- 

- 

- 

Energy Efficiency and Demand Side Management 

- 

- 

407 

10 000 

3 000 

3 000 

- 

- 

- 

Provincial Government: 

42 563 

61 847 

2 841 

15 129 

27 304 

27 304 

40 551 

52 000 

28 000 

Sport and Recreation: HM Pitje Stadium 

- 

443 

- 

- 

- 

- 

- 

- 

- 

Sport and Recreation: Community Libraries 

4 095 

3 761 

2 341 

3 129 

4 104 

4 104 

7 551 

8 000 

6 000 

Housing 

38 468 

56 305 

- 

- 

- 

- 

- 

- 

- 

Housing: Acquisition of Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Gautrans Job Creation 

- 

1 337 

- 

12 000 

12 000 

12 000 

- 

12 000 

- 

Social Infrastructure Grant 

- 

- 

500 

- 

11 200 

11 200 

33 000 

32 000 

22 000 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

[insert description] 










Other grant providers: 

15 000 

13 000 

14 250 

- 

4 500 

4 500 

4 067 

200 

- 

Ringfencing of Bulk Containers Cost for Blue IQ 

15 000 

13 000 

11 999 

- 

- 

- 

- 

- 

- 

DBSA/SANBI Groen Sebenza 

- 

- 

91 

- 

- 

- 

- 

- 

- 

LG SETA Discretionaty grant (93 appies over 3 years) 

- 

- 

- 

- 

4 500 

4 500 

- 

- 

- 

Housing Delft Grant 

- 

- 

2 160 

- 

- 

- 

2 293 

- 

- 

Smart Connect Grant 

- 

- 

- 

- 

- 

- 

1 773 

200 

- 

Total capital expenditure of Transfers and Grants 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 

3 547 429 

4 744 008 

4 976 054 

5 718 808 

6 000 310 

6 000 310 

6 128 665 

6 492 165 

6 968 392 


page I 193 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 97: MBRR SA20 - Consolidated reconciliation of transfers, grant receipts and 
unspent funds 


Description 

R thousand 

2011/12 

Audited 

Outcome 

2012/13 

Audited 

Outcome 

2013/14 

Audited 

Outcome 

Cu 

Original 

Budget 

rent Year 201 

Adjusted 

Budget 

1/15 

Full Year 

Forecast 

2015/16 M 

Expe 

Budget Year 

2015/16 

edium Term R 

nditure Frame 

Budget Year 

+1 2016/17 

evenue & 

work 

Budget Year 

+2 2017/18 

Operatinq transfers and qrants: 

National Government: 










Balance unspent at beginning of the year 

74 455 

68 622 

5 302 

- 

1 497 

1497 

- 

- 

- 

Current year receipts 

2 145 194 

2 384 062 

2 732 192 

2 993 903 

3 008 481 

3 008 481 

3 298 840 

3 594 122 

3 925 077 

Conditions met - transferred to revenue 

2 151 027 

2 447 382 

2 736 818 

2 993 903 

3 009 978 

3 009 978 

3 298 840 

3 594 122 

3 925 077 

Conditions still to be met - transferred to liabilities 

68 622 

5 302 

676 

- 

- 

- 

- 

- 

- 

Provincial Government: 










Balance unspent at beginning of the year 

16 027 

107 297 

90 159 

- 

355 

355 

- 

- 

- 

Current year receipts 

261 766 

127 943 

103 692 

110 926 

110 355 

110 355 

120 866 

122 297 

128 286 

Conditions met ■ transferred to revenue 

170 496 

145 081 

122 449 

110 926 

110 710 

110 710 

120 866 

122 297 

128 286 

Conditions still to be met - transferred to liabilities 

107 297 

90 159 

71 402 

- 

- 

- 

- 

- 

- 

District Municipality: 










Balance unspent at beginning of the year 

- 

- 

- 

- 

- 

- 

- 

- 

- 

C urrent year receipts 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions met ■ transferred to revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions still to be met - transferred to liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 










Balance unspent at beginning of the year 

1 116 

- 

- 

- 

- 

- 

- 

- 

- 

Current year receipts 

133 

- 

2 116 

69 579 

256 510 

256 510 

250 535 

255 162 

259 162 

Conditions met - transferred to revenue 

1 249 

- 

2 116 

69 579 

256 510 

256 510 

250 535 

255 162 

259 162 

Conditions still to be met - transferred to liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total operating transfers and grants revenue 

2 322 772 

2 592 463 

2 861 382 

3 174 408 

3 377 197 

3 377 197 

3 670 241 

3 971 581 

4 312 525 

Total operating transfers and grants - CTBM 

175 919 

95 461 

72 078 

- 

- 

- 

- 

- 

- 

Capital transfers and qrants: 

National Government: 










Balance unspent at beginning of the year 

15 759 

45 702 

17 727 

- 

44 038 

44 038 

- 

- 

- 

Current year receipts 

1 238 786 

1 994 572 

2 131 690 

2 529 271 

2 547 271 

2 547 271 

2 408 542 

2 454 739 

2 604 126 

Conditions met - transferred to revenue 

1 208 843 

2 022 548 

2 102 199 

2 529 271 

2 591 309 

2 591 309 

2 408 542 

2 454 739 

2 604 126 

Conditions still to be met - transferred to liabilities 

45 702 

17 727 

47 218 

- 

- 

- 

- 

- 

- 

Provincial Government: 










Balance unspent at beginning of the year 

35 385 

73 038 

144 

- 

104 

104 

- 

12 000 

- 

Current year receipts 

38 468 

41 969 

14 098 

15 129 

27 200 

27 200 

40 551 

40 000 

28 000 

Conditions met ■ transferred to revenue 

814 

114 863 

1 315 

15 129 

27 304 

27 304 

40 551 

52 000 

28 000 

Conditions still to be met - transferred to liabilities 

73 038 

144 

12 927 

- 

- 

- 

- 

- 

- 

District Municipality: 










Balance unspent at beginning of the year 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Current year receipts 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions met - transferred to revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Conditions still to be met - transferred to liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 










Balance unspent at beginning of the year 

40 004 

25 005 

13 163 

- 

- 

- 

2 293 

- 

- 

Current year receipts 

- 

2 293 

99 

- 

4 500 

4 500 

1 773 

200 

- 

Conditions met - transferred to revenue 

15 000 

14135 

11 158 

- 

4 500 

4 500 

4 067 

200 

- 

Conditions still to be met - transferred to liabilities 

25 005 

13 163 

2 105 

- 

- 

- 

- 

- 

- 

Total capital transfers and grants revenue 

1 224 657 

2 151 546 

2 114 672 

2 544 400 

2 623 113 

2 623 113 

2 453 160 

2 506 939 

2 632 126 

Total capital transfers and grants ■ CTBM 

143 745 

31 034 

62 250 

- 

- 

- 

- 

- 

- 

TOTAL TRANSFERS AND GRANTS REVENUE 

3 547 429 

4 744 008 

4 976 054 

5 718 808 

6 000 310 

6 000 310 

6 123 401 

6 478 520 

6 944 651 

TOTAL TRANSFERS AND GRANTS - CTBM 

319 664 

126 494 

134 328 

- 

- 

- 

- 

- 

- 


page I 194 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 195 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 99: MBRR SA23 - Consolidated salaries, allowances and benefits (political office 
bearers/councillors/senior managers) 


Disclosure of Salaries, Allowances & Benefits 1. 

No. 

Salary 

Contributions 

Allowances 

Performance 

Bonuses 

In-kind 

benefits 

Total 

Package 

Rand per annum 



1. 




2. 

Councillors 








Speaker 

1 

1 046 191 

- 

- 



1 046 191 

Chief Whip 

1 

980 804 

- 

- 



980 804 

Executive Mayor 

1 

1 295 403 

- 

- 



1 295 403 

Deputy Executive Mayor 

- 

- 

- 

- 



- 

Executive Committee 

10 

9 808 040 

- 

- 



9 808 040 

Total for all other councillors 

209 

96 118 680 

- 

- 



96 118 680 

Total Councillors 

222 

109 249 118 

- 

- 



109 249 118 

Senior Manaqers of the Municipality 








Chief Finance Officer 

1 

2 014 949 

- 

- 

- 


2 014 949 

City Manager (CM) 

1 

3 052 954 

- 

- 

- 


3 052 954 

Strategic Executive Head: Office of the Executive Mayor 

1 

1 777 308 

- 

- 

- 


1 777 308 

Strategic Executive Head: Office of the Speaker 

1 

1 587 539 

- 

- 

- 


1 587 539 

Strategic Executive Head: Office of the Chief Whip 

1 

1 587 536 

- 

- 

- 


1 587 536 

Strategic Executive Director: Community and Business Safety 

1 

1 587 536 

- 

- 

- 


1 587 536 

Deputy City Manager: Strategy Development and Implementation 

1 

2 451 294 

- 

- 

- 


2 451 294 

Deputy City Manager: Operations and Service Delivery 

1 

2 076 009 

- 

- 

- 


2 076 009 

Deputy City Manager: Infrastructure and Program Management 

1 

2 076 009 

- 

- 

- 


2 076 009 

Service Delivery Coordinator and Transformation Manager 

1 

2 076 005 

- 

- 

- 


2 076 005 

Chief Audit Executive 

1 

1 587 525 

- 

- 

- 


1 587 525 

Chief of Police 

1 

1 719 974 

- 

- 

- 


1 719 974 

Strategic Executive Director: City Manager Support 

1 

1 739 989 

- 

- 

- 


1 739 989 

Strategic Executive Director: Corporate and Shared Services 

1 

1 600 000 

- 

- 

- 


1 600 000 

Strategic Executive Director: Legal Services 

1 

1 924 575 

- 

- 

- 


1 924 575 

Chief Information Officer 

1 

1 777 308 

- 

- 

- 


1 777 308 

Chief of Emergency Services 

1 

1 752 200 

- 

- 

- 


1 752 200 

List of each offical with packages >= senior manager 








Strategic Executive Director: City Planning and Development 

1 

1 739 989 

- 

- 

- 


1 739 989 

Strategic Executive Director: Economic Development 

1 

1 739 989 

- 

- 

- 


1 739 989 

Strategic Executive Director: City Strategies and Performance Management 

1 

1 633 792 

- 

- 

- 


1 633 792 

Strategic Executive Director: Communications, Marketing and Events 

1 

1 739 989 

- 

- 

- 


1 739 989 

Strategic Executive Director: Research and Innovation 

1 

1 739 989 

- 

- 

- 


1 739 989 

Strategic Executive Director: Sport and Recreation 

1 

1 388 270 

- 

- 

- 


1 388 270 

Strategic Executive Director: Environmental Management 

1 

1 521 587 

- 

- 

- 


1 521 587 

Strategic Executive Director: Health and Social Development 

1 

1 648 596 

- 

- 

- 


1 648 596 

Strategic Executive Director: Service Infrastructure 

1 

1 601 850 

- 

- 

- 


1 601 850 

Strategic Executive Director: Transport 

1 

1 825 904 

- 

- 

- 


1 825 904 

Strategic Executive Director: Housing and Human Settlement 

1 

1 649 806 

- 

- 

- 


1 649 806 

Total Senior Managers of the Municipality 

28 

50 618 471 

- 

- 

- 


50 618 471 

A Headinq for Each Entity 








List each member of board by designation 








Housing Company Tshwane: Board Fees only 

- 

- 

- 

- 

- 


- 

Chairperson 

1 

- 

- 

180 952 

- 


180 952 

Non Executive Directors 

6 

- 

- 

854 050 

- 


854 050 

Sandspruit Works Association: Board Fees Only 







- 

Acting Chairperson 

1 

- 

- 

282 792 

- 


282 792 

Non-Ececutive 

7 

- 

- 

918 456 

- 


918 456 

TEDA 







- 

Chairperson 

1 

- 

- 

245 410 

- 


245 410 

Board Member 

8 

- 

- 

1 945 112 

- 


1 945 112 

Total for municipal entities 

24 

- 

- 

4 426 772 

- 


4 426 772 









TOTAL COST OF COUNCILLOR, DIRECTOR and EXECUTIVE 

REMUNERATION 

274 

159 867 589 

- 

4 426 772 

- 


164 294 361 


page I 196 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 100: MBRR SA24 - Consolidated summary of personnel numbers 


Summary of Personnel Numbers 

Number 

2013/14 

Current Year 2014/15 

Budget Year 2015/16 

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) 

210 

- 

210 

210 

- 

210 

209 

- 

209 

Board Members of municipal entities 

12 

- 

12 

15 

1 

14 

9 

- 

9 

Municipal employees 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Municipal Manager and Senior Managers 

137 

30 

93 

152 

20 

132 

149 

28 

121 

Other Managers 

966 

554 

- 

1 031 

660 

- 

1332 

921 

- 

Professionals 

2195 

1 114 

11 

2 440 

1287 

20 

2 804 

1408 

19 

Finance 

340 

168 

2 

380 

201 

5 

423 

225 

5 

Spatial/town planning 

203 

112 

- 

231 

157 

- 

279 

169 

- 

Information Technology 

36 

15 

- 

63 

29 

- 

84 

28 

- 

Roads 

175 

60 

- 

200 

71 

- 

223 

84 

- 

Electricity 

158 

115 

- 

175 

137 

- 

195 

155 

- 

Water 

217 

63 

- 

256 

84 

- 

309 

100 

- 

Sanitation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Refuse 

5 

5 

- 

5 

5 

- 

27 

14 

- 

Other 

1 061 

576 

9 

1 130 

603 

15 

1264 

633 

14 

Technicians 

9 105 

5 890 

17 

9 345 

6 016 

25 

11288 

6 365 

21 

Finance 

84 

62 

- 

100 

69 

- 

158 

92 

1 

Spatial/town planning 

121 

129 

- 

137 

131 

- 

223 

125 

- 

Information Technology 

130 

48 

- 

145 

57 

- 

224 

82 

- 

Roads 

370 

160 

17 

385 

177 

25 

446 

187 

20 

Electricity 

1 089 

824 

- 

1 110 

851 

- 

1 338 

872 

- 

Water 

399 

220 

- 

417 

234 

- 

517 

319 

- 

Sanitation 

- 

- 

- 

- 

- 

- 

4 

4 

- 

Refuse 

43 

40 

- 

50 

45 

- 

112 

62 

- 

Other 

6 869 

4 407 

- 

7 001 

4 452 

- 

8 266 

4 622 

- 

Clerks (Clerical and administrative) 

4 469 

3 366 

59 

4 526 

3 415 

58 

5 608 

3 546 

67 

Sen/ ice and sales workers 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Skilled agricultural and fishery workers 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Craft and related trades 

24 

24 

- 

25 

25 

- 

25 

25 

- 

Plant and Machine Operators 

18 

17 

- 

18 

18 

- 

18 

18 

- 

Elementary Occupations 

6 828 

6 029 

3 547 

6 887 

6 184 

3 604 

8 442 

6 509 

1 126 

TOTAL PERSONNEL NUMBERS 

23 964 

17 024 

3 949 

24 649 

17 626 

4 063 

29 884 

18 820 

1 572 

% increase 




2,9% 

3,5% 

2,9% 

21,2% 

6,8% 

(61,3%) 

Total municipal employees headcount 

- 

- 

3 485 

- 

- 

3 709 

29 292 

18 473 

1 327 

Finance personnel headcount 

1 507 

1 003 

44 

1 596 

1 272 

21 

1 401 

1 284 

18 

Human Resources personnel headcount 

288 

142 

2 

291 

157 

2 

320 

162 

5 


page I 197 


Table 101 : MBRR SA25 - Consolidated budgeted monthly revenue and expenditure 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 198 


Table 102: MBRR SA26 - Consolidated budgeted monthly revenue and expenditure (municipal vote) 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 199 


Table 103: MBRR SA27 - Consolidated budgeted monthly revenue and expenditure (standard classification) 



The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


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page I 200 


Table 104: MBRR SA30 - Consolidated budgeted monthly cash flow 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 



page I 201 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 105: MBRR SA31 - Consolidated aggregated entity budget 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R million 

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 

Financial Performance 










Property rates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges 

190 132 

185 759 

236 090 

285 950 

285 950 

285 950 

275 491 

316 815 

364 337 

Investment revenue 

21 826 

24 147 

28 102 

30 076 

30 153 

30 153 

35114 

38 657 

42 544 

Transfers recognised - operational 

13 727 

25 062 

71 364 

69 579 

255 820 

255 820 

250 535 

255 162 

259 162 

Other own revenue 

106 895 

137 131 

171 426 

180 666 

7 723 

7 723 

9 829 

10 307 

10 843 

Contributions recognised - capital & contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Revenue (excluding capital transfers and contribution 

332 581 

372 100 

506 983 

566 271 

579 646 

579 646 

570 969 

620 941 

676 888 

Employee costs 

74 782 

78 357 

106 158 

134 477 

128 939 

128 939 

141 270 

150 257 

158 118 

Remuneration of Board Members 

684 

2 974 

5 381 

3 466 

4 060 

4 060 

4 549 

5 089 

5 477 

Depreciation & asset impairment 

2 745 

2 283 

3 630 

2 554 

2 798 

2 798 

1 939 

2175 

2 395 

Finance charges 

516 

478 

450 

432 

443 

443 

354 

317 

277 

Materials and bulk purchases 

93 180 

111 720 

132 105 

145 909 

145 909 

145 909 

201 884 

222 072 

244 280 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

167 480 

169 680 

254 951 

279 433 

297 497 

297 497 

220 972 

241 030 

266 341 

Total Expenditure 

339 388 

365 492 

502 675 

566 271 

579 646 

579 646 

570 969 

620 941 

676 888 

Surplus/(Deficit) 

(6 808) 

6 608 

4 308 

(0) 

(0) 

(0) 

(0) 

0 

0 

Capital expenditure & funds sources 

Capital expenditure 










Transfers recognised - operational 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Public contributions & donations 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Internally generated funds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total sources 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Financial position 










Total current assets 

95183 

138 934 

124 939 

67 439 

64 243 

64 243 

62 271 

66 708 

71 988 

Total non current assets 

27 443 

24 809 

32 269 

47 403 

39 493 

39 493 

41 782 

49 209 

58 367 

Total current liabilities 

104 875 

130 409 

123 855 

69 782 

70 342 

70 342 

73 776 

78 693 

83 809 

Total non current liabilities 

3 119 

2 804 

2 954 

3 423 

3 423 

3 423 

2 408 

1 842 

1 577 

Equity 

14 632 

30 530 

30 399 

41 637 

29 971 

29 971 

27 869 

35 381 

44 969 

Cash flows 










Net cash from (used) operating 

(25 199) 

26 988 

1 767 

965 

1899 

1 899 

(1 980) 

11 097 

13 550 

Net cash from (used) investing 

(602) 

(2 457) 

(10 872) 

(11 341) 

(12 868) 

(12 868) 

(3 931) 

(10 742) 

(12 636) 

Net cash from (used) financing 

(S 81) 

(217) 

(904) 

(115) 

(115) 

(115) 

(115) 

(115) 

(115) 

Cash/cash equivalents at the year end 

24 480 

48 795 

38 786 

28 294 

27 701 

27 701 

21 674 

21 914 

22 713 


page I 202 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 106: MBRR SA32 - Consolidated List of external mechanisms 


External mechanism 
Name of organisation 


Municipal Entities 


Period of 
agreement 1. 


Service provided 


Expiry date of 
service delivery 
agreement or 
contract 


Monetary 
value of 
agreement 2. 


Housing Company Tshwane (HCT) 

Sandspruit Water Association (WSA) 

Tshwane Economic Development Agency (TEDA) 


Yrs 


Yrs 

Yrs 


Ongoing 


Ongoing 

Ongoing 


The entity manages the rental of stock. They must also increase the rental of 
stock by buying and developing new properties that will be affordable to the 
community. 

Provision Water and Sanitation Services in part of Region 1 (Northern 
Region of the City of Tshwane). 

To promote Trade and Investment, Tourism Management Promotion and 
Implementation. 


Ongoing 


Ongoing 

Ongoing 


8 000 000 

172 940 100 
47 500 000 


A-M Consulting Engineers (Pty) Lid. 


Yrs 


Kanimambo Motormedics CC 
CT Control Systems CC 


Yrs 

Yrs 


Aiifx Services CC 


Yrs 


MIS Pipelines (Pty) Ltd. 

Buzaphi Construction (Pty) Ltd. <& Kagom Projects and Training CC 

KC Solutions Pretoria CC 

FB Crane Builders and Repairs (Pty) Ltd. 

The Great Rock Trading CC 


Yrs 

Yrs 

Yrs 

Yrs 

Yrs 


Hugo (5 Ngwenya Inc. 

Muthray Hassim Inc. 

Revenue Consulting (Pty) Ltd 
Makaula Zilwa (Gauteng) 

RamatshilMugeri Attorneys 

Zandile Management Services CC 

Baiirn Barui Trading (Pty) Ltd 

Nozuko Nxusani & Andile Seth Consortium 

M T Mtimandze Projects & Consulting (Pty) Ltd 

Modise Attorneys Inc. 

Kwinana Consortium 
Medaco Gauteng (Pty) Ltd 
Hahlekela Trading CC 
Mtiaweng Magolego (Pty) Ltd 
Nungu Trading 202 (Pty) Ltd 
Mohale Inc. 


Yrs 


Gau Flora (Pty) Ltd. Yrs 

Social Space Trading and Projects CC 

Mphosha Construction Services CC 
MCC Security and Projects CC 
Nkoananyana Security Services CC 
Mohanyisi Trading Enterprise CC 
Griften Security & Cleaning Services CC 
Elshadai security Services CC 
Majories Trading Enterprises CC 
Rivoningo Security Services DD 
Harama Security Services CC 
TNA Trading & Enterprises CC 
Kgomoganang Business Enterprises CC 
Sidas Security Guards (Pty) Ltd 
Marumo Maepa Cleaning and security CC 
Both-best Trading and Projects CC 

Umphakathi Security Services CC Yrs 

Lady T Protection ServicesCC 

Hotline Security Services CC 

Pangela Security Services CC 

Mabotwane Security services CC 

Vimtsire Protection & Security CC 

Samabandla Security and cleaning CC 

Wenziie Phaphama Trading CC 

Triotic Protection Services CC 

Siya Gijima Security Services CC 

Phuthadichaba Trading Enterprise CC 


3 

3 

3 


3 

3 

3 

3 

3 

3 


Project management unit (PMU) to assistwith the planning & implementation 
of the City ofTshwane's integrated rapid public transport network (IRPTN). 
The removal of sludge drying beds atKIipgat Waste Water Treatment Works 
(WWTW): as and when required. 

The monitoring, reporting, preventative, maintenance and repair of How 
meters, controllers and dissolved oxygen meters for the City of Tshwane. 
Monitoring preventative maintenance and repair of self priming pumps at 
Waste Water Treatment Works (WWTW) and Waste Water Collection (WWC) 
pump stations as and when required. 

The laying of distribution & bulk water pipelines in the City of Tshwane: as 
and when required: OF worn-out network pipes. 

The laying of distribution <S bulk water pipelines in the City of Tshwane: as 
and when required replacement of worn out network pipes. 

The management administration, maintenance and monitoring of the current 
data-ease systems. 

The examination and performance testing of lifting machinery at Rooiwal 
Power Station. 

Credit control contractors (CCC) for disconnection, reconnections and 
inspections of Electricity and Water services. 


31 May 2017 

30 June 2017 

31 July 2017 

30 June 2017 

31 May 2017 
31 May 2017 

28 February 2016 
31 October 2017 
31 October 2017 


29 502 190 

1 884 680 
7 597 906 

252 000 

16 713 612 
19 869 809 
57 000 000 
728 925 
120 000 000 


3 


Outsources agencies for collection of outstanding debtors accounts older 
than 60 days. 


28 February 2017 


62 643 200 


Horticultural landscape development including follow-up landscape 
maintenance programme in the City of Tshwane: as and when required. 


30 April 201 6 


119 406 090 


3 Rendering guarding services for the City of Tshwane. 


31 October 2016 


200 000 000 


page I 203 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 107: MBRR SA34d - Consolidated depreciation by asset class 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Ft thousand 

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 

Depreciation bv Asset Class/Sub- 










class 










Infrastructure 

567 455 

527 276 

886 416 

740 587 

725 681 

725 681 

771 204 

851 824 

912 563 

Infrastructure - Road transport 

256 845 

255 126 

274 674 

412 662 

392 021 

392 021 

437 122 

465 420 

494 779 

Roads, Pavements & Bridges 

184 552 

197 042 

211 268 

355 439 

336 639 

336 639 

280 026 

325 763 

379 029 

Storm water 

72 294 

58 084 

63 406 

57 223 

55 382 

55 382 

157 096 

139 656 

115 750 

Infrastructure - Electricity 

107 786 

126 423 

326 782 

171 282 

159 424 

159 424 

137 941 

183 770 

214 021 

Generation 

66 953 

76 153 

229 511 

131 642 

113 197 

113 197 

102 647 

143 013 

165 265 

Transmission <& Reticulation 

32 992 

39 024 

54 415 

28 926 

32 141 

32 141 

13 717 

16 367 

12 427 

Street Lighting 

7 842 

11 246 

42 856 

lO 713 

14 086 

14 086 

21 577 

24 390 

36 329 

Infrastructure - Water 

76 626 

75 484 

107 635 

88 301 

83 408 

83 408 

73 958 

70 423 

74 896 

Dams & Reservoirs 

11 420 

6 434 

10 986 

15 401 

14 726 

14 726 

17 724 

14 254 

13 948 

Water purification 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Reticulation 

65 206 

69 050 

96 649 

72 901 

68 682 

68 682 

56 233 

56 169 

60 949 

infrastructure - Sanitation 

105 540 

66 426 

lOI 753 

45 281 

40 737 

40 737 

35 471 

31 675 

33 990 

Reticulation 

92 890 

61 904 

93 931 

39 504 

35 212 

35 212 

27 742 

25 340 

25 949 

Sewerage purification 

12 651 

4 522 

7 822 

5 778 

5 524 

5 524 

7 728 

6 335 

8 040 

Infrastructure - Other 

20 657 

3 817 

75 572 

23 061 

50 092 

50 092 

86 712 

lOO 537 

94 877 

Waste Management 

4 191 

1 282 

9 384 

4 178 

3 995 

3 995 

5 240 

9 344 

6 812 

Transportation 

5 007 

520 

15 943 

4 821 

7 171 

7 171 

16 954 

3 643 

2 757 

Gas 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

11 459 

2 015 

50 245 

14 061 

38 926 

38 926 

64 518 

87 550 

85 308 

Community 

64 321 

67 816 

135 713 

83 297 

98 751 

98 751 

113 127 

102 469 

105 744 

Parks & gardens 

1 660 

9 326 

6 795 

5 357 

5 122 

5 122 

lO 789 

12 670 

12 975 

Sportsfieids & stadia 

12 395 

25 123 

41 793 

19 284 

24 176 

24 176 

28 051 

19 955 

24 328 

Swimming pools 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Community halls 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Libraries 

6 498 

3 648 

6 636 

5 357 

5 122 

5 122 

1 849 

6 969 

5 190 

Recreational facilities 

- 

1 121 

2 093 

- 

- 

- 

3 082 

3 168 

3 244 

Fire, safety & emergency 

232 

283 

1 457 

- 

- 

- 

616 

- 

- 

Security and policing 

723 

157 

lO 845 

1 071 

1 024 

1 024 

3 082 

3 168 

3 244 

Buses 

218 

- 

- 

- 

- 

- 

- 

- 

- 

Clinics 

4 965 

4 046 

10 003 

lO 713 

13 112 

13 112 

26 201 

22 173 

24 652 

Museums & Art Galleries 

526 

222 

- 

- 

- 

- 

- 

- 

- 

Cemeteries 

13 012 

2 011 

2 162 

1 339 

5 376 

5 376 

8 631 

9 027 

6 163 

Social rental housing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

24 093 

21 879 

53 928 

40 176 

44 818 

44 818 

30 825 

25 340 

25 949 

Heritaqe assets 










Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment orooerties 

759 

2 855 

(4 100) 

241 269 

237 259 

237 259 

225 823 

249 405 

264 767 

Housing development 

759 

2 855 

(4 lOO) 

241 269 

237 259 

237 259 

206 681 

218 205 

233 303 

Other 

- 

- 

- 

- 

- 

- 

19 142 

31 200 

31 464 

Other assets 

386 825 

464 917 

146 204 

51 188 

62 287 

62 287 

38 316 

47 988 

54 007 

General vehicles 

- 

46 677 

55 260 

- 

1 024 

1 024 

- 

9 503 

9 731 

Specialised vehicles 

87 547 

57 649 

(59) 

32 

31 

31 

- 

- 

- 

Plant & equipment 

4 520 

7 432 

2 267 

268 

256 

256 

925 

950 

973 

Computers - hardw are/equipment 

lO 087 

7 829 

12 959 

8 035 

7 683 

7 683 

4 624 

6 335 

8 109 

Furniture and other office equipment 

21 108 

66 706 

26 533 

12 820 

14 006 

14 006 

7 953 

8 236 

7 785 

Abattoirs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Markets 

18 747 

34 533 

2 767 

1 473 

1 409 

1 409 

1 695 

1 742 

1 297 

Civ ic Land and Buildings 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other Buildings 

50 958 

77 631 

18 473 

24 729 

34 215 

34 215 

11 868 

3 643 

6 487 

Other Land 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus Assets - (Inv estment or Invent \ 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other 

193 859 

166 460 

28 004 

3 830 

3 662 

3 662 

11 251 

17 580 

19 624 

Aqricultural assets 










List sub-class 










Bioloaical assets 










List sub-class 










Intanqibles 

43 686 

68 007 

78 445 




40 311 

12 733 

12 975 

Computers - software & programming 

Other (list sub-class) 

43 686 

68 007 

78 445 

~ 

- 

~ 

40 311 

12 733 

12 975 











Total Depreciation 

1 063 046 

1 130 870 

1 242 678 

1116 341 

1 123 978 

1 123 978 

1 188 780 

1 264 419 

1 350 056 


Specialised vehicles 

87 547 

57 649 

(59) 

32 

31 

31 

_ 

_ 

_ 

Refuse 

Conserv ancy 

Ambulances 

87 547 

57 649 

(59) 

32 

31 

31 

- 

- 

- 


page I 204 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.15 ANNUAL BUDGETS AND SERVICE DELIVERY 
AGREEMENTS - MUNICIPAL ENTITIES 

Viable municipal entities 

The City of Tshwane has the following active municipal entities which are viable and functioning in 
compliance with the Municipal Finance Management Act, 2003 (Act 56 of 2003) and the Local 
Government: Municipal Systems Act, 200 (Act 32 of 2000): 

• Sandspruit Works Association. 

• Housing Company Tshwane. 

• Tshwane Economic Development Agency (TEDA). 

Consolidation of municipal entities 

Consolidated financial statements were compiled for the City of Tshwane and its operational municipal 
entities. 


page I 205 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 108: Housing Company Tshwane - Budget summary 



Housing Company Tshwane - Budget summary 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 

Financial Performance 










Property rates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sen/ ice charges 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers recognised - operational 

13 727 

7 028 

12 288 

22 079 

29 847 

29 847 

23 445 

28 072 

32 072 

Other own revenue 

2 573 

2 764 

3 741 

7 756 

3 847 

3 847 

3 972 

4 190 

4 412 

Total Revenue (excluding capital transfers and 










contributions) 

16 301 

9 792 

16 029 

29 835 

33 694 

33 694 

27 417 

32 263 

36 485 

Employee costs 

2 813 

4 152 

3 370 

5 609 

5 494 

5 494 

5 945 

6 572 

6 920 

Remuneration of Board Members 

433 

763 

1544 

988 

1 191 

1 191 

1 157 

1279 

1 347 

Depreciation and debt impairment 

79 

- 

- 

- 

- 

- 

681 

753 

793 

Finance charges 

514 

464 

419 

382 

373 

373 

284 

240 

196 

Materials and bulk purchases 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

2 580 

4 872 

6176 

22 857 

26 636 

26 636 

19 349 

23 418 

27 229 

Total Expenditure 

6 419 

10 250 

11 510 

29 835 

33 694 

33 694 

27 417 

32 263 

36 485 

Surplus/(Deficit) 

9 882 

(458) 

4 519 

(0) 

- 

- 

(0) 

0 

0 

Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions recognised - capital & contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & contributions 

9 882 

(458) 

4 519 

(0) 

- 

- 

(0) 

0 

0 

Taxation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/ (Deficit) for the year 

9 882 

(458) 

4 519 

(0) 

- 

- 

(0) 

0 

0 











Capital expenditure & funds sources 










Capital expenditure 

140 

171 

480 

8 991 

10 068 

10 068 

1 1ll 

8 510 

10 370 

Transfers recognised - capital 

- 

- 

- 

8 826 

8 506 

8 506 

1 1ll 

8 510 

10 370 

Public contributions & donations 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Internally generated funds 

140 

171 

480 

165 

1562 

1562 

- 

- 

- 

Total sources of capital funds 

140 

171 

480 

8 991 

10 068 

10 068 

1 1ll 

8 510 

10 370 

Financial position 










Total current assets 

3 433 

21 559 

19 983 

13 155 

10 266 

10 266 

5 999 

6 340 

6 785 

Total non current assets 

16 003 

13 482 

14 228 

26 009 

23 984 

23 984 

12 499 

21 009 

31 379 

Total current liabilities 

1951 

9 040 

9 734 

2115 

4 676 

4 676 

3 346 

3 522 

3 708 

Total non current liabilities 

3 119 

2 804 

2 488 

2173 

2173 

2 173 

1 858 

1 542 

1227 

Community wealth/Equity 

14 365 

23 197 

21 989 

34 876 

27 401 

27 401 

13 294 

22 285 

33 230 

Cash flows 










Net cash from (used) operating 

(5 763) 

18 161 

(297) 

(320) 

163 

163 

(3 098) 

9 149 

11 026 

Net cash from (used) investing 

(140) 

(171) 

(480) 

(8 991) 

(10 068) 

(10 068) 

(i in) 

(8 510) 

(10 370) 

Net cash from (used) financing 

(608) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

Cash/cash equivalents at the year end 

3 159 

20 834 

19 742 

10115 

9 522 

9 522 

4 997 

5 320 

5 661 


page I 206 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 109: Housing Company Tshwane - Budgeted financial performance 


Housing Company Tshwane - Budgeted financial performance 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 

Revenue by Source 










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 

2 503 

2 651 

3 203 

7 607 

3 689 

3 689 

3 795 

4 004 

4 216 

Interest earned - external investments 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Interest earned - outstanding debtors 

- 

7 

35 

30 

107 

107 

64 

67 

71 

Dividends received 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Fines 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Licences and permits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Agency services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers recognised - operational 

13 727 

7 028 

12 288 

22 079 

29 847 

29 847 

23 445 

28 072 

32 072 

Other revenue 

71 

106 

203 

118 

51 

51 

113 

119 

126 

Gains on disposal of PPE 

- 

- 

300 

- 

- 

- 

- 

- 

- 

Total Revenue (excluding capital transfers and contributions) 

16 301 

9 792 

16 029 

29 835 

33 694 

33 694 

27 417 

32 263 

36 485 

Expenditure Bv Tvoe 










Employee related costs 

2 813 

4 152 

3 370 

5 609 

5 494 

5 494 

5 945 

6 572 

6 920 

Remuneration of Directors 

433 

763 

1 544 

988 

1 191 

1 191 

1 157 

1279 

1 347 

Debt impairment 

- 

- 

- 

- 

- 

- 

681 

753 

793 

Collection costs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Depreciation & asset impairment 

79 

12 

33 

95 

339 

339 

339 

375 

395 

Finance charges 

514 

464 

419 

382 

373 

373 

284 

240 

196 

Bulk purchases 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other materials 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contracted services 

464 

928 

2 092 

2 344 

2 852 

2 852 

13110 

4 876 

5 357 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

2116 

1 252 

4 051 

20 418 

23 445 

23 445 

5 901 

18 168 

21 477 

Loss on disposal of PPE 

- 

2 680 

- 

- 

- 

- 

- 

- 

- 

Total Expenditure 

6 419 

10 250 

11 510 

29 835 

33 694 

33 694 

27 417 

32 263 

36 485 

Surplus/(Deficit) 

9 882 

(458) 

4 519 

(0) 



(0) 

0 

0 

Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions of PPE 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & contributions 

9 882 

(458) 

4 519 

(0) 

- 

- 

(0) 

0 

0 

Taxation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/ (Deficit) for the year 

9 882 

(458) 

4 519 

(0) 

- 

- 

(0) 

0 

0 


page I 207 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 110: Housing Company Tshwane - Budgeted financial position 


Housing Company Tshwane - Budgeted financial position 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 










ASSETS 










Current assets 










Cash 

3159 

20 834 

19 742 

10 115 

9 522 

9 522 

4 997 

5 320 

5 661 

Call investment deposits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Consumer debtors 

255 

627 

85 

2 959 

677 

677 

934 

949 

1 049 

Other debtors 

19 

99 

156 

81 

67 

67 

67 

71 

75 

Current portion of long-term receivables 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inventory 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total current assets 

3 433 

21 559 

19 983 

13155 

10 266 

10 266 

5 999 

6 340 

6 785 

Non current assets 










Long-term receivables 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investments 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment property 

15 871 

13 200 

13 500 

24 697 

22 006 

22 006 

9 526 

17 836 

27 836 

Property , plant and equipment 

132 

282 

679 

1312 

1 779 

1 779 

2 074 

2 274 

2 644 

Agricultural assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangible assets 

- 

- 

49 

- 

199 

199 

899 

899 

899 

Total non current assets 

16 003 

13 482 

14 228 

26 009 

23 984 

23 984 

12 499 

21 009 

31 379 

TOTAL ASSETS 

19 436 

35 041 

34 211 

39 164 

34 250 

34 250 

18 498 

27 350 

38 165 

LIABILITIES 










Current liabilities 










Bank overdraft 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

315 

315 

315 

315 

315 

315 

315 

315 

315 

Consumer deposits 

437 

419 

480 

469 

475 

475 

475 

503 

532 

Trade and other payables 

1 071 

7 624 

8 839 

1 145 

3 680 

3 680 

2 350 

2 487 

2 631 

Provisions 

127 

682 

100 

185 

205 

205 

205 

217 

230 

Total current liabilities 

1 951 

9 040 

9 734 

2115 

4 676 

4 676 

3 346 

3 522 

3 708 

Non current liabilities 










Borrowing 

3 119 

2 804 

2 488 

2173 

2173 

2173 

1 858 

1 542 

1 227 

Provisions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total non current liabilities 

3119 

2 804 

2 488 

2 173 

2 173 

2 173 

1 858 

1 542 

1 227 

TOTAL LIABILITIES 

5 070 

11 844 

12 222 

4 288 

6 849 

6 849 

5 204 

5 064 

4 935 











NET ASSETS 

14 365 

23 197 

21 989 

34 876 

27 401 

27 401 

13 294 

22 285 

33 230 

COMMUNITY WEALTH/EQUITY 










Accumulated SurplusZ(Deficit) 

9 752 

18 583 

17 375 

30 262 

22 787 

22 787 

8 680 

17 671 

28 616 

Reserves 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Share capital 

4 614 

4 614 

4 614 

4 614 

4 614 

4 614 

4 614 

4 614 

4 614 

TOTAL COMMUNITY WEALTH/EQUITY 

14 365 

23197 

21 989 

34 876 

27 401 

27 401 

13 294 

22 285 

33 230 


page I 208 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 111: Housing Company Tshwane - Budgeted cash flow 


Housing Company Tshwane - Budgeted cash flow 

Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










CASH FLOW FROM OPERATING ACTIVITIES 










Receipts 










Ratepayers and other 

2 282 

11 967 

3 380 

4 613 

3 288 

3 288 

3 178 

3 322 

3 498 

Government - operating 

13 727 

13 727 

13 666 

14 169 

29 847 

29 847 

20 061 

28 072 

32 072 

Government - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Interest 

0 

7 

35 

30 

5 

5 

60 

63 

67 

Dividends 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Payments 










Suppliers and employees 

(21 259) 

(7 076) 

(16 958) 

(18 751) 

(32 604) 

(32 604) 

(26 113) 

(22 070) 

(24 416) 

Finance charges 

(514) 

(464) 

(419) 

(382) 

(373) 

(373) 

(284) 

(240) 

(196) 

Dividends paid 

~ 

- 

- 

- 

~ 

- 

~ 

~ 

~ 

Transfers and Grants 

- 

- 

- 

- 

- 

- 

- 

~ 

- 

NET CASH FROM/(USED) OPERATING ACTIVITIES 

(5 763) 

18 161 

(297) 

(320) 

163 

163 

(3 098) 

9149 

11 026 

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 

- 

- 


- 

- 

- 

- 

- 

- 

Capital assets 

(140) 

(171) 

(480) 

(8 991) 

(10 068) 

(10 068) 

(i mi 

(8 510) 

(10 370) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

(140) 

(171) 

(480) 

(8 991) 

(10 068) 

(10 068) 

(mi) 

(8 510) 

(10 370) 

CASH FLOWS FROM FINANCING ACTIVITIES 










Receipts 










Short term loans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing long term/refinancing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Increase (decrease) in consumer deposits 

Payments 


“ 

“ 

“ 

” 

“ 

“ 

“ 

“ 

Repayment of borrowing 

(608) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

(608) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 

(315) 











NET INCREASE/ (DECREASE) IN CASH HELD 

(6 512) 

17 675 

(1 092) 

(9 627) 

(10 220) 

(10 220) 

(4 524) 

323 

341 

Cash/cash equivalents at the year begin: 

9 670 

3 159 

20 834 

19 742 

19 742 

19 742 

9 522 

4 997 

5 320 

Cash/cash equivalents at the year end: 

3159 

20 834 

19 742 

10115 

9 522 

9 522 

4 997 

5 320 

5 661 


page I 209 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 112: Housing Company Tshwane - Board members’ allowance and staff benefits 


Housing Company Tshwane ■ Board members' allowance and staff benefits 

Summary of Employee and Board 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Member remuneration 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










Remuneration 










Board Members of Entities 










Basic Salaries 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits and allowances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Board Fees 

433 

763 

1 544 

988 

1 191 

1 191 

1 157 

1279 

1 347 

Sub Total - Board Members of Entities 

433 

763 

1 544 

988 

1 191 

1 191 

1 157 

1 279 

1 347 

Senior Managers of Entities 










Basic Salaries 

2 021 

2 744 

2 498 

3 991 

2 906 

2 906 

3 779 

4 206 

4 429 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Performance Bonus 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits or allowances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sub Total - Senior Managers of Entities 

2 021 

2 744 

2 498 

3 991 

2 906 

2 906 

3 779 

4 206 

4 429 

Other Staff of Entities 










Basic Salaries 

792 

1408 

873 

1 618 

2 588 

2 588 

2 166 

2 366 

2 491 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Overtime 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Performance Bonus 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits or allowances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sub Total - Other Staff of Entities 

792 

1 408 

873 

1 618 

2 588 

2 588 

2 166 

2 366 

2 491 











Total Municipal Entities remuneration 

3 246 

4 914 

4 914 

6 596 

6 685 

6 685 

7 102 

7 852 

8 268 


page I 210 


Table 113: Housing Company Tshwane - Budgeted monthly cash flow, revenue and expenditure 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Medium Term Revenue and Expenditure 

Framework 

Budget Year 

+2 2017/18 

4 216 

32 269 

m 

CO 

to 

co 

6 920 

1 347 

793 

395 

196 

5 357 

21 477 

36 485 | 

10 370 

10 370 | 

3 498 

32 072 

67 

(24 416) 

(196) 

CO 

CM 

o 

(10 370) 

(10 370)| 

53- 

CO^ 

in 

co 


5 

CO 

Budget Year 

+1 2016/17 

4 004 

28 259 

co 

to 

CM 

CM 

CO 

6 572 

1 279 

753 

375 

240 

4 876 

18 168 

32 263 | 

019 8 

<=> 

m 

co 

3 322 

28 072 

63 

(22 070) 

(240) 

9 149 | 

(8 510) 

(8 510)| 

S 

1 £ 1 

in' 

co 


co 

CM 

co 

Budget Year 

2015/16 

3 795 

23 622 

r-~ 

t— 

CM 

5 945 

1 157 

681 

339 

284 

13 110 

5 901 

27 417 | 

til l 

1 111 | 

3 178 

20 061 

60 

(26 113) 

(284) 

(3 098)| 


a mil 

1 siL 1 

In' 

co 


CM 

m 

•ct 

Budget Year 2015/16 

June 

CM N. 

1 cm 'a- i 

CO 05 

CM 

CO 

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CM CM CO CO CM 0> 05 

CO CM <0 I CO CM | 1 fM. | T- 1 

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1 917 | 


1 

269 

(0) 

5 

(3 257) 

(22) 

| (900 Z) 


i 

(26) 

S' 

CM 


(3 031)| 

May 

319 

1 883 

CM 

o 

CM 

CM 

474 

119 

56 

23 

673 

920 

2 265 | 

' 

1 

268 

5 

(1 860) 

(23) 

(1 609)| 

", 

i 

(26) 

S' 

CM 


(1 636)| 

April 

319 

1 866 

w 

CO 

CM 

474 

119 

56 

22 

1 082 

370 

co 

CM 

CM 


1 

268 

5 

(1 977) 

(22) 

to 

CM 

r-~ 


i 

(26) 

S' 

CM 


CM 

m 

r-~- 

March 

319 

1 687 

to 

o 

o 

CM 

474 

58 

85 

23 

1 110 

365 

2 115 

CO 

CM 

CO 

CM 

267 

5 

(1 627) 

(23) 

05~ 

c— 

co 

co~ 

1 1 1 CM^ 

co' 

CM 

(26) 

S' 

CM 


S' 

co 

■o- 

February 

317 

1 224 

1 541 | 

474 

119 

56 

21 

1 082 

553 

2 305 | 


1 

266 

5 

(1 227) 

(21) 

|(8Z6) 

"" 

1 

(26) 

S' 

CM 


(1 004)1 

January 

317 

2 755 

CM 

1"- 

O 

co 

474 

119 

56 

24 

1 782 

450 

2 905 | 

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o 

<=> 

o 

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266 

5 

(2 971) 
(24) 

■o- 

CM 

r-~ 

CM 

o' 

1 1 1 g 

(ooz) 

(26) 

S' 

CM 


m 

co 

December 

317 

1 989 

2 306 | 

474 

58 

85 

24 

1 225 

383 

CO 

o- 

CM 

CM 

86 

LO 

05 

264 

5 

(1 986) 
(24) 

O' 

fee) 

(96) 

S 

1 CM^ 1 

S' 

CM 


(1 863)| 

November 

314 

1 755 

cn 

to 

C3 

CM 

474 

119 

56 

24 

1 130 

630 

2 433 | 


1 

263 

5 

(1 784) 
(24) 

(1 539)| 

"" 

i 

(26) 

S' 

CM 


(1 566)| 

October 

314 

1 998 

CM 

CO 

CM 

474 

119 

56 

25 

1 130 

492 

2 295 | 


1 

263 

5 

(2 184) 
(25) 

o 

O- 

05 


i 

(26) 

S' 

CM 


e'- 

en 

05 

Sept. 

314 

2 029 

2 343 | 

474 

58 

85 

24 

1 225 

382 

CO 

o- 

CM 

CM 

95 

95 | 

262 

8 000 

5 

(2 614) 
(24) 

5 629 | 

LO" 

i i i 

(96) 

(26) 

S' 

CM 


809 9 

August 

312 

1 441 

1 753 | 

474 

119 

56 

26 

1 228 

514 

2 416 | 


i 

261 

5 

(1 996) 
(26) 

|(SS L l) 


i 

S 

1 CM^ 1 

S' 

CM 


CM 

CO 

e- 

July 

312 

2 047 

2 359 

474 

203 

56 

26 

1 067 

322 

2 147 

co 

05 

193 

261 

12 061 

5 

(2 630) 
(26) 

9 671 

CO~ 

| | | 05 

S' 

05 

(26) 

S' 

CM 


9 452 

xaoie i: 

Description 

1 Revenue By Source 1 

Service charges 

Rental of facilities and equipment 

Other revenue 

Gains on disposal of PPE 

| Total Revenue j 

Expenditure Bv Tvoe 

Employee related costs 

Remuneration of Board Members 

Debt impairment 

Collection costs 

Depreciation & asset impairment 

Finance charges 

Bulk purchases 

Other materials 

Contracted services 

Transfers and grants 

Other expenditure 

Loss on disposal of PPE 

| Total Expenditure | 

Capital expenditure 

| Capital assets \ 

| Total capital expenditure | 

Cash flow 

Ratepayers and other 

Grants 

Interest 

Suppliers, employees and other 

Finance charges 

Dividends paid 

| NET CASH FR0M/(USED) OPERATING ACTIVITIES | 

Decrease (increase) other non-current receivables 
Decrease (increase) in non-current investments 

Proceeds on disposal of PPE 

Capital assets 

| NET CASH FR0M/(USED) INVESTING ACTIVITIES | 

Borrowing long term/refinancing/shortterm 

Repay m ent of borrowing 

Increase in consumer deposits 

| NET CASH FR0M/(USED) FINANCING ACTIVITIES | 


| NET INCREASE/ (DECREASE) IN CASH HELD | 


page I 21 1 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 114: Sandspruit Works Association - Budget summary 



Sandspruit Works Association - 

Budget summary 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 

Financial Performance 










Property rates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges 

190 132 

185 759 

236 090 

285 950 

285 950 

285 950 

275 491 

316 815 

364 337 

Investment revenue 

748 

559 

417 

- 

203 

203 

650 

750 

850 

Transfers recognised - operational 

- 

- 

- 

- 

172 940 

172 940 

172 940 

172 940 

172 940 

Other own revenue 

125 400 

157 930 

195 490 

202 912 

29 770 

29 770 

37 224 

40 646 

44 411 

Total Revenue (excluding capital transfers and 










contributions) 

316 280 

344 248 

431 998 

488 862 

488 862 

488 862 

486 305 

531 151 

582 538 

Employee costs 

71 969 

73 303 

83 336 

94 193 

94 193 

94 193 

103 611 

109 310 

115 103 

Remuneration of Board Members 

175 

257 

439 

678 

678 

678 

1201 

1400 

1 600 

Depreciation and debt impairment 

85 397 

77 304 

95 408 

85 084 

85 084 

85 084 

44 431 

46 875 

49 359 

Finance charges 

2 

- 

- 

- 

- 

- 

- 

- 

- 

Materials and bulk purchases 

93 180 

Ill 720 

132 105 

145 909 

145 909 

145 909 

201 884 

222 072 

244 280 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

82 166 

84 540 

125 630 

162 998 

162 998 

162 998 

135 177 

151 494 

172 195 

Total Expenditure 

332 890 

347 123 

436 918 

488 862 

488 862 

488 862 

486 305 

531 151 

582 538 

Surplus/(Deficit) 

(16 610) 

(2 874) 

(4 920) 

- 

0 

(0) 

- 

- 

- 

Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions recognised - capital & contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & contributions 

(16 610) 

(2 874) 

(4 920) 

- 

0 

(0) 

- 

- 

- 

Taxation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/ (Deficit) for the year 

(16 610) 

(2 874) 

(4 920) 

- 

0 

(0) 

- 

- 

- 











Capital expenditure & funds sources 










Capital expenditure 

497 

462 

526 

2 000 

2 000 

2 000 

13 750 

1 750 

1 750 

Transfers recognised - capital 

497 

462 

526 

2 000 

2 000 

2 000 

13 750 

1 750 

1 750 

Public contributions & donations 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Internally generated funds 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total sources of capital funds 

497 

462 

526 

2 000 

2 000 

2 000 

13 750 

1 750 

1 750 

Financial position 










Total current assets 

91 750 

99 309 

97 317 

49 936 

49 936 

49 936 

51827 

55 477 

59 824 

Total non current assets 

11 440 

9 453 

8 106 

8 994 

8 994 

8 994 

22116 

20 316 

18 316 

Total current liabilities 

102 803 

111 249 

104 778 

61 417 

61 417 

61417 

64 430 

68 571 

72 841 

Total non current liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Community wealth/ Equity 

387 

(2 487) 

645 

(2 487) 

(2 487) 

(2 487) 

9 513 

7 223 

5 298 

Cash flows 










Net cash from (used) operating 

(19 408) 

(8 672) 

2122 

2 300 

2 300 

2 300 

(331) 

850 

1 350 

Net cash from (used) investing 

(462) 

(526) 

(354) 

(2 000) 

(2 000) 

(2 000) 

(1 750) 

(1 550) 

(1 550) 

Net cash from (used) financing 

~ 

~ 

- 

200 

200 

200 

200 

200 

200 

Cash/cash equivalents at the year end 

21 321 

12 123 

13 891 

14 391 

14 391 

14 391 

12 510 

12 010 

12 010 


page I 212 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 115: Sandspruit Works Association - Budgeted financial performance 


Sandspruit Works Association - Budgeted financial performance 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 

Revenue by Source 










Property rates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Property rates - penalties & collection charges 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges - electricity revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sen/ ice charges - water revenue 

121 456 

107 986 

150 835 

186 527 

186 527 

186 527 

217 752 

250 415 

287 977 

Sen/ ice charges - sanitation revenue 

35 716 

37 316 

43 324 

50 590 

50 590 

50 590 

57 739 

66 400 

76 360 

Sen/ ice charges - refuse revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sen/ ice charges - other 

32 961 

40 457 

41 932 

48 833 

48 833 

48 833 

- 

- 

- 

Rental of facilities and equipment 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Interest earned - external investments 

748 

559 

417 

- 

203 

203 

650 

750 

850 

Interest earned - outstanding debtors 

21 078 

23 556 

27 474 

29 972 

29 770 

29 770 

34 224 

37 646 

41411 

Dividends received 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Fines 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Licences and permits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Agency sen/ ices 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers recognised - operational 

- 

- 

- 

- 

172 940 

172 940 

172 940 

172 940 

172 940 

Other revenue 

104 322 

134 374 

168 016 

172 940 

- 

- 

3 000 

3 000 

3 000 

Gains on disposal of PPE 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Revenue (excluding capital transfers and contributions) 

316 280 

344 248 

431 998 

488 862 

488 862 

488 862 

486 305 

531 151 

582 538 

Expenditure By Type 










Employee related costs 

71 969 

73 303 

83 336 

94 193 

94 193 

94 193 

103 611 

109 310 

115 103 

Remuneration of Directors 

175 

257 

439 

678 

678 

678 

1201 

1400 

1 600 

Debt impairment 

82 730 

77 304 

95 408 

85 084 

85 084 

85 084 

44 431 

46 875 

49 359 

Collection costs 

5 620 

6 

- 

5 843 

5 843 

5 843 

3 500 

3 780 

4 158 

Depreciation & asset impairment 

2 666 

2 258 

1 701 

2 459 

2 459 

2 459 

1 600 

1 800 

2 000 

Finance charges 

2 

- 

- 

- 

- 

- 

- 

- 

- 

Bulk purchases 

93 180 

Ill 720 

132 105 

145 909 

145 909 

145 909 

181 719 

199 891 

219 880 

Other materials 

- 

- 

- 

- 

- 

- 

20 165 

22182 

24 400 

Contracted sen/ices 

- 

- 

- 

- 

- 

- 

21 116 

23 227 

25 5 50 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

76 546 

82 022 

123 929 

154 696 

154 696 

154 696 

108 961 

122 686 

140 487 

Loss on disposal of PPE 

- 

253 

- 

- 

- 

- 

- 

- 

- 

Total Expenditure 

332 890 

347 123 

436 918 

488 862 

488 862 

488 862 

486 305 

531 151 

582 538 

Surplus/(Deficit) 

(16 610) 

(2 874) 

(4 920) 


0 

(0) 




Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions of PPE 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & contributions 

(16 610) 

(2 874) 

(4 920) 

- 

0 

(0) 

- 

- 

- 

Taxation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/ (Deficit) for the year 

(16 610) 

(2 874) 

(4 920) 

- 

0 

(0) 

- 

- 

- 


page I 213 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 116: Sandspruit Works Association - Budgeted financial position 


Sandspruit Works Association - Budgeted financial position 

Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










ASSETS 










Current assets 










Cash 

21 321 

12 123 

13 891 

14 391 

14 391 

14 391 

12 510 

12 010 

12 010 

Call investment deposits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Consumer debtors 

13 566 

15 289 

14 339 

14 432 

14 432 

14 432 

15 875 

17463 

19 209 

Other debtors 

54 346 

69 125 

65 704 

17 963 

17 963 

17 963 

19 963 

22 164 

24 380 

Current portion of long-term receivables 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inventory 

2 517 

2 771 

3 383 

3 150 

3 150 

3 150 

3 478 

3 840 

4 224 

Total current assets 

91 750 

99 309 

97 317 

49 936 

49 936 

49 936 

51 827 

55 477 

59 824 

Non current assets 










Long-term receivables 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investments 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment property 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Property, plant and equipment 

11 440 

9 453 

8 106 

8 994 

8 994 

8 994 

22 116 

20 316 

18 316 

Agricultural assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangible assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total non current assets 

11 440 

9 453 

8 106 

8 994 

8 994 

8 994 

22 116 

20 316 

18 316 

TOTAL ASSETS 

103 190 

108 762 

105 423 

58 930 

58 930 

58 930 

73 943 

75 793 

78 140 

LIABILITIES 










Current liabilities 










Bank overdraft 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Consumer deposits 

3 085 

3 468 

3 726 

3 500 

3 500 

3 500 

3 700 

3 900 

4 290 

Trade and other payables 

99 719 

107 781 

101 052 

57 917 

57 917 

57 917 

60 730 

64 671 

68 551 

Provisions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total current liabilities 

102 803 

Ill 249 

104 778 

61 417 

61 417 

61 417 

64 430 

68 571 

72 841 

Non current liabilities 










Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Provisions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total non current liabilities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL LIABILITIES 

102 803 

Ill 249 

104 778 

61 417 

61 417 

61 417 

64 430 

68 571 

72 841 











NET ASSETS 

387 

(2 487) 

645 

(2 487) 

(2 487) 

(2 487) 

9 513 

7 223 

5 298 

COMMUNITY WEALTH/EQUITY 










Accumulated Surplus/(Deficit) 

387 

(2 487) 

645 

(2 487) 

(2 487) 

(2 487) 

9 513 

7 223 

5 298 

Reserves 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Share capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL COMMUNITY WEALTH/EQUITY 

387 

(2 487) 

645 

(2 487) 

(2 487) 

(2 487) 

9 513 

7 223 

5 298 


page I 214 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 117: Sandspruit Works Association - Budgeted cash flow 



Sandspruit Works Association 

- Budgeted cash flow 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










CASH FLOW FROM OPERATING ACTIVITIES 










Receipts 










Ratepayers and other 

208 371 

243 248 

291 522 

409 359 

236 419 

236 419 

203 203 

231 475 

284 716 

Government - operating 

- 

- 

- 

- 

172 940 

172 940 

172 940 

172 940 

172 940 

Government - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Interest 

21 826 

9 073 

10 721 

29 972 

29 972 

29 972 

32 105 

34 850 

39 157 

Dividends 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Payments 










Suppliers and employees 

(249 602) 

(260 994) 

(300 121) 

(437 032) 

(437 032) 

(437 032) 

(408 579) 

(438 415) 

(495 464) 

Finance charges 

P) 

- 

- 

- 

- 

- 

- 

- 

- 

Dividends paid 


- 

- 

- 

0 

- 

- 

- 

- 

Transfers and Grants 


- 

- 

- 

- 

- 

- 

- 

- 

NET CASH FROM/(USED) OPERATING ACTIVITIES 

(19 408) 

(8 672) 

2 122 

2 300 

2 300 

2 300 

(331) 

850 

1 350 

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 

- 

- 

- 

- 

- 

- 

“ 

- 

- 

Capital assets 

(462) 

(526) 

(354) 

(2 000) 

(2 000) 

(2 000) 

(1 750) 

(1 550) 

(1 550) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

(462) 

(526) 

(354) 

(2 000) 

(2 000) 

(2 000) 

(1 750) 

(1 550) 

(1 550) 

CASH FLOWS FROM FINANCING ACTIVITIES 










Receipts 










Short term loans 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing long term/refinancing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Increase (decrease) in consumer deposits 

Payments 

“ 

“ 

“ 

200 

200 

200 

200 

200 

200 

Repayment of borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

- 

- 

- 

200 

200 

200 

200 

200 

200 











NET INCREASE/ (DECREASE) IN CASH HELD 

(19 870) 

(9 198) 

1 768 

500 

500 

500 

(1 881) 

(500) 

- 

Cash/cash equivalents at the year begin: 

41 191 

21 321 

12 123 

13 891 

13 891 

13 891 

14 391 

12 510 

12 010 

Cash/cash equivalents at the year end: 

21 321 

12 123 

13 891 

14 391 

14 391 

14 391 

12 510 

12 010 

12 010 


page I 215 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 118: Sandspruit Works Association - Board members’ allowance and staff benefits 


Sandspruit Works Association - Board members' allowance and staff benefits 

Summary of Employee and Board 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Member remuneration 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










Remuneration 










Board Members of Entities 










Basic Salaries 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits and allowances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Board Fees 

175 

257 

439 

678 

678 

678 

1201 

1400 

1 600 

Sub Total - Board Members of Entities 

175 

257 

439 

678 

678 

678 

1 201 

1 400 

1 600 

Senior Managers of Entities 










Basic Salaries 

4 021 

3 551 

3 614 

4 873 

4 873 

4 873 

4 724 

4 984 

5 248 

Pension Contributions 

430 

541 

515 

816 

816 

816 

874 

922 

971 

Medical Aid Contributions 

175 

199 

192 

230 

230 

230 

300 

317 

334 

Motor vehicle allowance 

136 

403 

1 002 

156 

156 

156 

1 236 

1304 

1373 

Cell phone allowance 

- 

44 

75 

- 

- 

- 

113 

119 

125 

Housing allowance 

126 

160 

163 

176 

176 

176 

208 

220 

232 

Performance Bonus 

166 

295 

314 

343 

343 

343 

437 

461 

485 

Other benefits or allowances 

- 

257 

231 

135 

135 

135 

- 

- 

- 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sub Total ■ Senior Managers of Entities 

5 055 

5 450 

6 107 

6 728 

6 728 

6 728 

7 892 

8 326 

8 768 

Other Staff of Entities 










Basic Salaries 

40 677 

44 260 

44 278 

54 438 

54 438 

54 438 

56 180 

59 270 

62 412 

Pension Contributions 

4 018 

4 124 

9 101 

10 693 

10 693 

10 693 

11 860 

12 513 

13 176 

Medical Aid Contributions 

6 163 

6 821 

7 538 

8 756 

8 756 

8 756 

9 192 

9 697 

10 211 

Motor vehicle allowance 

5 814 

2 786 

5 279 

1 635 

1 635 

1 635 

6 436 

6 790 

7 149 

Cell phone allowance 

- 

- 

299 

- 

- 

- 

423 

446 

470 

Housing allowance 

1 982 

2 181 

2 635 

3 148 

3 148 

3 148 

3 342 

3 526 

3 713 

Overtime 

2 346 

2 256 

2 763 

2 310 

2 310 

2 310 

2 414 

2 547 

2 682 

Performance Bonus 

- 

- 

3 460 

4 208 

4 208 

4 208 

4 486 

4 733 

4 983 

Other benefits or allowances 

5 914 

5 424 

1 876 

2 277 

2 277 

2 277 

1386 

1462 

1 540 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sub Total ■ Other Staff of Entities 

66 914 

67 852 

77 229 

87 465 

87 465 

87 465 

95 719 

100 984 

106 336 











Total Municipal Entities remuneration 

72 145 

73 560 

83 775 

94 871 

94 871 

94 871 

104 813 

110 710 

116 703 


page I 216 


Table 119: Sandspruit Works Association - Budgeted monthly cash flow, revenue and expenditure 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Medium Term Revenue and Expenditure 

Framework 

Budget Year 

+2 2017/18 

364 337 

218 201 

582 538 | 

115 103 

1 600 

49 359 

4 158 

2 000 

219 880 

24 400 

25 550 

140 487 

582 538 | 

1 750 

1 750 I 

284 716 

172 940 

39 157 

(495 464) 

1 350 | 

cP 

1 1 1 CO 

co 

o 

CO 

ooz 

o 

o 

CM 


i 

Budget Year 

+1 2016/17 

LO CO 

1 CO | 
CO CO 

CO M- 

CO c\i 

CO 

109 310 

1400 

46 875 

3 780 

1 800 

199 891 

22 182 

23 227 

122 686 

CO 

1 750 

o 

r— 

231 475 

172 940 

34 850 

(438 415) 

o 

CO 

o' 

1 1 1 CO 

co 

o' 

ooz 

o 

o 

CM 


(oos) 

Budget Year 

2015/16 

275 491 

210 814 

o 

co 

CO 

CO 

103 611 

1 201 

44 431 

3 500 

1 600 

181 719 

20 165 

21 116 

108 961 

LO 

o 

CO 

CO 

CO 

•o 

13 750 

o 

CO 

r-~- 

co 

203 203 

172 940 

32 105 

(408 579) 

co 

co 

(1 750) 

o' 

LO 

c- 

ooz 

o 

o 

CM 


CO 

CO 

Budget Year 2015/16 

June 

13 044 

16 882 

CO 

CM 

o> 

O) 

CM 

14 294 

579 

3 703 

292 

133 

42 971 

1 680 

1 760 

9 080 

74 492 

11 914 

11 914 

16 934 

14 412 

4 596 

(34 048) 

1 893 

fed) 

[fe6) 

i s 

CO 


1 815 

May 

24 286 

17 946 

CM 

CO 

CM 

CM 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

37 810 | 

p 

170 | 

16 934 

14 412 

2 546 

(34 048) 

s 

o' 

1 1 1 52. 

o 

co 


f'. 


o 

r^ 

April 

23 503 

17 367 

40 870 | 

7 999 

56 

3 703 

292 

133 

12 425 

1 680 

1 760 

9 080 

!•'- 

CM 

C~- 

co 

co 

■'3- 

CO 

16 934 

14 412 

2 463 

(34 048) 

o' 

'3- 

CM 

o' 

1 1 1 co 

o' 

i s 

co 


Jo 

r~- 

co 

March 

24 286 

17 946 

CM 

CO 

CM 

CM 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

o 

CO 

r— 

co 

e 

170 | 

16 934 

14 412 

2 546 

(34 048) 


, , , s' 

o' 

rv. 

t"- 


o' 

co 

February 

21 936 

16 209 

38 145 | 

7 465 

52 

3 703 

292 

133 

11 597 

1 680 

1 760 

9 080 

CM 

CO 

!•'- 

CO 

co 

CO 

153 | 

16 934 

14 412 

2 299 

(34 048) 

o 

■■3; 

o' 

1 1 1 CO 

co~ 

1 s 

lO 


cp 

O' 

CO 

January 

24 286 

17 946 

CM 

CO 

CM 

CM 

■O' 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

37 810 I 

p 

170 | 

16 934 

14 412 

2 546 

(34 048) 

P 

1 , 1 s' 

o' 




o' 

co 

December 

24 286 

17 946 

CM 

CO 

CM 

CM 

■O' 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

37 810 | 

p 

170 | 

16 934 

14 412 

2 546 

(34 048) 

s 

III S' 

o' 

c~- 

1 r--. 

h- 


o' 

co 

November 

23 503 

17 367 

40 870 | 

7 999 

56 

3 703 

292 

133 

12 425 

1 680 

1 760 

9 080 

r~- 

CM 

!•'- 

co 

co 

■'3- 

CD 

16 934 

14 412 

2 463 

(34 048) 

o' 

'3- 

CM 

1 1 1 co 

CD 

i s 

co 


P7 

CO 

co 

October 

24 286 

17 946 

CM 

CO 

CM 

CM 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

37 810 I 

p 

O 

r— 

16 934 

14 412 

2 546 

(34 048) 

P 

III S' 

o' 

i— 

1 r--. 

h- 


o' 

co 

Sept. 

23 503 

17 367 

40 870 | 

7 999 

56 

3 703 

292 

133 

12 425 

1 680 

1 760 

9 080 

r~- 

CM 

c~ 

co 

co 

■'3- 

CD 

16 934 

14 412 

2 463 

(34 048) 

o' 

-3- 

CM 

1 1 I co 

CD 

i s 

co 


fP 

CO 

co 

August 

24 286 

17 946 

CM 

CO 

CM 

CM 

■o 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

37 810 

s 

170 

16 934 

14 412 

2 546 

(34 048) 

P 

III S' 

o' 

r~- 




o' 

co 

July 

24 286 

17 946 

CM 

CO 

CM 

CM 

■o 

8 265 

58 

3 703 

292 

133 

12 839 

1 680 

1 760 

9 080 

37 810 | 

o 

170 | 

16 934 

14 412 

2 546 

(34 048) 

cT 

1 1 1 

J 




CO 

CM 

Description 

1 Revenue Bv Source 

Service charges 

Rental of facilities and equipment 

Other revenue 

Gains on disposal of PPE 

| Total Revenue | 

Expenditure Bv Tvoe 

Employee related costs 

Remuneration of Board Members 

Debt impairment 

Collection costs 

Depreciation & asset impairment 

Finance charges 

Bulk purchases 

Other materials 

Contracted services 

Transfers and grants 

Other expenditure 

Loss on disposal of PPE 

| Total Expenditure | 

Capital expenditure 

"co 

'5. 

o 

| Total capital expenditure | 

Cash flow 

Ratepayers and other 

Grants 

Interest 

Suppliers, employees and other 

Finance charges 

Dividends paid 

| NET CASH FR0M/(USED) OPERATING ACTIVITIES| 

Decrease (increase) other non-current receivables 
Decrease (increase) in non-current investments 
Proceeds on disposal of PPE 

Capital assets 

| NET CASH FR0M/(USED) INVESTING ACTIVITIES | 

Borrowing long term/refinancing/short term 
Repayment of borrowing 

Increase in consumer deposits 

| NET CASH FR0M/(USED) FINANCING ACTIVITIES| 


| NET INCREASE/ (DECREASE) IN CASH HELD | 


page I 217 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 1 20: TEDA - Budget summary 




TEDA 

Budget summary 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 

Financial Performance 










Property rates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment revenue 

- 

26 

176 

74 

74 

74 

176 

194 

213 

Transfers recognised - operational 

- 

10 963 

59 076 

47 500 

53 033 

53 033 

54 150 

54 150 

54 150 

Other own revenue 

- 

- 

4 

- 

3 983 

3 983 

2 921 

3183 

3 502 

Total Revenue (excluding capital transfers and 










contributions) 

- 

10 989 

59 256 

47 574 

57 090 

57 090 

57 247 

57 527 

57 865 

Employee costs 

- 

1 719 

19 452 

34 675 

29 253 

29 253 

31 714 

34 375 

36 094 

Remuneration of Board Members 

76 

1 954 

3 397 

1800 

2191 

2 191 

2191 

2 410 

2 530 

Depreciation and debt impairment 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Finance charges 

- 

15 

31 

50 

70 

70 

70 

77 

81 

Materials and bulk purchases 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

4 

4 426 

31 366 

11 048 

25 577 

25 577 

23 273 

20 665 

19 160 

Total Expenditure 

80 

8 113 

54 247 

47 574 

57 090 

57 090 

57 247 

57 527 

57 865 

Surplus/(Deficit) 

(80) 

2 876 

5 009 

- 

- 

- 

- 

- 

- 

Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions recognised - capital & contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & contributions 

(80) 

2 876 

5 009 

- 

- 

- 

- 

- 

- 

Taxation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/ (Deficit) for the year 

(80) 

2 876 

5 009 

- 

- 

- 

- 

- 

- 











Capital expenditure & funds sources 










Capital expenditure 

- 

1 760 

10 037 

350 

953 

953 

1 070 

682 

716 

Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Public contributions & donations 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Internally generated funds 

- 

1 760 

10 037 

350 

953 

953 

1070 

682 

716 

Total sources of capital funds 


1 760 

10 037 

350 

953 

953 

1 070 

682 

716 

Financial position 










Total current assets 

- 

18 067 

7 638 

4 348 

4 041 

4 041 

4 445 

4 890 

5 379 

Total non current assets 

- 

1 873 

9 935 

12 400 

6 516 

6 516 

7167 

7 884 

8 672 

Total current liabilities 

121 

17185 

9 343 

6 250 

4 250 

4 250 

6 000 

6 600 

7 260 

Total non current liabilities 

- 

- 

465 

1 250 

1 250 

1250 

550 

300 

350 

Community wealth/ Equity 

(121) 

2 755 

7 764 

9 248 

5 057 

5 057 

5 062 

5 874 

6 441 

Cash flows 










Net cash from (used) operating 

(28) 

17 500 

(59) 

(1 014) 

(564) 

(564) 

1449 

1 099 

1 174 

Net cash from (used) investing 

~ 

(1 760) 

(10 037) 

(350) 

(800) 

(800) 

(1 070) 

(682) 

(716) 

Net cash from (used) financing 

28 

98 

(588) 

- 

- 

- 

- 

- 

~ 

Cash/cash equivalents at the year end 

- 

15 837 

5153 

3 788 

3 788 

3 788 

4167 

4 584 

5 042 


page I 218 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 121: TEDA- Budgeted financial performance 


TEDA - Budgeted financial performance 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and 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 

R thousands 

Revenue bv Source 










Property rates 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Property rates - penalties & collection charges 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges - electricity revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sen/ ice charges - water revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Service charges - sanitation revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sen/ ice charges - refuse revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sen/ ice charges - other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Rental of facilities and equipment 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Interest earned - external investments 

- 

26 

176 

74 

74 

74 

176 

194 

213 

Interest earned - outstanding debtors 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Dividends received 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Fines 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Licences and permits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Agency services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Transfers recognised - operational 

- 

10 963 

59 076 

47 500 

53 033 

53 033 

54 150 

54 150 

54 150 

Other revenue 

- 

- 

4 

- 

3 983 

3 983 

2 921 

3183 

3 502 

Gains on disposal of PPE 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Revenue (excluding capital transfers and contributions) 

- 

10 989 

59 256 

47 574 

57 090 

57 090 

57 247 

57 527 

57 865 

Expenditure Bv Type 










Employee related costs 

- 

1 719 

19 452 

34 675 

29 253 

29 253 

31 714 

34 375 

36 094 

Remuneration of Directors 

76 

1 954 

3 397 

1 800 

2191 

2 191 

2191 

2 410 

2 530 

Debt impairment 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Collection costs 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Depreciation & asset impairment 

- 

12 

1 895 

- 

- 

- 

- 

- 

- 

Finance charges 

- 

15 

31 

50 

70 

70 

70 

77 

81 

Bulk purchases 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other materials 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contracted services 

- 

- 

- 

1 200 

3 258 

3 258 

2 000 

2 200 

2 310 

Transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other expenditure 

4 

4 414 

29 408 

9 848 

22 319 

22 319 

21 273 

18 465 

16 850 

Loss on disposal of PPE 

- 

- 

63 

- 

- 

- 

- 

- 

- 

Total Expenditure 

80 

8113 

54 247 

47 574 

57 090 

57 090 

57 247 

57 527 

57 865 

Surplus/(Deficit) 

(80) 

2 876 

5 009 







Transfers recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions recognised - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Contributions of PPE 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & contributions 

(80) 

2 876 

5 009 

- 

- 

- 

- 

- 

- 

Taxation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/ (Deficit) for the year 

(80) 

2 876 

5 009 

- 

- 

- 

- 

- 

- 


page I 219 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 122: TEDA- Budgeted financial position 


TEDA - Budgeted financial position 

Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










ASSETS 










Current assets 










Cash 

- 

15 837 

5 153 

3 288 

3 288 

3 288 

3 617 

3 979 

4 377 

Call investment deposits 

- 

- 

- 

500 

500 

500 

550 

605 

666 

Consumer debtors 

- 

- 

255 

- 

- 

- 

- 

- 

- 

Other debtors 

- 

2 230 

2 230 

560 

253 

253 

278 

306 

336 

Current portion of long-term receivables 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Inventory 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total current assets 

- 

18 067 

7 638 

4 348 

4 041 

4 041 

4 445 

4 890 

5 379 

Non current assets 










Long-term receivables 

- 

18 

- 

- 

- 

- 

- 

- 

- 

Investments 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment property 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Property , plant and equipment 

- 

1 834 

9 757 

9 500 

5 941 

5 941 

6 535 

7189 

7 907 

Agricultural assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangible assets 

- 

21 

178 

2 900 

574 

574 

632 

695 

765 

Total non current assets 

- 

1 873 

9 935 

12 400 

6 516 

6 516 

7 167 

7 884 

8 672 

TOTAL ASSETS 

- 

19 940 

17 573 

16 748 

10 557 

10 557 

11 612 

12 774 

14 051 

LIABILITIES 










Current liabilities 










Bank overdraft 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

45 

- 

- 

- 

- 

- 

- 

- 

- 

Consumer deposits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Trade and other payables 

76 

2 012 

3 810 

2 050 

2 050 

2 050 

1 800 

1 980 

2 178 

Provisions 

- 

15 173 

5 533 

4 200 

2 200 

2 200 

4 200 

4 620 

5 082 

Total current liabilities 

121 

17 185 

9 343 

6 250 

4 250 

4 250 

6 000 

6 600 

7 260 

Non current liabilities 










Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Provisions 

- 

- 

465 

1 250 

1 250 

1 250 

550 

300 

350 

Total non current liabilities 

- 

- 

465 

1 250 

1 250 

1 250 

550 

300 

350 

TOTAL LIABILITIES 

121 

17 185 

9 808 

7 500 

5 500 

5 500 

6 550 

6 900 

7 610 











NET ASSETS 

(121) 

2 755 

7 764 

9 248 

5 057 

5 057 

5 062 

5 874 

6 441 

COMMUNITY WEALTH/EQUITY 










Accumulated Surplus/ (Deficit) 

(122) 

2 754 

7 763 

1 748 

1 748 

1 748 

5 061 

5 873 

6 440 

Reserves 

~ 

- 

- 

- 

- 

- 

- 

- 

- 

Share capital 

1 

1 

1 

7 500 

3 308 

3 308 

1 

1 

1 

TOTAL COMMUNITY WEALTH/EQUITY 

(121) 

2 755 

7 764 

9 248 

5 057 

5 057 

5 062 

5 874 

6 441 


page I 220 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 1 23: TEDA - Budgeted cash flow 


TEDA - Budgeted cash flow 

Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










CASH FLOW FROM OPERATING ACTIVITIES 










Receipts 










Ratepayers and other 

- 

- 

4 

- 

3 983 

3 983 

2 921 

3 183 

3 502 

Government - operating 

- 

25 000 

47 500 

47 500 

53 033 

53 033 

54 150 

54 150 

54 150 

Government - capital 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Interest 

- 

26 

157 

74 

74 

74 

176 

194 

213 

Dividends 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Payments 










Suppliers and employees 

(28) 

(7 512) 

(47 689) 

(48 538) 

(57 585) 

(57 585) 

(55 728) 

(56 351) 

(56 610) 

Finance charges 

~ 

(15) 

(31) 

(50) 

(70) 

(70) 

(70) 

FV 

(81) 

Dividends paid 

~ 

~ 


~ 


~ 

~ 

- 

- 

Transfers and Grants 

- 

~ 




- 

- 

- 

- 

NET CASH FROM/(USED) OPERATING ACTIVITIES 

(28) 

17 500 

(59) 

(1 014) 

(564) 

(564) 

1 449 

1 099 

1 174 

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 


- 

“ 

- 

“ 

“ 

“ 

- 

- 

Capital assets 

- 

(1 760) 

(10 037) 

(350) 

(800) 

(800) 

(1 070) 

(682) 

(716) 

NET CASH FROM/(USED) INVESTING ACTIVITIES 

- 

(1 760) 

(10 037) 

(350) 

(800) 

(800) 

(1 070) 

(682) 

(716) 

CASH FLOWS FROM FINANCING ACTIVITIES 










Receipts 










Short term loans 

28 

98 

- 

- 

- 

- 

- 

- 

- 

Borrowing long term/refinancing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Increase (decrease) in consumer deposits 

Payments 

- 


- 


- 

- 

- 


“ 

Repayment of borrowing 

- 

- 

(588) 

- 

- 

- 

- 

- 

- 

NET CASH FROM/(USED) FINANCING ACTIVITIES 

28 

98 

(588) 

- 

- 

- 

- 

- 

- 











NET INCREASE/ (DECREASE) IN CASH HELD 

- 

15 837 

(10 685) 

(1 364) 

(1 364) 

(1 364) 

379 

417 

458 

Cash/cash equivalents at the year begin: 

- 

- 

15 837 

5 153 

5 153 

5 153 

3 788 

4 167 

4 584 

Cash/cash equivalents at the year end: 

- 

15 837 

5153 

3 788 

3 788 

3 788 

4 167 

4 584 

5 042 


page I 221 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 124: TEDA - Board members’ allowance and staff benefits 


TEDA ■ Board members' allowance and staff benefits 

Summary of Employee and Board 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

Medium Term Revenue and Expenditure 

Framework 

Member remuneration 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

R thousands 










Remuneration 










Board Members of Entities 










Basic Salaries 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits and allowances 

- 

- 

- 

- 

- 

- 

- 

- 

- 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Board Fees 

76 

1 954 

3 397 

1 800 

2 191 

2 191 

2 191 

2 410 

2 530 

Sub Total - Board Members of Entities 

76 

1 954 

3 397 

1 800 

2 191 

2 191 

2 191 

2 410 

2 530 

Senior Managers of Entities 










Basic Salaries 

- 

1 209 

7 285 

16 885 

14 174 

14 174 

20 386 

22 095 

23 199 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

0 

0 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

334 

432 

453 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Performance Bonus 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits or allowances 

- 

38 

439 

- 

- 

- 

410 

444 

466 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sub Total - Senior Managers of Entities 

- 

1 247 

7 724 

16 885 

14174 

14174 

21 130 

22 970 

24 119 

Other Staff of Entities 










Basic Salaries 

- 

472 

11 728 

17 790 

15 079 

15 079 

10 107 

10 834 

11 376 

Pension Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Medical Aid Contributions 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Motor vehicle allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Cell phone allowance 

- 

- 

- 

- 

- 

- 

273 

353 

371 

Housing allowance 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Overtime 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Performance Bonus 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other benefits or allowances 

- 

- 

- 

- 

- 

- 

203 

218 

229 

In-kind benefits 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Sub Total - Other Staff of Entities 

- 

472 

11 728 

17 790 

15 079 

15 079 

10 584 

11 405 

11 975 











Total Municipal Entities remuneration 

76 

3 673 

22 850 

36 475 

31 443 

31 443 

33 904 

36 785 

38 624 


page I 222 


Table 125: TEDA - Budgeted monthly cash flow, revenue and expenditure 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Medium Term Revenue and Expenditure 

Framework 

Budget Year 

+2 2017/18 

57 865 

m 

CO 

CO 

r~- 

co 

36 094 

2 530 

81 

2 310 

16 850 

in 

co 

CO 

|N- 

m 

CO 

co 

r— 

3 502 

54 150 

213 

(56 610) 

(81) 

h~ 

i S' 

CO 

r~- 

i i i 

i 


CO 

If) 

-a- 

Budget Year 

+1 2016/17 

1 1 CM 1 

lO 

IN. 

lO 

57 527 | 

CO O O lO 

N. t— | | | IN | | O | CO | 

OO N- CN N- 

Ntf- CN CN OO 

CO ■*- 

57 527 | 

CN 

CO 

CO 

CN 

OO 

co 

3183 

54 150 

194 

(56 351) 

(77) 

CT> 

CD 

CD 

CN' 

1 1 1 OO 

co 

CN~ 

CO 

CO 

i i i 

i 


L\y 

Budget Year 

2015/16 

N. 

1 1 cn 1 

In 

■o 

CN 

r- 

m 

31 714 

2 191 

70 

2 000 

21 273 

r-~ 

CN 

|n- 

IO 

1 070 

1 070 | 

2 921 

54 150 

176 

(55 728) 

(70) 

CT> 

5 

(1 070) 

o' 

|N- 

o 

i i i 

i 


379 1 

Budget Year 2015/16 

June 

22 

zz 

2 925 

183 

6 

167 

1 773 

5 053 

09 

o 

co 

15 

(4 644) 

(6) 

(4 635) 

o' 

1 1 1 CO 

o' 

CO 

i i i 

i 


in 

CD 

co 

May 

22 

CN 

CN 

2 617 

183 

6 

167 

1 773 

m 

■N- 


1 

15 

(4 644) 

(6) 

in 

CO 

co 

Nj- 


1 

i i i 

i 


S' 

CO 

co 

3. 

April 

13 538 

CO 

CO 

m 

co 

2 617 

183 

6 

167 

1 773 

in 

•d" 

r-~ 

■'S' 

09 

o 

co 

13 538 

15 

(4 644) 

(6) 

CN 

o 

CD 

CO 

o' 

1 l l 52. 

o' 

CO 

i i i 

i 


CN 

N}- 

co 

OO 

March 

22 

1 ZZ 

2 617 

183 

6 

167 

1 773 

in 


1 

LO N? co^ 

1 1 t- | 

CO 

(4 635)| 

"" 

1 

i i i 

i 


(4 635)1 

February 

22 

CN 

CN 

2 617 

183 

6 

167 

1 773 

m 


1 

LO co" 

1 1 •>- | 

CO 

in 

CO 

co 

Nj- 


1 

i i i 

i 


If) 

CO 

co 

3, 

January 

13 538 

CO 

CO 

in 

co 

2 617 

183 

6 

167 

1 773 

If) 

•'S- 


1 

13 538 

15 

(4 644) 

(6) 

CN 

o 

CD 

CO 

1 1 1 1 

1 

i i i 

i 


CN 

o 

CT> 

OO 

December 

22 

CN 

CNJ 

2617 

183 

6 

167 

1 773 

cn 

o 

CO 

o 

If) 

15 

(4 644) 

(6) 

(4 635)| 

o' 

| | 1 LO 

o' 

Lf) 

i i i 

i 


S' 

CO 

h~ 

November 

22 

CNJ 

CNJ 

2 617 

183 

6 

167 

1 773 

to 

£ 


1 

LO N? S^ 

1 1 N- 1 

CO 

in 

CO 

co 


1 

i i i 

i 


(4 635) 

October 

13 538 

CO 

CO 

in 

co 

2 617 

183 

6 

167 

1 773 

If) 

■'S- 


1 

13 538 

15 

(4 644) 
(6) 

CN 

o 

CD 

CO 


1 

i i i 

i 


CN 

o 

CD 

OO 

Sept. 

22 

CNJ 

CN 

2 617 

183 

6 

167 

1 773 

m 

o 

LO 

CO 

o 

LO 

co 

m =*> S' 

i i ▼» rt- — i 

CO 

S' 

CO 

CO 

o' 

1 1 1 LO 

co 

o' 

Lf) 

CO 

i i i 

i 


S' 

CO 

O) 

3, 

August 

2 943 

co 

a 

CN 

2 617 

183 

6 

167 

1 773 

If) 

Nj- 

o 

LO 

o 

If) 

N>- 

2 921 

15 

(4 644) 

(6) 

S' 

N 

o' 

1 1 1 LO 

o' 

Lf) 

-g 

i i i 

i 


S' 

co 

CN 

July 

13 538 

CO 

CO 

in 

co 

2 617 

183 

6 

167 

1 773 

If) 

•'S- 


1 

13 538 

15 

(4 644) 
(6) 

CN 

o 

CD 

CO 


1 

i i i 

i 


CN 

o 

CT) 

OO 

Description 

1 Revenue Bv Source [ 

Service charges 

Rental of facilities and equipment 

Other revenue 

Gains on disposal of PPE 

| Total Revenue [ 

Expenditure Bv Tvoe 

Employee related costs 

Remuneration of Board Members 

Debt impairment 

Collection costs 

Depreciation & asset impairment 

Finance charges 

Bulk purchases 

Other materials 

Contracted services 

Transfers and grants 

Other expenditure 

Loss on disposal of PPE 

| Total Expenditure | 

Capital expenditure 

| Capital assets \ 

(Total capital expenditure [ 

Cash flow 

Ratepayers and other 

Grants 

Interest 

Suppliers, employees and other 

Finance charges 

Dividends paid 

| NET CASH FR0M/(USED) OPERATING ACTIVITIES | 

Decrease (increase) other non-current receivables 

Decrease (increase) in non-current inv estments 

Proceeds on disposal of PPE 

Capital assets 

| NET CASH FR0M/(USED) INVESTING ACTIVITIES 

Borrowing long term/ refinancing/ short term 

Repay ment of borrowing 

Increase in consumer deposits 

| NET CASH FR0M/(USED) FINANCING ACTIVITIES | 


1 NET INCREASE/ (DECREASE) IN CASH HELD | 


page I 223 



VAN I 



■ f 

\ w 



I — wmr 












The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


2.16 ANNUAL BUDGETS AND SERVICE DELIVERY AND 
BUDGET IMPLEMENTATION PLANS - DEPARTMENTS 


Financial performance per municipal department 

Table 1 26: Audit and Risk - Budgeted financial performance 





Group Audit and Risk 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 

(6 868 654) 

(3 691 949) 

(1 848 678) 

(7572 700) 

(7 572 700) 

(7 572 700) 

(2033 500) 

(2114 800) 

(2199 400) 

Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(28 522 575) 

(26 926 425) 

(37455165) 

(177 081800) 

(130 328300) 

(130 328 300) 

(130 173 200) 

(130 181 000) 

(130 188 800) 

Transfers recognised - operational 










Gains on disposal ofPPE 

(28) 

(69) 

(1 433) 







Total Revenue (excluding capital transfers and 
contributions) 

(35 391 257) 

(30 618 443) 

(39 305 276) 

(184 654 500) 

(137 901 000) 

(137 901 000) 

(132 206 700) 

(132 295 800) 

(132 388 200) 

Expenditure Bv Type 

Employee related costs 

44 438 586 

53 969 663 

63 036 247 

62 766 720 

70 130 197 

70 130 197 

73 689 665 

77830335 

82 211 164 

Remuneration of councillors 

109 950 

(96205) 








Debt impairment 










Depreciation & asset impairment 

270267 

218 451 

352 734 

314 135 

303000 

303 000 

302 200 

317300 

333 200 

Finance charges 

863 

1 135 

1391 

35 014 

35 014 

35 014 

1500 

1600 

1700 

Bulk purchases 










Other materials 

224 867 

247 929 

361 418 

164 686 

509 686 

509 686 

495 100 

512 500 

529 500 

Contracted services 

173 277 

51800 

348 263 

400 693 

1020 693 

1 020 693 

376 800 

390 000 

402 900 

Transfer and grants 










Other expenditure 

109 031 521 

128 674 781 

159 778 490 

208408 556 

150443 556 

150 443 556 

179 292 400 

180 666 400 

182 007400 

Loss on disposal ofPPE 

3 646 

891 

796 







Total Expenditure 

154 252 975 

183 068 444 

223 879 338 

272 089 804 

222 442 146 

222 442 146 

254157 665 

259 718 135 

265 485 864 

(Surplus)/Deficit before Transfers recognised - capital 

118 861 718 

152 450 000 

184 574 063 

87 435 304 

84 541 146 

84 541 146 

121 950 965 

127 422 335 

133 097 664 

Transfers recognised - capital 










(Surplus)/Deficit for the year 

118 861 718 

152 450 000 

184 574 063 

87 435 304 

84 541 146 

84 541 146 

121 950 965 

127 422 335 

133 097 664 


page I 225 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 127: City Planning and Development: - Budgeted financial performance 




City Planning and Development 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue By Source 










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 










Interest earned - outstanding debtors 










Dividends received 










Fines 

(294 972) 

(356 020) 

(184 332) 

(325 208) 

(325 208) 

(325 208) 

(132 900) 

(138 800) 

(144 700) 

Licences and permits 










Agency services 










Other revenue 

(67460 016) 

(93 594 297) 

(139 362 375) 

(91057326) 

(91057326) 

(91057326) 

(89 839 300) 

(93 882 000) 

(97 918 700) 

Transfers recognised - operational 



(8 096 000) 

(44 659 000) 

(44 659 000) 

(44 659 000) 

(39 702 000) 

(38 262 000) 

(41 892 000) 

Gains on disposal ofPPE 


(1 866) 

m 







Total Revenue (excluding capital transfers and 
contributions) 

(67 754 988) 

(93 952 183) 

(147 642 746) 

(136 041 534) 

(136 041 534) 

(136 041 534) 

(129 674 200) 

(132 282 800) 

(139 955 400) 

Expenditure By Type 










Employee related costs 

174 517 035 

181 370 815 

198 297 700 

206 929 539 

209 088 580 

209 088 580 

213 988 795 

226 348 108 

239 424 260 

Remuneration of councillors 

759 350 

801 247 

841 170 

925 287 

925287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 










Depreciation & asset impairment 

10 143 323 

10 102 827 

10 484 285 

11 610 554 

9 157 707 

9 157 707 

9 132 900 

9 589 700 

10 069 100 

Finance charges 

1 363 585 

1 157 058 

1 339 037 

1 594 293 

1 546 349 

1 546 349 

1 709 300 

1 847500 

1 990 700 

Bulk purchases 










Other materials 

880 479 

1 147810 

1 146 694 

724 883 

920 245 

920 245 

1 078 100 

1 109 100 

1 139 500 

Contracted services 

8 825 784 

6 470 491 

5 278 926 

16 250 195 

16 250 195 

16 250 195 

6 188 100 

6 376 600 

6 560 700 

Transfer and grants 










Other expenditure 

9 616 335 

14 888 442 

35 675 364 

59 183 984 

68 988 622 

68 988 622 

71 370 700 

71 031 400 

75 735 700 

Loss on disposal ofPPE 

29 781 753 

294 245 

11 804 771 







Total Expenditure 

235 887 642 

216 232 935 

264 867 945 

297 218 735 

306 876 985 

306 876 985 

304 448 699 

317 381 308 

336106 760 

(Surplus)/Deficit before Transfers recognised - capital 

168132 654 

122 280 751 

117 225199 

161 177 201 

170 835 451 

170 835 451 

174 774 499 

185 098 508 

196151 360 

Transfers recognised - capital 










(Surplus)/Deficit for the year 

168132 654 

122 280 751 

117 225199 

161 177 201 

170 835 451 

170 835 451 

174 774 499 

185 098 508 

196 151 360 


Table 128: City Strategies and Performance Management - Budgeted financial performance 




City Strategies and Performance Management 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and Expenditure 
Framework 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original Budget 

Adjusted 

Budqet 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year+1 
2016/17 

Budget Year +2 
2017/18 

Revenue Bv Source 

Property rates 










Property rates ■ penalties & collectbn charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - refuse revenue 










Service charges - other 










Rental offecilities and equipment 










Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 










Transfers recognised - operational 










Gains on disposal ofPPE 



(454) 







Total Revenue (excluding capital transfers and 
contributions) 



(454) 







Expenditure Bv Type 

Employee related costs 

15 299 786 

16 835 107 

20 484 293 

20 485 026 

22 627 002 

22 627 002 

22 306 655 

23 592 646 

24 953 224 

Remuneration of councillors 


895 367 








Debt impairment 










Depreciation & asset impairment 

83 899 

98 727 

311 280 

299 984 

267 389 

267389 

266 800 

280 200 

294 300 

Finance charges 










Bulk purchases 










Other materials 

55 712 

130 283 

81 835 

61961 

111961 

111961 

202 100 

209 300 

216 300 

Contracted services 

129 353 

11288 

2 020 530 

4 208 534 

4 208 534 

4 208 534 

6 524 700 

6 525 600 

6 526 400 

Transfer and grants 










Other expenditure 

1 275 570 

1 423 952 

2 620 446 

2 244 931 

2 194 931 

2 194 931 

1 726 700 

1 786 100 

1 844 200 

Loss on disposal ofPPE 

5 506 


22 







Total Expenditure 

16 849 826 

19 394 723 

25 518 407 

27 300 436 

29 409 817 

29 409 817 

31 026 955 

32 393 846 

33 834 424 

(S urplus)/Def icit before Transfers recognised • capital 

16 849 826 

19 394 723 

25 517 952 

27 300 436 

29 409 817 

29 409 817 

31 026 955 

32 393 846 

33 834 424 

Transfers recognised - capital 










(S urplus)/Def icit for the year 

16 849 826 

19 394 723 

25 517 952 

27 300 436 

29 409 817 

29 409 817 

31 026 955 

32 393 846 

33 834 424 


page I 226 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 129: Communications, Marketing and Events - Budgeted financial performance 




Communications, Marketing and Events 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Property rates 










Property rates ■ penalties & collecion charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - reluse revenue 










Service charges - other 










Rental of facilities and equipment 










Interest earned - externalinvestments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(39 272 76 5) 

(29 495 569) 

(39 903 042) 

(71 835300) 

(71 835 300) 

(71 835 300) 

(43 893 300) 

(45 819 000) 

(47 741 900) 

Transfers recognised - operational 










Gains on disposal ofPPE 


(6 616) 

(214) 







Total Revenue (excluding capital transfers and 
contributions) 

(39 272 765) 

(29 502 186) 

(39 903 256) 

(71 835 300) 

(71 835 300) 

(71 835 300) 

(43 893 300) 

(45 819 000) 

(47 741 900) 

Expenditure Bv Type 

Employee related costs 

27 925 205 

31440 617 

37240 444 

45 552 753 

48 643 422 

48 643 422 

50 844 081 

53 638 653 

56 595 311 

Remuneration of councillors 










Debt impairment 










Depreciation & asset impairment 

389 121 

299 800 

454 053 

260361 

390 031 

390 031 

389 000 

408 400 

428 800 

Finance charges 


58 

67 

80 

78 

78 




Bulk purchases 










Other materials 

127 597 

187 629 

197358 

108 167 

251 167 

251 167 

236 800 

245 000 

253 100 

Contracted services 

373 46 5 

174 819 

60 200 

36 864 

36 864 

36 864 

36 800 

38100 

39 400 

Transfer and grants 










Other expenditure 

11 184 334 

105 973 668 

105 999 222 

151 905 513 

151 762 513 

151 762 513 

125 095 800 

128 073 300 

130 978 900 

Loss on disposal ofPPE 

15 295 

5 563 

919 







Total Expenditure 

40 015 017 

138 082 154 

143 952 262 

197 863 739 

201 084 075 

201 084 075 

176 602 481 

182 403 453 

188 295 511 

(Surplus)/Deficit before Transfers recognised - capital 

742 251 

108 579 968 

104 049 006 

126 028 439 

129 248 775 

129 248 775 

132 709 181 

136 584 453 

140 553 611 

Transfers recognised - capital 










(Surplusj/Deficit for the year 

742 251 

108 579 968 

104 049 006 

126 028 439 

129 248 775 

129 248 775 

132 709 181 

136 584 453 

140 553 611 


Table 130: Corporate and Shared Services - Budgeted financial performance 




Corporate and Shared Services 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Property rates 










Property rates ■ penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - reluse revenue 










Service charges - other 










Rental offecililies and equipment 

(44 873 914) 

(48 87 5 101) 

(52 698 646) 

(198 123 287) 

(198 123 287) 

(198 123 287) 

(56 051 900) 

(58 574 300) 

(61 093 100) 

Interest earned - external investments 










Interest earned - outstanding debtors 



(946) 







Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(33 633 122) 

(43 794 814) 

(23 935 675) 

(524 768 224) 

(519 359 524) 

(519 359 524) 

(46 456 100) 

(27 632 700) 

(22 690 800) 

Transfers recognised - operational 





(689 400) 

(689 400) 




Gains on disposal ofPPE 

(20 981 578) 

(4 055 661) 

(50 470) 







Total Revenue (excluding capital transfers and 
contributions) 

(99 488 614) 

(96 725 575) 

(76 685 737) 

(722 891 511) 

(718172 211) 

(718 172 211) 

(102 508 000) 

(86 207 000) 

(83 783 900) 

Expenditure Bv Tvpe 

Employee related costs 

238 077 893 

251 981 866 

279 335 215 

291 612 224 

282 315 620 

282 315 620 

289 464 220 

306 040 675 

323 579 747 

Remuneration of councillors 

759 350 

797 169 

840 949 

925287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 










Depreciation & asset impairment 

21 771 994 

19 409 889 

22 276 564 

17669 837 

19 135 565 

19 135 565 

19 081 700 

20 036 000 

21 037 900 

Finance charges 

7158 819 

5 930 369 

6 863 085 

8 171 370 

7925 649 

7 925 649 

8 765 200 

9 473 800 

10 208 000 

Bulk purchases 










Other materials 

10 839 237 

11 741 645 

142 972 164 

126 235 843 

126 577305 

126 577305 

125 061 100 

129 438 700 

133 710 700 

Contracted services 

9 600 927 

11660 450 

5 756 904 

9172 547 

25 414 787 

25414 787 

24 273 900 

24 423 400 

24 569 500 

Transfer and grants 










Other expenditure 

272 943 206 

307565 226 

956 734 618 

980055495 

990 334 049 

990 334 049 

841 041 700 

863 995 100 

891 523 100 

Loss on disposal ofPPE 

75 402 

48 472 632 

43 603 840 







Total Expenditure 

561 226 827 

657 559 246 

1 458 383 338 

1 433 842 603 

1 452 628 262 

1 452 628 262 

1 308 668 624 

1 354 486 575 

1 405 815 747 

(Surplus)/Deficit before Transfers recognised - capital 

461 738 214 

560 833 671 

1 381 697 601 

710 951 092 

734 456 051 

734 456 051 

1 206 160 624 

1 268 279 575 

1 322 031 847 

Transfers recognised - capital 





(4 500 000) 

(4 500 OOOj 




(Surplus)/Deficit for the year 

461 738 214 

560 833 671 

1 381 697 601 

710 951 092 

729 956 051 

729 956 051 

1 206 160 624 

1 268 279 575 

1 322 031 847 


page I 227 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 131: Economic Development - Budgeted financial performance 





Economic Development 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Properly rates 










Property rates ■ penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - reli/se revenue 










Service charges - other 










Rental of facilities and equipment 

201 788 


(10 579) 







Interest earned - externalinvestments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 

(2 479 229) 

(2 343 744) 

(1 986 976) 

(3 040 700) 

(3 040 700) 

(3 040 700) 

(2 000 000) 

(2 000 000) 

(2 000 000) 

Agency services 










Other revenue 

m 


(286 752) 







Transfers recognised - operational 



(42 320 000) 

(30 760 000) 

(30 760 000) 

(30 760 000) 

(31 143 000) 



Gains on disposal ofPPE 


(4 865) 

(28) 







Total Revenue (excluding capital transfers and 
contributions) 

(2 277 899) 

(2 348 608) 

(44 604 335) 

(33 800 700) 

(33 800 700) 

(33 800 700) 

(33 143 000) 

(2 000 000) 

(2 000 000) 

Expenditure Bv Type 

Employee related costs 

25220 204 

28 633 333 

43 413466 

44 910 096 

49 088 518 

49 088 518 

48110390 

50 897597 

53 846 462 

Remuneration of councillors 

2 201 









Debt impairment 










Depreciation & asset impairment 

3 399116 

3 394 483 

4 371 961 

3 862 846 

3 755 516 

3 755 516 

3 744 600 

3 932 100 

4 128 800 

Finance charges 

1 022 688 

1 025 886 

1 187 235 

1 413 553 

1 371 046 

1 371 046 

1 516 400 

1 639 100 

1 766 100 

Bulk purchases 










Other materials 

212 154 

269 039 

168 236 

199 932 

199 932 

199 932 

188 700 

195 300 

201 700 

Contracted services 

1 401 450 

119 590 464 

97076185 

70 023 544 

125023 544 

125 023 544 

133 696 800 

137 851 200 

141 905300 

Transfer and grants 



47500000 

47 500 000 

50 571 875 

50 571 875 

54 150 000 

54 150 000 

54 150 000 

Other expenditure 

14 593 211 

15 422 053 

99 813 638 

78 090 949 

100171 449 

100 171 449 

92 818 000 

94 945 800 

97022 500 

Loss on disposal ofPPE 

13 969 

22 397 

13 984 







Total Expenditure 

45 864 992 

168 357 655 

293 544 704 

246 000 920 

330 181 880 

330 181 880 

334 224 890 

343 611 097 

353 020 862 

(Surpius)/Deficit before Transfers recognised - capital 

43 587 093 

166 009 047 

248 940 369 

212 200 220 

296 381 180 

296 381 180 

301 081 890 

341 611 097 

351 020 862 

Transfers recognised - capital 










(Surplusj/Deficit for the year 

43 587 093 

166 009 047 

248 940 369 

212 200 220 

296 381 180 

296 381 180 

301 081 890 

341 611 097 

351 020 862 


Table 132: Emergency Services - Budgeted financial performance 





Emergency Services 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 










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 offaciHies and equipment 










Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 

(46 893) 

(98 304) 

(197 520) 

(67900) 

(67 900) 

(67900) 

(22 000) 

(22 000) 

(22 000) 

Licences and permits 










Agency services 










Other revenue 

(11891325) 

(13 631 503) 

(15 856 869) 

(13 262 506) 

(14 178 506) 

(14 178 506) 

(10 980 300) 

(11474 400) 

(11967800) 

Transfers recognised - operational 

(35 483 000) 

(49 676 000) 

(53 750 000) 

(56 683 000) 

(71 561 000) 

(71 561 000) 

(59 687000) 

(62 850 000) 

(65 993 000) 

Gains on disposal ofPPE 

(182 930) 

(13 722) 

(1 373 896) 







Total Revenue (excluding capital transfers and 
contributions) 

(47 604149) 

(63 419 529) 

(71 178 284) 

(70 013 406) 

(85 807 406) 

(85 807 406) 

(70 689 300) 

(74 346 400) 

(77 982 800) 

Expenditure By Type 










Employee related costs 

335 149 109 

380 745 446 

471 630 013 

498 440 784 

495 677372 

495 677372 

534 425 408 

564 933 605 

5 97211461 

Remuneration of councillors 










Debt impairment 

893 839 

4 175 562 

5 998 691 

1 000 000 

1 000 000 

1 000 000 

4 500 000 

4 500 000 

4 500 000 

Depreciation & asset impairment 

19 724 953 

20 202 346 

19 896 437 

16428418 

17091040 

17091 040 

17043 100 

17895 600 

18 790 600 

Finance charges 

3 011249 

3 989 486 

4 616 944 

5497 057 

5 331 754 

5 331 754 

5 897 100 

6 374 100 

6 868 000 

Bulk purchases 










Other materials 

8 965 688 

11 666116 

1 744 041 

1 376 813 

1 576 213 

1 576 213 

1457200 

1 508 200 

1 558 000 

Contracted services 

1 393 227 

1 934 417 

959 106 

65 8 676 

1 171 176 

1 171 176 

658 700 

681 800 

704 200 

Transfer and grants 










Other expenditure 

25 078111 

26 099 130 

19 218 940 

14 091 851 

29 036 351 

29 036351 

12 022 100 

12 442 600 

12 853 000 

Loss on disposal ofPPE 

166 182 

28727 

37 780 







Total Expenditure 

394 382 358 

448 841 230 

524101 952 

537 493 599 

550 883 906 

550 883 906 

576 003 608 

608 335 905 

642 485 261 

(Surplus)/Deficit before Transfers recognised • capital 

346 778 210 

385 421 701 

452 923 668 

467 480 193 

465 076 500 

465 076 500 

505 314 308 

533 989 505 

564 502 461 

Transfers recognised - capital 










(S urplus)/Def icit for the year 

346 778 210 

385 421 701 

452 923 668 

467 480 193 

465 076 500 

465 076 500 

505 314 308 

533 989 505 

564 502 461 


page I 228 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 133: Energy and Electricity - Budgeted financial performance 





Energy and 

Electricity 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and Expenditure 
Framework 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original Budget 

Adjusted 

Budqet 

Full Year 

Forecast 

Budget Year 
2015/16 

Budget Year+1 
2016/17 

Budget Year +2 
2017/18 

Revenue Bv Source 










Property rates 










Property rates - penalties & collection charges 










Service charges - electricity revenue 

(7526 393196) 

(8 133 856 813) 

(8 313 877 921) 

(9 613 283 000) 

(9 613 283 000) 

(9 613 283 000) 

(10 471 748 900) 

(11307888 600) 

(12 210 919 700) 

Service charges - water revenue 

(5 905 668) 

5 905 668 








Service charges - sanitation revenue 










Service charges - refuse revenue 










Service charges - other 

(46 986 143) 

(22 156 498) 

(29 100 390) 

(101 471 500) 

(101 471 5 00) 

(101 471 500) 

(46 322 400) 

(48 406 900) 

(50488 400) 

Rental of facilities and equipment 










Interest earned - external investments 










Interest earned - outstanding debtors 

(34 440 781) 

(38 819 158) 

(44 637466) 

(51 376 500) 

(51 376 500) 

(51 376 5 00) 

(49 366 600) 

(51 807 800) 

(54 249 000) 

Dividends received 










Fines 

(184 738) 

(673 088) 

(1 454 426) 

(203 674) 

(203 674) 

(203 674) 

(209 800) 

(219 200) 

(228 600) 

Licences and permits 










Agency services 










Other revenue 

(109 531 632) 

(155 159 203) 

(136 508 587) 

(114 222 785) 

(114 222 785) 

(114 222 785) 

(115 994 800) 

(121 214 500) 

(126 426 700) 

Transfers recognised - operational 

(140 682) 









Gains on disposal ofPPE 

(304 759) 

(239 416) 

(104 823) 







Total Revenue (excluding capital transfers and 
contributions) 

(7 723 887 599) 

(8 344 998 507) 

(8 525 683 613) 

(9 880 557 459) 

(9 880 557 459) 

(9 880 557 459) 

(10 683 642 500) 

(11 529 537 000) 

(12 442 312 400) 

Expenditure Bv Type 










Employee related costs 

159 496 535 

180 219 489 

196 604 605 

166 569 703 

184 653 742 

184 653 742 

137 741 833 

144 994 439 

152 667 727 

Remuneration of councillors 

759 350 

801 059 

841 170 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 

256 926 757 

250 141 504 

621 474 137 

143 023 399 

268 292 699 

268 292 699 

55 0 996 895 

850 344 200 

907 801 775 

Depreciation & asset impairment 

90 721 847 

194 101 669 

242 544 386 

207 086 897 

208 345 592 

208 345 592 

207 781 900 

218 171 200 

229 079 700 

Finance charges 

150 971 585 

141086 434 

163 278 144 

195 032 600 

189 191 707 

189 191 707 

208 550 100 

225415 600 

242 881 700 

Bulk purchases 

5 139 681 189 

5 554 222 722 

5 755 882 615 

6457 147 800 

6 443 147 800 

6 443 147800 

6 804 972 100 

7349 369 900 

7937319 500 

Other materials 

6 758 436 

8 363 618 

1 842 675 

1 419 124 

1 639 499 

1 639 499 

927 600 

960 200 

992 100 

Contracted services 

64 212 709 

57 120 069 

329 916 905 

328 391 849 

622 336 644 

622 336 644 

168 242 700 

174 831 300 

181 260 900 

Transfer and grants 










Other expenditure 

106 526 531 

76116 265 

206 864 904 

111903 619 

87405 974 

87405 974 

56 640 200 

58 407 700 

60 132 500 

Loss on disposal ofPPE 

17 881 547 

29 638 960 

42 975 282 







Total Expenditure 

5 993 936 486 

6 491 811 789 

7 562 224 823 

7 611 500 277 

8 005 938 944 

8 005 938 944 

8 136 834 132 

9 023 573 439 

9 713 322 702 

(Surplus)/Deficit before Transfers recognised - capital 

(1 729 951 113) 

(1 853186 718) 

(963 458 790) 

(2 269 057 182) 

(1 874 618 516) 

(1 874 618 516) 

(2 546 808 368) 

(2 505 963 561) 

(2 728 989 698) 

Transfers recognised - capital 

(100 390 040) 

(82 728 068) 

(139 496 556) 

(327 000 000) 

(320 000 000) 

(320 000 000) 

(157 000 000) 

(170 000 000) 

(183 000 000) 

(Surplus)/Deficit for the year 

(1 830 341 153) 

(1 935 914 786) 

(1 102 955 345) 

(2 596 057 182) 

(2 194 618 516) 

(2 194 618 516) 

(2 703 808 368) 

(2 675 963 561) 

(2 911 989 698) 


Table 134: Environmental Management - Budgeted financial performance 





Environmental 

Management 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue By Source 










Property rates 










Property rates - penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - refuse revenue 

(480 000 616) 

(597 960 554) 

(768 111339) 

(956 672 900) 

(956 672 900) 

(956 672 900) 

28 593 400 

31 452 900 

34 599 000 

Service charges - other 

(25 163 194) 

(10 034 548) 

(14 658 648) 

(16 439 400) 

(16 439 400) 

(16 439 400) 




Rental of facilities and equipment 

(15 147 258) 

(13 782 774) 

(14 319 841) 

(18 172 323) 

(18 172 323) 

(18 172 323) 

(14 742 400) 

(15405 800) 

(16 068 400) 

Interest earned - external investments 

(1 216 850) 

(1 123 882) 

(915 188) 

(1087287) 

(1087 287) 

(1 087287) 

(1 087 300) 

(1 130 800) 

(1 176 000) 

Interest earned - outstanding debtors 

(13 975) 

(116 193) 

(179 137) 

(14 402 200) 

(14 402 200) 

(14 402 200) 




Dividends received 










Fines 

(1 259) 

(925) 

(77271) 

(1 400) 

(1 400) 

(1 400) 

(1 400) 

(1 500) 

(1 600) 

Licences and permits 

(1 088 004) 









Agency services 










Other revenue 

(149 514 394) 

(158 978 622) 

(190 225 638) 

(176 333 079) 

(171 875 173) 

(171 875 173) 

(152 745 400) 

(159 582 200) 

(166 405 900) 

Transfers recognised - operational 




(893 000) 

(893 000) 

(893 000) 




Gains on disposal of PPE 

(45 913) 

(758) 

(25) 







Total Revenue (excluding capital transfers and 
contributions) 

(672 191 462) 

(781 998 255) 

(988 487 086) 

(1 184 001 589) 

(1 179 543 683) 

(1 179 543 683) 

(139 983 100) 

(144 667 400) 

(149 052 900) 

Expenditure By Type 










Employee related costs 

306 516 142 

316 333 515 

349 127 226 

234 043 846 

231 403 240 

231 403 240 

157 800 862 

166 386 449 

175 470 294 

Remuneration of councillors 

755 030 

799 461 

841 170 

925287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 

17853 246 

29 048110 

67342 006 

51 761 173 

50 240 148 

50 240 148 

193 100 

193 100 

193 100 

Depreciation & asset impairment 

51 451 803 

55 339 301 

77 722 363 

41 521 394 

72422 580 

72422 580 

73710400 

77236 900 

80 866 100 

Finance charges 

42 107442 

43 402 789 

59 023 048 

55 370 160 

64 449 482 

64 449 482 

68 572 300 

72 615 000 

76 731 600 

Bulk purchases 










Other materials 

56 077 255 

74 364 827 

3 970 299 

2428 217 

3 349 903 

3 349 903 

2 654 500 

2 747 500 

2 838 200 

Contracted services 

254 963 582 

338 967 721 

140 068 283 

210 188 805 

232 196 902 

232 196 902 

8 518 000 

8 816 000 

9 107 000 

Transfer and grants 










Other expenditure 

448 130 072 

370 128 817 

65 751 020 

76 748 251 

106 018 535 

106 018 535 

45 756 600 

47 352 900 

48 910 300 

Loss on disposal ofPPE 

289 261 

2 685 567 

5 095 029 







Total Expenditure 

1 178 143 833 

1 231 070 107 

768 940 446 

672 987 133 

761 006 077 

761 006 077 

358 186 566 

376 426 749 

395 303 394 

(Surplus)/Deficit before Transfers recognised - capital 

505 952 371 

449 071 852 

(219 546 640) 

(511 014 456) 

(418 537 606) 

(418 537 606) 

218 203 466 

231 759 349 

246 250 494 

Transfers recognised - capital 

(11403 509) 

(17 771 406) 

(7 695 566) 


(15 991 682) 

(15 991 682) 




(Surplus)/Deficit for the year 

494 548 863 

431 300 446 

(227 242 206) 

(511 014 456) 

(434 529 288) 

(434 529 288) 

218 203 466 

231 759 349 

246 250 494 


page I 229 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 135: Financial Services - Budgeted financial performance 





Group Financial Services 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Properly rates 

(3 357 774 830) 

(3 999 585 403) 

(4 432 509 394) 

(4 888 153 500) 

(4 888 153 500) 

(4 888 153 500) 

(5 236 387300) 

(5 763 025 900) 

(6 342 327 700) 

Property rates ■ penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - refuse revenue 


0 








Service charges - other 










Rental of facilities and equipment 










Interest earned - external investments 

(44 046 899) 

(57420 698) 

(49 035 708) 

(57887 913) 

(57 887913) 

(5 7887 913) 

(66 653 538) 

(102 980450) 

(107 952 282) 

Interest earned - outstanding debtors 

(172 059 344) 

(156 228 952) 

(191 528 494) 

(80 746 900) 

(80 746 900) 

(80 746 900) 

(71 266 200) 

(74 787 800) 

(78 309 500) 

Dividends received 










Fines 










Licences and permits 


5 538 








Agency services 










Other revenue 

(821 730 601) 

(34 232 113) 

(24 764 098) 

(29 079 245) 

(29 079 245) 

(29 079 245) 

(20 461 500) 

(21 382 200) 

(22301 600) 

Transfers recognised - operational 

(2 139 886 072) 

(2 369 779 884) 

(2482430 367) 

(2 732 678 000) 

(2 733 353 152) 

(2 733 353 152) 

(3 054 164 000) 

(3 357029 000) 

(3 673 130 000) 

Gains on disposal ofPPE 

(3 312 020) 

(6 860) 

(53 031) 







Total Revenue (excluding capital transfers and 
contributions) 

(6 538 809 767) 

(6 617 248 373) 

(7 180 321 091) 

(7 788 545 558) 

(7 789 220 710) 

(7 789 220 710) 

(8 448 932 538) 

(9 319 205 350) 

(10 224 021 082) 

Expenditure Bv Type 

Employee related costs 

295 193 322 

359 145 705 

421 658 618 

492 521 007 

428 607589 

428 607 589 

443 071 711 

468 025395 

494 426 5 41 

Remuneration of councillors 

767 668 

801 238 

3 542 390 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 

456 331 847 

510 154 895 

160 580 531 

148 860 507 

85 390 131 

85 390 131 

42 795 751 

239 586 262 

283 500 260 

Depreciation & asset impairment 

116 292 745 

104 437 252 

82 239 909 

144 156 495 

121 167845 

121 167 845 

187891 700 

213 518100 

246 748 800 

Finance charges 

19 893 456 

149 586 433 

131 294 644 

99 570 604 

152 555 800 

152 555 800 

165477300 

178 189 500 

191 323 700 

Bulk purchases 










Other materials 

10 832 762 

12 366 048 

15 340 511 

10 238 953 

12 312 953 

12 312 953 

11398 600 

11 797 600 

12 187 000 

Contracted services 

1 749 778 

2 410823 

3 717 644 

4 277 916 

8 264 916 

8 264 916 

7 078 900 

3 186 600 

3 291 900 

Transfer and grants 

21 495 798 

17290 290 

22 006 956 

25 653 815 

25 653 815 

25 653 815 

24 207 700 

25 297000 

26 384 800 

Other expenditure 

136 130 249 

228 443 336 

429 206 391 

377079 656 

363 084 441 

363 084 441 

582 498 800 

725 344 900 

1 252 756 000 

Loss on disposal ofPPE 

2 536 551 

11097 

183 332 







Total Expenditure 

1 061 224176 

1 384 647 116 

1 269 770 925 

1 303 284 240 

1 197 962 777 

1 197 962 777 

1 465 401 266 

1 866 024 257 

2 511 805 801 

(Surplus)/Deficit before Transfers recognised - capital 

(5 477 585 590) 

(5 232 601 257) 

(5 910 550 166) 

(6 485 261 318) 

(6 591 257 933) 

(6 591 257 933) 

(6 983 531 272) 

(7 453 181 093) 

(7 712 215 281) 

Transfers recognised - capital 

(322 513) 

(859 260) 

(752 847) 

(250 000) 

(280 000) 

(280 000) 

(250 000) 



(Surplus)/Deficit for the year 

(5 477 908 103) 

(5 233 460 517) 

(5 911 303 013) 

(6 485 511 318) 

(6 591 537 933) 

(6 591 537 933) 

(6 983 781 272) 

(7 453 181 093) 

(7 712 215 281) 


Table 136: Health and Social Development - Budgeted financial performance 




Health and Social Development 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(1 629 370) 

(2130472) 

(2 140 66 0) 

(2 200425) 

(761 126) 

(761 126) 




Transfers recognised - operational 

(32 634 963) 

(35 422 112) 

(50 440 977) 

(50 890 000) 

(50 890 000) 

(50 890 000) 

(11 501 000) 

(12111000) 

(12 717000) 

Gains on disposal ofPPE 

(28 069) 

(55 960) 

(241) 







Total Revenue (excluding capital transfers and 
contributions) 

(34 292 402) 

(37 608 545) 

(52 581 878) 

(53 090 425) 

(51 651 126) 

(51 651 126) 

(11 501 000) 

(12 111 000) 

(12 717 000) 

Expenditure BvTvpe 

Employee related costs 

118 320 327 

130 247237 

142 287989 

161 233 126 

138 966 085 

138 966 085 

72 198 033 

76 337 191 

80 716 448 

Remuneration of councillors 

756 470 

771 625 

842 844 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 










Depreciation & asset impairment 

7 481 385 

11579 428 

8 608 762 

6 842 746 

7394 928 

7394 928 

7 375 100 

7 743 900 

8 131 100 

Finance charges 

2 670 353 

3 000167 

3 472 026 

4 133 887 

4 009 5 77 

4 009 577 

4 434 200 

4 792 900 

5 164 300 

Bulk purchases 










Other materials 

2 785 157 

3230400 

3 292 687 

1 970 769 

1 770 150 

1 770 150 

1 171200 

1 212 100 

1 252 000 

Contracted services 

2 271 114 

2 561 269 

1 729 139 

1 728 665 

1 850 865 

1 850 865 

1 145 900 

1 185 900 

1 224 800 

Transfer and grants 










Other expenditure 

19 619 482 

26 194 723 

65 976 074 

44 934 392 

43 245 298 

43 245 298 

36 230 800 

37005 000 

37 771 500 

Loss on disposal ofPPE 

85 800 

133 993 

85 195 







Total Expenditure 

153 990 088 

177 718 842 

226 294 716 

221 768 872 

198 162 190 

198 162 190 

123 536 037 

129 355 891 

135 446 948 

(Surplus)/Deficit before Transfers recognised - capital 

119 697 686 

140 110 298 

173 712 838 

168 678 447 

146 511 064 

146 511 064 

112 035 037 

117 244 891 

122 729 948 

Transfers recognised - capital 



(500 000) 


(11200000) 

(11200000) 

(33 000 000) 

(32 000 000) 

(22 000 000) 

(Surplus)/Deficit for the year 

119 697 686 

140 110 298 

173 212 838 

168 678 447 

135 311 064 

135 311 064 

79 035 037 

85 244 891 

100 729 948 


page I 230 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 137: Housing and Human Settlement - Budgeted financial performance 




Housing and Human Settlement 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Property rates 










Property rates ■ penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - reliise revenue 










Service charges - other 










Rental of facilities and equipment 

(1 776 266) 

(2453 866) 

(2 530 965) 

(4 229 997) 

(4 229 997) 

(4 229 997) 

(914 500) 

(955 700) 

(996 700) 

Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(31840326) 


(1 600 000) 







Transfers recognised - operational 

(93 056 868) 

(93 680 876) 


(47 506 000) 

(48 328 064) 

(48 328 064) 

(12 831 000) 

(12 831 000) 

(14 755 000) 

Gains on disposal ofPPE 

(517 546) 

(1 667) 

(13 913) 







Total Revenue (excluding capital transfers and 
contributions) 

(127 191 006) 

(96 136 409) 

(4144 878) 

(51 735 997) 

(52 558 061) 

(52 558 061) 

(13 745 500) 

(13 786 700) 

(15 751 700) 

Expenditure Bv Type 

Employee related costs 

54 698 915 

60 922 856 

65 5 52 857 

47 012 061 

50 726 582 

50 726 582 

42 847 382 

45330 228 

47 957 078 

Remuneration of councillors 

828 013 

801 114 

841 170 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 










Depreciation & asset impairment 

115129 596 

62 991 161 

67 555 846 

67 120 703 

58030 461 

58 030 461 

57 872 600 

60 766 300 

63 804 800 

Finance charges 

61 645 388 

52 666 488 

60 949 750 

72 568 409 

70 386 178 

70386 178 

77 848 000 

84 143 400 

90 663 700 

Bulk purchases 










Other materials 

484 220 

645 422 

407 102 

260 954 

260 954 

260 954 

241 800 

250 300 

258 700 

Contracted services 

58 390 183 

68 173 791 

76 678 576 

251 067619 

102 067 619 

102 067 619 

101 002 400 

104 537 500 

107987 300 

Transfer and grants 



11250000 

8 000 000 

8 000 000 

8 000 000 

8 000 000 

15 000 000 

15 000 000 

Other expenditure 

99 344 278 

100 339 764 

40 255 458 

52 746 015 

62 560 469 

62 560469 

50 616 000 

51 937200 

55 150 600 

Loss on disposal ofPPE 

51946 

144 293 244 

178 497 







Total Expenditure 

390 572 539 

490 833 839 

323 669 255 

499 701 048 

352 957 550 

352 957 550 

339 408 986 

363 043 828 

382 008 978 

(Surplusj/Deficit before Transfers recognised - capital 

263 381 533 

394 697 430 

319 524 377 

447 965 051 

300 399 489 

300 399 489 

325 663 486 

349 257 128 

366 257 278 

Transfers recognised - capital 

(454 662 462) 

(480 183 713) 

(448 130 833) 

(837 804 764) 

(863 420 775) 

(863 420 775) 

(670 500 072) 

(688 884 650) 

(719 257 650) 

(Surplus)/Deficit for the year 

(191 280 930) 

(85 486 283) 

(128 606 456) 

(389 839 713) 

(563 021 286) 

(563 021 286) 

(344 836 586) 

(339 627 522) 

(353 000 372) 


Table 138: Information and Communication Technology - Budgeted financial performance 




Group Information and Communication Technology 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(61 757) 

(50 938) 

(79 273) 

(16 713) 

(16 713) 

(16 713) 

(17200) 

(18 000) 

(18 800) 

Transfers recognised - operational 

(1 002 749) 









Gains on disposal ofPPE 


(1 978) 

(60 700) 







Total Revenue (excluding capital transfers and 
contributions) 

(1 064 506) 

(52 915) 

(139 973) 

(16 713) 

(16 713) 

(16 713) 

(17 200) 

(18 000) 

(18 800) 

Expenditure Bv Tvpe 

Employee related costs 

33 676 671 

41 039 727 

50 869 984 

50 620 626 

51 013 384 

51 013 384 

5 7 369 791 

60 676 697 

64 175 397 

Remuneration of councillors 

21 600 









Debt impairment 










Depreciation & asset impairment 

64 303 043 

95 286 291 

114 877 702 

62 965 669 

98 679 929 

98 679 929 

98 413 100 

1 03 333 800 

108 500 600 

Finance charges 

14 488 087 

23 656 893 

27377595 

32 596 499 

31 616 280 

31 616 280 

34 968 100 

37 795 900 

40 724 400 

Bulk purchases 










Other materials 

721 298 

730 479 

925 993 

677453 

669 453 

669 453 

668 200 

691 600 

714 500 

Contracted services 

55 527351 

83 768 129 

78 576 793 

77 359 251 

77 779 251 

77 779 251 

76 427 500 

79 102 500 

81 712 900 

Transfer and grants 










Other expenditure 

147 053 377 

157 665 225 

175 498 908 

328 954 101 

358 542 101 

358 542 101 

265 803 000 

271 604 900 

277 266 800 

Loss on disposal ofPPE 

2 823 258 

1 178 690 

205 610 







Total Expenditure 

318 614 686 

403 325 434 

448 332 585 

553 173 599 

618 300 398 

618 300 398 

533 649 691 

553 205 397 

573 094 597 

(S urplus)/Def icit before Transfers recognised - capital 

317 550 180 

403 272 519 

448 192 612 

553 156 886 

618 283 685 

618 283 685 

533 632 491 

553 187 397 

573 075 797 

Transfers recognised - capital 


(49 040 389) 





(1 773 260) 

(200 000) 


(Surplusj/Deficit for the year 

317 550 180 

354 232130 

448 192 612 

553 156 886 

618 283 685 

618 283 685 

531 859 231 

552 987 397 

573 075 797 


page I 231 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 139: Legal Services - Budgeted financial performance 





Group Legal Services 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 offaciliies and equipment 










Interest earned - externalinvestments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(280119) 

(171 5 00) 

(535 843) 

(375 700j 

(375 700) 

(375 700) 

(375 700) 

(392 600) 

(409 500) 

Transfers recognised - operational 










Gains on disposal ofPPE 

IS) 

(2 050) 

120) 







Total Revenue (excluding capital transfers and 
contributions) 

(280 128) 

(173 550) 

(535 862) 

(375 700) 

(375 700) 

(375 700) 

(375 700) 

(392 600) 

(409 500) 

Expenditure Bv Tvoe 

Employee related costs 

50 188 5 71 

54 079 853 

58 284 040 

66 016 625 

68 755 596 

68 755 596 

70 908 075 

74 992 828 

79 314 497 

Remuneration of councillors 










Debt impairment 










Depreciation & asset impairment 

684 452 

574 455 

531 925 

419487 

456 923 

456 923 

455 800 

478 700 

502 700 

Finance charges 


3 249 

3 760 

4 476 

4 343 

4 343 

4 700 

5100 

5 500 

Bulk purchases 










Other materials 

210 842 

284 694 

217 753 

131 503 

269 243 

269 243 

268 900 

278300 

287 500 

Contracted services 

30 505 968 

23 817350 

27 643 742 

24 603 750 

23 423 350 

23 423 350 

34 389 700 

35 196 300 

35 988 200 

Transfer and grants 










Other expenditure 

2 768 932 

2 855 027 

3177 714 

1 541 518 

2 584 178 

2 584 178 

2 404 100 

2 487 300 

2 568 300 

Loss on disposal ofPPE 

48 403 

4 865 

0 







Total Expenditure 

84 407 168 

81 619 492 

89 858 933 

92 717 359 

95 493 633 

95 493 633 

108 431 275 

113 438 528 

118 666 697 

(S urplus)/Def icit before Transfers recognised - capital 

84127 041 

81 445 942 

89 323 071 

92 341 659 

95 117 933 

95 117 933 

108 055 575 

113 045 928 

118 257 197 

Transfers recognised - capital 










(S urplus)/Def icit for the year 

84127 041 

81 445 942 

89 323 071 

92 341 659 

95 117 933 

95117 933 

108 055 575 

113 045 928 

118 257 197 


Table 140: Metro Police Services - Budgeted financial performance 





Metro Police Services 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 

(12177) 

(11 325) 

(12 964) 

(9 900) 

(9 900) 

(9 900) 

(2 800) 

(2 900) 

(3 000) 

Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 

(51 051 508) 

(35 739 978) 

(194 133 720) 

(109 958 018) 

(197 578 018) 

(197578 018) 

(195 804 100) 

(195 885300) 

(195 966 400) 

Licences and permits 

(48 858 786) 

(5 6 320477) 

(53 814 052) 

(55 537030) 

(55 537 030) 

(55 537030) 




Agency services 










Other revenue 

(73 239 727) 

(80 090 618) 

(82 291 232) 

(87 720 424) 

(87 720 424) 

(87 720 424) 

(6 542 000) 

(6 836 200) 

(7 130 000) 

Transfers recognised - operational 










Gains on disposal ofPPE 

(173 681) 

(189 642) 

(666) 







Total Revenue (excluding capital transfers and 
contributions) 

(173 335 879) 

(172 352 040) 

(330 252 635) 

(253 225 372) 

(340 845 372) 

(340 845 372) 

(202 348 900) 

(202 724 400) 

(203 099 400) 

Expenditure Bv Type 

Employee related costs 

677 105 718 

743 907 166 

927 192 077 

984 097075 

987115 657 

987115 657 

1 271 381 704 

1 343 236 969 

1 419 259 924 

Remuneration of councillors 

759 350 

801 114 

841 170 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 



176 026 775 


87 620 000 

87 620 000 

82 707 000 

77528 800 

87620 000 

Depreciation & asset impairment 

30 605 734 

27 481 755 

26 917597 

19 212 465 

23 122 368 

23 122 368 

23 059 700 

24 212 600 

25423 300 

Finance charges 

7338 033 

7807906 

9 025 762 

10 755 649 

10 433 911 

10 433 911 

11 520 500 

12 450 800 

13 414 000 

Bulk purchases 










Other materials 

16 192 226 

25 246 334 

6 045 575 

9 805 249 

10 868 020 

10 868 020 

5 301 600 

5 486 900 

5 667200 

Contracted services 

188 263 658 

288 755 568 

316 398 976 

323 483 671 

322 227 806 

322 227 806 

307 699 000 

318 468 400 

328 977 700 

Transfer and grants 










Other expenditure 

56 141 579 

63 826 558 

70 695 251 

69 979 874 

144 697 868 

144 697 868 

87113 100 

45 242 300 

46 734 900 

Loss on disposal ofPPE 

1454 817 

764 564 

173 800 







Total Expenditure 

977 861 116 

1 158 590 964 

1 533 316 984 

1 418 259 270 

1 587 010 917 

1 587 010 917 

1 789 763 408 

1 827 705 669 

1 928 283 824 

(Surplus)/Deficit before Transfers recognised - capital 

804 525 237 

986 238 924 

1 203 064 349 

1 165 033 898 

1 246165 545 

1 246 165 545 

1 587 414 508 

1 624 981 269 

1 725 184 424 

Transfers recognised - capital 










(Surplus)/Deficit for the year 

804 525 237 

986 238 924 

1 203 064 349 

1 165 033 898 

1 246 165 545 

1 246 165 545 

1 587 414 508 

1 624 981 269 

1 725 184 424 


page I 232 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 141 : Office of the Chief Whip - Budgeted financial performance 





Office of the Chief Whip 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 










Property rales 










Property rates ■ penalties & collecthn 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 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 










Transfers recognised ■ operational 










Gains on disposal ofPPE 










Total Revenue (excluding capital transfers and 
contributions) 










Expenditure Bv Tvoe 










Employee related costs 

8 406 338 

11969 265 

16 246 014 

21 911241 

23 377398 

23 377398 

23 744 213 

25115 630 

26 566 588 

Remuneration of councillors 

2 778 527 

3 922 536 

3 059 077 

3 425 287 

3425 287 

3 425 287 

3 480 804 

3 578 900 

3 686 800 

Debt impairment 










Depreciation & asset impairment 

13 676 

18 701 

70 795 

69 619 

60813 

60 813 

60 500 

63 500 

66 700 

Finance charges 










Bulk purchases 










Other materials 

127587 

89 458 

116 592 

132 231 

132 231 

132 231 

132 200 

136 900 

141 5 00 

Contracted services 










Transfer and grants 










Other expenditure 

1 661 332 

1 958 674 

3 280 177 

3 532 187 

3 472 187 

3 472 187 

4 437 000 

4 556 100 

4 672 400 

Loss on disposal ofPPE 










Total Expenditure 

12 987 460 

17 958 634 

22 772 654 

29 070 565 

30 467 916 

30 467 916 

31 854 717 

33 451 030 

35133 988 

(Surplusj/Deficit before Transfers recognised - capital 

12 987 460 

17 958 634 

22 772 654 

29 070 565 

30 467 916 

30 467 916 

31 854 717 

33 451 030 

35 133 988 

Transfers recognised - capital 










(S urplus)/Def icit for the year 

12 987 460 

17 958 634 

22 772 654 

29 070 565 

30 467 916 

30 467 916 

31 854 717 

33 451 030 

35 133 988 


Table 142: Office of the City Manager - Budgeted financial performance 





Office of the City Manager 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(20 273 494) 

(15 122 251) 

(8 281 105) 


(7160 486) 

(7160 486) 




Transfers recognised - operational 

(60 510) 


(669 079) 







Gains on disposal ofPPE 

(803) 

(1 246) 

114 







Total Revenue (excluding capital transfers and 
contributions) 

(20 334 807) 

(15123 497) 

(8 950 070) 


(7 160 486) 

(7 160 486) 




Expenditure BvTvpe 

Employee related costs 

31 925 833 

63 208 747 

77 849 380 

74 005 519 

83 011 878 

83 011878 

68315419 

72 250 169 

76 413 135 

Remuneration of councillors 










Debt impairment 










Depreciation & asset impairment 

1 879 949 

1 872 943 

2 353 433 

1 968 575 

2 021 601 

2 021 601 

2 015 800 

2116 700 

2 222 600 

Finance charges 

2 102 193 

2 053 563 

2 376 543 

2 829 576 

2 744 487 

2 744 487 

3 035 600 

3 280 900 

3 535 300 

Bulk purchases 










Other materials 

417 961 

626 498 

675 902 

223 563 

403 799 

403 799 

301 600 

312 100 

322 400 

Contracted services 

3 616 030 

10 307080 

445 699 

1 220 900 

90 770 498 

90 770 498 

50 347 700 

50 352 600 

50 362 000 

Transfer and grants 










Other expenditure 

57 541 488 

103 5 30 136 

87 932 649 

152 279 527 

260 053 272 

260 053 272 

140 046 800 

144 209 500 

148 271 000 

Loss on disposal ofPPE 

20 922 

5 

20 784 







Total Expenditure 

97 504 376 

181 598 973 

171 654 391 

232 527 660 

439 005 535 

439 005 535 

264 062 919 

272 521 969 

281 126 435 

(Surplus)/Deficit before Transfers recognised - capital 

77 169 568 

166 475 476 

162 704 321 

232 527 660 

431 845 049 

431 845 049 

264 062 919 

272 521 969 

281 126 435 

Transfers recognised - capital 

(48 304 204) 

(183 447 390) 

(198 964 369) 

(150 000 000) 

(175 000 000) 

(175 000 000) 

(250 000 000) 

(280 000 000) 

(290 000 000) 

(Surplus)/Deficit for the year 

28 865 365 

(16 971 913) 

(36 260 048) 

82 527 660 

256 845 049 

256 845 049 

14 062 919 

(7 478 031) 

(8 873 565) 


page I 233 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 

Table 143: Office of the Executive Mayor - Budgeted financial performance 




Office of the Executive Mayor 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 










Properly 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 oflacilities and equipment 










Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 










Transfers recognised - operathnal 










Gains on disposal ofPPE 

(10) 

m 

(181) 







Total Revenue (excluding capital transfers and 
contributions) 

(10) 

(991) 

(181) 







Expenditure Bv Tvoe 










Employee related costs 

45 662 055 

47 794 926 

73 502 368 

119 062 491 

117 698 087 

117 698 087 

124 973 085 

132 197 640 

139 841 218 

Remuneration of councillors 

122 024 

1 115 841 

1 236 011 

1233 717 

1233 717 

1 233 717 

1 295403 

1 424 900 

1567400 

Debt impairment 










Depreciation & asset impairment 

1 123 830 

894 287 

996 872 

844 646 

856 313 

856 313 

853 900 

896 600 

941 300 

Finance charges 

511 5 50 

452 124 

523 233 

622 976 

604 242 

604 242 

668 200 

722 300 

778 300 

Bulk purchases 










Other materials 

866 299 

1 175 093 

1 525 985 

737 701 

1 344 491 

1 344 491 

989 200 

1 023 800 

1057500 

Contracted services 

1 133 289 

5346171 

7 761 382 

1 533 839 

5303 839 

5 303 839 

5 083 800 

5 209 300 

5331 700 

Transfer and grants 










Other expenditure 

22 363 296 

56 392 5 73 

118 023 643 

106 914 821 

156 738 031 

156 738 031 

167446 000 

118 822 700 

120 166 300 

Loss on disposal ofPPE 

92192 

1049 

92 







Total Expenditure 

72 474 535 

113 172 063 

203 569 588 

230 950 191 

283 778 720 

283 778 720 

301 309 588 

260 297 240 

269 683 718 

(Surplus)/Deficit before Transfers recognised - capital 

72 474 525 

113171 072 

203 569 407 

230 950 191 

283 778 720 

283 778 720 

301 309 588 

260 297 240 

269 683 718 

Transfers recognised - capital 










(Surplus)/Deficit for the year 

72 474 525 

113171 072 

203 569 407 

230 950 191 

283 778 720 

283 778 720 

301 309 588 

260 297 240 

269 683 718 


Table 144: Office of the Speaker - Budgeted financial performance 





Office of the Speaker 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 oflacilities and equipment 










Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 










Transfers recognised - operational 










Gains on disposal ofPPE 


(75) 








Total Revenue (excluding capital transfers and 
contributions) 


(75) 








Expenditure Bv Tvpe 

Employee related costs 

31 672 528 

42 013 701 

76 874 185 

178 104 682 

95 374 306 

95 374 306 

103 982 794 

109 958 267 

116 280317 

Remuneration ofcouncilbrs 

80 055 249 

78 738 214 

81 383 396 

91 665 184 

91 665 184 

91 665 184 

97 164 871 

106 881 400 

117569 600 

Debt impairment 










Depreciation & asset impairment 

154 651 

129 726 

152 069 

73 232 

130 628 

130 628 

129 700 

136 200 

143 000 

Finance charges 


11 

13 

15 

15 

15 




Bulk purchases 










Other materials 

493 816 

706 373 

1 669 883 

3 863 899 

3 863 899 

3 863 899 

3 861 600 

3 996 800 

4 128 700 

Contracted services 

166 113 

806 537 

6 200 

6 500 

6 500 

6 500 

6 500 

6 700 

6 900 

Transfer and grants 










Other expenditure 

41 093 023 

48 688114 

61 774 454 

51 533 128 

54 533 128 

54 533 128 

52 225 200 

53 438 500 

54 622 700 

Loss on disposal ofPPE 

2 575 









Total Expenditure 

153 637 954 

171 082 676 

221 860 199 

325 246 640 

245 573 660 

245 573 660 

257 370 665 

274 417 867 

292 751 217 

(S urplus)/Def icit before Transfers recognised - capital 

153 637 954 

171 082 601 

221 860 199 

325 246 640 

245 573 660 

245 573 660 

257 370 665 

274 417 867 

292 751 217 

Transfers recognised ■ capital 










(S urplus)/Def icit for the year 

153 637 954 

171 082 601 

221 860 199 

325 246 640 

245 573 660 

245 573 660 

257 370 665 

274 417 867 

292 751 217 


page I 234 


The City of Tshwane Metropolitan Municipality 

2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 145: Service Delivery and Transformation Management - Budgeted financial performance 




Service Delivery and Transformation Management 





Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Property rates 










Property rates ■ penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 










Service charges - sanitation revenue 










Service charges - refuse revenue 







(1 124 372 350) 

(1 236 809 5 00) 

(1 360490400) 

Service charges - other 

(26 721 86 5) 

(30366 689) 

(41 339 037) 

(23 484 800) 

(35 984 800) 

(35 984 800) 

(53 194 600) 

(55 588 400) 

(57 978 700) 

Rental of facilities and equipment 

(19 596 268) 

(19 833 624) 

(22 046 560) 

(22 758 987) 

(22 758 987) 

(22 758 987) 

(22386400) 

(23 393 900) 

(24 399 900) 

Interest earned - externalinvestments 

(52 696) 









Interest earned - outstanding debtors 







(13 830 400) 

(14 514 400) 

(15 198 300) 

Dividends received 










Fines 

(318335) 

(329 276) 

(314 202) 

(350 999) 

(350 999) 

(350 999) 

(521 200) 

(544 800) 

(568 300) 

Licences and permits 







(55 679 800) 

(58 185400) 

(60 687400) 

Agency services 










Other revenue 

(228 797 478) 

(44 432 038) 

(39 053 242) 

(21 701 244) 

(23 140 543) 

(23 140 543) 

(128 082 900) 

(129 750 500) 

(131405300) 

Transfers recognised - operational 

(8 913 755) 

(3 406 296) 

(39 957936) 

(2 460 000) 



(42 978 000) 

(44 786 000) 

(47026 000) 

Gains on disposal ofPPE 

(1 55 3 468) 

(2 470 638) 

(31 656) 







Total Revenue (excluding capital transfers and 
contributions) 

(285 953 865) 

(100 838 560) 

(142 742 634) 

(70 756 030) 

(82 235 329) 

(82 235 329) 

(1 441 045 650) 

(1 563 572 900) 

(1 697 754 300) 

Expenditure Bv Tvoe 

Employee related costs 

1 570 368 782 

1 694 379 194 

1820229 331 

2 100 919 763 

2111969 207 

2 111 969207 

2 665 576 421 

2 812 493 747 

2 967 934 694 

Remuneration of councillors 

0 









Debt impairment 

123 059 






73 612 281 

115 729 262 

125 857 979 

Depreciation & asset impairment 

134 389 431 

117181 361 

123 657545 

91 679 109 

106 724 476 

106 724 476 

106 601 700 

111918 900 

117 495 700 

Finance charges 

29 616 680 

25 021 012 

29 490 246 

35 508 799 

33 920 218 

33 920 218 

37438 400 

40 411 700 

43 488 600 

Bulk purchases 

2 951 816 









Other materials 

280 092 5 03 

172 844 952 

42 084 279 

137449 569 

39 198 450 

39 198 450 

100341 300 

102 103 700 

103 823 800 

Contracted services 

341 927 833 

376 290 058 

466 753 5 67 

363 336 188 

422 605 020 

422 605 020 

888 988 100 

913 103 200 

936 636 400 

Transfer and grants 



112 878 789 

146 665 380 






Other expenditure 

425 166 122 

454 146 344 

353 581 214 

242 520365 

231 144 844 

231 144 844 

560312 300 

525 730 600 

539 320 800 

Loss on disposal ofPPE 

56 503 223 

(8 278 079) 

7 540 532 


1000 

1000 




Total Expenditure 

2 841 139 449 

2 831 584 842 

2 956 215 504 

3 118 079 173 

2 945 563 215 

2 945 563 215 

4 432 870 502 

4 621 491 109 

4 834 557 973 

(Surplus)/Deficit before Transfers recognised - capital 

2 555 185 584 

2 730 746 281 

2 813 472 870 

3 047 323 143 

2 863 327 886 

2 863 327 886 

2 991 824 852 

3 057 918 209 

3 136 803 673 

Transfers recognised - capital 










(Surplus)/Deficit for the year 

2 555 185 584 

2 730 746 281 

2 813 472 870 

3 047 323 143 

2 863 327 886 

2 863 327 886 

2 991 824 852 

3 057 918 209 

3 136 803 673 


Table 146: Sport and Recreation - Budgeted financial performance 





Sport and Recreation 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue By Source 










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 

(2 952 236) 

(2 722 073) 

(2 918 262) 

(2 748 875) 

(2 748 875) 

(2 748 875) 




Interest earned - externalinvestments 










Interest earned - outstanding debtors 










Dividends received 










Fines 

(449 161) 

(447 703) 

(524 316) 

(495 201) 

(495201) 

(495 201) 




Licences and permits 










Agency services 










Other revenue 

89123 

(635 900) 

(579 294) 

(1 111 281) 

(1111 281) 

(1 111281) 

(275 400) 

(287 800) 

(300 200) 

Transfers recognised - operational 

(94 250) 


(2 569 477) 


(2 021 100) 

(2 021 100) 

(6 700 000) 

(2 550000) 

(2 550 000) 

Gains on disposal ofPPE 


(1201 








Total Revenue (excluding capital transfers and 
contributions) 

(3 406 524) 

(3 805 796) 

(6 591 350) 

(4 355 357) 

(6 376 457) 

(6 376 457) 

(6 975 400) 

(2 837 800) 

(2 850 200) 

Expenditure BvTvpe 










Employee related costs 

56 728 449 

60 772 053 

68 188 489 

82 720 598 

83 193 747 

83 193 747 

47470 585 

50 201 098 

53 090 051 

Remuneration of councillors 

861 909 

799 869 

841 170 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 










Depreciation & asset impairment 

21 305 802 

22 625 067 

32 848 259 

24 052 728 

28 216 647 

28 216 647 

28 140 500 

29 547 700 

31 025 300 

Finance charges 

20 340 137 

16 937 146 

19 600 980 

23 337451 

22 635 665 

22 635 665 

25 035300 

27 060 000 

29 156 700 

Bulk purchases 










Other materials 

1 148 054 

1 134 625 

791 090 

623 199 

800 064 

800 064 

217400 

225 000 

232 300 

Contracted services 

3 395 674 

11226 972 

1 158 034 

855 792 

855 792 

855 792 

48 700 

50400 

52100 

Transfer and grants 










Other expenditure 

30 853 815 

33 017 038 

39 011424 

25 550 196 

45 135 454 

45135454 

17 641 600 

13 523 300 

13 554 200 

Loss on disposal ofPPE 

35 003 

2 395 002 

1 973 844 







Total Expenditure 

134 668 844 

148 907 772 

164 413 290 

158 065 251 

181 762 656 

181 762 656 

119 534 889 

121 686 398 

128 297 451 

(S urplus)/Def icit before Transfers recognised - capital 

131 262 320 

145 101 976 

157 821 940 

153 709 894 

175 386 199 

175 386 199 

112 559 489 

118 848 598 

125 447 251 

Transfers recognised - capital 

(32 123 038) 

(45 249 290) 

(12 040 933) 

(3 129 000) 

(6 504 047) 

(6 504 047) 

(7 551 000) 

(8 000 000) 

(6 000 000) 

(S urplus)/Def icit for the year 

99 139 282 

99 852 686 

145 781 007 

150 580 894 

168 882 152 

168 882152 

105 008 489 

110 848 598 

119 447 251 


page I 235 


The City of Tshwane Metropolitan Municipality 
2015/16 Medium-term Revenue and Expenditure Framework (MTREF) 


Table 147: Transport - Budgeted financial performance 





Trans 

port 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

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 

(13 467 740) 

(15 683 263) 

(15 229 025) 

(15 169 400) 

(15 169 400) 

(15 169 400) 

(14 980 700) 

(15 654 800) 

(16 327900) 

Interest earned - external investments 










Interest earned - outstanding debtors 










Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(95 204 711) 

(85 915 600) 

(136 055 904) 

(125 944 202) 

(131 922 002) 

(131 922 002) 

(56 541 800) 

(59 086 100) 

(61 626 800) 

Transfers recognised - operational 

(4 573 093) 

(38 179 260) 

(181 143 763) 

(138 000 000) 

(138 222417) 

(138 222417) 

(161 000 000) 

(186 000 000) 

(195 300 000) 

Gains on disposal ofPPE 

(11001) 

(2 758 310) 

(1 177) 







Total Revenue (excluding capital transfers and 
contributions) 

(113 256 544) 

(142 536 433) 

(332 429 869) 

(279 113 602) 

(285 313 819) 

(285 313 819) 

(232 522 500) 

(260 740 900) 

(273 254 700) 

Expenditure Bv Tvoe 

Employee related costs 

251 566 500 

283 204 384 

284 334 374 

300 810 290 

315 361 028 

315 361 028 

234 293 661 

247 178 100 

260 809 892 

Remuneration of councillors 

757 329 

823 645 

836 816 

925 287 

925 287 

925 287 

980 804 

1 078 900 

1 186 800 

Debt impairment 

1 162 793 

240308 


100 000 

100 000 

100 000 

100 000 

100 000 

100 000 

Depreciation & asset impairment 

217028 421 

225 049 578 

229 808 236 

226 146 471 

197405236 

197405 236 

196 870 100 

206 713 500 

217049 300 

Finance charges 

124 875 480 

110 814 126 

127810178 

152433 334 

147 867 144 

147 867 144 

163 195 200 

176381 800 

190 037 700 

Bulk purchases 










Other materials 

96115 992 

81 824 211 

60 764 292 

85 364 434 

64 302 015 

64 302 015 

74 326 700 

76 928 100 

79 466 900 

Contracted services 

145 693 872 

142 581 881 

97 604 510 

156 742 735 

153 963 868 

153 963 868 

7 724 800 

7907500 

8 000 100 

Transfer and grants 










Other expenditure 

57 551 562 

77227 266 

279 317 524 

305 200300 

379 264 003 

379 264 003 

300 512 400 

330 389 800 

344 449 900 

Loss on disposal ofPPE 

29 786 

32 842 719 

293 108 







Total Expenditure 

894 781 735 

954 608 117 

1 080 769 038 

1 227 722 852 

1 259 188 581 

1 259 188 581 

978 003 665 

1 046 677 700 

1 101 100 592 

(Surplus)/Deficit before Transfers recognised - capital 

781 525 191 

812 071 684 

748 339 169 

948 609 250 

973 874 762 

973 874 762 

745 481 165 

785 936 800 

827 845 892 

Transfers recognised - capital 

(393 909 727) 

(959 638 584) 

(803 531 813) 

(1 003 170 000) 

(1 003 170 000) 

(1 003 170 000) 

(1 253 085 350) 

(1 257 854 350) 

(1 311868 350) 

(Surplus)/Deficit for the year 

387 615 465 

(147 566 899) 

(55 192 644) 

(54 560 750) 

(29 295 238) 

(29 295 238) 

(507 604 185) 

(471 917 550) 

(484 022 458) 


Table 148: Water and Sanitation - Budgeted financial performance 





Water and Sanitation 






Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue and 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 

Revenue Bv Source 

Property rates 


(315) 








Property rates - penalties & collection charges 










Service charges - electricity revenue 










Service charges - water revenue 

(1 987 694 107) 

(2 257 276 270) 

(2 522 967199) 

(2 729 354 540) 

(2 813 354 540) 

(2 813 354 540) 

(3169 195200) 

(3 451 553 610) 

(3 759 324 215) 

Service charges - sanitation revenue 

(491 606 055) 

(560 219 810) 

(623 442 811) 

(695 345 140) 

(695 345 140) 

(695 345 140) 

(748 908 400) 

(816 310 000) 

(889 778 100) 

Service charges - reluse revenue 










Service charges - other 

(61 130 839) 

(51 576 425) 

(50 616 890) 

(98 840 900) 

(98 840 900) 

(98 840 900) 

(53 063 800) 

(55 451 700) 

(57 836 100) 

Rental of facilities and equipment 

(94 163) 

(97416) 

(96 311) 

(63 600) 

(63 600) 

(63 600) 

(32 900) 

(34 400) 

(35 900) 

Interest earned - external investments 










Interest earned - outstanding debtors 

(38 128 912) 

(58 085 806) 

(62 995 615) 

(50 850 600) 

(50 850 600) 

(50 850 600) 

(47 586 800) 

(49 940 000) 

(52 293 200) 

Dividends received 










Fines 










Licences and permits 










Agency services 










Other revenue 

(17 504 445) 

(17989 995) 

(35 963 073) 

(13 447539) 

(13 447539) 

(13 447539) 

(12 871 100) 

(13 450 200) 

(14 028 500) 

Transfers recognised - operational 

(6 926 472) 

(2 318 533) 

(4 833) 

(300 000) 






Gains on disposal ofPPE 


(1421) 

(7) 







Total Revenue (excluding capital transfers and 
contributions) 

(2 603 084 994) 

(2 947 565 992) 

(3 296 086 740) 

(3 588 202 319) 

(3 671 902 319) 

(3 671 902 319) 

(4 031 658 200) 

(4 386 739 910) 

(4 773 296 015) 

Expenditure Bv Type 

Employee related costs 

187 739 983 

212 885 906 

235 094 376 

215111937 

220 190 735 

220 190 735 

162 752 502 

171 543 195 

180 844 176 

Remuneration of councillors 










Debt impairment 

87 923 528 

80 543 538 

273 483 914 

220 688 481 

183 552 851 

183 552 851 

263 210 515 

409 768 117 

441 308 106 

Depreciation & asset impairment 

151 952 320 

155 297 978 

170 014 908 

169 179 774 

146 042 778 

146 042 778 

145 648 200 

152 930 700 

160 577 100 

Finance charges 

143 233 201 

142 452 690 

164 857 318 

196 283 549 

190 381 040 

190381040 

210 564 700 

227 592 600 

245 227300 

Bulk purchases 

1 116142 163 

1 236 102 846 

1 392 458 572 

1 526 213 180 

1 549 608 180 

1 549 608 180 

1 808 426 230 

1 972 084 575 

2 149 908 225 

Other materials 

33 772233 

42329 464 

37203 211 

26 063 170 

44 769 661 

44 769 661 

17 571 900 

18187000 

18 787 000 

Contracted services 

323 337 187 

289 618 404 

99 939 442 

152 930 557 

176 507 557 

176 507557 

111 296 400 

118 691 700 

125 908 600 

Transfer and grants 



33 406 400 

34 507 800 

172 940 098 

172 940 098 

172 940 100 

172 940 100 

172 940 100 

Other expenditure 

(26113 154) 

32 658 763 

26 198 280 

25 842 302 

30398 106 

30 398 106 

22 185 800 

22 962 300 

23 719 700 

Loss on disposal ofPPE 

121 660 

37 765 634 

39 050297 







Total Expenditure 

2 018 109 122 

2 229 655 225 

2 471 706 717 

2 566 820 750 

2 714 391 006 

2 714 391 006 

2 914 596 347 

3 266 700 287 

3 519 220 307 

(Surplus)/Deficit before Transfers recognised - capital 

(584 975 872) 

(717 910 768) 

(824 380 023) 

(1 021 381 569) 

(957 511 313) 

(957 511 313) 

(1 117 061 853) 

(1 120 039 623) 

(1 254 075 708) 

Transfers recognised - capital 

(183 541 581) 

(332627433) 

(503 558 669) 

(223 046 236) 

(223 046 236) 

(223 046 236) 

(80 000 000) 

(70 000 000) 

(100 000 000) 

(Surplus)/Deficit for the year 

(768 517 453) 

(1 050 538 201) 

(1 327 938 691) 

(1 244 427 805) 

(1 180 557 549) 

(1 180 557 549) 

(1 197 061 853) 

(1 190 039 623) 

(1 354 075 708) 


page I 236 







2.17 CITY MANAGER'S QUALITY CERTIFICATE 


I, Jason Ngobeni, City Manager of the City of Tshwane Metropolitan Municipality, hereby certify that 


the 2015/16 Medium-term Revenue and Expenditure Framework and supporting documentation have 
been prepared in accordance with the Municipal Finance Management Act and the regulations made 
under that Act, and that the budget and supporting documentation are consistent with the Integrated 
Development Plan of the Municipality. 



JASON NGOBENI 

MUNICIPAL MANAGER: CITY OF TSHWANE 


JTAN MUNICIPALITY (GT002) 







City of Tshwane | Official (Page) 
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