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ANNUAL BUDGET OF 
Hessequa Municipality 



2019/20 TO 2021/22 

MEDIUM TERM REVENUE AND 
EXPENDITURE FORECASTS 

Copies of this document can be viewed at 
www.hessequa.gov.za 


HESSEQUA MUNISIBUJTEiT] 
2019 - 05 - 

PP*«s2ftRi Sdal607O 




Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


Table of Contents 

PART 1 - ANNUAL BUDGET 

1.1 Mayor's Report. 

1.2 Council Resolutions... 

1.3 Executive Summary. 

1.4 Overview on New MFMA Circulars. 

1.5 Standard Chart of Accounts (SCOA). 

1.6 Long Term Financial Plan. 

1.7 Financial Ratios & Norms. 

1.8 Operating Revenue Framework. 

1 . 8.1 Electricity Tariffs. 

1.8.2 WaterTarlffs. ZZZZZZZZZZZZZZ 

1.8.3 Refuse Removal Tariffs. 

1.8.4 Sewerage Fees. 

1.8.5 Property Rates. 

1.8.6 Caravan Parks. 

1.9 Operating Expenditure Framework. 

1.10 Capital Expenditure. 

1-11 Annual Budget Tables - Parent Municipality 

Table A1 Budget Summary. 

Table A2 Budgeted Financial Performance (revenue and expenditure by Standard Classification), 

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

Table A4 Budgeted Financial Performance (revenue and expenditure). 

Table A5 Budgeted Capital Expenditure by vote, Standard Classification and funding." 

Table A6 Budgeted Financial Position. 

Table A7 Budgeted Cash Flows. 

Table A8 Cash backed reserves/accumulated surplus reconciliation. 

Table A9 Asset Management. 

Table A10 Basic Service delivery Measurement. 

PART 2 - SUPPORTING DOCUMENTATION 

2.1 Overview of the Annual Budget Process. 

2.2 Overview of Alignment of Annual Budget with IDP. 

2.3 Measurable Performance Objectives and Indicators. ZZZ 

2.4 Performance Indicators and Benchmarks. 

2.5 Providing Clean Water and Managing Waste Water. 

2.6 Overview of Budget Related Policies/By-Laws. Z.Z.Z.Z 

2.7 Overview of Budget Assumptions. 

2.8 Overview of Budget Funding... 

2.9 Expenditure on Grants and Reconciliations of Unspent Funds. 

2.10 Councillor and Employee Benefits.| 

2.11 Vacant Posts 2018/19 and New Posts 2018/19. ZZZZZ 

2.12 Monthly Targets for Revenue, Expenditure and Cash Flow. 

2.13 Contracts having future Budgetary Implications. 

2.14 Capital Expenditure Details. 

2.15 Legislation Compliance Status. 

2.16 Other Supporting Documentation. 

2.17 Service Standards. 

2.18 Municipal Manager's Quality Certificate. 


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169 



HESSEQUA MUNISIPAUTEIT 1 

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Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


Table of Contents to NT Schedules 


P9- 


Table A4-Summary of 2019/2020 MTREF.24 

Table A4 - Percentage growth in revenue by main revenue source...25 

Table SA18 - Operating Transfers and grant receipts.26 & 27 

Table SA14 - Household Bills. 42 

Table A4 - Summary of Operating Expenditur by Standard Classification Item. 54 

Table SA1 - Contracted Services..'".' .'.56 

Table SA1 - Other Expenditure by Type.. 

Table SA1 - Repairs and Maintenance.....Z"!"..56 

Table A1 Budget Summary. " 02 

Table A8 - Cash Backed reserves / accumulated surplus Reconciliation............62 

Table A2 Budgeted Financial Performance {revenue and expenditure by Standard Classification).63 

Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote).64 

Table A4 Budgeted Financial Performance {revenue and expenditure). 65 

Table A5 Budgeted Capital Expenditure by vote, Standard Classification and funding.67 

Table A6 Budgeted Financial Position.. 

Table A7 Budgeted Cash Flows.”".'.”".'.70 

Table A8 Cash backed reserves/accumulated surplus reconciliation. 71 

Table A9 Asset Management.72-75 

Table A10 Basic Service delivery Measurement.. 

Table SA4 - Reconciliation between the IDP & Strategic Objectives and budgeted revenue. ZZZm 

Table SA5 - Reconciliation between the IDP & Strategic Objectives and budgeted Operating 
Expenditure. g 4 

Table SA6 - Reconciliation between the IDP & Strategic Objectives and Budgeted Capital 
Expenditure. 85 

Table SA7 - Measurable Performance Objectives.89-91 

Table SA8 - Performance indicators and benchmarks.. 

Table A1 - Breakdown of the operating revenue over the medium term. 98 

Table SA15 - Detail Investment Information.. 

Table A5 - Breakdown of the funding composition of the Medium Term Capital Program. 99 

Table SA17 - Detail of Borrowings. 100 

Table SA18 - Capital Transfers & Grant Receipts.Z” 101-102 

Table A7 - Budget Cash Flow Statement.. 

Table A 8 - Cash Backed reserves / accumulated surplus Reconciliation..ZZl04 

Table SA10 - Funding Compliance Measurement.. 

Table SA19 - Expenditure on transfers and Grant Programmes. 105 

Table SA20- Reconciliation between Transfers, Grant Receipts and Unspent Funds.106 

Table SA22 - Summary of councillor and staff benefits. ',107 

Table SA23 - Salaries, Allowances and Benefits.. 

Table SA25 - Budgeted monthly Revenue and Expenditure.. 

Table SA26 - Budgeted monthly Revenue and Expenditure {Municipal Vote).Ill 

Table SA27 - Budgeted monthly Revenue and Expenditure (Standard Classification)...ZZll 2 

Table SA28- Budget monthly Capital Expenditure.Z.."ll 3 

Table SA29 - Budget monthly Capital Expenditure {Standard Classification).........114 

Table SA30 - Budget monthly Cash Flow. ^5 

Table SA32 - List of External Mechanisms... ; .H 0 

Table SA34a - Capital Expenditure on New Assets by Asset Class. 117-119 

Table SA3' 1 - Capital Expenditure on the renewal of existing assets by asset class. 120-122 

Table SA34e - Capital Expenditure on the Upgrading of existing assets by asset class.123-125 


















































Hesseoua Municipality 


2019/20 Final Annual Budget and MTREF 


Table SA34c - Repairs and Maintenance expenditure by asset class.126-128 

Table SA35 - Future Financial Implications of the Capital Budget.129 

Table SA38 - Projects delayed from previous financial year.150-155 

Table SA1 - Supporting detail to Budget Financial Performance.157-158 

Table SA2 - Matrix Financial Performance budget (reveue source/expenditure type and Department.159 

Table SA9 - Social, Economic and Demographic Statistics and Assumptions..160 

Table SA21 - Transfers and Grants made by the Municipality.161 

Table SA32 - List of External Mechanisms. 162 


Abbreviations and Acronyms 

AMR 

Automated Mater Reading 

ASGISA 

Accelerated and Shared Growth Initiative 

BCX 

Business Connexion 

BPC 

Budget Planning Committee 

CBD 

Central Business District 

CFO 

Chief Financial Officer 

Cllr 

Councillor 

CM 

City Manager 

CPI 

Consumer Price Index 

CRR 

Capital Replacement Reserve 

DBSA 

Development Bank of South Africa 

DoRA 

Division of Revenue Act 

OPLG 

Department Provincial of Local Government 

DWA 

Department of Water Affairs 

EE 

Employment Equity 

EEDSM 

Energy Efficiency Demand Side Management 

EM 

Executive Mayor 

EPWP 

Expanded Public Works Programme 

FBS 

Free basic services 

GAMAP 

Generally Accepted Municipal Accounting 
Practice 

GDP 

Gross domestic product 

GDS 

Gauteng Growth and Development Strategy 

GFS 

Government Financial Statistics 

GRAP 

Generally Recognised Accounting Practice 

HR 

Human Resources 

HSRC 

Human Science Research Council 

IDP 

Integrated Development Strategy 

IGR 

Inter-Governmental Relations 

IT 

Information Technology 

kt 

kilolitre 

km 

kilometre 

KPA 

Key Performance Area 

KPI 

Key Performance Indicator 

kWh 

kilowatt per hour 

< 

litre 

LED 

Local Economic Development 

LGMTEC 

Local Government Technical Evaluation 
CommitteeLTFP Long Term Financial Plan 


MBRR 

Municipal Budget and Reporting Regulations 

MEC 

Member of the Executive Committee 

MFMA 

Municipal Financial Management Act 

MIG 

Municipal infrastructure Grant 

MMC 

Member of Mayoral Committee 

MPRA 

Municipal Properties Rates Act 

MSA 

Municipal Systems Act 

mSCOA 

Municipal Standard Chartered of Account 

MTEF 

Medium-term Expenditure Framework 

MTREF 

Medium-term Revenue and Expenditure 
Framework 

NERSA 

National Electricity Regulator South Africa 

NGO 

Non-Governmental organisations 

NKPIs 

National Key Performance Indicators 

NT 

National Treasury 

NRW 

Non-Revenue Water 

OHS 

Occupational Health and Safety 

OP 

Operational Plan 

PBO 

Public Benefit Organisations 

PDO's 

Pre-Determined Objectives 

PHC 

Provincial Health Care 

PMS 

Performance Management System 

PPE 

Property Plant and Equipment 

PPP 

Public Private Partnership 

PSP 

Public Service Purposes 

PTIS 

Public Transport Infrastructure System 

RG 

Restructuring Grant 

RSC 

Regional Services Council 

SALGA 

South African Local Government Association 

SAPS 

South African Police Service 

SCM 

Supply Chain Management 

SDBIP 

Service Delivery Budget Implementation Plan 

SMME 

Small Micro and Medium Enterprises 

T.O.U 

Time of use 

VAT 

Value Added Tax 

WCWDM 

Water Conservation and Waste Demand 
Management 














BUDGET SPEECH BY THE MAYOR FOR THE MTREF PERIOD 2019/20 

Honourable Speaker 

Members of the Executive Mayoral Committee 
Councillors 

Municipal Manager and Directors 
Members of the public 
Media 

Honourable Speaker 

In terms of the Municipal Finance Management Act (MFMA) the 
budget must be tabled to the public for approval. The MFMA is geared 
to help municipalities with a sustainable financial framework, and to 
cultivate sound financial practices. It goads the municipality on 
towards better service delivery. This legislation ensures that the public 
is fully informed about how the expected capital and operating 
budgets will be spent in any budget year. 

Honourable Speaker 

It is indeed a privilege to present the draft budget for 2019/2020. With limited resources at our 
disposal we have endeavoured to improve the lives of all Hessequa inhabitants. In Hessequa today, 
98% of households have services at their disposal which improves the lives of these inhabitants. We 
strive on a daily basis to improve on this. 

Although the municipality is not a profitmaking organisation, financial management must be based on 
sound principles. With escalating inflation we cannot do anything else to avoid increasing the cost of 
services. The economy is indeed tough. This is therefore the reason why we have to think more 
creatively and productively to keep costs within limits. There were two rounds of public participation 
processes for the compilation of this draft budget. 

i 





Hesseaua M unicipality 


2019/20 Final Annual Budget and MTREF 


The upper limit for indigent help for category A has been increased to R3.500, and category B to 
R4.000. With this, more indigent households throughout the municipality are helped to afford basic 
services. 

Water stability for areas such as Witsand has been ensured with the erection of a desalination plant. 
The cost of this plant was financed by the French and Provincial governments. The precarious 
shortage of water normally experienced during December months in Witsand has now been 
addressed. The dependence on external water sources has also diminished through this. 

An amount of R22 million will be spent on the upgrading of sewerage networks in Still Bay and 
Riversdale. An amount of R21 million has been budgeted for electricity reticulation throughout 
Hessequa such as street lights, telemetric systems, substations, underground power lines and 
cables. R11 million has been earmarked for the upgrading of roads in 2019/2020. 

One is inclined to talk about big projects that are planned. There are however literally hundreds of 
smaller capital projects which improve the lives of Hessequa inhabitants on a daily basis. In the 
ensuing financial year, emphasis will be placed on information technology so that we can keep 
abreast with changing times 

All selling prices of electricity are approved by NERSA before tariffs can be implemented. A master 
plan has been compiled to plan for repairs and maintenance as well as new developments. 

Employee related costs are currently 39% of the budget. Salary increases are governed by collective 
agreements and are usually in force for 3 years. The Draft budget provide for a 7% increase for over 
the MTREF period. 

The aim of the municipality is to bring all sport facilities in the Hessequa area to the same standard. 
Riversdale, Heidelberg and Albertinia have adequate facilities that will soon be brought to an 
acceptable standard. The sport communities of Slangrivier and Melkhoutfontein will benefit in the next 
three years with various upgrading projects of sport facilities. These upgrading projects will be funded 
by two sources which is the Municipal Infrastructure Grant (MIG) and own funds. 

We learnt many lessons with the fires that occurred in the Hessequa area during the past few years. 
We heard the need of the inhabitants and have made an investment in the fire fighting service. Once 


2 | P a g e 




Hesgqqya Municipality -_- 2019/20 Final Annual Budget and MTREF 

again we have budgeted for a fire fighting engine. It is Councils priority to create a fully fledged fire 
fighting service. With this, the reaction time will be as short as possible. 

Allow me the opportunity to thank the dedicated personnel for their excellent service who have led the 
municipality in these difficult times to achieve the successes that they did. 

To the Speaker, Executive Deputy Mayor, my MAYCO and Councillors my sincere appreciation for 
the special manner in which you have contributed to the successes of the municipality. 

A 5 th clean audit outcome is proof of sound financial management by all personnel as well as the 
entire council. 

I conclude with these words from President Nelson Mandela: 

M A winner is a dreamer who never gives up ." 

I thank you 

Executive Mayor Grant Riddles 
Hessequa Municipality 



jMESSEGUA iViUrJiSiPALiTEITi 


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Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 



The MFMA stipulates that the Mayor must table the Annual Budget at a council meeting at least 30 days before 
the start of the budget year, and the Mayor must take all reasonable steps to ensure that the municipality 
approves its annual budget before the start of the budget year. 

RESOLVED 

1. That Council approves the annual budget of the municipality for the financial year 2019/20 and 
indicative for the two projected outer years, 2020/21 and 2021/22, and the multi-year and single year 
capital appropriations as set out in the following schedules, after consideration of all public comments: 

1.1 Budgeted Financial Performance (revenue and expenditure by standard classification) 
reflected in Table A1 pg. 61 and Table A4 pg. 65. 

1.2 Budgeted Financial Performance (revenue and expenditure by municipal vote) as reflected In 
Table A2 pg. 63. 

1.3 Multi-year and single year capital appropriations by municipal vote and standard classification 
and associated funding by source as reflected in table A5 pg 67. 

2. That Council approves the property rates tariffs reflected in the 2019/20 tariff list (Annexure A) and any 
other municipal tax reflected in the 2019/20 tariff list that will be imposed for the budget year 2019/20. 

3. That Council approves the tariffs and charges, subsidies and discounts as reflected in the tariff list 
(Annexure A) for the budget year 2019/20. 

4. That Council approves the budget related policies reflected in Annexure B for the budget year 2019/20. 



it eESSEQUA fViUNiSIRAUTEIT| 






2019/20 Final Annual Budget and MTREF 



National Treasury requires municipalities to continue to explore appropriate ways of structuring the tariffs for 
utility services, to encourage more efficient use of these services, and to generate resources required tor 
maintenance, renewal and expansion of infrastructure. They also encourage municipalities to keep increases 
in rates, tariffs and other charges at levels that reflect appropriate balance between the interest of poor 
households, other customers and ensuring the financial sustainability of the municipality. 

The recent technical recession, high unempioyment, slow economic growth, weakening of the currency and 
rising global interest rates affects the country and a recovery plan must be implemented in order to stimulate 
the economy. 

Local government has a vital role to play in turning around the economy. Fiscal prudence cannot be 
overemphasised, renewed revenue management, improvement of governance and financial management to 
support service delivery, funded budgets and implementation of mSCOA must be the responds to the stimulus 
plan by Government. 

The budget was made possible through consultation with the local community, the relevant government 
departments and the internal departments of the Municipality to ensure that the priorities are properly aligned 
and addressed. The Municipality’s business and service delivery priorities were again reviewed as part of this 
year’s planning and budget process. Yet again expenditures on non-core and "nice-to-have" items were 
critically reviewed. 

National Treasury’s MFMA Circular No’s 48, 51, 54, 55, 66, 67, 70, 72, 74, 75, 78, 79, 80, 82, 85, 86, 89, 91, 
93 and 94 were used where necessary to guide the compilation of the 2019/20 MTREF. 

The local economy still has a very low momentum as a result of the disruption of the world economy, domestic 
strike activity and moderating household consumption. This had a direct impact in the compilation of the 
budget. Trends in income growth statistics are still very low, indigent and poor households are growing. 

Municipal Councils must ensure that funded budgets are adopted which means that expenditure must be 
contained within realistic revenue projections. The Consumer Price Index (CPI) is forecasted to be between 3 
to 6% target band and municipalities are required to justify all increases in excess of the target for 2019/20. 

The main challenges experienced during the compilation of the 2019/20 MTREF 
can be summarized as follows 

• Ensure a funded budget 

• Difficulties in the national and local economy. 

• Salary increases for staff exceed consumer inflation - 6,5% increase budgeted. 

- Ageing and increasing costs of maintenance of water, roads, sewerage and electricity infrastructure. 

• Increased cost of bulk water (due to tariff increases from Overberg Water - 8,4% and Korente- 
Vetteriver Irrigation Board - 8%), which is placing upward pressure on service tariffs to residents. 

• Affordability of capital. 

■ Non-cash items such as provision for landfill sites and retirement benefits puts pressure on the 
expenditure budget and cannot fully be recovered from tariffs. 


IHESSEQUA toiUNISi 



2019 -OS 

Poabus29. Rivorsdal 6670 


5 | P a g e 






Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


Consolidated Overview of the 2019/20 MTREF 


Description 

Total Operating Revenue 

Total Operating Expenditure 
Surplus/fDefldt) 

Capital Transfers & Subsidies 

Surplus/fDeficit) after capital 

Capital Expenditure 

2019/20 Medium Term Revenue & Ex 

penditure 

Adj. Budget 
2018/19 

Budget Year 
2019/20 

Budget Year 
2020/21 

Budget Year 
2021/22 

459 898 999 

478 741845 

481 779 381 

497 391 211 

528 607 009 

554 657 962 

574 662 009 

603 684 961 

-18 842 846 

30 025 743 

-15 611830 

16 243 200 

-26 050 953 

15 194 350 

-29 022 952 

16 038 800 

11182 897 

631 370 

-10 856 603 

-12 984152 





92 477 157 

110 408 968 

77 943 349 

68733255 


Total operating revenue has increased by 4.76% or R21.880 million for the 2019/20 financial year when 
compared to the 2018/19 adjustment budget. For the two outer years, operational revenue will increase by 
9.72% in 2020/21 and 8.71% in 2021/22. 

Total operating expenditure for the 2019/20 financial year shows an 3.90% or R18,649 million increase when 
compared to the 2018/19 adjustment budget and increases by 11.51% and 8.84% for each of the respective 
outer years of the MTREF. 

The total 2019/20 budget amounts to R607,800 million. It consists of a capital budget of R110,409 million or 
18.2% of the total budget and an operating budget of R497.391 million. 

The graph below shows the operating expenditure- and capital budget (actual) for the 2017/18 financial year, 
the revised budget for 2018/19, and proposed budgets for the 2019/20 to 2021/22 financial years: 



6 | P a g e 
































Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


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51*3 


4lK> 


300 


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Operating & Capital Budget 














Actual 2017/1* 

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Budget Ytear 
30191/30 

Budget 

Bud^ftYcar. 

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554657532 

£23584961 

tt.i^'tjti 62 39* 779 

$247? 1*7 

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1.4.1 MFMA Circular No 93 

The purpose of the annual budget circular is to guide municipalities with their compilation of the 
2019/20 Medium Term Revenue and Expenditure Framework (MTREF), in particular to ensure that 
funded budgets are adopted by municipal Councils. This means that expenditure must be contained 
within realistic revenue projections. 


1. 


7\P a ge 


The South African economy at a crossroads 

Given the current economic climate the country faces, government is confronted by difficult 
economic and fiscal challenges over the medium term. South Africa needs to choose a path that 
leads to faster and more inclusive economic growth and strengthens private and public sector 
investment. This should also stabilise and reduce the national debt, as South Africa cannot afford 
to borrow at the rate we are currently borrowing at. 

To promote a return to faster growth and job creation, the President announced an economic 
stimulus and recovery plan. The initiative focuses on five interventions: 

* Implementing growth-enhancing economic reforms; 

* Reprioritising public spending to support economic growth and job creation; 

* Establishing an infrastructure fund; 

* Addressing urgent matters in education and health; and 
- Investing in municipal social infrastructure improvement. 
























Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


2. Kev focus areas for the 2019/20 budget process 

2.1 Local government conditional grants and additional allocations 

• The largest transfer to municipalities is the local government equitable share, which grows 
by 9.9 per cent in 2019/20, 9.7 per cent in 2020/21 and 8.6 per cent in 2021/22. These 
above-inflation increases are due to expected growth in household numbers, and higher 
bulk water and electricity costs 

• The widespread decline in the quality and performance of essential municipal infrastructure 
significantly constrains the potential for Inclusive economic growth. Municipalities should 
prioritise the maintenance and where necessary the refurbishment of essential municipal 
infrastructure. 

2.2 Tabling of funded budgets 

• Adopting a funded budget has become more critical now than before as it has direct bearing 
on the financial sustainability of the institution. 

• No municipality will adopt an unfunded budget in the future. There are cases that may 
warrant a plan as this may not be achievable over one year. Such municipalities must, 
together with their 2019/20 MTREF budget, table a plan in a municipal council on how and 
by when the budget will improve from an unfunded to a funded position. 

2.4 Municipal Standard Chart of Accounts fmSCOAl 

• Release of Version 6.3 of the Chart - Version 6.3 of the chart will be effective from 2019/20 
and must be used to compile the 2019/20 MTREF 

• Amendments of adopted budget errors during the adjustments budget 

- Municipalities are still not able to align mSCOA original budget data string to the original 
budget adopted by municipal council. 

- Some municipalities prepared their tabled budgets in the financial system but made 
changes to it during community consultation and council meeting(s). These changes 
were effected to the Schedule A that served before Council but never made on the 
financial system. Hence, the municipality started transacting against the tabled budget on 
the system instead of the adopted budget. 

- the budget must be approved and locked on the financial system prior to the municipality 
transacting against it on the financial system. 

- Errors In the budget can only be corrected during the adjustments budget process. 
Municipalities should therefore ensure that their adjusted budget data strings align to 
Schedule B adopted by municipal council. 

- National and Provincial Treasuries will undertake a verification process on the adjusted 
budgets in relation to the data strings. Municipalities are advised to submit the draft 
adjusted budget data strings and Schedule B in advance for verification purposes to 
ensure that aligned documents are adopted by municipal council by 28 February 2019. 

• Changing of the Core Financial System 

Prior to changing their core financial systems:- 

1. Municipality must conduct an iCT due diligence of all the existing ICT system(s). 

2. Once this ICT Due Diligence has been completed, the municipality’s mSCOA 
Project Steering Committee (chaired by the Accounting Officer) must: 

a) Assess whether existing system(s) as a package, meets the systems comply . 
with the functionality requirements for its category and 15 business processes 
required in terms of mSCOA. This should be the main consideration in the 
decision on whether a new financial system is required; 

b) Consider the cost of any additional functionality the municipality will have to 
procure from its existing package of service providers) end the affordability 
thereof. Importantly, if a municipality did not budget to 



8 | P a ge 




Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


the budget adopted by Council, then the purchase will have to be deferred to 
the next financial year to avoid irregular expenditure; 

c) Compare the total cost of its existing 'package of system(s)', including the cost 
for any additional functionality with the other available service offerings for its 
category; 

d) Consider the penalties and reasons for contract termination in any of its 
contracts with existing service providers. 

3. The project steering committee must document its decision and 
recommendation(s) on the way forward, clearly setting-out its findings. 

4. Once the mSCOA project steering committee has made its decision and 
recommendations, the municipality must solicit the comments of National and 
Provincial Treasury. A detailed motivation on the need to change should be 
provided to National and Provincial Treasury, the Municipal Manager and Council. 

5. Once the municipality has received the comments of National and Provincial 
Treasury, the mSCOA Project Steering Committee and Municipal Manager should 
consider such comments and prepare a recommendation to Municipal Council in 
this regard. 

6. The municipal manager must submit a copy of the municipal council’s decision to 
the National and Provincial Treasury within five (5) working days after the meeting 
during which the Municipal Council has made the decision in this regard. 

7. The municipality should then follow Its own tender processes to procure a 
financial system on the open market until such time that a new transversal 
tender for the procurement of integrated municipal financial and internal 
control systems are in place. Thereafter, municipalities may request permission 
from National Treasury's Office of the Chief Procurement Officer to use the 
transversal tender to procure a financial system. 

8. The municipality should ensure that the Service Level Agreement entered into with 
the system provider provides for specific and realistic milestones and include 
penalties and termination clauses for failing to meet milestones. In addition, 
municipalities should implement proper contract management and exercising tight 
control over contractual obligations by system providers. 

National Treasury has also secured funding to conduct independent audits on all financial 
systems to determine to what extend these systems comply with the functionality requirements 
and 15 business processes required in terms of mSCOA. Until these audits have been 
concluded and the results have been released, municipalities should exercise caution when 
changing their financial system to avoid purchasing a system that do not comply with the 
necessary mSCOA functionality requirements. 

3 The revenue budget 

Municipalities must focus on collecting revenues owed to them, and eliminate wasteful and non- 
core spending and budgets will be scrutinized to ensure that municipalities adequately provide to 
service their debt obligations. Municipalities must ensure that expenditure is limited to the 
maximum revenue collected and not spend on money that they do not have. 

National Treasury encourages municipalities to maintain tariff increases at levels that reflect an 
appropriate balance between affordability to poorer households and other customers while 
ensuring the financial sustainability of the municipality. 

Municipalities are required to justify all Increases In excess of the projected Inflation target for 
2019/20 in their budget narratives, and pay careful attention to the differential incidence of tariff 
increases across all consumer groups. Consumer Price Index (CPI) inflation is forecasted to be 
within the upper limit of the 3 to 6 per cent target band. 


jj.HESSEQiiA iviUNIsH 

m -i 



f Posbus 39fRivarBdaI Bfl 7 n 


9 | P a g e 





Hessecua Municipality 


2019/20 Final Annual Budget and MTRFF 


3/1 Maximizing the revenue g eneration of the municipal rewn.m bm 

* becoKd 8 fUnd their 2019/20 MTREh budgetS fro ™ realistically anticipated revenues to 

* It is critical to compare the valuation roll data to that of the billing system to ensure that 

S!?th ®h nt 5' P 2f d fr ° m - properly rates are realistic. A further test would be to reconcile this 
with the deeds office registry. This reconciliation should be undertaken quarterly 

* Municipalities are requested to submit the following Information to the National Treasury- 
- Copy of the approved current General Valuation Roll of the municipality 

a ° P1 L 0f th * a PP roved Supplementary Valuation Roll of the municipality;' 

n from .! he . financial system showing the property rates information; 

' £!?- - GVR antl "nancial system Illustrating the variances: 

Proposed process to rectify the variances. 

* 9noo V™8* < ' to Local Economic Development strategies 

app aleVlBlB *“ ’""““o' 1 01 *“ “Issnts as part of poverty 

3-2 Eskom bulk tariff increases 

* McScK litie ® * cost struc ture of providing electricity services and to apply to 

aor?v S to f ' nfS??* ta 1 ^ ,nC r a ® e i that refl0Ct the total 0081 <* Providing the service and to 
apply to NERSA for electricity tariff increases that reflect the total cost of providing the 

^“na^l^SSr 18 ****** ** CM, - renec “ v9 «■ •"*> <•*»" 

3.3 Water tariff Increases 

* m^r^adTniTnH ^structure maintenance, loss management, 

meter reading and tariff setting In respect of water services. 

* SUU!"* tarif S S charsac ? a ? able t0 cover for the cost of bulk purchases, ongoing 

operations as well as provision for future infrastructure. a 9 

Funding choices and Budgeting iaaunn 

niv:^^ e ? 0n0mic la ^ scapa and weak tarlff sattin 9. municipalities are under pressure to 
msanft fhft d 21 r0venua ; J he ability of customers to pay for services is declining and this 

when compilkfg toeir 2CM ^^MTREF^udgete^ 0 ™' -st consider tSe toliowing 

• improving the effectiveness of revenue management processes and procedures- 

* unn^c^fl atte ,? ,0n to cos* containment measures by, amongst other things! controlling 
M^I^C^da^Na 82; ^ niC6 ' t °' have ,tems and no "-assential activities as was highlighted in 

• ensuring value for money through the procurement process; 

Ford bility of providing free basic services to all households- 

* SSteKT"^" aterandalaol,,city ^ indlgents to eraure thm they do notexceed 

4.1 Employee related costs 

C l o//e f* ,Ve Agreement through the South African Local Government 
rotated * 2018 8h0Uld baUSedWhen bUd9a “ n 9 ,0r 

4.2 Remuneration of Councillors 

Budget in accordance with the gazette on Remuneration of Public Office Bearers. 


10 | P a g e 




0 Final Annual Rnri 


and 


m 


4.3 Budget far Trade p »y a Hes on Tahi» gA3 

Payable^fronfExc^i^ C Trarwadions e and*the^ nnU | a * , Financial Staten »ents relating to Trade 
creditors which do not have a direct imnarf In 8 -^ Vealed that thls liabiIit y includes 
‘Trade and Other-Payables from ExchanM Tra^L? 0 ' I he ' nclusion such liabilities as 
due" on Table A8 has an impact on the _ u / lder mrkin 9 Capital - Creditors 

determining whether the budget is fundi if!!"!?*5 m ® n f as they are °° nsic <ered when 
Regulations schedules 9 ® d 88 P ® r the Mun,ci P al Bud 9 et and Reporting 

] ab .'® A8 ia grated into three disclosures which are: 

Unspent Grants - linked by a formula from Table SA3- 

\r Tabte ?* **■“"* *— 

• Statutory Rani iiroman*/ tui exchange Transactions as explained above 1 

any tabfe as^ may include^AT^tlxa^ 8 " d ^° n and is not ,inked b V a formula to 

The Tratie and ^ 0redto ™ Wo two separate Hoes. 

• Trade payables - (should be “true creditors” only)- 

separat^y)! 01 ^ ~ (Sh ° U,d ' ndUde "" th ® 8b ° Ve ,iabilities * exC0 P* VAT that is disclosed 

• Unspent conditional transfers: and 

• VAT. 

T “Tt£?of calculating 

4-4 Budgeting for Inven tory; Water 

38 P 0r GRAP 12, 

be effected to the Schedule A tables and the“hart P ™ h necessary am ®ndments must 

on municip^litte^^^ *° tbe Schedule A tables will have 

implemented in the 2019/20 MTREF are ®® ni ^ can ^ an d should not be 

™eXSS^C?? qUl8 !! l0 r ) *’“ ter ' -odt lnc,ud « *» following: 

SKS?^'■ Supply from b* or Other water setvlce pnnrfdero rmxjnisedbyth. 

• Va ' U6lal0be deten ’ llned * 

water from narturaif soureee sfnuM^'ndude bmttTMfir^'™* 0 h 8 ® * r8lat ® s to water Polled and 
allocation of secondary cost to the inm ■* uni P^ary and secondary cost components. The 

Costing Segment of the mSCOA chart Um6 ** wator wil1 necessitate the utilisation of the 

taX'ET SSCyaWW •n C ^COA°n 1 !!l. 2 u° 2 T ,r REF * amended 

purchases as inventory. n reabon *° the treatment of water bulk 


rtESSEUUMviUNiSiF 



6 - £.reparation of Municipal Buda^ «- r ?fmrn niiTnrr 

system. e A1 06 Produced directly from their financial 

and to generatethe Prowribed^SchedU^^ direct fro ^^h 0 ^ 888 ' 8 * 8nd prepare budgets 

• Municipalities must start eariv Tnounh *1 y T the financial 

adopted budget) in the budget module^rovidS^nri m®'* tab,6d budget (and later the 
Schedule A1 directly out of the budget module. d d ®* enSUra that they produce their 

• o promote this approach, from the 2020/21 MTREF the m q *i , T 

accept a Schedule A1 in PDF format containino am ^ !fl Natlonal Treasury will only 

dis Playing an embedded system stamo fo 8 MrfJ u a fh P I e » ( ? bed and with each 
directly from the system. p certify that it has been produced 

in ExceTa pre^ribe^^ dld USin9 the Schedu le A1 

each municipality. 9 data must be populated and uploaded by 

.. 

the financial system; ^ Wl con ^ l7T1 production directly out of 

format; dellvery and budget implementation plan in both printed and electronic 

• The draft integrated development plan- 

• The council resolution; 

RStkS" #y ,rtfficato “ p ' B8crtb<,d <" #» Municipal Budget and Reporting 


7.2 


I ^SSS a ;—... 

Treasury Local Government DatabaseHwil h y ex Penditure to the National 

use only the roSCOA data strings reauired for purposes - Ths National Treasury will 

will use the data collected from the mSCOA data strinas. 0 8 * prascrlbed and al1 Publications 

PgatSS!?!' kKlnlcffHKi 

3* Detail 18 ! 0 ! * n IS accurate, y recorded on a dailybase- 
4; 

a: 

uploaded using the Lg'U pload*Portal !'^ d,rectly out ** tho financial system and 


12 I p a g e 



Postal* 90 nii 



s.-sz 

7,5 Public at| ° n of budgets on municipal webeitaa 

• Publish tabled budgets, adopted budgets and other relevant information on the 

1.4.2 MFMA Circular No QA 

?n , ‘ w20 ’« <"“■ ^ and I* complements 
of the 201020 Medium Term Revenue and B^dltum FmnSiSk (TTref! prepara,lon 

1m Jh» South African econ omy and Inflation tarnate 

JSSJaSS^lImS; SlnC8 Medium Term Budget 

pre8 “ ,res *° m stete ■ own9<, mnva ^ *»»«-«' £ 

^ 9/ ~— »«-• fer Consumer Pdce Inflation (CH) TSSEw at 52% fo, 

2l Ky f <>cus areas for the ania/ gp municipal budget dtp - 

2.4 Borrowing for capital i gfrastrunturo 

an> ^ ^ o"- ^ * 

. PLEASE NOT E that the sentence contained on MFMA Circular No 80 Ktatinr. *h*t •«. 
parted L h^teen re vote/ ** approv&d wi « 

3. The reve nue budget 

3*1 Eskom b ulk tariff increases 

imESehS!*!tothebri£tna!tt^ ^ thelr rBwnue a™*"' assumption, for the different 

4 - ggndltional Grant Tran sfers to Municroalltiaa 

4.1 kHteliai the rollover of conditional grant funds 

SSSS»S~£H 

">“>• *** *i» 


I Page 



Posbus 29, Rhrererfgl 6870 



1. A formal letter, signed by the accounting officer must be addressed to the National 

Treasury requesting the rollover of unspent conditional grants in terms of section 22(21 of 
the 2018 DoRA; v 1 

2. List of all the projects that are linked to the unspent conditional grants and a breakdown of 
how much was allocated and spent per project; 

3. The following evidence indicating that work on each of the projects has commenced, as 
applicable to the specific rollover(s): 

a) Proof that the project tender was published and the period for tender submissions 
closed before 31 March; 

b) Proof that a contractor or service provider was appointed for delivery of the prelect 

before 31 March; or 1 

c) Proof of a project tender, appointment of contractor or service provider for delivery of 
service b Fore 30 June in cases where additional funding was allocated during the 
course of the final year of the project; 

d) Incorporation of the Appropriation Statement; 

e) Evidence that all projects linked to an allocation will be fully utilised by 30 June 2019. 

4. progress report on the status of each project’s implementation that includes an attached 
legible implementation plan; 

5. Value of committed project funding, and the conditional allocation from the funding source; 

6 ‘ n 8 ^ 008 Why the 9rants were not fully spent during the year of original allocation per the 
□oRA; 

7. Municipalities must not include previous year's unspent conditional grants as a rollover 
request. Rollover of rollovers will not be considered; 

8. An indication of the time-period within which the funds are to be spent if the roll over is 
approved; and 

9. Proof that the Municipal Manager and Chief Financial Officer are permanently appointed. 
No rollover requests will be considered for municipalities with vacant or acting Chief Financial 
Officers and Municipal Managers for a period exceeding 6 months from the date of vacancy . 

If any of the above information Is not provided or the application is received by National 
Treasury after 31 August 2019, the application will be declined. 

In addition, National Treasury will also consider the following information when assessing 
roltover applications; and reserves the right to decline an application should there be non¬ 
performance by the municipality in any of these areas; 

11 * ,iance witf ? the in -y® ar reporting requirements in terms of sections 71 and 72 of the 
MFMA and section 12 of the 2018 DoRA, including the municipal manager and chief 
financial officer signlng-off on the Information sent to National Treasury; 

2. Submission of the pre-audited Annual Financial Statements information to National 
Treasury by 31 August 2019; 

3. Accurate disclosure of grant performance in the 2018/19 pre-audited Annual Financial 

"fternents, (l.e. correct disclosure of grant receipts and spending in the notes to the 
AFS), 

4. ( h available in the bank (net position including short term investments) as at 30 June 
2019 is in line with the cash flow statements to finance the roll-over request. If the full 
amount that is requested for roll over is not entirely cash backed, such a roll over will not 
be approved. National Treasury will not approve portions of roll over requests. 

roHover ** n ° tod that Under n ° circumstances wil1 the National Treasury consider requests to 

1. The entirety of any allocation to the municipality, as there should be a minimum spend of 
50 per cent of the allocation per program; 

2. Funding from the same grant for the third consecutive time; 

I Page 






3 ' S,S^L PI £ ject ® ?P nsti !ii ted throu 9 h Regulation 32 of the Municipal Supply Chain 

SK? Nk, - 27636) - "+* " nkad 10 addltaal - 

4 ' Fun<l l [ 1 ° wh ° re | Is evidence lhat the roll over application to linked to invoke th.t 
were issued within the last 30 days of the municipal financial year end. 

4-2 Unspent conditional grant funds for 2018/1 a 

inanf h" ISL? 10 ^? VI0US MFMA Circulars, the following practical arrangements will apply to 

ensure the return of unspent conditional grants: wmappiyro 

th !l: June 2019 ex P 0nd iture reports according to section 71 reflecting all 
° n ?° nditional 9 rants and further ensure that expenditure 
9 - a E, rt0d - t0 ,?° h Nat ' onal Treasury and national transferring officers reconcile. 
th^J mUSt d ® termin ® the P° rtion of ®ach national conditional grant allocation 

a r ^ ma ' ned “"■P"* as at 30 June 201 9- These amounts MUST exclude all interest 
earned on conditional grants, retentions and VAT related to conditional grant 

cf ftn ■*. K! dinfl h fi been reclaimed from SARS, which must be disclosed separately 
^ tep 3 ' !^-f IVln9 °^ r . Wants t0 motivate the unspent funds are committed to 

!? ?ff'p° Vaf P«* ™« be submitted to National 

Nationa! Treasury will confirm in writing whether or not the municipality may retain any 
of the unspent funds as a rollover based on criteria outlined above by 22 October 

Stan s- National TvSlfn 1 *5 agree to . any aRemative payment arrangement or schedules. 

12—1 M Tr ^n!o^* WI communicate the unspent conditional grants amount by 05 
fi - be : 2019 * A municipality must return the remaining unspent conditional grant 
ftnda that are not subject to a specific repayment arrangement to the National 9 
Revenue Fund by 18 November 2019. 

§iSEj: 5aL U „ n a S | P i| nt C ° ndit i 0n ! 1 9 rant funds that should ^va, but has not been repaid to the 
raSI?!« nU0 Fun ? by 18 November 2019 . and for which a municipality has not 

The Municipal Budget a nd Reporting Regulation* 

5.1 Tabling o f budget documents 

The slow spending of capital budgets by most municipalities is a national concern as it has a 
negatye impart on service delKwy. In moat cases It to a direct iew« rfpSXSs hT 
municipalities. Municipalities are required to table the following supporting documents to 
Council, as part of the budget pack, when they table their budgets by 29 March 2019- 

1) Service Delivery and Budget Implementation Plan (SDBIP)- and 

2) Procurement Plan. 1 h 

5-3 Schedule A - versio n to be used for the 2019/20 MTREF 

oHheTsr^'Ii^Ii 0 ®^ U ? Ver8i °!l 6 f ,3ofthe Schad ule A1, which is aligned to Version 6.3 
of the mSCOA classification framework for the preparation of their 2019/20 MTREF budget. 

Municipal Chart of Accounts fmSrnA) 

5<1 Viremen t in an nrSCOA environment 

their v, rement policies to mSCOA. mSCOA provides a 
IjnJSji®" d standard| sed financial transaction classification framework to transact in and 

SmSteo ^' 18 9 S6Ven (7) 869ments - Six ^ thesa "SCOA segments are 


Page 


Pflebus 29. RK'ersdsl 6670 





Hessenua Municipality 


2019/20 Final Annual B udget and MTRFF 


7. 


6-2 mSCOA training 

^ rea “!21 h J s ‘SSped mSC0A the tundamentab and 

<*»««£ from National and Provincial Treasuries and 

0 ha ™ been ' rai " ed *° P'O'*"’ "**9** regard. 

Budget process an d submissions for the 2019/20 MTRFF 
7,1 .Budgeting for the a udited years on Schedule A /mSfiflA) 

l^ C S^^™ nte, ^ a J!? nal J earn,n9 L practiceSl A is appropriate to reclassify historical information 
r th th ? Ch f n ? es ?* occur ln the Standard Chart of Amounts. Municipalities 

k h recla ® sif,ed audlt outcomes for 2015/16 to 2017/18 in version 6.3of the 
Schedule A when compiling 2019/20 MTREF budgets. 

7, 3 Retirement of the B udget reform returns /Appendix B) 

From 2019/20 onwards, municipalities will no longer be required to use of the Budget Reform 
Returns to upload budget and monthly expenditure to the National Treasury Database 

aif S JZ! U Ji. WlM T mS ? 0A data strin 9® required for submission as prescribed and 

all publications will use the data collected from the mSCOA data strings. 

This place the responsibility on each municipality to ensure that 1 
Budgets are accurately locked into the financial system; 

Each transaction is accurately recorded on a daily base; 

® u J^y® tem s is accurately represented in the General Ledger (GL); 

flnHtho Mi *!* , r !? 0rtin9 al1 reconciliations are done, sub-systems are in balance 

r and^h Un,C ' Pa Mana £ er and CF0 a 9 rees with the figures as presented in the Schedule 
C and other management reports or dashboards; 

5. The (porting period is CLOSED for further transactions* 

18 ProdUOed system and uploaded 

S^nanHiv n a r h1 i!? S I"!? 4 c ? n °jj Jde al1 reporting for 2018/19 up to restated audit outcomes on 
^pp dix B (old electronic returns) to lgdatabase@treasury.gov.za before we can retire the 


1 

2 . 

3. 

4. 


7,6 The process to be followed to is s ue version 6.4 of thn mSCOA chart 

Munrapalities have raised concerns that National Treasury issue the mSCOA chart chances 

T0 address «■ c ^ allen 9 e > the FAQ database will be cfos^l on 31 
Ortoter 2019 fo °" in9 new quer,eSl The new version of the chart will be issued by 31 





-y!9/20 Final Annual R udgetanH MTpcc 


~ « vy u uvy vy u y ^ IBH IV^MMWU/ 

Government ^unl^I^eS^idpBlBffi^dete qilall, >' * wn #» collection of Local 
Government. He^taMuniZ^^T^^c?* « FtT 8 *»"««ortt for Local 

conversion problems. These challenges are on nni^Th \ Ju |£ 2 9 15 amldst various teething and 
Government Incorporating all transaction types arroropriationof fund?' Mtl °" framework specific to Local 
and operating spending and classification, poltoy oE£ and ° n S6 " ice delivery - 

considered work in progress. M y UK50mes and legislative reporting requirements can still be 


ag «»Wlopment of Mile im^ muM nlv . 

International standards, guidance end beet piBcacee - 

' <t^£T£S! ™r f °;—am 

performance aseesament and annual financial atetemerlte) SMP) * peportln9 (monlhl K mW-year 
reforms lent of financial reporting formats and the annual financial statements to key budget format 

provisions of ^trai ^pplfcable^tf t^ dff GR ? P T* 9 rinc,p,es w,thln the 

S2?^ 10081 "O™™ 8 "* operate. 2?^t& - JK55aS 

• l8beb ln ‘ lmple tem " 

enable munld^ntteftr^ni^ suS? to* 'nfomationraqulrement. whlcb will 

fonnata that are abated and «**£ ££ 



■ on 8 March 2,117 *m n > wm fh. hi^ 

^P^ir^^mTe’^ y8tem8 (mUrWCipaW98 — «- teeLgmdon oH 


-o-— ■ wi Wie oyoiom Wim 5 UD- 

Debtors, Payroll and Asset sub-systems); and 

direo | lv " nked 10 ,he IDP and S DBIP facllltl9s ° n tha 
if handle' «eati?ee^iKW.(i«f ^" 0 S' *!««•“■ This syste.n is 


SltnofCdto™X|f ii^TJion ' SyStar ”' This ***«*" * ™ry oWi 

ssmtern IntegHrte, tSSSSL (Pavdav SSSf *“ h however oon{ta fte ec 

These files are received ante the core « - til ** n ?'' casn drew > ®»set register, bank etc 
within the minimum requirement of Proving** 8 "3S} y ®*! tor!a 8 “Yes/iMc” for the file. This 
safe environment where NO maoioufetioh f ‘ ! ® ir ^ ratba is •tow* to 

systems are done at least on a monthly bas^‘ Moresf nf* r3ccac!uat? °* between the to 
requirement _ ’ ® w ‘ Al P* e3 ® r «t Hessequa complies with the minima 


29. Rivcsodel 6B7B 









Sa 7 ^ JM| ‘ ^ fr""»lnn 

MTREF 8 3 018,9 ° hart Wl111)9 B ** V9 2019/20 and must be used to compile the 2019/20 

.* SE£^^ aTOId purch “ in9 a 

• hbtaSnf ProdUC9d fr0m 8,9 m0dule ^ n ° i ^2M9^MTREF > b!dS« BCX “* 90h9dU ' 9 A1 
do these chS*?3^teSs A 80h9< "'' 9, 10 V9 '"°" 8 ' 3 ' C<,uncil ' , s0,hrare frcMera *»>* <**> to 

b^^wTSX^^^re^ 9 3 ^ lly by "i 19 T' 6 '"' The 2019,20 MTREF 

still done manually by the Municipality. °° mp ^ Wlt * 1 ^is, some schedules were 



\r .— - jNot available on the mSCOA chart 

^! g 20 Agrleu ture is no longer avail abl e_Ltavailable on the mSCOA chart 

Formula ink chance on ins « Tnw. —t _^i_I 


2 A6 


4A8 


Formula link change on line 32 Trade and other 
payables 


_ . - Adjustments made on SA3 

formula link change on line 31 Creditor, ri.ie l aments made on SA 3 

Anllictmontc i:_ j . 


- w . — —— J UUC 

Adjustments made to lines 134 to 135 Asset 
Register Summary - PPE (WDV) 



9|SA25 


Line 10 Service charges - other is no longer 
available 


ll|SA30 


Line 10 Sen/ice charges - other is no longer 
available 


Not available on the mSCOA chart 


Not available on the mSCOA chart 





Hesseaua Municipality 


2019/20 Final Annual Budget and mtbfc 


i 








Counate approved financial plan for the outer years of the 2018/19 MTERF period was adopted for 
the draft budget. The budget provides for the compilation of a new financial plan. This could not 
happen during 2018/19 because the infrastructure master plans must be updated. The updating is 

financial^plan erWa ^ ^ Pr ° VISi ° n haS been made in the drafl budget for the updating of the long term 
A list of the recommendations of 2018/19 is reflected in the table below 


NO. RECOMMENDATION 


2 

3 

4 

5 

6 

7 

8 

9 

10 
11 

13 

14 

15 


Sell Investment Property 


Manage expenses 

Maintain Liquidity Reserve 

Downward Adjustment of 
Salaries and Wages Bill 

Support to indigents 


Prioritise capital investment 
programme 

Assess condition of assets 
accurately 

Migrate asset register to 
become a decision-making tool. 

Debt affordability 

Recommendations emanating 
from discussion with Executive 
Management. 

Align external fund raising to 
capex programme 

Cash back a Capital 
Replacement Reserve (“CRR") 


COMMENT 



The MTRE F budget returns accounting deficits for the MTR ttf parted and vtfUfthe 
wnbfflous capital investment programme expected the sate of Investment property 
remains an alternative funding source. F * 

en y ironment in South Africa impacts negatively on the ability of 
househotes to afford services. Therefore In an attempt to support Its rate paying 
community, cost control remains an important objective of the municipality. 

Liquidity has improved, but the recommendation remains relevant, especially in the light 
of an expected downward trend of liquidity in future. y 

related expenses to total expenditure is estimated to 

NaftS'(40%) 10 ‘ Year Perl ° d 3nd iS Withl " the benchmark P ro P° sad b y 

Remains relevant. Continuously review affordable service levels. 

and . replacement capex) was determined during the preparation 
313 and needs to be revisited. Whereas the original recommendation 
encouraged more capital expenditure, the tide has now turned and the municipality 
I take care that its accelerated capex programme remains avoidable. 

Remains relevant to ensure timeous replacement. 

Remains relevant. 

The ambitious borrowing programme during the MTREF period should be followed by a 
more cautious approach thereafter. y 

All recommendations remain relevant to the extent not yet achieved. 

Ensure that future borrowings are aligned to the expected capital spending pattern. This 
recommendation remains valid but borrowings also need to be phased to ensure that 
geanng and liquidity criteria are met 

^_ cas |] f. ur P , “® generated is not sufficient to cash back the depreciation charge in a 
crr, but toe estimates indicate that toe municipality should be able to reserve a 
Percentage of toe depreciation charge at times. 

Continuously increase toe R&M budget to reach the proposed 8% of Carrying Value of 
assets to ensure the health of existing assets. This recommendation remains valid 


!■ Increase Municipal revenues 

2 ^ pendi !T budget in e reases . more than wha t is generated from the revenue budget. 

The inert ise in the revenue base will ensure that income be generated from tariffs and arowth 
esse i]ua umcipality does not currently reflect fiscal growth, and expenditure must be recovered from 


19 I P a g e 




















































2019/20 Fi nal Annual Budget and mtbff 


tariffs. This has resulted in tariffs increasing well above the inflation rate. The 2019/20 MTREF budoet 
makes provision for tariff increases between 6% and 15%. y 

2. Sale of Investment property 

™ 88tment proparty is Still of the utmost importance, and this need will decrease as soon as 

nan S 2? ( J K>n can be ? a ? e to Council ’s reserves by means of tariffs. Currently no contributions 

h« a h.^a d im t M? Ser y e S^ hlCh are necessar y for cap'* 81 spending since the raising of external loans 
has a huge impact on tariffincreases. 

3. Manage Expenses 

increases annually by more than the prescribed inflation targets 
mS,h+ l? td th ®aPP ,lcable bud 9 et circulars. One of the biggest causes is because the cost drivers 
budgeTdrastiSllV are n0t the ® ame as those a m unlcipality. Council has cut its new posts 

4. Liquidity Reserve 

Council intends to raise a smaller external loan for 2018/19 than budgeted for. 

3- Assess condition of assets accurately 

The assessment of Council’s assets is a priority. Council is already in an advanced stage with the 
impierr ntation of Risk Assessment and Maintenance Management plans. 

14. Cash bac k the capital replacement reserve 

L»hI U !LS C ™ ?L 0f 5? pe " di I ure , by means * tarlffe wi " have to be prioritized so as to generate surplus 
rirfStnvir^o 9 ni U o/Sf?™cc ater S ? 90 for capital investrnen t- Th e municipality has budgeted for a 
RmteVa IntRfci 9/20 |* MT 5 E ^ Pf r !? d ’ whlch roaans that there is no cash to contribute to the Capital 
Repli -ement Reserve. It is the intention to rectify this by decreasing the deficit year on year. 

own funds 88 tabled 18 R94 165 768 - Included are rollovers of R34 452 818 from 

*SS” 850 "° m fUnd, f ° rthS 201900 ^ whlch " * R1 ' 7 m *°" 


COMPARISON: DRAFT CAPITAL BUDGET TO FINANCIAL PLAN 

300000000 

250000000 — 

200000000 
150000000 
100000000 
50000000 i— 




201^19 

2019/20 

2020/21 

2021/22 

TOTAL 

■ Draft - CRff/Externai loans 

62451414 



52694455 

272060636 

* Coundfs Financial Plan 

65135000 

58000000 

40000000 

40000000 

' —— 

?m 136000 


20 | P a g e 


KESSEQUa MSIFAUTBTI 

2019 "-D5- 

Posbus 29, Rlmerfel 887ft 





















1 - 7 - 1 CAPITAL EXPENDITURE TO TOTAL EXPFMniTllPF 


- 

201016 

■'s- tArun 

2016/17 

vt 1 UI\C 

2017/18 


2819/20 Medium Tim Revenuet Expenditure 
Fnmnksrk 


Audited Outcome 

Audited Outcome 

Audited 

Outcome 

Adjuitod 

Budget 

m 

If 

8 r 

Budget Year fl 

2820/21 

Budget Year* 

Total Expenditure 

425142063 

514187589 

467657612 

571219002 

607800179 

632601311 

Alft 

Capital Expenditure 

85966906 

r 123137935 

62299 777 

92477157 

110408968 

jiX 

77943349 

□/L 4XO 610 

68733255 


2096 

2496 

1396 

1696 

1896 

1296 

1096 


The norm range is between 10% and 20%. 


a ®® 6SSin .^ th ® ** of inves tment in assets, a ratio less than 10% reflects lower spending by the 
—S ,nfrastm ^ re and h0,d8 P° tential risks to service delivery. A ratio of more than 20% 

h'gher spending on infrastructure and acceleration in service delivery, but could also hold financial 
nska ifthe Infrastructure doe. not Include both economic (revenue generating) and txdel type 


1.7.2. REPAIRS & MAINTENANCE AS A % OF PROPERTY PLANT AND EQUIPMENT 



2015/16 

2018/17 

2017/18 

i rLHm 

Mnu cuuirMbniT 

2018/20 Medium Term Revenue & Expenditure 
Fremeworlt 


Audited Outcome 

Audited Outcome 

Audited 

Outcome 

Adjuated 

Budget 

Budget Year 

2010/20 

Budget Year 

2020/21 

Budget Yeer« 

QMenn 

Total Repairs & Maintenance 

15 685796 

63532 639 

69154285 

76735447 

83577933 

91709351 

97021529 

PPE, Investment Property & Intaneible 

712007885 

823799937 

845740868 

902815060 

983651435 

1015948255 

1060062430 

TL« „_ ■ An/ 

296 

896 

896 

896 

__896 

996 

996 


* r iLSST. 1 5" no ™ 18 3 reflection that insufficient monies are being spent on repairs and maintenance 
5 h?r^«£?t 11 °° U V In< i reas ® 'mpairment of useful assets. An increasing expenditure trend may be indicative 
eve,s - prematurely require advanced levels Sf repairs and mahteranceor a 

for Assst/Replacements. The Hessequa Municipality has dedicated 66 7% of its 2019/20 canitai 

^SSJr^ reP ' a “ 25 ?l. 0 ' a8sets - Ra " os o' **»'"> 4 I^WenmioeSh htat;Se rf'S 

SSSBS.S5LS SSlST 9mpto>8 “ ^ *" maintenance J?£Z 


[£aSE0.UMf.UW16lPAUTHTl 

206 -85-29 



211 P a g e 


-Poabus29i 





















































































Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


1.7.3. CURRENT RATIO 



2015/16 

201917 

2017/16 


2019/20 Medium Term Revenue & Expenditure 
Framework 


Audited Outcome 

Audited Outcome 

Audited 

Outcome 

Abutted 

Budget 

Budget Year 
2019/20 

Budget Yeer+1 
2620/21 

Budget Yee/*2 
2021/22 

Current Assets 

249830678 

264212285 

276030422 

244314967 

208944104 

189476895 

158442026 

Current Liabilities 

139612936 

105044 802 

97482387 

102253514 

99250749 

107252970 

115 607187 


1.8 

2.5 

2.8 

2.4 

2.1 

1.8 

1.4 

*ri_ lu - i. 

1.8:1 

2.S:1 

2.8:1 

2.4:1 

2.1:1 

1.8:1 

1.4:1 


Inn n^vT 1 9 Curr ?'? t rat ' 0, the more ca Pable the municipality is to pay its current or short-term obligations 
a M nSk , to e ??u te K to continue operations at desired levels. A financial ratio under 1 
any 9 s^clfic polrrt Mun Cipa lty wou,d ** unable to pay al1 its currant or short-term obligations if they fall due at 

1,7A flNTEREST PAID AND REDEMPT I ON) AS A % OF TOTAL OPERATING 



201910 

2016/17 - 

2017/16 


201920 Medium Tern Revenue & Expenditure 
Framework 


Audited Outcome 

Audited Outcome 

Audited 

Outcome 


Budget Year 
2019/20 

Budget YeeMI 
202921 

Budget Yeer 42 
2021/22 

Interest Paid 

13695000 

12301005 

12802688 

14678707 

14517893 

19275545 

21340161 

Redemption 

11539000 

14566109 

15739178 

17420948 

20512955 

24120518 

25581109 

Total Operating Expenditure 

339175157 

391049654 

405357835 

478741845 

497391211 

554657962 

603684961 


794 

794 

794 

7 % 

794 

894 

894 


th6 N °*™ w U,d lndlcate that the Municipality has the capacity to take on additional financing 
in infrastmeture projects or it could relate to cash flow problems where it is unable to 
ftySSn fundS ‘ w the fund| C9 decisions of the municipality impacts of these levels. On the other hand, 

aH^ Thf t th w "T c ? uid P. 08 ® a risk t0 the municipality should changes or fluctuations in financing costs 
anse. The table above is not in line with NT Schedule SA 8, because of interest on landfill sites. 9 

R equirements of the Borrowing. Funds a nd Reserves Policy fHasseoua Munininfliity) 

* 1O% 6nta90S * TOtal AnnUa ‘ Repayment (Capital and lnterest ) t0 Operating Expenditure to be less than 




































































Hesseaua Municipality 


2019/20 Fin al Annual Budget and MTREF 


17 ' 8 ' WW«Bffl«n 



2015/16 

v tani kllWI 

2016/17 



2019/20 Medium Term Revei; je& Expenditure 
Framework 


Audited Outcome 

Audited Outcome 

Audited 

Outcome 

Adjusted 

Budget 

Budget Year 
2019/20 

Budget Year H 
2020/21 

Budge Year *1 
2021/22 

Employee Related Costs 

116413761 

127791236 

150458498 

165196148 

186234060 

198989656 

212769380 

Councillors Remuneration 

6046658 

6483887 

7202030 

8050309 

8330421 

8913555 

9537501 

Total Operating Expenditure ■ 

r 339175157 

391049 654 

405357835 

478 741845 

497391211 

554657952 

603684961 


36% 

34% 

39% 

36% 


37% 

37% 


The norm range is between 25% and 40%. Hessequa Municipality is within the norm 


miI!^rlS^ eXCee< 5* the * norm 11 Could indicate ineff idencles, overstaffing or even the incorrect focus due to 
misdirected expenditure to non-essentials or non-service delivery related expenditure. 



2015/16 

2016/17 

wrt.nn i 

2017/16 

iruvj cArc 

:nu ii urcc 

2019/20 Medium Term Revenue & Expenditure 
Framework 


Audited Outcome 

Audited Outcome 

Audited 

Outcome 

Adjusted 

Budget 

Budget Veer 
2019/20 

Budget Yeer+1 
2020/21 

Budget Yeer +2 
2021/22 

Contracted Services 

4504463 

38735468 

32 192656 

35872010 

32694235 

47 735 734 

55492153 

Total Operating Expenditure 

339 175157 

391 049654 

405357835 

478741845 

497391211 

554657962 

603684961 


1% 

10% 

8% 

7% 

7% 

9% 

9% 


Ratios of Contracted Services is much higher because of the implementation cf the new SCOA accounts 
Before implementation of SCOA some of the Contracted Services w£s reflected und r general expenses 



iESSEQUA iYJUNISif ALiTen] 

2019 - 05 - 

Po8bus29.1 


d 


































































Hesseaua Municipality 


.2019/20 Fina l Annual Budget and MTREF 



S 81 ° 77 e 9 ?llii?nn n IJ 8 |. blJd f?eBf XC,udi ![l? °® pital transfer s and contributions for 2019/20. amounts to 

tiT 4 ' 56% 9rowU i l " hen c< ? m Pared to the 2018/19 adjustment budget. For the 
. JCial ys revenue, excluding capital transfers and contributions, is R528 607 million and 

amTntetaSSL? "f" compared to 2019/20. For the 2021/2022 financial year the r^enlle 
amounts to R574.662 million and shows a 8.71% growth when compared to 2020/2021. 


Bm followinq I table is a summary of the 2019/20 MT R EF /classified hv main revanm S n.,rr a v 
WC042 Hmiqua * Table At Budgeted F inancial Pwfonninc» (revenue and expenditure) 



Bg yenu 0 principles accept! _by the Budget Committee and used In finalizing the final budget 

guidelii stipulated that rates and service tariffs have to increase with CPI plus 1% - 2% 
the bUd98t *" bUd8Bt ° <mm “ ee re0OTm9n ‘ ted the fblowfng tariff Increases to 


Proposed tariff Increa ses over the medium term 


Description 

2019/20 

Medium Term Revenue & Expenditure Framework 

Budget Year 
2018/19 

Budget Year 
2019/20 

Budget Year 
2020/21 

Property Rates 

9.0% 

9.0% 

:| 

Electricity (Average) 

13,07% 

13,07% 

| 

Water 

12.0% 

12.0% 


Sanitation Revenue 

9.0% 

9.0% 

9.0% 1 

Refuse Revenue 

15.0% 

15.0% 




i-ESS&aUAWUNBy^iJTEnrj 

i 


Riv ars^al 6678 


24 | P a g e 




















































Hessg ua Municl tali 


2019/20 Final Annual Budget and MTRFF 


Table A4: Percentage growth in revenue by main revenue source - (NT - supporting tables) 
WC042 Hessequa ■ Table A4 Budgeted Financial Performance freuanual 


Description 


R thousand 


2019/20 Medium Term Revenue & Expenditure Framework 
2018/20 _2020/21 2021/22 


94 657 
157 911 
40 987 
23 332 
22 895 
2 660 
6 688 


1563 
2 203 
59137 
18414 
2 595 


481 779 


19.6% 

32.8% 

8.5% 

4.8% 

4.8% 

0 . 6 % 

1 . 8 % 

0.4% 

9.3% 

0.3% 

0.5% 

12.3% 

3.6% 

0.5% 


100 . 0 % 


101 693 
171 272 
44 256 
25199 
24154 
2 871 


109 828 
184 999 


2 247 
74 894 
19 420 
2 643 


528 607 


8 . 8 % 

0.3% 

0.4% 

15.2% 

3.6% 

0.5% 




Properly rales 

Service charges - electricity revenue 
Serv ice charges - w ater revenue 
Service charges • sanitation revenue 
Service charges • refuse revenue 
Rental of facilities and equipment 
Interest earned - external Investments 
Jnterest earned - outstanding debtors 
Fines 

Licences and permits 

Agency services 

Transfers recognised - operational 

I Other revenue 
Gains on disposal of PPE 


Total Revenue (excluding capital transfers 
and contributions! 


Total Revenue from Ratos & Service Charges 


*» awn ttw operating Warn*, a* incision a! lw 

so j, u es would distor t tne caicutaticr. cf ths c paretlaig surplus/deficst. 

can saen *“* revenu ! generated from rates and service charges forms a significant 
two thirds of the fr* 6 ^ 91 ™ 6 ** *et of the Municipality. Rates and sen/ice charge revenues comprise more than 

to a budget of RM9™^^ 

K^MSS to R366 ’ 674 mllli °" (693%) 

SS5 5* 137 million in the 2019/20 financial year and increases to R74.894 

jfsjj 7 20 ??/ ?1 " d ,ncrease to R87.105 million In the 2021/22 financial year. The following table oiv^s a 
breakdown of the vanous operating grants and subsidies allocated to the municipality over the medium term- 



251 age 


- l"i£S3iEwlJA li/uMiSiPALitj: 


3 - 05 - 


Poig)CT~29.Ft1<fcr!^it8870 










Hessec 


Table SA18: Operating Transfers and Grant Receipts {NT - supporting tables) 

jWCM2 Hmmbu« ■ Supporting Ttbit SA1B TVantfwi ind Blunt MMipf. ■ 


Nation ij Government 
Local Government Equitable Shan 

f:i 

Murvolpa; Systeme tapravsmont 
Ane / Mlg Admin Staff Member 
IhteBratoti Natwnd EboVifloabon Programme 
Epwp fncsnfve 

M’g S% Admlrenstaflon Portion Of Mlg 
VUOn N alo nil Condllond Operatng Qmto 
VdOn Opening Grants Naforid 
Flood Dliaatar Relief (NMond) 

Mlg Operating Grant Ex pendltire 
Flood Dieaatar - Project Manager- Attain 
Expanded PufaJlo Works Programme bitagrabd Qrm 
Li»d Government Financial Management Grant [Sof 
Mumoipd htartuctie Grant 


ProvlncJd Government 
ttaiNing 

Sport And R to ration 



Flood Diaetar Prov Road M«nt Cdw Ubrariea,Land Water, hte.Dme 
Flood Otamter Fund 
PtUo Trwieport and Syetama 
IkPt OfTransport - Man Road Mdrfcnmoe 
Cdw Support Grant 

Ubray Extended Gtaf Levels Grant (Condiond Grant) 

Library Personnel Expandlbm Grant (VUnarabfa Mudoipallflas) 

TTiueong Centre 
Flnenold Management 
Pgwc Rhh Management/ Intamd Audi 
Pgwo Perfarmance Management System 
VdOn Operating Grants Pravmoid 
P^wo Tariff Stuoture Jhveslgaton 
Pgwo CapKlty Bidding Grwt 
Pflwo. Graining Dsvdop. GtantTun Op DIs Brak 
aweetM«ogwlHr Compefltlort: Envfronmenti Ai 
Flnanoid ManagementSupport (WC_FMG8G) 

Other Capacity Buildng Giant 
Thusong Support Grant 

Pgwo. Grwbuto intsmshlp GranVCapvlty Bidding 
bought Support grant 
FIS Swvloo Capacity Buldtag Grwit 
Community Dev dap merit Work vs 
Bscltod Muter Plan 
Capacity Bidding 
Housing 
Library Servioe 
Pubbo Trariport 
Reptaavnent Funding 
Mureoipd By items taprwemeflt 
Otie Opacity Building 

26 | P a g e 





















































































WC042 Hmoqui - Support In g'libte SA18 Ttinufart and grant receipts 


Description 


Current Year 2011/10 


District Municipality: 


Other grant provtdva: 

Sota/Dta ootor ftafeP IMr Union 
8w«*m Englnoonng. ConSwom Cuftn/ 
Other Aa.1i 
QthonLotto 

Hottogo Wootom Capo 
Arbor CttyAmani (Total) 

Afhoano contm 
Mining Companloo 
Unapooifhd 




National Government 
Municipal hfraaluotxa Grant (Mig) 

Pubic Tram port And Syitama 
Integrated Nakonal Ebctffloakn Programme 
Munclpal hftaetueturo Gram (Mg) 

Flood Cheater 

Dept Of Mineral And Energy (Dme) 

Regronte BuBe Maafruoln 
Expand ad Public Worfce Program - Nat Grant 
Dopt Water Afcin 
Municipal By eta me Impjweniant 
Fhanoid Management Grant 
Ohar mpM banafrra/paib [irMartdaac] 
Municipal Chatter Grant [SoheduloSB] 


Provincial Government 
Daaaterand Emarganoy Smvkoi 
F inancial ^ i 
hbuang 

Himan GeGronant Development 
Lferwlta Archrvee and Mumima 
Ubrna, Arohnrea and Mueeume 
Ubwy Sar/Kt 

Miaifeipal Sjyekme kn prove merit 

Ofwr 

Graanaat MunrclpalHy Compabton 
Env ironmautal Aten A Plaming 
FfnanoJal Management Support (WC_FMGSG) 
Dletrite Municipality: 


Other grant pmldera: 

Agamy Frwmtalao do Dovotopmont 

Fumgn Gonoawtf mid Intomathml Orgam 

Mbang Companat 

PrMoEntorpnaoa 

Product 

Umpoedtod 

Total Capital Ttanehre mid Grata 


TOTAL RECEIPTS OF TRAN8FBH A GRANTS 


Audited Audited Audited Original Adjutted 

Outcome I Outcome Outcome Bud ate Budget 


2D1W20 Medium Term Revenue A 
Expenditure Framework 
BudgteYav Budget Year Budget Yeer 
2010/20 +1 1020111 42 2021/22 


M4M tihi 


U3H Ulll 


n IIS t 41 021 


«SMI 140031 14 


13 332 ! 13 023 


13 SI 3 


325 30 000 

I 


11 51* 


3 4BB 


I 4« I 1211 


BT3T fl 737 


43 021 


112 111 | 1H 23t 


07 172 | 71170 J 02 070 | 12 071 | 70)10 























































lUi lunicmaiFt 


2019/20 Final Annual Budget and mtrff 


*“" rn Cap8 DORA ,he Librar v Service Grant overstated ^itfT 
R600 OOO. Ttni Will be officially corrected by the Provincial Library Services before the final 

fhfm 2019 The munlcipi!l bu<) e 6 ' ,or Library Services are correct in 

tntr d raft 2019^20 MTREF budy&t. 

1 U i~ POTB1 ft I TV TADI EEC " 


u o v^o u u y w u u u ll inn UII U V) 

The operational budget for the 2019/2020 financial year makes provision for the following electricity tariff 
increases from 1 July 2019: 


Eskom tariff increase in respect of purchase of electricity (NERSA) 
Municipal electricity tariff increases - (average) 

Availability Charges 
Connection charges, deposits 


15.63% 

13.07% 

8 . 0 % 

8 . 0 % 






The budget provides for a 15.63% increase in bulk purchases and 13,07% for average tariff 
increases. For Indigent households the tariff in crease for electricity consumption «i to a*n 
Kwh) per month will increase by only fi.04%T - 1 - 

Principles and Pplicy on Tariffs and Free Ba sic Services Policy & Bv-Law for 2019/20 has ho ar. 
amended with the foll owing 
Tariff Policy 

haslna out of 33A-45A 


9.1.1 Customers with Conventional Meters 

9.1.1.1 Customers with conventional meters are billed as follows:- 

(b) Two part tariff: _ 

i. Basic monthly charge (R/month). The basic charge is determined by the category within which 
s consumer’s tariff circuit breaker size falls, i.e. 0 to 32A, ( 33 to 45A ), 33A to 63A*4md 64 to 
80A for singl and 0 to 32A; (33 to 46A): 33A to 63A and 64 to 80A for three phase. 

9.2.1 Customers with Conventional Meters 

9.2.1.1 Customers with conventional meters are billed as follows 1 - 
(a) Two part tariff: 

i. Basic mo hly charge (R/month). The basic charge is determined by the category within which 
the consumer’s tariff circuit breaker size falls, i.e. 0 to 32A, ( 33 to 46A ), 33A to 63A and 64 to 
80A for single phase, and 0 to 32A, (33 to 45A), 33A to 63A, 64 to 10OA for. three phase. 

9.1,2.im & 9.2.2.Ifb)fi ) - phasing out of 33A - asA 

9.1.2 Pre-paid Customers 

9.1.2.1 Prepaid users are charged based on a Two part tarfff:- 

i. The basic charge is determined by the category within which the consumer’s pre-payment meter 
*’» *1®’to.^A), 33A to 63A and 64 to 80A for single phase and 0 to 
32 ,^ 33 * 16A) anc ^ 33A *° for three phase. The basic charge will not be billed monthly but 
collected when customers purchase electricity at any given time as follow:- 


28 | P a g e 









9.2.2 Pre-pald Customers 

9.2.2.1 Prepaid users are charged on a Two part tariff: 

i. Basic monthly charge (R/month). The basic charge is determined by the category within which 
the consumer's pre-payment meter trip setting falls, i.e. 0 to 32A; (33 -to 45A ); 33A to 63A and 

nlcJ T°^ ? ® ngl ! phase .,f nd 0 to 32A - (33 to 45A), 33A to 63A and 64 to 100A for three 
p ™- .J basic charge will not be billed monthly but collected when customers purchase 
electncity at any given time as follow:- 

* Roof Top Study 


Compilation and approve of a nollev 

The Small Scale Embedded Generation Policy has been completed and was adopted by Council on 
bf June 2018. 


2 . 



■ NE * R ?« - eed ' in tariff W0S approved for the amount of 0,6617c/kWh. The implementation of the feed- 

In 18 ? ependant ^ the financial s y ste m upgrade to Include the feed-in tariff on consumer 
accounts who request to feed back on the municipal network. 


3. 

4. 


Investigate the operati on on the existing system 
In process. 

Cost Of Supply 

Cost of supply study is completed in June 2018 and was sent to NERSA for scrutiny. No feedback 
was received from NERSA to date after confirmation of receipt of the Cost of Supply document from 
Hessequa Municipality. 


5. 


Capital contribution 


Dunng 2018/19 the municipality started to update its master plans. Once the updating has taken 
place, the capital contributions per service will be workshopped with Council for possible 
Implementation on 1 July 2020. H 


• "Time of use" rro.Ut tariff 


The J'?'* already 'mptemented for the bulk supply points from Eskom and the first phase Is 

concluded. Diepkloof and Heidelberg's application for revised tariff structure were sent to Eskom and a 
quotabon was received, which is payable by the Municipality. The new tariff rationalisation from NERSA is 
stiH not finalised and will be communicated as soon as the outcomes are available. This process is 

unfortunately not finalised by NERSA yet and feedback will be provided as soon as the rationalisation of the 
tariff structure is finalized by NERSA. 


The new rol\ out for T.O.U tariff implementation will form part of a second phase to include bulk users and is 
also dependant on budget requirements for both the Technical- and Financial Departments. T he financial 
system must be upgraded to ensure that the finance system can include the T.O.U tarifF structure for bulk 
consumers. The current electricity meters for bulk consumers must be changed to smart meters in order to 
ensure that the metering can be adjusted accordingly. 

The T.O.U tariff structure implementation runs concurrent with the financial system and smart metering 
system, which is required to be budgeted, for successful implementation. Due to NERSA’s tariff approval for 







Hesseaua Municipality 


,2019/20 Final Annual Budget and MTREF 


the tariff structure changes, smart system installations and financial system upgrade requirements, the 
process will be workshopped during the 2019/20 year to establish the feasibility for implementation at 
Hessequa Municipality from 1 July 2020. 

CM B will compile the NERSA application 

NERSA is in the process of consulting with municipalities regarding the rationalisation of electricity tariffs within 
the distribution industry to find the most appropriate structures. In view hereof, it is proposed that the 
municipality’s present structure be retained and not be changed until NERSA has finalised their consultation 
process, and provided clear guidance on the way forward. 



301 Page 



Hesseoua Municipality--- 2019/20 Final Annual Budget and MTREF 


ELECTRICITY TARIFFS 




Current Tariff 

Proposed Tariff 


- 



2018/2019 per 

2019/2020 per 

% 



Consumer 

kWH(excl.vat) 

kWH (exd.vat) 

Increase 


| 

Domestic - Conventional Meters 




■ 


6-50 kWH 

(19100 

1.0280 

12.97* 

> 


51 - 350 kWH 

1.1590 

1.3100 

13.03* 

> 


351 - 600 kWH 

1.6410 

1.8550 

13.04* 



> 600 kWH 

K * N PK 

1.9370 

2.1900 

13.06* 



Basic Charges - 60 amp 

403.80 pm 

442.20 pm 

9.51* 


2. 

Domestic - Pre-pald Meters (Indigent) 






0-50 kWH 

free 

free 




51 - 350 kWH 

1.1590 

1.2290 

6.04* 



351 - 600 kWH 

1.6410 

1.8550 

13.04* 



>600 kWH 

1.9370 

2.1900 

13.06* 



Basic Charges - 20 amp 

Nil 

Nil 



3 

Domestic - Small Users - Pre-pald Meters 






0-50 kWH 

0.9100 

1.0280 

12.97* 



51 - 350 kWH 

1.1590 

1.3100 

13.03* 



351 - 600 kWH 

1.6410 

1.8550 

13.04% 



>6qoi<vyH 

1.9370 

2.1900 

13.06* 



Basic Charges - 60 amp 

94.90 pm 

103.92 pm 

9.50% 


4 

Domestic - Pre-pald Meters 






0-50 W/VH 

0.9100 

1.0280 

12.97* 



51 - 350 kWH 

1.1590 

1.3100 

13.03* 



351-600 kWH 

1.6410 

1.8550 

13.04* 



> 600 kWH 

1.9370 

2.1900 

13.06* 



Basic Charges - 60 amp 

189.79 pm 

207.83 pm 

9.51* 


5 

Domestic - Pre-pald Meters - Alternative 






0-50 KWH 

0.9940 

1.1230 

12.98* 



51 - 350 kWH 

1.2620 

1.4260 

13.00* 



351 -600kWH 

1.7570 

1.9860 

13.03* 



> 600 kWH 

1.9370 

2.1900 

13.06* 



Basic Charges - 60 amp 

Nil 

Nil 

0.00* 


6. 

Business - Conventional Meters 



- . 



Energy consumption per kWH 

1.4250 

1.6140 

13.26* 



Basic Charges - 60 amp 

494.40 pm 

540.00 pm 

9.22* 


7. 

Business - Pre-naid Metprt 






ric pCIIU ITIClCl) 

Energy consumption per kWH 

1.4250 

1.6140 

13.26* 

HESSEOUA MUNISIWUJTEIT 


Basic Charges - 60 amp 

232.37 pm 

253.80 pm 

9.22* 


* 

s 




20EHM29- 

8. 

Business - Bulk Consumers 





— 

Energy consumption per kWH 

0.7760 

0.8850 

14.05* 

PostXs»mRlversdal687a 


311 P a g e 



Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


Revenue and Expenditure in respect of the Electricity Department 


(Exd. capital grant & Free Basic 
Services) 

Budget 2018/19 

Budget 2019/20 

Total Electricity Revenue 

155824731 

176551166 

Total Electricity Expenditure 

139324617 

156890750 

NETT PROFIT/(LOSS) 

16 500114 

19 660 416 

Percentage Gross Profit 

11.84% 

12.53% 



As can be seen from the above figures, the electricity department reflects a budgeted surplus in 2018/19 of 
R16,500 million (11.84%) and a surplus in the 2019/20 draft budget of R19.660 million (12.53%). This service 
is a trading service and has to show a surplus. 

The table e xcludes capital grant income and the cost of free haair. san/iras 


It is clear from the above that there is an increase in the net profit on electricity. The surplus that Hessequa 
Municipality generates from electricity sales is well within the norm of between 8 -15%. The main reasons for 
the increase in the surplus is because of the small difference between tariff increases to municipality for 
purchase of electricity (15.63%) and tariff increases allowed by the municipality 13,07. 


A 


0 






sources which will have a future Implication on the operating budget. 


It is recommended that the water tariffs, i.e. the basic charges, 
consumption tariffs and availability charges increase by 12% and all 
sundry charges by 8% from 1 July 2019. Attention is also directed to the 
tariffs in periods of drought which is also shown in Annexure A. The tariff 
structure for the 2019/20 financial year has not been changed. The 
structure is designed to charge higher levels of consumption at a higher 
rate. 

Water is a scarce commodity and Its usage must be managed carefully 
by everyone. Provision has been made in the budget for additional water 


The Credit Control and Debt Collection Po l icy & By-Law for 2019/20 has been amended with the 
following:" 


17(5)(h1 tot fh: Water leakages 

(h) Any water leakage discovered on the side of the customer will be the responsibility of the customer. 

(i) A customer may qualify for a reduction in levy as determined by Council on his/her account in the 
event of a water leakage, if: 

(i) the leakage was repaired within 48 hours after detection / notification by the municipality; and 

(ii) the customer has not applied for discount on water leakages within the previous 12 months. 


32 | P a g e 









Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


(j) Where a customer repaired such a water leakage the Municipality may consider a rebate on the 
water account of the customer. In this regard:- 

(i) the customer must apply in writing, within 10 days after completion of repairs, for such rebate. 

(ii) a receipt as proof of repairs must be submitted with the application. 

(iii) the application must be submitted to the Chief Financial Officer for approval. 

(iv) the rebate will be calculated on the average of the previous 12 month’s consumption at the 
lowest tariff; 

(v) if approved, the applicable credit will be passed in the subsequent account; and 

(vl) Paragraph 17(5)(J) will only apply where consumption Increased more than double the average 
of the previous 12 months due to a leak. 

Proposed Water tariffs 

The following table sh ows the impact of the proposed Increases in water tariffs for domestic 
and other consumers: 


WATER TARIFFS | 


Current Tariff 

Proposed Tariff 



2018/2019 Rand 

2019/2020 Rand 

% 

CATEGORY 

per kl (exd. vat) 

per kl (exd. vat) 

Increase 

Residential 

Water consumption: 1 -15 kl 

6.92 

7.75 

12% 

Water consumption: 16 - 30 id 

7.90 

8.84 

12% 

Water consumption: 31 - 40 kl 

8.61 

9.65 

12% 

Water consumption: 41 - 50 kl 

10.48 

11.74 

12% 

Water consumption: 51 - 70 kl 

12.30 

13.77 

12% 

Water consumption: > 70 kl 

14.82 

16.60 

12% 

Old Aae Homes / Schools 




Water consumption: 1 - 70 Id 

6.08 

6,81 

12% 

Water consumption: 71 - 90 kl 

6.92 


12% 

Water consumption: > 90 kl 

8.61 

assaiKS^ 

12% 


Rgvenueand Expenditure in respect of the Water Department 


(Exd. capital grant & Free Basic 
Sendees) 

Budget 2018/19 

Budget 2019/20 

Total Water Revenue 



Total Water Expenditure 

.iiilSSiHC i 


NETT PROFIT /(LOSS) 

12 729 262 

16 015 046 

Percentage Gross Profit 

34.57% 

40.54% 


As can be seen from the above figures, the water department reflects a budgeted surplus in 2018/19 of 
R12,729 million (34.57%) and a surplus in the 2019/20 budget of R16.015 million (40.54%). This service is a 
trading service and has to show a surplus. Water consumption trends are still very volatile and it was difficult 
to project future water consumption patterns. This is always a risk as tor as income is concerned. 

33 [Page 















































Hesseaua Municipality 


31019/20 Final Annual Budget and MTREF 


The table exclude capital grant income and the cost of free basin mn/i^ 



The service is categorised as an economic service, which means 
that it has to pay for itself from service fees. It is recommended that 
the refuse removal tariffs be increased by 15.0% from 1 July 2019. 

The reason for the big increase in tariffs is because the department 
is an economic service that is being operated at a loss. The 
implementation of the higher tariff will decrease the deficit so that 
the cost of non-cash items can be recovered. The costs are 
specifically for depreciation and provision for landfill sites. 

Legislation determines the following in connection with refuse 
removal: Provincial gazette 6588 of 19 December 2008 states: 



Reg 5: Compulsory use of service 

• (i) No one except the municipality or a person authorized by the municipality may remove any refuse 
from any property or dispose of it 

• (ii) Every owner of property must, where a service is available, make use of the refuse removal or 
disposal service provided by the municipality in respect of refuse originating from such property 

• (iii) The tariff determined by the municipality will be payable by the owner, irrespective of whether the 
sen/ice is used or not. 


Rea 19: Burning of refuse 

• No person may burn refuse without the written permission of the municipality 

Rural refuse removal 

This has been levied since July 2018. The rural area has been divided into smaller sections, and the system 
ensure that one owner will not be levied for ten" refuse removals. The levy of refuse removal in the rural areas 
has been Incorporated in the policy and tariffs were implemented over the last year (2018/19) The 
determination of the tariff is as follows: 


* Property used for agricultural purposes X 60% of the domestic refuse tariff 

* Pro srties identified by the technical department where developments exist or business is practiced 
(e.g. Oakdale, Riverside. Puntjie, Press Room, Botterkloof, Kasselshoop etc.) are levied as follows: 

o Amount of businesses on premises X 60% of business tariff per business activity 
o Amount of households on premises X 60% of domestic tariff per household 


Residential 

Removal from transfer stations - 60% of domestic tariff 
34 | P a g e 



IHESSEQUAMU^ 

a8‘^"29 

4 

Poabu629-RivewriaieeT0 






Hesseaua Municipality 


2019/20 Fin al Annual Budget and MTREF 


Dumping at dumping site - 60% of domestic tariff 
Business/Commercial/Industrial 

Removal from transfer stations - 60% of business/commercial/industrial tariff 
Dumping at dumping site- 60% of business/commerclal/industrial tariff 

Ihe Principles and Policy on Tariffs a nd Free Basic Services Policy & By-Law for this catanow 
for 2019/2020 h as been amended with the following: 

REFUSE POLICY 

11.1.3 The Council has determined the following categories for refuse removal in rural areas: 

11-1.3.? - Special agreements - Determined and approved by Council from time to time. All developments 
with eleven or more units that have created a central collection point for refuse as agreed with 
Council may qualify for a reduced tariff as determined by Council on an annual basis. The 
Body Corporate may apply, before the 31 st of December of the year preceding the financial 
year for which the rebate Is applied for. In writing for a rebate. If approved, a rebate of 20% will 
be applied. If no application is received the full charges will be levied. 


Revenue and Expenditure in respect of the Refuse Department 


(Excl. capital grant & Free Basic 
Services) 

Budget 2018/19 

ww VVMUI tillVIIII 

Budget 2019/20 

Total Refuse Revenue 

25 685 067 

31535132 

Total Refuse Expenditure 

32345409 

33307982 

NETT PROFIT / (LOSS} 

-6 660342 

-1772 850 

Percentage Gross Profit 

-20.59% 

-5.32% 


This net deficit shows a decrease from 2018/19 of R6.660 million (20.59%) to R1.772 million (5.32%) in 
2019/20. Included In the budget expenditure for 2019/20 are Depreciation of R6.307 million and Finance 
Charges of R7.279 million for Landfill Sites. 

The table excludes capital gran t income and the cost of free basic san/lnoR- 


HESSEQi/A taUNISIBUJTEITj 



35~| P a g e 







Hesseaua Municipality 


2019/20 Final Annual Budget and MTRFF 


The following table shows the impact of the pr o posed Incre aaas in refuse tariffs for domestic 
other consumers: ■ 


REFUSE REMOVALS 

per UNrr 

Tariff - 
2018/2019 
(exd. vat) 

Tariff- 
2019/2020 
(exd. vat) 

96 

Increase 

Domestic Households 

Per month 

R 129.00 

R 148.00 

15% 

Business/Commerdal/Industrial 

Maximum of two removals per week 

Per month 

R 291.00 

R 335.00 

15% 

Bulk - Business/Commercial Industrial 

Maximum of three removals per week 

Per month 

R 644.00 

R 741.00 

15% 

Bulk - Business/Commercial Industrial 

Maximum of four to seven removals per week 

Per month 

R 1291.00 

R 1485.00 

15% 

Removal from transshipping station-rural areas/dumping at dumping sites 
Residential 

Per month 

77.40 

89.00 


Removal from transshipping station-rural areas/dumping at dumping sites 
Business 

Per month 

174.60 

201.00 





The service is an economic service, which means that it 
has to pay for itself from service fees. 


The sewerage tariffs have been increased as follows: 
Connection fees g% 

Availability fees: Sewerage and Conservancy tanks 9% 

Sewerage fees 


Tariffs must be calculated on growth of services sold and an 
annual increase. The inflation targets of 3 to 6% can only be 
a If there is growth. The current poor national economic climate has resulted in very little growth over the 
past years. This causes tariffs to increase above inflation. 


Revenue and Expenditure in resc 

iect of Seweraae Department 

(Exd. capital grant & Free Basic 
Services) 

Budget 2018/19 

Budget 2029/20 

Total Sewerage Revenue 

Total Sewerage Expenditure 

29429394 

30355307 

32796531 
31118186 

NETT PROFIT/(LOSS) 

-925 913 

1678 345 

Percentage Gross Profit 

-3.0596 

5.3996 



36 | p a ge 
















































The net loss of R0.925 million (3.05%) in 2018/19 turns into a surplus of R1.678 million (5.39%) in 2019/20. 
The turnaround from net loss to net surplus for the service are due to savings on varies expenditure items and 
the 9% tariff increase. 

The table exclude capita l grant income and the cost offran hade aaivirac 

The following table shows the Impact of t he proposed Increases in sewerage tariffs for 
omestlc and other c isumers: 



Revenue and expenditure in respect of Sewerage Departmen t 

I - Tariff 
2018/21 

SEWERAGE Unit (excl. v 

Availability I 

All Empty Stands - Sewerage Network 
All Empty Stands - Septic Tanks 
Basic Per Connections 
20 mm water connection 
20 mm water connection -15% rebate 
25 mm water connection 
32 mm water connection 
40 mm water connection 
50 mm water connection 
80 mm water connection 
Basic Per Connections - Septic Tanks 
Basic-All Septic Tank Consumers 
Basic - Septic Tank Consumers -15% rebate 
Conservancy / Septic Tanks - Withdrawals 
Tariff-withdrawal - Ail consumers 
After hours 


Tariff - 
2019/2020 
(excl. vat) 

% 

increase 

R 1872.00 

9.0% 

R 935.00 

9.1% 

R 159.00 

8.9% 

R 135.00 

8.9% 

R 202.00 

9.2% 

R 281.00 

8.9% 

R 395.00 

b 9.1% 

R 571.X 

9.0% 

R 1335.X 

9.0% 

R 159.X 

8.9% 

R 135.00 

8.9% 

R 277.X 

8.6% 

R 555.X 

8.8% 


HESSEQUA MUNiSKWJTEIT 

200 - 05-29 

PMbUB28, 













Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 






Revenue from property rates is used to fund services that benefit to the community as a whole as opposed to 
individual households. These include “non-income generating 
services/functions” such as streets in town, parks and amenities, 
administration of the provision of general services. Determining an effective 
property rate tariff i.t.o. the Municipal Property Rates Act of 2004 and 
Municipal Property Rates Regulations, 2006, is therefore an integral part of 
the municipality's budgeting process. 

Tariffs Increase 9% as set out below. The cost of rebates, not compulsory by 
legislation, is R7.2 million. This excludes property that qualifies as Indigent. 



The Amended Municipal Property Rates Regulations on the rate ratios between residential and non-residential 
properties came into effect on 1 July 2009 and prescribe the rate ratio for Public Benefit Organisations, 
Agricultural properties and Public service infrastructure relative to residential properties to be 1:0.25. 


The MPRA Amendment Act came into effect on 1 July 2015 and the implementation of the Public Service 
Purposes Infrastructure (PSP) can have serious financial implications in future years. The reason is that the 
current tariffs for government property is more that of Residential/Business tariffs, if an announcement in this 
regard is made, Municipalities will not be able to differentiate between normal Residential/Business properties 
and that of Government Properties. Provision has already been made in previous budgets to bring tariffs of 
state owned property closer to those of residential and business properties 


Council! has bean busy over she fast 2 years with bringing the resident! and commercial 
tanffs off state departments closer 4c the tariffs applicable to normal residential and 
commercial properties, instead off the S% increase 5n property rates for ait properties In the 
budget ter 2018/20, the increase In tariffs for state departments Stas been capped at ±8.63%. 
Although tins is Is a slow process, It will be equalised eventually. The aoplication of the Sower 
Increase v/il: cost Council ±&75 029 in tit® 2019/20 financial stem. 


Counai implemented the new valuation roll on 1 July 2014 and this is the sixth year on this roll. Because of the 
huge cost to compile a new valuation roll and to implement it, application was made the previous year for the 
extension of the existing roll and this was approved Western Cape Government. A new valuation roll will be 
implemented on 1 July 2021 and this budget makes provision for this. The current valuation roll will be effective 
for the last time during 2020/2021. The process that will be followed with the new roll will be communicated by 
newsletter, website and local media. 


Tariffs in the draft budget is as follows: 

The following table reflects: 

• Valuation roll 

• Current tariff 

• Expected revenue 2018/19 

• Tariff - Draft Budget 2019/20 

• Draft Budget Income - new tariffs 2019/20 

• Tariff Increase % 


[HESSEQUAMUli 



38 | P a g e 




Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 



Valuation Roll 

Current 

Tariff 

Expected 13/19 

Tariffs Draft 
Budget 
2019/20 

Draft Budget - 
Income - new 

tariffs 

Tariff 

Increase 

Business 

519694000 

0.007858 

4083755 

0.008565 

4451179 

9.00 

Farm Properties 

3 616096365 

0.001919 

6939 289 

0.002092 

7564874 

9.02 

Farm Properties - Business 

39060000 

0.007858 

306933 

0.008565 

334549 

9.00 

Farm Properties - Lifestyle 

293 013000 

0.007678 

2 249 754 

0.008369 

2452226 

9.00 

Government 

201887500 

0.015696 

3168826 

0.016737 

3 378991 

6.63 

Municipal/Non Rateable 

313417800 

0.000000 

0 

0.000000 

0 

0.00 

Protected areas 

46563408 

0.000000 

0 

0.000000 

0 

0.00 

Public Benefit 

111829800 

0.000000 

0 

0.000000 

0 

0.00 

Public Benefit 

6665000 

0.001919 

12790 

0.002092 

13 943 

9.02 

Public Service Infrastructure 

19460480 

0.000000 

6 

0.000000 

0 

0.00 

Residential Improved 

8561597851 

0.007678 


0.008369 

■1 

9.00 

Vacant 

759480401 

0.015355 

11661822 

0.016737 

12711423 

9.00 


14488765605 


94098559 


103059198 



Income per Category 

% 

Business 

4.32 

Farm Properties 

7.34 

Farm Properties Business/Ufestyle 

2.70 

Government 

3.28 

Public Benefit 

0.01 

Residential Improved 

70.01 

Vacant 

12.33 


100.00 



HESSEQUA MUNiSIRALITEUl 


Valuation Roll 

The following table reflects the percentage represented by the various categories of the roll. 


Roil Per Category 


IS PV 



* YJOpIfiTAHEt 

- T4.it CU^tC 1 


39 I 'age 



















































































The % revenue from the various towns for the current year as well as for the 2019/20 budget is 
as follows: 


Albertinfa 

Gourismond 

Heidelberg/Witsand 

Rural 

Rlversdal 

Slangrivier 

Stllbaai/Jingensfontein/Melkhoutfontein 



ted Rebates 2019/20 


• R50.000 Residential Valuation Rebate - the MPRA requires a R15,000 rebate and Hessequa gives an 
extra R35,000 per residential property. 


• The Municipality awards a 100 per cent grant-in-aid on the assessment rates of rateable properties of 
certain classes such as registered welfare organizations, etc. The owner of such a property must apply to 
the Chief Financial Officer in the prescribed format for such a grant. 

• 10% rebate on commercial and residential properties in rural areas (residential calculated after the 
deduction of the valuation rebate) 

Pensioners rebate 

The Municipality grants a rebate, to be determined on an annual basis, for retired and disabled persons that 
do not qualify in terms of Council’s approved Indigent Policy. For the 2019/20 financial year rebates will be 
applied as follows: 

(a) Gross income (prior to any deductions, excluded medical aid contributions to a medical 
scheme registered in terms of the Medical Schemes Act) 

R0 - R3 500 per month - 25%; and 

(b) Gross income (prior to any deductions, excluded medical aid contributions to a medical 
scheme registered in terms of the Medical Schemes Act) 

R3 501 to R8 000 per month -15%. 

Additional rebates for owners who qualify in terms of above table (additional on balance of rates) can be 
granted to owners or usufructuaries if they can be categorised in one of the following age categories: - 

(a) 60 to 75 years - 25%; 

(b) 76 to 85 years - 35%; and 

(c) 86 years and older - 50% (2018/19 = 40%) 

401 P a g e 






Hesseaua M unicipality 


■2019/20 Final Annual Budget and MTRFP 


The former tariffs as a pplied to accounts, is reflected in the following table. 


Rales Tariff history for the last 3 years and the three years of the MTREF period 


CATEGORY 

2016/17 

2017/18 

Ell 

2019/20 

2020/21 

2021/22 

Residential Properties 

0.006582 

0.007109 

0.007678 

0.008369 

0.009122 

0.009943 

Vacant Plots 

0.011469 

0.012387 

0.015355 

0.016737 

0.018243 

0.019885 

Agricultural 

0.001645 

0.001777 

0.001919 

0.002092 

0.002280 

0.002485 

State 

0.014512 

0.015673 

0.015696 

0.016737 



Business 

0.006737 

I” 0.007276 

0.007858 

0.008565 

0.009336 

0.010176 


2017/18 

Average increase 

8% 

2018/19 

Average increase 

8% 

2019/20 

Average increase 

9% 

2020/21 

Average increase 

9% 

2021/22 

Average increase 

9% 


Increase for state owned property 4% 

Increase for empty plots 24%/state owned property 4% 
Increase for stale owned property 6.63% 

Increase for state owned property 6,63% 

Increase for state owned property 6.63% 











































WC042 Hwequfl ■ Supporting Tiblt SA14 Household bill 


2019/20 Medium Term Revenue 1 Expenditure 

2016/17 2017/18 Current Year 2010/19 

Framework 


Audited Audited Audited Origlnd Adjusted FullYaar Budget Year Budget Year Budget Year Budget Year 
Outcome Outcome Outcome Budget Budget Forecast 2019/20 2019/20 +12020/21 422021/22 

%lncr, 


Description 


II ifir a.u rr . il 


Income Ranotf 
Rates and sendees charges: 
Property rate 
ElectrtctV: Basic levy 
Electricity: Consumplon 
Water; Basic levy 
Water: Consumplon 
Sanitation 
Refase removal 
Ofiw 

VAT or Services 

Total targe household bill: 
% Increees/Hhcriaaa 




Rata* and aanrlcaa chargee: 
Property ratos 
Electricity: Basic levy 
Elasticity: Consumption 
Vttator Beale levy 
Water Consumption 
Ssnltakr 
Refuse removal 
Olier 

VAT on Seivlcee 
Total email household hill: 
% lncreaee/-decreeie 


Irr»imtir.nja!HiR!nmiTii!rs 


Rtaes end eervlcea chargee: 
Property ratos 
Electricity: Basic levy 
Electricity: Consumption 
Whtan Basic levy 
Wtoter Consumption 
SenJtrfon 
Refcse removal 
Other 

VAT on Services 
Total email houeehold bill: 
% IncressW-dscrsiis 



. 1HMS 
' 21141 

176129 

* 225.26 

Ml 

1002.99 
18% | 

1 993.54 
10% 

2157.77 

0.2% 



2157.77 

2157.77 

- 

- 


3M.7B 

294.27 


2 402.81 2 09104 2 802.64 

11.4% 8.0% 8.0% 





42 |~P a g e 














































































Hesseaua Munii 


2019/20 Final Annual Budget and MTREF 


There was a request from the committee that examples of the Impact of tariffs on accounts In the area 
should be provided. The following for perusal: 
























































































































































































019/20 Final Annual B 



ETML: PROPERTY RATES AND SERVICES 


WARD 2 


2014/2015 20180010 20180017 2017/2018 2018/2010 2Q1M2020 “ WH8 * # 

ninnsMB % Insraiiv 



Market Value: R6B.500 

Water Connection: 20mm 

Water Consumption = 2M 

Electricity Basic: 40A connection (Prepaid meter) 

Electricity Consumption 300kWh. 

Basic ■ Sewerage 
Basic - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Ratee + Services) 
Monthly R/C Increase 




Market Valua: R22.000 
Water Connection: 20mm 
Water Consumption = 20kl. 

Electricity Basic: 40A connection (Prepaid meter) 
Electricity Consumption 360kWh (50kW free). 
Basic - Sewerage 
Basic - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Rates + Services) 
Monthly R/C Increase 



179.07 

1 006.301 1 024.05 

135.00 
112.00 
237.061 246.48 


1 930.37 


2189.58 


211.35 


2348.331 245847 


158.75 110.14 






8% 

12.90 

0% 

12% 

140.00 

12% 

12% 

160.45 

12% 

12% 

207.63 

19% 

7% 

379.07 

13% 

8% 

159.00 

9% 

15% 

148.00 

179.16 

15% 

F 11% 

1 373.00 

13% 




’ ii* 

1 388.40 

13% 


104.14 




45 | P a g e 


|hessequa munisirwjteit 

2019 

























































































DETAIL: PROPERTY RATES AND SERVICES 


2914/2015 2015/2016 2016/2017 2017/2016 2016/2019 



Market Value: R2.052.000 
Water Basic: 20mm Connection 
Water Consumption = 30kJ. 

Electricity Basic: 60A connection (Conventional meter) 
Electricity Consumption 750kWh. 

Basic - Sewerage 
Basic - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Rates + Services) 

Monthly R/C Increase 


Market Value: R1,214,500 
Water Basic: 20mm Connection 
Water Consumption = 25ld. 

Electricity Basic: 60A connection (Conventional meter) 
Electricity Consumption 700kWh. 

Basic - Sewerage 
Basic - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Rates + Services) 

Monthly R/C Increase 


Category: AgrfcuHurti Lifestyle (Residential) 
Monthly R/C Increase 












































































































WARD 4 

WTT&AND 


Market Value: R1,673,500 
Water Basic: 20mm Connection 
Water Consumption 3 30ld. 

Electricity Basic: 60A connection (Conventional meter) 
Electricity Consumption 700kWh. 

Basic - Sewerage (Septic lank) 

Basic - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Rates + Services) 

Monthly R/C Increase 


Market Value :R1,347,000 

Water Basic: 20mm Connection (Indigent Free) 

Water Consumption: 20kl water (6kl Free) 

Electricity Basic: 8QAmps (Prepaid basic - free) 

Electricity Consumption 350kWh (50kW free). 

Basic - Sewerage 

Basic - Refuse 

VAT 

Monthly Services Account 

Total Monthly (Property Rates + Services) 
Monthly R/C Increase 




2015/2016 2616/2017 2017/2618 2018/2Q19 | 2019/2620 1 %lncr#M9 


632.18 890.49 961.79 1 036.77 8% 


112.00 
198.45 
381.00 
933.40 
135.00 
112.00 
262.06 
2 133.01 



243.78 

1 986.08 


303.49 
2 326.74’ 


2461491 2 682.46 2 875.57 3 068.70 3 386.81 m 

230.97 193.12 220.13 26941 



918.85 S% 

140.00 12% 

248.85 12% 

442.20 10% 

1237.00 13% 

159.00 
148.00 1 

356.26 

2 731.31 12% 


3 850.161 11% 



223.52 0% 

0.00 #DM0l 
113.95 12% 

0.00 #OMOI 
366.70 0% 

0.00 #DIV/0l 
o.oo mm 
72.40 


HESSEQUA MUNISIRWJTE1T 


47 | P a g e 


2019 - 05 - 


P 09 bus 29 . 
















































































SSEQUA MUNISIRAUTEIT 


Hesseaua Muni cmalit 


Final An 



DETAIL: PROPERTY RATES AND SERVICES 


WARD 4 


20140018 2019/2016 2011/2017 2017/2016 2018/2019 1 2019/2020 9,2090 

»incrHM 1 % incniH 


#DIWQI 
12 % 
12 % 
12 % 
7% 

146.00 8% 



Market Value: R153,500 
Water Basic: 20mm Connection 
Water Consumption ■ 25kt. 

Electricity Basic: 40A connection (Conventional meter) 
Electricity Consumption SOOkWh. 

Basic - Sewerage (Septic tank) 

Basic - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Ratee + Services) 

Monthly R/C Increase 



0.00 

#DIW0l 

140.00 

12 % 

116.25 

12 % 

159.00 

9% 

148.00 

16% 

8449 


647.74 

12 % 



647.74 

12% 

68.37 


278.95 

9% 

31242 

13% 

13425 

12 % 

156.00 

9% 

90.40 


693.07 

12% 



072.02 

11% 

OOjOO 



1290-991 1444.23 1 547.89 1 713.97 1 896.05 11% 

144.24 103.66 166.08 182.07 




































































































































2019/20 Final Annual Budget and MTREF 


ETAIL: PROPERTY RATES AND SERVICES 

20140015 

20150016 

20160017 

2017/2010 

2018/2019 



49 | P a g e 


1 2M 

1-PHWS 





































































































ML: PROPERTY RATES AND SERVICES 


WARD 7 
IVER 


Market Vtfue: R2,404,500 
Water Beilc: 20mm Connection 
Water Consumption ■ 30kf. 

Electricity Bash:: 60A connection (Conventional meter) 
Electricity Consumption 650kWh. 

Beale - Sewerage 
Baelc - Refuse 
VAT 

Monthly Services Aaoount 

Total Monthly (Property Re tee + Services) 

Monthly R/C Inoreaae 


2016/2617 2017/2018 2018/2019 

Hmeraaae 


amnoao 

Sfnecesee 



Market Value: R341,500 

Water Basic: 20mm Connection 

Weter Consumption = 20kL 

Electricity Basic: 60A connection (Prepaid meter) 

, Electricity Consumption SOOKWh. 

Basic-Sewerage 
Basic -Rehise 

Monthly ServFoee Aooount 

Total Monthly (Property Rates + Oervloee) 
Monthly R/C Increase 


WARD 8 


[MwKetVWuec R85,500 

Water Basic: 20mm Connection 

Water Consumption - 15kL 

Electricity Basic; 40A connection (Prepaid meter) 

Electricity Consumption 3S0KWh (GQkWfree). 

Basic - Sewerage 

Basic-Reftjse 













































































































Hesseaua Munidn 


HESSEQU MUNISIRAUTEIT 

2019 


__2019/20 FinallAn nual Audoat 



ET«L: PROPERTY RATES AND SERVICES 


WARDS 


Market Value: R85.500 
Water Basic: 20mm Connection 
Water Consumption ■ 20 kf. 

Electricity Basic: 40A connection (Prepaid meter) 
Electricity Consumption SOOkWh. 

Basic - Sewerage 
Basic - Refuse 
VAT 

Monthly Services Anount 

Total Monthly (Property Rates + Services) 
Monthly R/c Increase 


14/2016 

2016/2016 

1016/2017 

16.77 

18.20 

16.47 

60.00 

97.00 

104.00 

102.50 

110.75 

118.45 

101.34 

133.40 

144.60 

601.66 

647.60 

587.76 

106.00 

118.00 

126.00 

81.00 

91.00 

97.00 


164.74 



Category: Agriculture Lifestyle (ResIdentM) 
Monthly R/C Increase 


ward fl 




Market Value: R1,170,600 
Water Basic: 20mm Connection 
Water Consumption = 30kJ. 

Electricity Basic: BOA connection (Conventional meter) 
Electricity Consumption 750kWh. 

Basic - Sewerage (Septic Tank) 

Baste - Refuse 
VAT 

Monthly Services Account 

Total Monthly (Property Rates + Services) 

Monthly R/C Increase 


629.34 

90.00 

159.00 

321.00 

847.20 

53.00 

81.00 

217.17 

674.35 

97.00 

171.76 

352.20 

935.76 

58.00 

91.00 

238.60 

. 614.59 

104.00 

183.75 

379.20 

1 005.30 

61.00 

97.00 

256.24 

683.80 

112.00 

198.45 

381.00 

1 024.05 
135.00 

112.00 

274.75 

718.93 

125.00 

222.30 

403.80 

1 094.00 

146.00 

129.00 

318.02 

8% 

12 % 

12% 

6% 

7% 

B% 

15% 

78148 

140.00 

248.85 

442.20 

1 237.00 

169.00 

146.00 

366.26 

1 788.37 

1944JO 

2 06649 

2 237.26 

2438.12 

9% 

2731.31 



_ 1 1 




2 287.71 

2 618.66 

2 701.08 

2 901.06 

3166.06 

6 % 

3 612.76 


221.14 

182.23 

199.97 

26400 


367.71 


511 P a g e 



















































































Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


A 


0 






The operational budget for the 2019/2020 financial year 
makes provision for the following tariff increases with effect 
i July 2019: 

❖ in-season : Between 6 - 7.5% 

❖ Out of season : Between 6 - 7.5% 

❖ Takkieskloof Caravan Park: 

A Tender was advertised during March 2019 to request 
development proposals from developers to upgrade and 
operate the Caravan Park for a period of 30 years. 


(All tariffs were rounded to the nearest R10) 


Revenue and Expenditure Caravan Parks 

The net deficit shows an decrease from R2.673 million in 2018/19 financial year to R1.254 million in the 
2019/20 financial year. The main reason for the decrease in the operating deficit are due to the increase in 
budgeted income based on an increase in the occupation levels of the Caravan Parks. 


Credit Control and Debt Collection Policy & Bv-Law 
Section 18(4) presently reads asfollows:- 

“Qnly cash, electronic transfers (EFT), credit- or debit cards will be accepted as payment at the municipal 
resorts, regardless of whether a customer has a municipal account." 

Due to the high cost of transfer of cash from pav points to the bank no cash will be accepted as payment at 
municipal resorts from 1 July 2019. This section will have to be amended bv withdrawing the word "rash”. This 
policy will be workshop with Council during April 2019 to amend this. 


CARAVAN PARKS 

Budget 2018/19 

Budget 2019/20 

Total Caravan Parks Revenue 

Total Caravan Parks Expenditure 

11229402 

13904099 

13605960 

14859729 

NETT PROFIT/(LOSS) 

-2 674 697 

-1 253 769 

Percentage Gross Loss 

-19.24% 

-8.44% 


Through the operational budget, the following projects will be funded at the various camps: 

1. Contractors will be appointed to perform cleaning and security services. 

Contractors will be appointed to perform various maintenance works on Municipal buildings. 
Materials and equipment will be purchased to perform maintenance activities. 

Cleaning material will be purchased. 


2 . 

3. 

4. 

5. 


Temporary wages and overtime will be paid to temporary workers and employesESSEQUA MUNISIRALUEITI 


52 | P a g e 


























Hessenua Municipality 


2019/20 Final Annual Budget and MTREF 



The following table is a high level summary of the 2019/20 budget and MTREF (classified per main type of 
operating expenditure): 

Table A4: Summary of operating expenditure by standard classification Item- (NT - supporting tables) 


j WCQ42 H«mqu« - T«M« A4 Budgeted Flnandil Piiformtnca (rwnua ind wp«ndHu») i 


DHcrlptfon 

R thouaand 

Ref 

1 

2015/10 

2018/17 

2017718 

-'- 1 _ 1 _ 

Current Yew 2018/19 

— 2019/20 Medium Term A 
Expenditure Frams 

avenue 1 

work 

Audited - 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Foreceet 

Pre-midlt 

outcome 

Budget Year 
2018/20 

Budget Yew 
+12020/21 

Budget Yew 
<2 2021/22 

EiunnJltur«BvTVD» 












Employ 68 related costs 

2 

116 414 

127 791 

150 458 

168 365 

165196 

165196 

165196 

186 234 

198 990 

212769 

Ramunarafon of counclkre 


6047 

6 484 

7 202 

8050 

8 050 

6 050 

8050 

8 330 

6914 

9 538 

Debt Impairment 

3 

3B 268 

47 471 

34 346 

59 530 

59 530 

59 530 

59 530 

41606 

42 736 

44967 

DsprecWonft asset Impairment 

2 

24836 

25 594 

30 044 

35 960 

35960 

35960 

35960 

34 743 

36035 

38119 

Finance charges 


13695 

17723 

18 822 

20698 

21180 

21160 

21180 

21 539 

26 859 

27 923 

BiA purchases 

2 

86690 

87 870 

69 362 

102 049 

94197 

94197 

94197 

108 897 

125 893 

1 142962 

Other materials 

3 

- 

20 070 

19236 

19 459 



27 202 

29633 

31948 

| 34698 

Contacted seivices 


4504 

3B735 

32 193 

29 303 

35 872 

35872 

35872 

32 694 

. 47 ™ 

J5 492 

Trenafere and subsidies 



865 

1 055 

987 

1155 

1 155 

1 155' 

1247 

1480 

1323 

^Oiwwtpendltere 

Si 

49 593 

18124 

22 055 

30 573 



30 400 

32466 

34 068 

35877 

Lose on disposal of PPE 


218 

_332 

585 








Total Expenditure 

_ 

339 175 

391 onT 

405 358 

472wl"j 

478 742 | 

478 742 

478 742 

497391 

554 866 



1.9.1 Expenditure bv Type 


1.9.1.1 Employee Related Costs 

The budgeted allocation for employee related costs for the 2019/20 financial year totals 
R186,234 million which is 37,44% of the total operating expenditure. The current forecast from 
the Reserve Bank for 2019 is an increase of 4.88% on average. During the compilation of the 
budget, the CPI of ±5.0% plus 1.5% as per agreement was used. The correct % increase of 
6.5% was used In the compilation of the final budget. 

Include in the budget is an amount of R3 350 335 for 9 new posts, the amendment of 1 existing 
post and 2 post for Council. There were requests for many more posts than that were approved. 
The additional are however regarded as necessary to ensure that the municipality can at least 
maintain its high standard of service delivery. 

1.9.1.2 Remuneration of Councillors 

The budgeted allocation for remuneration of councillors for the 2019/20 financial year is R8.330 
million. An annual increase of 7.0% has been included 

1.9.1.3 Depreciation & Asset Impairment 

Provision for depreciation and asset impairment has been informed by the Municipality’s Asset 
Management Policy. Depreciation is widely considered a proxy for the measurement of asset 
rate consumption. Budget appropriations In this regard totals R34.743 million for the 2019/20 
financial year and equates to 6.99% of the total operating expenditure. 



54 | P s g e 





















































Hgsrequa Municipality - 2019/20 Final Annual Budget and MTREF 


1-9.1.4 Finance Charges 

Finance charges consist primarily of the repayment of interest on long-term borrowing (cost of 
capital). Finance charges make up 4.33% (R21,539 million) of operating expenditure. A 
provision of R7.021 million for Landfill sites is also included for the 2019/20 financial year. 

1.9.1.5 Bulk Purchases 

The Budget for Bulk purchases 2019/20 is R108,897 million, which is 21.89% of Total Operating 
Exp« iditure. Bulk purchases are directly informed by the purchase of electricity from Eskom. 
Electricity tariffs of Eskom will increase by 15.63% as from 1 July 2019. The annual price 
increases have been factored into the budget appropriations and directly inform the revenue 
provisions. 

1.9.1.6 Debt Impairment 

Debt Impairment for 2018/19 for Traffic Fines is R54.064 million and R35.000 for 2019/20 
million. For Rates and Services R5.466 million for 2018/19 and R6.606 million for 2019/20. 


1.9.1.7 Contracted Services 

Contracted services consists of Life Savers, Recycling of Refuse, Fire Brigade, Cleaning & 
Security Services for Camps, fraud line as well as Traffic fines outsourced. The total budget for 
Contracted Services 2019/20 is R32.694 million which shows a 8.86% decrease when 

compared to the 2018/19 adjustment budget. The decrease is mainly because of less housing 
grants. w 



Ta y®L®.A1 Services - (NT_- supporting tablesJSAI 

-WCQ42 Hemqui ■ Supporting Tabio S A1 Supportlnglng detail to "Budgotod Flnanclil PerforTnanco' 


Description 


Expenditure Framework 


Budget Year 


Budget Year 
+1 2020/21 


Budgi ear 

< 1121121/22 


Rtveredal 6670 


Contracted esrvlc— 


Contractor* 


OritcufferfStfimet 


CoftNtfeftfl 6 Profaanruk 

wb-toM 


1 
1842 | 

1- 

1 30 

1780 j 

1 4 












hessequa Iwunisifauteits 


Jesseaua Municipality 


2019/20 Final! 


Table SA1: Other Expenditure by Type - (NT - supporting tables) 

WC042 Hewequa ■ Supporting Table SA1 Suppoitlnglng detail to 'Budgeted Financial Perfomwica' 


2019 - 05.2 

mual Buc k et andjrfTO 

P08bU829. RhBi 


Description 


R thousand 


REVENUE ITEMS: 


| pi 11 UialMdil. h ■ I i Vi g] 


Collection costa 

Contributions to 'other' provisions 
Consultant fees 
Audit fees 
General expenses 
Operating Leases 
AurStfees 

Workmens Compensation Fund 

Skiffs development Fund Levy 

Protective Clothing 

Membership fees 

Advertising 

Communication 

System Advisor 

Software ffcenses 

Travel & Subsltance 

Insurance 

Total 'Other 1 Expenditure 


Current Year 2018/19 

If --- —. 

2019/20 Medium Term Revenue & 
Expenditure Framework 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 
2019120 

Budget Yarn 
+1 2020121 

Budget Year 
+2 2021122 

30 400 

30 400 

30 400 

9 480 

9 475 

9 919 

1429 

1429 

1429 

1518 

1640 

1623 

3898 

3 898 

3898 

4328 

4 761 

5237 

1392 

1392 

1392 

1380 

1477 

1580 

1036 

1036 

1036 

1406 

1504 

1609 

1 195 

1 195 

1 195 

1306 

1384 

1466 

1559 

1559 

1559 

1620 

1720 

1620 

540 

540 

540 

595 

617 

636 

3192 

3192 

3192 

2 575 

2 666 

2 795 

1481 

1481 

1481 

1508 

1618 

1736 

2104 

2104 

2104 

2 406 

2 556 

2 615 

1927 

1927 

1927 

2 203 

2360 

2 548 

1771 

1771 

1771 

2140 

2 266 

2292 

51925 

51925 

51925 

32466 

34 068 

35877 



Priority given to repairs and maintenance 


^ e ^° mfianoe does not have a line item for repairs and maintenance. As per the 
™» Z A J ^?' expei ? drture items are C0U P |ed to projects. The following has been included in the 
draft budget for repairs and maintenance for the current year, as well as the MTREF period. 

WC042 Hesiequa ■ Suppeitlnfl Tibia SA1 Supporthiglnfl detallto 'Budnaiad Financial Parfnrm.n«- 


Description 

Rthouund 


Repare ind Hrintumce 
by Expenditure Item 
Employee rated cost 
Otiier materials 
( Contacted Sere Ices 
Ofiar Ekpencflkina 

Totd Repdre end Mdntenence Expenditure 


Current Year 2011/19 


Audited Audited 

Outcome Outcome 


2019/20 Medium Term Revenue & 

_ Expsndltow Framework 

Prwudlt Budget Yeer Budget Yeer Budget Year 
c irt»me 2019/20 +12020/21 +22021/22 



























Hesseaua Municipality 


2019/20 Fina l Annual Budget and MTRFF 


Th 0 norm for repairs and maintenance against the carrying value of PPE, Investment Property and 

raS?S?! related cost ,s lnto accou nt, the municipality’* 

° * 8 Jf 50% for 2019 / 20 and 9.03% and B.15% far the respective outer years. This Is wall 
witnm the norm. 

Free Basic Serv ices: Basic Social Services Package 

Iwr* 8 ? 0 ' 81 p ® cka£|e ® 88l ®ts households that are poor or face other circumstances that limit their 
SIS 2£? y .? r T° receive these free services the households are required to register in 

ms of the Municipality s Indigent Policy. The target is to register the poor. Details relating to free 
erv ces, cost of fr * basis sen/ices, revenue lost owing to free basic services as well as ba si c 
page76 dSIV9,y measurement ,s contained in Table A10 (Basic Service Delivery Measurement) on 

P® 0081 °f * he ®° c *® 1 P ack ®ge of the registered indigent households is financed by National 
rfRever^ue Act roU9h ^ L °° a Government ec i ultab,e sh ®re received in terms of the annual Division 


The following subsi dies and rebates are recommended - 

SUBSIDIES TO INDIGENT HOUSEHOLDS: 

CATEGORY A: 

• Income per household - R3 500 p.m. 

• Water - 6kl per household - free 

• Electricity - 50KwH per household - free 

• 100% Rebate - Property Rates, Sewerage, Refuse and Water - Basic Fees 
CATEGORY B: 

• income per household - R3 501 p.m. - R4 000 p.m. 

• Water - 6kl per household - free 

• Electricity - 50KwH per household - free 

• 50% Rebate - Property Rates, Sewerage, Refuse and Water - Basic Fees 

CATEGORY C - OLD AGE HOMES 

• R150 per person per month that qualify. 

CATEGORY D - TENANTS NOT RECEIVING MUNICIPAL ACCOUNTS 

• As per category A and B 


CATEGORY E - CHURCHES 

• 100% of basic services If 50% of the church congregation qualifies for indigent. 


57 j P a g e 


[ftESSEQUA MUNISIFALITEifi 

2019-05. 

Pbabus29.Rivttgfai 










Hesse Qua Municipality 


a 


c 


203,9/20 Final Annual Budget and MTREF 



The Draft Capital Budget started with R93 808 920 in November 2018 and was later reduced by Council and 
management to R72 654 150. For the final budget it was increased to the present R109 908 968, with roll 
overs of R34 452 818 from 2018/19 budget and further cuts due to own funding limitations. 


Capital Financing 



The total capital budget of R110 408 968 for 2019/20 shows an increase of R17 931 811 compared to the 
adjusted capital budget for 2018/19 of R92 477 157. 

The following Is Included in on the budget: 

+ R12,967 million funded by MIG 
+ R0.330 million funded by FMG 
+ R 1,985 million funded by INEP 
+ R0.131 million funded by Library Grants 
+ R0.830 million funded for Fire Brigade 

+ R27.803 million projects funded by CRR (including R4.960 million roll over) 

+ R66.362 million projects funded by Borrowing (including R29.493 million roll over) 











Financing of the Capital Budget 

The following tahie give a breakdown of the sources and percentage (%) of finance of the draft 2019/2020 



201S/20;1 

% 



StE£®B 1 

% 

Own funds 

27803 362 

25.18 

19193065 

24.62 

14894755 

21.67 

External loans 

66 362406 

60.11 

43555 934 

55.88 

37799700 

54.99 

Grants & Subsidies 

16243 200 

14.71 

15194350 

19.49 

16038800 

23.33 


110408968 


77943349 


68733255 



It is clear that the main source of funding will be from external loans. 


After fhe approval of the Draft Budget the following changes in th e capital budget was made bv Managemgnt> 



Vote Number 


Projac itten _ 

Total Draft Budget - 201900 


jDouble Cab Truck Tipper - Public :s-S/B 


| Suction Tanker-Sewerage -A/B 


|1 X5m3 Tipper - P ic Works - H/B 


['Ward 1 Ref I Fund! 


Reason 




B IiiBIiI M 


1 100000 


700000 


700 000 


1 300 0001 


150 000 


Roll Over from 2018/19 


Roll Over from 2018/19 


Roll Over from 2018/19 


Roll Over from 2018/19 


| Roll Over from 2018/19 


Roll Over from 2018/19 


Roll Over from 2018/19 


Roil Over from 2018/19 


Roll Over from 2018/19 


Roll Over from 2018/19 


Roll Over from 2018/19 


Roll Over from 2018/19 


Replace with toilet project 


69106420420IFV30ZZ10 


71106420420IFV33ZZ02 


69106420420IFW36ZZ11 


69106420420IFV37ZZ10 


69106420420FV39ZZ02 


691Q6456020IF JE5ZZ13 


63106473520B BQH4ZZ10 


64156473520BBQ J1ZZD6 


737064460203BS16Z713 


731O6446O20BBSS8ZZO1 


74106420420BBV06ZZ10 


74106430420BBM10Z210 


B1106473520IFQY1ZZM 




Multi-purpose L ider - Public a - A/B 


[Double Axle trallerwifi rails - Public Works - R/D 


Upgrading of Sportsftelds fencim - S/B 


Upgrading of swimming pools - De Mist - RFversdd 


Riversdale Low Level Res Rehabilitee 


Sand Filters - Gouritsmond 


Cherry Picker-Electricity - S/B 


INSTALLATION OF NEW TRANSFORMER - EL£C - S/B 


I of cemeteries - Slangrivier 


Building of toilets & Wats frrfa at cemetery - Slangrivier 


2XLap > - Interns - Finance 


Budget Tool - Budget - Finance 


Budget Tool - Budget - Finance 


250 000 


200 000 


1500000 


750000 


1400000 


500 000 


-200 000 


-28 000 


330 000 


170000 




L1 


Bgj liflea 




m.iwu -iu.ij.i.ityiMri 


et Tool to comply with NT 


EmoltSEEiiTlITOnirr 


Total Final Budget - 2019/20 


110408 968 























































































Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


The following t Fleets the capital budget per ward and per town. Information regarding wards has been 
compiled from information received from the respective departments. 

2019/20 MTREF Capital Budget per Ward 


WARDS 

2019/2020 

202Q/2021 2021/2022 

2022/2023 

2023/2024 

Ward 1 

9 372 500 

5 203 300 

10 913 800 

12 312 000 

4 302 000 

Ward 2 

9 478 812 

1 555 000 

818 300 

1 035 120 

1 058 500 

Ward 3 

2 548 500 

1 493 550 

498 000 

1 685 000 

1 350 000 

Ward 4 

8 513 840 

6 090 580 

4 524 400 

3 318 500 

2 750 000 

Ward 5 

525 000 

0 

0 

1 500 000 

150 000 

Ward 6 

1 262 000 


18 000 

8 500 000 

0 

Ward 7 

6 478 000 

37 735 

1 947 520 

15 050 000 


Ward 8 

600 000 

601 000 

100 000 

975 000 

100 000 

Ward 9 

3110 000 

1 700 000 

500 000 

12 500 000 

3 470 000 

Ward 7,8 

0 

0 

0 


0 

Ward 6,7,8 

15 534 000 

15 247 784 

5 810 800 

12 286 300 

32 000 

Ward 4,5 

4 475 000 

3 549 300 

3 238 300 

1 760 000 

590 500 

Ward 4,5,9 

370 000 

0 

0 

0 


Ward 1,3 

28 212 406 

19 074 500 

22 999 335 

7 632 500 

9 540 500 

HQ 

19 928 910 

23 390 600 

17 364 800 

45 966 500 

35 129 700 

Ward 6 r 8 

0 

0 

0 


0 



77943 349 





2019/20 MTREF Capital Budget per Town 


TOWNS 

2019/2020 

2020/2021 

2021/2022 

2022/2023 

2022/2023 

Albertinia 

9 028 812 

1 555 000 

818 300 

1 035 120 

1 058 500 

Heidelberg 

8 520 000 

5 619 300 

3 988 300 

9110 000 

4 210 500 

Witsand 

3 163 840 

1 430 580 

2 170 600 

2 098 500 

1 900 000 

Riversdal 

23 889 000 

16 554 319 

7 876 320 

36 821 300 

132 000 

Stilbaai 

36 164 406 

23 892 500 

33 778135 

17 049 500 

10 984 000 

Jongensfontein 

191 500 

1 484 550 

498 000 

1 685 000 

1 350 000 

Gouritsmond 

4 227 500 

408 300 

135 000 

2 895 000 

2 858 500 

Slang rivier 

5 210 000 

4 190 000 

2 123 800 

370 000 

850 000 

Hessequa 

20 013 910 

22 808 800 

17 344 800 

53 456 500 

35 129 700 



77943349 






































































































































KESSEQUA MUNISIRAUTEfil 


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 MTREF Budget to be approved by 
the CquncIL___ 

-WCQ42 Hoeeoqut ■ Table A1 Budget Buiwnwy “ " f ” * * s .--- 


Budget Year' 


Propsrlyj'shB 
Service chargee 
hve efrn ent revenue 
Tra nsfers re cognised - openAortaf 


Told Revenue (excluding cep ft* trwieltos and 
contributions) 

_ Emgjojfaa costa 
Ramuneraflcn ofacunollbi* 


Other expend Hu re _ _ 

Total EKpaidtun 
Surplus/(Dcffdt) 

Transfe rs and eubeMlea - captlsl fmonei^ ijiw 
Contibuflone recognised - capital & oonbibutod ei 


15 524 


(25 Ml) 
15 104 


Nat cosh from (used] opsrafrig 
Net cash from (ueed) I nv aaflng ^ 
Natoaeh from (ueed) toanohg 
"Woesh equivalents at the year and 


Cash and In vestment aval is M e 
A pploefan a| oaeh and Inwaatmenh 
Bdwiee-iurpluejsho rtf el I ^ 


Aeeotradetkfsummary pMW)^ 

DeprecMcn _ ^ ^ __ _ 

Renewal and Upgrading of Ex leflng Auefe 
Reptfa mi MMntnce 


Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Pre-«udlt 1 

Outaoma 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

outcome 

















































































































































Hesseaua Municipality 

2019/20 Fin. 






WC042 Hwaequa ■ Table A1 Budgat Summary 


Description 

R thousands 

201918 

201917 

2017/18 

Current Year 2015/19 

2019120Medium Term Revenues 
Expenditure Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Preaudit 

outcome 

Budgat Yur 

anno 

Budget Year 
+1 2020/21 

Budget Year 
42021/22 

Fm mtvIcm 

CoetofFree Basic Say ices provided 

Revenue cost of free services provided 

HoimhoM* bdow minimum mvu»l«wl 

Water 

Sanltaton/sewerage: ^ 

Energy: 

Relise: 

15 832 

12 288 

17 047 

12954 

17 867 

14037 

19615 

16054 

_ 19615 
m 16064 

10 615 

16054 

23 076 

, „ 16 444 

23078 

16444 

26464 

17756 

I 


Explanatory notes to Table A1: - Budget Summary 


1. Table A1 is a budget summary and provides a concise overview of the Municipality’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 approved by Council for operating performance, resources 
deployed to capital expenditure, financial position, cash and funding compliance, as well as the 
municipality's commitment to eliminating basic service delivery backlogs. 

3. Financial management reforms emphasize 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 the key information in this regard: 

a. The operating deficit before transfers for the 2018/2019 and 2019/2020 MTREF financial periods is 
set out in the table below. 

b. Capital expenditure is balanced by capital funding sources, of which 

i. Government and other transfers is reflected on the Financial Performance Budget; 

ii. Borrowing is incorporated in the net cash from financing on the Cash Flow Budget 

iii. Internally generated funds are financed from a combination of the current operating surplus 
and accumulated cash-backed surpluses from previous years. The amount is incorporated 
in the net cash from investing on the Cash Flow Budget. 


4. The Cash backing/surplus reconciliation shows an increase in 2020/21 and a decrease over the last 2 years 
of the MTREF period. 


WC042 Heisequa - Table A6 Cash backed mervea/accumul&tad turpi 

ua reconcile 

itlon 


■ 








201 Of20 Hftdlum Tsrm R*miisJL 

Deacripdon 


2015/10 

201917 

2017/18 


Current Yeer 2018/18 






■ 








Expenditure Framework 

R thousand 

I 

Audited. 

Audited 

Audltad 

Original 

Adjusted 

Full Yht 

Pro-audit 

Budgat Year 

Budget Yaar 

Budget Yaar 


i 

Outcome 

Outcome 

Outcome 

Budgat 

Budgat 

Forecaat 

outcome 

2019/20 

+1 2020/21 

422021/22 

Cash/cash equivalents at fie year end 

g 

205 785 

211 779 

219860 

147 705 

187137 

187137 

187137 

155 099 

134844 

102 482 

Otier current hveeftnent >90 days 

■ 

0 

NO 

(0) 

(1 000) 

M 

(48) 

(«) 


(92) 

{142) 

Non current create - hvestnenb 

n 

- 

- 

- 

- 

- 

- 

- 

- 

- 









■UilU 

Til"! 

-Till 


■mi 


1 

69967 

21 251 

12680 








Unspent borrowing 

■ 

- 

- 

- 



- 


- 

_ 

_ 

Staiitory requirements 

83 











Otier working capital requirements 

u 

10102 

13197 

4146 



22 975 

25156 

17174 

22 816 

28 200 

Otier provtakKis 

H 











Long term Investment committed 

D 

- 

- 

- 



- 

_ 

_ 


_ 

Reserves to be backed by cesh/lnvestmerfe 

H 

- 

" j 

- 



L__ 

- 

- 

..“ 

- 

Total Application of caali and Investment!; 


HH9 

s-: —'l"l 

16 827 

30337 

22 975 

22076 

25155 

17174 

mmm 

21200 


□ 



203 DU 

116 361 




557*8" 

BBiitni 

74140 


62 | Page 














































































Table A2 - Budgeted Financial Performance {revenue and expenditure by standard classification) - (NT 
- supporting tables) 

WC042 Hn«qu« ■ Table A2 Budgeted Financial Performance (revenue ind expenditure by funetloml clmlflcatlon) _ 


Functional Clmlflcatlon Description 

Ref 

2015/16 

2018/17 

2017/18 

Current Year 2018/19 

2019/20 Medium form Revenue & 
Expenditure Framework 

R tfiouiand 

1 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjuatad 

Budget 

Full Year 

Forecast 

Budget Year 
2019/20 

Budget Year 
■M 2020/21 

Budget Year 
+2 2021/22 

Revenue - Functional 

Governance and administration 


118460 

132(77 

140963 

141273 

141664 

141864 

157518 

167 556 

179 749 

ExecuIVe and council 


32639 

35 967 

35 432 

42182 

42199 

42199 

45 373 

46 779 

52 540 

Finance and admlnlsfraVon 


65641 

96 910 

102 531 

99 091 

99665 

99665 

112145 

118 777 

127 209 

Internal audit 


- 

- 

- 

- 

_ 

_ 

_ 

_ 

_ 

Cofitfliufityr and public safety 


73 352 

106408 

75 526 

93987 

100411 

100411 

76674 

92751 

111711 

Community and social services 


6952 

7634 

8682 

9464 


9720 

9 561 

11971 

11013 

Sport and recreation 


10050 

11516 

12534 

12183 

12163 

12183 

15768 

16 591 

17466 

Public safaly 


46925 

70 424 

43229 

71614 

71876 

71876 

49971 

51771 

54787 

Housing 


9425 

16834 

11081 

728 

6632 

6 632 

1 355 

12419 

28465 

Hum 


- 

- 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Economic end environments! services 


13 395 

92326 

17886 

5687 

6236 

6236 

6004 

5289 

5489 

Planning and development 


2568 

2855 

4 757 

4445 

4 995 

4 995 

4 717 

4 628 

5011 

Road transport 


10 370 

88 896 

12455 

703 

703 

703 

603 

lie 

116 

Environmental protection 


457 

573 

475 

519 

538 

538 

684 

343 

360 

Trading services 


191 827 

199 244 

223623 

228 889 

241404 

241464 

257816 

278195 

293 742 

Energy sources 


120 988 

129 076 

134196 

141 489 

141 763 

141763 

160235 

173 639 

188 395 

Wafer management 


28 410 

33 555 

41 501 

37 324 

49565 

49585 

41946 

45264 

46 855 

Waste water management 


30 552 

23 852 

32534 

31 736 

31 735 

31736 

32569 

34 955 

30 207 

Waste management 


11877 

12761 

15 390 

18320 

18 320 

18320 

23065 

24338 

26 264 

Otter 

4 

10 

- 

20 

10 

10 

19 

10 

10 

10 

Total Revenue - Functional 

El 

397 064 


457620 

469 806 

469 925 

489 925 

498 023 

543 801 

590701 

Expenditure ■ Functional 

Governance end sdmlnlstratlon 


59 219 

61214 

79768 

87 028 

88 818 

86818 

97 697 

103138 

108 683 

BcsculVa and council 


19696 

21377 

26 432 

24 565 

25641 

25641 

30464 

32455 

32 817 

Finance and administration 


36314 

36657 

50 065 

60 933 

59672 

59 672 

65 583 

68 924 

73 991 

Internal audit 


1206 

1 180 

1271 

1530 

1504 

1504 

1650 

1759 

1875 

Community and public ssfety 


76 595 

109 200 

91447 

116670 

122 224 

122 224 

106154 

124257 

136 996 

Community and social services 


13035 

14 250 

15441 

18223 

18333 

18 333 

19666 

22 299 

22 442 

Sport and recreafon 


15 295 

16075 

17876 

21487 

21 050 

21050 

23867 

25 323 

27205 

Pubic safety 


46 696 

61 113 

46072 

74663 

74 863 

74 663 

59 332 

62012 

65909 

Housing 


3569 

17762 

12058 

2 296 

8177 

8177 

3269 

14623 

23 442 

Health 


- 

- 

- 

- 

- 


_ 

_ 

_ 

Economic end environmental services 


38990 

42 563 

53 525 

54644 

54713 

54 713 

56 889 

62995 

67 292 

Plarmhg and development 


6351 

6240 

9376 

10652 

11164 

11164 

10173 

10738 

11440 

Road trane port 


30740 

32 732 

42591 

41 616 

41 585 

41585 

43 800 

47 432 

50 745 

Environmental protection 


1899 

1590 

1557 

1977 

1964 

1964 

4 917 

4 625 

5107 

Trading sendees 


161414 

176 996 

179435 

213132 

213499 

213499 

233 040 

261 949 

286791 

Energy sources 


100628 

111051 

76122 

127122 

126 560 

126 560 

142 794 

163 242 

182 475 

Water management 


21207 

23130 

31514 

30 940 

31696 

31696 

33942 

37217 

40 341 

Waste water management 


15666 

17716 

30910 

23 531 

23565 

23 565 

23 739 

26 646 

28 654 

Wtaste management 


23694 

25101 

36 869 

31 538 

31678 

31 678 

32 566 

34 645 

35 320 

Otter 

A 

956 

1074 

1183 

1502 

1488 

1498 

1612 

2318 

1921 

Total Expenditure ■ Functional 

a 

339175 

3tf0» 

405 358 

472 975 

WKESBSJk 

476742 

497 391 

554 666 

603 685 

Gurplut/peffclt) for the year 

■ 

57888 

139 BOS 

52 463 

(3169) 

11183 

11163 

631 

(10 857) 

(12 984) 


Explanatory. notes to Table A2: - Budgeted Financial Performance (revenue and expenditure by 
standard classification) 


1. Table A2 is a view of the budgeted financial performance in relation to revenue and expenditure per 
standard classification 

2. Note the Total Revenue on this table includes capital revenues (Transfers recognized - capital) and does 
not balance to the operating revenue shown on Table A4. 


3. Note that as a general principle the revenues for the Trading Services should exceed their expenditures. 

The tal^e. h.ighl|ghte that this is_ the case JFor Electricity, Water and Waste _Water function. Waste 

63 j Page 




































































Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


Management operate at a loss because of the high provision for landfill sites. Tariffs increase by 15% to 
decrease the loss in 2019/20. 

Table A3 - Budgeted Financial Performance (revenue and expenditure by municipal vote) - (NT - 
supporting tables) 


WC042 Hanaqua ■ Table A3 Budarted Financial Paifomianca (revenue and expenditure bv municipal vote) 


Vote Description 

Ref 

2015116 

H14/17 

2017/18 

Current Year 2018/19 

2019/20 Medium Term Revenue & 
Expenditure Framework 

R thousin d 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 
2019/20 

Budg«t Yeer 
*1 2020/21 

Budget Yev 
+22021/22 

Revenue bv Vote 

Vote 01-Office Of The Mm 

Vote 02 - Corporate Services 

Vote 03 - Financial Services 

Vote 04 - Community Services 

Vote 05 - Technical Services 

Vote 06- Spalal PJannlgn A Environmental Mara 
Vote 07-Health 

Vote 06 - Planning And Development 

Vote 09 - Environmental Protection 

Vote 10 - Electricity 

Vote 11 - Water Management 

Vote 12 - Waste Water Management 

Vote 13 - Waste Management 

Vote 14- Road Transport 

Vote 15-Other 

i_1 

32639 
17860 
62 284 
56406 
204840 
3035 

35 967 
18662 
92 066 
67 463 
293 248 
3 426 

36432 
20 959 
99 374 
54457 
239345 

5 252 

42182 
21 438 
93 599 
72 546 
235 067 
4 974 

42 499 
22 287 
93 599 
78 695 
247 602 
5243 

42 499 
22287 
93 599 
78 695 
247 602 
5 243 

45433 
24016 
106645 
51 446 
265 1 33 
5 351 

48 779 
27158 
113064 
64 364 
265 235 
5181 

52540 
27152 
121309 
83 312 
301 006 

5 381 

Total Revenue by Vote 

KJ 

397 064 

530 855 

457820 


489925 

489 925 

498 023 

543 801 

590 701 

Expenditure bv Vote (a be MDroor/ttad 

Vote 01-Office Of The Mm 

1 

22002 

23 745 


27 639 

26 862 

26 682 

34 665 

36873 

37494 

Vote 02 - Corporate Services 



32006 


45 255 

45 663 

45663 

46 327 

50337 

52359 

Vote 03 -Financial Services 



17666 

24 277 

30506 

29412 

29 412 

35616 

37 436 

39 856 

Vote 04 - Community Services 


54454 

63579 

62 609 

62 567 

68 401 

68401 

68572 

63 030 

96030 

Vote 05 - Technical Services 


206178 

224 335 

240611 

274 222 

273 505 

273505 

297 862 

331 760 

362 280 

Vote 06 - Spatial Plannlgn & Environmental Manager^ 

6109 

9716 

10616 

12 756 

12 680 

12 860 

14150 

15 223 

15 666 

Vote 07 - Health 


_ 

_ 

_ 

_ 

_ 





Vote 06 - Planning And Development 


- 

- 

_ 

_ 

_ 

_ 

_ 



Vote 09 - Environmental Protacfon 


_ 

_ 

_ 

_ 

_ 

_ 




Vote 10 - Electricity 


- 

_ 

_ 


_ 

_ 




Vote 11 - Water Management 


- 

- 

- 

_ 

_ 


_ 



Vote 12 - Waste VWtor Management 


- 

_ 

_ 

_ 

_ 

_ 

_ 



Vote 13 - Waste Management 


- 

_ 

- 

- 

_ 


_ 



Vote 14- Road Transport 


- 

- 

_ 

_ 

_ 

_ 




Vote 15-Other 


- 

- 

- 

- 

- 

_ 

_ 

_ 

_ 

Total Expenditure by Vote 


338 179 


405 358 

472 975 

478742 

478742 

497 361 

554 556 

603665 

Surplus/peficlt) tar the year 

□ 

57566 

139805| 

52 463 

(3169) 

11183 

11183 

631 

{10857} 

(12 9H) 


Explanatory notes to Table A3: - Budgeted Financial Performance (revenue and expenditure by 
municipal vote) 


1. Table A3 is a view of the budgeted financial performance in relation to the revenue and expenditure per 
municipal vote. This table facilitates the view of the budgeted operating performance in relation to the 
organizational structure of the Municipality 

















































2019/20 Final Annual Budget and MTREF 


Table A4 - Budgeted Financial Performance (revenue and expenditure) - (NT - supporting 
tables) 


WC042Hm(Mui - Tibia M Budgatad Financial Paifonwnca (tavanua and expenditure 



Current Ye* 201BI19 


Audited Audited Audited Original 

Outcome Outcome Outcome Budget 


2019/20 Medium Term Revenue A 
Expenditure Framework 


Full Year Pre-audit Budget Year Budget Year Budget Year 
Foreeeit outcome 2019/20 +1 2020/21 +2 2021/22 


Property rates 

Service chargee - elasticity rwenue 
Service charges-water revenue 
Service charges - sanitation revenue 
Service chargee - refute revenue 
Rental of fellies aid equipment 
htoreat earned - external Investnenb 
kite re it earned - outetandng debtor 
Dividends received 
Fines, panalflaa and forfeit! 

Licences end permit* 

Agency settees 
Transfers and subsidies 
Other revenue 
Gains on SsposalofPPE 


Employee related coete 
Remuneraton of councillors 

Debt Impairment 
Depreciation & asset Impairment 
Finance charges 
Bulk purelwas 
Otier materials 
Contacted eaivlces 
Transfers and subsidies 
Other ex pendlln 
Loss on dsposal of PPE 


r u.nijj.ir.Mi 







Surplue/peAdt) 

Transfers and eubildlee - capital (monetary 
ahsdkns) (National / Provincial and District 
Transfers and subsidies - capital (monetary 
alocatlor*) (Naional / Provincial Departmental 
Agencies, Households, Nornproft Insftolons, 

Private Enterprtaes, Pubic Corporators, Higher 6 
Transfers and subsidies - capital (In-kkid - all) 
Surplui/(D«flclt) after capital transfer* A 
contributions 
Taxafon 

Surplus/jpefldt) after taxation 
AVbutable to mhorllse 

$urplu*/(D«flclt) attributable to municipality 
Share of surplus/ (dellcll) of associate_ 


Surplue/pafldt) tier the year 



57 888 

139 805: 


" 57 iaV 

139 905 

"h«i" 



(3169)1 11183 


631 I (10 857)1 (I* W) 


■ES8EQUA MUNISIRMJTHT 

1 - 


65 | P s g e 


Posbu829, 


6670 





































































































Hessfiflua Municipality ___ 20^/20 Fin? I Anng ? l Bufret and MTREF 

Explanatory notes to Table A4: - Budgeted Financial Performance (revenue and expenditure) 

1. Total revenue excluding capital transfers and contributions is R481,779 million in 2019/20 and escalates to 
R528.607 million by 2020/21 which is an increase of 9.72%. The total revenue for 2021/22 is R574.662 
million which is a 8.71% increase from 2020/21. 

2 Revenue to be generated from property rates is R94.657 million in the 2019/20 financial year and 
increases to R101.693 million by 2020/21. In the 2021/22 financial year it is R109,828 million. The tariff 
increase is 9.0% for the MTREF period. 

3 Services charges relating to electricity, water, sanitation, refuse removal and other charges constitutes the 
biggest component of the revenue basket of the Municipality totalling R245.124 million for the 2019/20 
financial year and increasing to R264.881 million by 2020/21 and R286.086 million by 2021/22. For the 
2019/20 financial year services charges amount to 50.9% of total revenue. 

4. Transfers recognized - operating, includes the local government equitable share and other operating 
grants from national and provincial government. 

Expenditure by major type 

5. Bulk purchases have increased from 2015/16 to 2019/20 escalating from R85.599 million to R108,897 
million. These increases can be attributed to the Increase in the cost of bulk electricity from Eskom. 

6. Employee related costs and bulk purchases are the main cost drivers within the municipal budget. 










Hesseaua Municipal! 


2SSEQUA MUNISIRALITER 

!■ , 

jl 

W3-« 2 V / 

m Annual Budget and MflKEE.^ 


P06bU829,R 


Table A5: - Budgeted Capital Expenditure by vote, standard classification and fi 
- (NT - supporting tables) 




Vote Description 


Current Year 2018/19 


ram™; 


CffTheMm W 
Veto 02 - Corporate Services 
Vote 03 - Fhanclal Services 
Vote 04 - Community Sen/ Ices 
Vote 05 - Technical 8erv1cee 
Vote 09 - Spatial Pbnnign & Environmental Managem 
Vote 07 - Kaalti 

Vole 08 - Planning And Development 
Vote 09 - Environmental Protation 
Vote 10 - Eleotlolty 
Vote 11 - Water Management 
Vote 12 - Whsta Whtar Management 
Vote 13 - Whsta Management 
Veto 14 - Road Transport 
Veto 15-Other 

Capital multtyear expenditure subtotal 7 

W VoteoT-(^eOmieMm §PPnP * IM 
Vote 02 - Corporate Servieee 
Vote 03 - Financial Servloee 
Vote 04 - Community San/ loea 
Vote 05 - Technical Sarvlcaa 
Vote 06 - Spatial Plennlgn 4 Env bon men tel Menegem 
Veto 07 - Hsatti 

Veto 08 - Planning And Development 
Vote 09 - Environmental Protalon 
Vote 10- EleeWolty 
Vote 11 - Whtar Management 
Vote 12 - Wtaeta Water Management 
Vote 13 - White Management 
Vote 14 - Road Transport 
Veto 15-Other 

Capital elngleyeer expenditure subtotal 


Governance and adm/ftJUratioii 
Executive end counol 
Finance end admlnJefradon 
bitemri audft 

Community and public salty 
Community and eoctel ten/bet 
Sport and raorsabn 
Pubb safety 
Housing 
HsaMi 

Economic and enWronmentaf aervfcee 
Ptonnhg and devabpment 
Read tana port 
Environmental protalon 
Trtdinq aanrfoee 
Energy sources 
Whtar management 
White w star managsmsnt 
White menagement 
Other 


Total Capital Expenditure - Functional 


Funded hvt 

Nalonal Government 
Provincial Government 
DfetletMunlelprity 
Otwr transfers end grenb 
Transfers reoogniaed - oapltel 
Borrowing 

Internally generated hinds 


lOfZLEJ 


2019/20 Medium Term Revenue & 
Expenditure Frameworfc 


Audited Audited Audited Original 1 Adjuetod Full Year Preaudit Budget Year Budget Yaar Budget Year 
Outooma Outcome Outcome Budget I Budget Foreaeat outcome 2019/20 +1 2020/21 +2 2021/22 



















































































Hesseaua Municipality 


2019/20 Fin al Annual Budget and MTREF 


Explanatory notes to Table A5: 
classification and funding source 


Budgeted Capital Expenditure by vote, standard 


11 2?! e a ^H l linii^f kd0Wn ° f th ® ? apit f l pro 9 ram in relation to capital expenditure by municipal vote (multi- 
year and single-year appropriations); capital expenditure by standard classification; and the fundina 

provSTdepaSnert ^ th8 bUd90t ’ lnc,udin9 information on capital transfers from national and 


2. Single-year capital expenditure has been appropriated at R73.717 million for the 2019/20 financial year and 
decrease s in 2020/21 to R57.917 million and in 2021/22 to R52.763 million. Multi-year capital expenditure 

R20.026" nanCia ' ' n 2020,21 10 

bv2oI!/2^ t Rn 1 ^ 16 | 24 h mil !S n (14-7 S ! nd decrease t0 R1 5.194 million by 2020/21 and R16,039 million 

P ™? * 66 ’ 362 million for 2019/20, R43.556 million for 2020/21 and 
Ho milllon fo . r , T 29 |1 /22 '. F ° r 2019/20, internally generated funding totals to R27.803 million and 
decrease over the MTREF penod to R19.193 million in 2020/21 and R14.895 milllon in 2021/22 


17 ' 


i ESSEQUA MUNISIRAUTEIli 

2019 -05- 

Posbus 29, Rlv 






Hessegua Municipality 


2019/20 Fin al Annual Budget and MTREF 


Table A6 -Budgeted Financial Position - (NT - supporting tables) 

WC042 Hiiwqui ■ T«bl> A» Budartad Flnmehl Paritlan _ 


Deecrlptlon 

Ref 

2015MB 

2016117 

2017/18 


Currant Yew 2018/18 


2018m Medium Term Revenue A 










Expenditure Framework 

R thoueend 


Audltad 

Outcome 

Audited 

Audltad 

Original 

Adjusted 

Full Yew 

Pre-audit 

Budgtf Year 

Budget Year 
+12020/21 

Budget Yew 


__ 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

outcome 

2019/20 

ASSETS 

Current austa 












Cash 


3279 

11420 

3 445 







1 

Cad Inveetaient Opposite 

Consumer debtors 

Otar debtors 

Curent portion of long-term receivables 
toventory 

Total currant aeeets 

1 

1 

203 506 
36765 
2661 
3 

3416 

249631 

200 360 
20 824 

I 28421 

3 

3186 
r 264212 

216415 
23 983 
j 29 374 

j 3 

2811 

276 090 

■ 

si 

J 187 089 

41857 
12148 
3 

3 218 

167009 
41857 
12148 
3 

3 218 

187 069 
41857 
12148 
3 

3 218 

155099 
31 853 
18 890 
3 

3099 

1 134752 

1 32390 

j 19079 

3 

3 254 

| 102 340 

33 405 
19 270 

3 

3418 

Non current assata 







244 315 



189477 

158442 

Long-torm receivable* 
hvastnenb 


16 

13 

10 

10 

10 

10 

i 

10 

10 

10 

10 

Investment property 

Inveetoientln Associate 


68307 

70995 

71228 

68 496 

71227 

71227 

71227 

71228 

7i 

71228 

Propsity, plant and eq^pment 

Btotoglcal 

i | 643359 

752464 

774 214 

853631 j 830732 

030732 

830 732 

912 066 

944 549 

EMMS 


=1 

in 

320 
8 322 
" 832 135 

299 

8 322 
" SHOTS' 

540 
8322 
""" 931198 

851 

8 322 
911147" 

856 
8322 
" 0fll47 

855 

8 322 
~ 911 - 147 

388 
6 322 

991 903 

172 
8322 
1024 200 

147 

8322 

“ 1 088394 

LIABILITIES 

Currant flablllllee 

1 


1 096347 

1130103 


1 155482 

1 155462 

21 

1200937 

1213757 

■1 

Bank overdraft 

H 

?" " ■ 

1 









Borrow tog 

Consumer daposlto 

Trade and otier payefclea 

Provisions 

Total currant liabilities 



15-738 | 
64441 
75 390 | 
7 474 
105 045 



17421 
8400 
68 461 
7072 

17 421 

8 400 
68461 

7 972: 

17 421 
8400 
68 461 

7 972 

17 421 

9 281 
62656 

9 914 

17421 | 
9 724 
69005 | 
11103 

17421 

10 210 

75 541 
12436 

Non current liabilities 

■ 




■ 


102 254 

102 2H 

99 251 

107 258 

115 607 


■ 

■i 

107 294 
116 975 
224270 

111557 
127 220 

238776 


150775 
146 477 
297 251 

124134 
142466 
266 599 

124134 
142 466 
266 59B 

124 134 
142466 
260 599 

168 463 
139 676 

Ml Ama 

187 918 
142996 

200137 

146 486 

>i H'nmilliil 1 — 

■i 

■Kinai 

mmi 

343 821 

752 526 

326115 

884988 

387 093 

732 06D 

381653 

786 600 

368 853 

788 809 

368 853 

786 80S 

WjZjJ 

330 916 
430168 

776 588 

tmgEal 

COHN UNITY WEALTH/EQUITY 

Accum listed Surplua/tDefcH} 

Rasarvae 

TOTAL COMMUNITY WEALTH/EQUITY 

i 

597 726 
248 

597 972 

u 


731814 
246 

732 OH 

786363 
246 1 
786609 [ 

786 363 ■ 
246 

766 on 

786 363 
246 

788609 

793 283 
246 

793 628 

r 775342 
2461 
775 WT 

764361 

248 

764 806 


Explanatory notes to Table A6: - Budgeted Financial Position 


1 . 


Table A6 is consistent with International standards of good financial management practice, and Improves 
the understanding of councillors and management of the Impact of the budget on the statement of financial 
position (balance sheet). 


HESSEQUA MUNISIPALITI 


2019 - 05 - 


P0Sbus29, 



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Hesseaua M unicipality 


2019/20 Final Annual Budget and MTREF 


Table A7 - Budgeted Cash Flow Statement - (NT - supporting tables) 


WCM2 Haiwqua ■ Tsbls A7 Budarttd Cash Flews 


Dtacrlption 

R thouiand 


2015/16 

2016117 

2017/10 

Currant Year 2018/19 

2018120 Medium Term Revenues 
Expenditure Fran eworh 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecart 

Preaudit 

outcome 

Budget Year 
2019120 

Budget Year 
+12020/21 

Budget Year 
422021/22 

CASH FLOW FROM OPERATING ACTIVITIES 












Receipts 












Properly rates 


. 65 375 

70187 

76165 

83167 

83167 

63167 

63167 

92764 

99659 

107632 

Service chwyw 


165 664 

106 482 

104872 

209 650 

209 650 

209 650 

209 650 

240 222 

259 504 

260 364 

Other menus 


30 365 

33784 1 33 231 

35187 

35187 

i 35187 

35187 

35 649 

37654 

39 778 

Government-operdng 

1 

52444 

76001 

60 346 

55751 

62 567 

f 62567 

62567 

59137 

74 894 

87105 

Government- capital 

1 

59 637 

32095 

24314 

16 524 

30026i 30 026 

30026 




Interest 

DtvMends 


13672 

19 SIS 

19909 

7 069 

7 069 

7 069 

7069 

10387 

10 550 

10710 

Payment* 







* 



— 


Suppliers end employees 


(250 317) 

(262 816) 

(305591) 

(357 148) 

(360916) 

(360 918) 

(360 918) 

(399 080) 

(447 611) 

(491 466) 

Finance chaqai 


(13605) 

(17 723) 

(18622) 

(14 679) 

(21 180) 

(21 180) 


(21 539) 

(26 856) 

(27923) 

Transfers and Grants 

1 


(865) 

(1 055) 


(non 

_ (HOT) 

(HOT) 

(1197) 

(1 426) 

(1 266) 

NET CASH FROW(USED) OPERATING ACT1VIT1 

bS 

123145 

118 350 

63 370 

34 534 

5483“ 


-4?483* 

hleu 

6 452 

4933 













Receipts 












Proceeds on disposal of PPE 


633 

1301 

539 


2 500 


B 

18 039 

17 637 

18 733 



24 



2 

2 

2 

2 





! i| 

3 

3 


- 

- 





Decrease (Increase) in non-current Inveshnente 


i l 





Ji 





Payments 


1 

(122 238] j 









Capital aesste 


■KuHD 


(62158) 

(94368) 

(92 477), 

(92 477)1 

(92477) 

(110 409) 

(77 943) 

(66 733) 

NET CASH FR0M/QJ8ED) INVESTING ACTWIT1 

3 

KEi] 

■mi 

(61617) 

(61 664) 

(89 975) 

(09 976) 

(89 976) 

(91 570) 

ED] 

Wi'IiK'lll 

CASH FLOWS FROM FINANCING ACTIVITIES 












Receipt* 












Shortterm loans 


44. 

1051 

111 


_ 






Borrowing long toim/rellnancing 



- j 

- 

70 594 




63262 

43556 

37800 

Incraaee (decrease) In consumer deposlb 


672 

2030. 

1956 

210 

210 , 

210 ; 

210 

441 

463 

466 

Payment* 





| 


1 





Repayment of borrowing 

NET CASH FRO Ilf (USED) FINANCING ACT1VIT1 

E8~j 

(11 530) 
"saW 

6434 

7Bm1 

(15 739) 

fT5 87K 

(15736) 

"aijoPi 

{17421)i 

_(17 421); 

_(17 421) 

(20 513) 

■SEIl 

(25581) 

NET INCREASE! (DECREASE) IN CASH HELD 


70 066 

t QBE 

4904 | 

8061 

{2164)| 

12 7W | 

(12 723) 

12 768 | 
(12 723)1 

12769 

(32 723) 

43190 

(32 037) 


12705 

(32 312) 

Cesltfeash equivalent at fee year begin: 

2 ! 

136700 

206705- 

211776 

149 069 

219 860. 

219080 i 

219860 

167 137 

155090 

121 344 

Cash/cash equb alenb at tie year end; 

_l1 

206 765 

2117791 

219 6601 

147705 j 

117137 | 

1ST 157 j 

167137 

155 099 

121344 

61662 


Explanatory notes to Table A7: - Budgeted Cash Flow Statement 


1. The budgeted cash flow statement is the first measurement in determining if the budget is funded. 

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

3. The Municipality's cash position changes year-on-year. Cash to the amount of R187,137 million is 
expected at the end of June 2019. This amount will decrease during 2019/20 by R32.037 million. 

4. Cash and cash equivalents totals R187,137 million at the end of the 2018/19 financial year, and decreases 
to R155,099 million by 2019/20. 



[ESoEQUA MUNSMUIEjn 


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nesseaua Municipality 


£019/20 Final Annual Budget and MTREF 


tables^ 8 " ° aSh BaCked Reserves/Accumu| ated Surplus Reconciliation - (NT - supporting 


WG042 Hwmiii - Tabl> A8 Cwh bwlwd iwrv»«f«ccumulated tuiplui wconcllktten _ 

Dncrlptlaii R«l »1W1< 2DW17 2017/11 Curnnl Vo 2011/19 I Madlum Tarn Rwanu* t 

- ..... - ExpandRura Pnmaamrk 

“ *" dlhd Aud,t,d Original I Ad|ufd T' FullYHr I Pr^dK Sm | bu^Y W | B,d, rt fm 
Outcome Outcome Outeams r..^ *_a _ "_ 8 


Ift thousand 





Cash/caih equivalents atths yaw end 
OJier cumant Irw wtmerti >90 days 
Non current use* - hveetnente 


Csah and Inveetments available: 




Unspent condHonal bansfart 
Unspent borrowing 
Startutory requirements 
Ofter working capital requbementi 
Other provisions 

Long term Inveetnenta committed 
Reserves to be bached by caeMriveetoianta 
Total Application ofceeh and JnvMtinenST 


Surp3ui(ahoitftal) 


206 7851 211779 




—Budget F ore cast 1 outcome I 2019/20 | +12020/21 | +2 2021122 

147 70S I 187137 187137 187137 



** m V 2117791 fflWJ l 1870SITj 187 089 187 088 1 185 089 1 184 782 i t02 340 




■- - -- - -- i pnwj laraai Til 836 | 74H 

Explanatory notes to Table A8: ■ Cash Backed Reserves/Accumulated Surplus Reconciliation 


1 reoonoiiia,ion '* to •- ^ 

2. In essence the table evaluates the funding levels of the budget by firstly forecastino the cash and 
mvestments at year end, and secondly reconciling the available funding to the liabilities/commitments that 

3 ‘ llS- ou * come this exercise would either be a surplus or deficit. A deficit would indicate that t 

f h P p ' jfJ.°. ns ex ? eed th ® 9® sh and investments available and would be indicative of non-compliance with 
the MFMA requirements that the municipality's budget must be "funded". compliance with 

4 - 18 “ 8u ™ d ■— a ——«-* « 
5. From the table it can be seen that the 2019/20 MTREF Budget shows a surplus for each period. 

6 ' ^REF e fefun^ Uireme ^ * 86Cti0n 18 * thS MFMA> rt 080 1,6 concluded that the ® d 0Pted 2019/20 

7 flnH P fthi^ih« b f U * < l 9eWr ^jf nd P lann j ng Sidelines that informed the compilation of the 2019/20 MTREF the 
the d MFMA f h6 medlum_term framework "a® to ensur ® the budget is funded aligned to section 18 of 


(IESSEQUA f/iUNISIRML 


2019 - 05 : 


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Table A9: - Asset Management - {NT - supporting tables) 


[WCM2 Hseeagus - Ta ble AS Asset Mm 



CAPITAL EXPENDITURE 


I *“*** I ® rl " Jni1 I A4JUBt * d I FullY “r I Budget Year I Budget Year I Budget Year 
Outsema I Outooms I Budget I Budeat 1 War™* mhum ^ 1 _ 



Roadt foftsefturfum 
MmstwMarimaMtnKturrn 
fl»oWca# InfrmtnKttn 
W& Sqiply InbHbuafan 
Sanddfon tnfimtruaiun 
_SsW Waste Infntttuctun 
RaB tnfrmtnjctm 

Coeefei tnfrmtnjotm 


... „ lnfa "n* fonand Commjnhd^rAmtn^n 
lP.fr—tnis ture 
Community FaolHse 


_Bp^anrf RaoreafoniFaalltu_ 

JCemmunrty Asaeta_ 

Heritage Ajwate ^ 

_ Re werwe Gensrafrg 

„ Gmnribia 

.. Invartme nt pro perties 
QpetEbnsI Buildings 
.Housing 
Other Assets 

„ Blplegleri er CuHvdtad Asads 
SsvIUib 
Lfosnoes and Rights 

Intangible Assets 
^Computer Equipment 
Furniture «id_Otflos Equjjpmsrit^ 
w Meohlnsfy md Equipment 
TT sn sport A eeets 
Lend 

Marine and Non-btojeglotf AnlmaU 




































































Hesseoua Municipal!! 


Table A9: - Asset Management - (NT - supporting tables) ( 




. Ro*k infrmtrvctum 


_ Stem wafer /nfrawftucton^ 

flwfrteaf tafreafruc/um 
Waferjftgigfr Inflmtruotmt 
SrmHttt on infrmtruchn 


„ „ ®oW Wetta Infnttwatun 
flatf faftaehueftMi 


^Cotitot Wtoitoutun 
Infotmtthn md Communfatffefl Inftotnntum 
^ InfrMrtruofaini 

CornmunlVFjoJlUlM 
. Sport and Recreates FeelllHaa 

- * - s 

Community Asia* 


JHaiftoge Aaeati 

Revenue OanamBng 
.. Non-revenue Qonudng 

. „ Operefcnal Buldfnga 
w JHbuelng 

Biological or Cultivetad Aiiota 

Servitudes 


Uowmm and Right 
Intangible Aeeete 
.^Com^uter Equtymint_ 

, Furniture and Offlee equipment 
Meahlnery and Equipment 
».^onejMit Aie > 

. L “ n<l 

Zoo';, Marine and No n-bloleg leal An Fmala 


Roncta Inttmtmofurw 
Storm wefr Infrmtruotun 


„ Santtstfon InfrmtnKtw* 


Sadd Wtatm tnfruMtmciun 
ftatfMuetRjefure 


__ p C^W/i^ftuoh«__ 

, Jnfomwtton and Communtcftfon Infrmtryotur* 

_IInfrertruotu re 

Communty FeolHea 
Sport md Raarssbn FmolllKee 
_ JpemmunHy Asseta 
HeritageAnita ^ 

Revenue Qanamflng 

_Norwevanue Genmlng^ 

^ InvMbnant properdae 
Operatond Buldhgs 

_Housing^ 

O ther Aoaota 

. Blejegleal or Cultivated Assets 

- ^JSorvHudea, _ 

-- U 0 ** 1 ** «dRlflhb 
Intangible Ateeta 
. „ ^Computar Equipment 

Furniture and Offloa Equipment ’" 

, Msehlnery and Equipment 

_Transport Asseta 

_ Land^ 

Zeo’e^ Hint and Noirtleleflinal Animals *" 


TyALCAFjlALEXPENDlTUItl-AaeetBlaea 

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Table A9: - Asset Management - (NT - supporting tables) (Continue) 


|WCMa His—qua - Table AB hrt ft 
Dnorlptfoii 



AHET RE«artlR MJB a A AY - PPB (WDV) 


_Hoote .'dteibuebn 


Bom inter MMhuatm 


SterttoWtaffcrfum 



" IWI | | wmn | Cirrwit Termini 


Aidlted | Audited Audited I Origin f Abated 

Outeoma I On toon* Ovteoma 1 - 1 


ttlUHia^umTttii RtwHiut A ~ 


3 '^ ^ _ 

ScWMtetettaltebucftn ^ f 
__ Rii tofnttnjBttn 
CmWIa/mbMum 

,/rfbmwSan md Cotmmjr1a *to n hffnrtmetm 

lihutauctera 


Mte 

Harlte|aANftB 




„ Ijiteulfate Atite 
Cawpiiter Equteiy t _ 

* .~ Fu "!*5"". d O M«« Eqg lpmwH 

. toafclntfY ina^^pu \pmmt _ 

ireitj^wt Mm« 

Lted 



_ ®wn water tofrntructtn 
Sarftow irnminmtm 


WtvStg&f ttfmtnnhn 
<?ar Mtearruriw 
Wmtt Maaftucftn 
**i . rmijn** 

IMM .tvl*--** 

$f%r OmMHtdsdwt Mwlesi-. 
Infraatiucterf 
C<nmirt^ FtdHn ^ 

B^wtrt Haematol FkUIw 
C ommunity Anate 


v No^M^Gmjahj 
layaatei w tpcojwrttea 
OpnbnaButl^ 


OON-Alllto 

Sank** 


GoB|wterBjDljiMt(it 
fantoirn mi OflkaBqul£iiyt 
NuMaary iad Equlpm wit_ 

naaapsrtAiNti 


«*X larim yd Hon-Uo< ogled Aaiaidi 


|E!I^J.,. l M IL ljJ-ll!l =L | Jl j [ 






























































WC 042 Httsequa • Tablt AS Awrt Management 
Daacrtptlon 

R (homand 


Rrf 2015/16 2016/17 2017/18 


i 

/tatwar and upgrading of Exiting Aanttaa % of total cap* 

?■”!**£**? ®5.02?H of a aSof dapracn 

RMaaaHotPPE 'f " T 

^WJtHng and ffttf aaa% ofPPE \ 


Currant Yaar 2018/19 


- v , lv , naf nujunoo i run raar 

_Q»jggm« Outcome Outcome Budget B-U..I 


2019/20 Maciium farm Ravanua & 

Budget Yeer Bud nr Budget Yeer 

20fWM H 2920/21 +22021/22 

62.6% 

: S4.SH _ 

416% 

_ mto^ 

- IP-1* 

76.6% 

9.2% 

17% 

9.6 X 

tfOH 

13.0% 

12.0% 


T X fi la An tory notes to Tab,e M: " A® 8 ®* Management 

^ -sis ssss rx —■ ^ ^—- 


-i^SocQuA itfiiNISIRAUTi 


2019 -05^1 


Posbus29. 






Hgsseaua Municipality 


wiootQUAWUNISlFWL 

2019 -mSTjf 


2019/20 Final AlhnuaJ Bl 


OutHms On twin* 


_. 

Plpadwaferhakbriwdtog * "™ * 


ppm v afer ImUm yidOxitnatln _ 

...ifiSna h# 9 ° WlfHSH I™ __ 

vjSe ss 4 kJ 0 jisf! sSssseeSpsJ ?29 _ 

M1 „. MUmmaKi/ictt waf and Mow niMtftf 

_ 

, »wr wakr luppty (< mhaaivh* lavjjQ 

No jviMriLfpfy_ 

... 8 *j^ lMn^mmS^nk» k- nt wub-total 

1M>I numtaar of houaaholda 




Adjuatod I Full Vur 
Budgfe | Fonaart 




mjrijg njTTj^j im 


Bud|aGY H r 

taawa 


*«| 440 













Olw tajM pnvhbnjx nfoivv bofe vfl _ 

, ____„_MhhMND Janrie* Lava/and MwoaufetoM 

BuekittoM 


Oiiir Mpmhbit (< rnKawyka Iwtf) 

No bhtpnwMana 

... Bf*ow LavW tv^teM 

TotalI nuinbar of houaahoMo 








K«rwvod |aa« ftaquanty tunonsoowMk 
,, . Uabfr oommuiwl ratiaa dfng__ ^ 

ni** *mj>_ 

Q*wr nOfclih dipoid 

_Nb ntttoh SpaaH ^“ 
Total numb* of hMiaahoJda 


» UMtotum Mm Uva/ nifrfeM 


, W>brjO_kllflBrto.PT houftwld por menti} ^ 

...WiWm (too irMiwn Iwal awvlot) 

" - — 

Haatfafr/oftw Miy jpokwhpr hoadhald'ipar rnenhT 

Rutmm bamovod felaaatonaa ■ waofc} 



(I ftMftaa^pw Indent houaaheld p«r month) 

Brtfet enflia indMon awba tolndl gut hoiaohotdaji 
HMlQlVAlMr arwgy (OOkih par hnriganthouitMd par mntfi) " 
«*• * w*k ft>r IndifMii homahalda) 


Ptap*Vnfca(Rvalua«i*«Md) 

»Jr (Uetfraa parhoua ahold pormonti^ 
BanlMofi (klolkw par houtohefdpw monti) 
(t^ndair houMMdor monti} 
Bhobtal^ {few hpar houaatald par monti)" 













































































































Hesseaua Municipality 


2019/20 Fin al Annual Budget and MTREF 


Explanatory notes to Table A10: - Basic Service Delivery Measurement 

'• £!°o' “"** levels. Including backlogs (below minimum service 

level), for each of the main services. 


2 . 


provides for an average of 5 184 households between the services to be 
in 2019/20, and therefore entitled to receiving Free Basic Services. 


registered as indigent 


3. It is anticipated that these Free Basic Services will cost the municipality R23.078 million in 2019/20 in the 

tn Ut ?h7 ea ? fr8e ba ®‘ C S T /IC !f are R25 ’ 464 milllon for 2020/21 and R27.466 million in 2021/22. In addition 
1 hhL« S ? the Municipality also gives Property rates: exemptions, reductions and rebates 

adding to R8.403 million in 2019/20, R9.075 million for 2020/21 and R9.801 million for 2021/22. 



Political Oversight of the Budget Process 

? 1 a 52 l 53 ** the re . quires the Ma y° r °f the municipality to provide general political guidance in the 

2 ^rfthl ina p J? ritias that must 9 uide the Preparation of the budget. In addition, Chapter 

r B d9 -? an . d Rep °? ng Regulations states that the Mayor of the municipality must establish a 

S sStton 53 S ttTSST Pr0V,de teChn,Cal assl8tance t0 the Ma y ° r ' m discharging the responsibilities set 

m* e J^ d nS St fu erin ? . Committe ® oonsists of the Municipal Manager and senior officials of the municipality 

meeting under the chairpersonshlp of the MMC for Finance. M y 

The primary aim of the Budget Steering Committee is to ensure: 

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

• that there Is proper alignment between the policy and service delivery priorities set out in 'the 
thrmun?cipa^iV P ^ bUd96t ’ tek,n9 int ° account the need to Protect the financial sustainability of 

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

• s P endin 9 Priorities of the different municipal departments are properly evaluated and 

prioritised in the allocation of resources. r ' 


77 | Page 



i HE3SEQUA ^ftSlPALITEiT 

hli 

ivn.mvudil WW 





2.1.1 Budget Process Overview 





Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


• Revenue should be increased by at least 1-2 percentage points above the CPI rate p.a. Tariffs 
need to remain or move towards being cost reflective, and should take into account the need to 
address infrastructure backlogs. 

• The 2019/20 MTREF budget prioritizes and targets the municipality to ensure sustainable service 
lev« s. The capital budget over the MTREF period provides for the minimum resources that are 
needed for the current infrastructure and does not address any backlogs of the past This will 
result in unaffordable capital budgets. 

• The council’s goal is to keep tariff increases as low as possible. We are above the guideline as 
proposed by NT. The recommendation in the Council's Draft Financial Plan is CPI rate + 1 - 2%. 
The tariff increase for rates is 9%, for water 12%, sewerage 9%, refuse 15% and the electricity 
tariff mere se is approximately 7.0% on average. Factors such as salaries which make out a 
large component of the operating budget, increases by 7,0%, (salaries increase by 7,0% + new 
posts and notches) from the 2018/2019 adjusted budget. 

• Based on negotiations between the relevant parties on the Bargaining Council agreement, salary 
increases (excluding new posts and notches) have been calculated into this budget at a 
percentage increase of 7,0% for the 2019/20 financial year 


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

• Policy priorities and strategic objectives 

• Asset maintenance 

■ Economic climate and trends (i.e inflation, Eskom increases, household debt, migration 
patterns) 

■ Performance trends 

• Cash Flow Management Strategy 

• Debtor payment levels 

• Loan and investment possibilities 

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

• Improved and sustainable service delivery 


In addition to the above, the strategic guidance given in National Treasury’s MFMA Circulars 51 and 54 has 
been taken Into consideration in the planning and prioritisation process. 


2.1.4 Community Consultation 

A consultation process was carried out during April 2019. During this process members of the 
community were afforded the opportunity to provide inputs and comments on the draft budget 
presented to them. a 





The vision for Hessequa Municipality as set out for 2017-2022 and beyond is: 


A Caring, Serving & Growing Hessequa 

The vision aims at a sustainable condition for Hessequa by stabilizing the three pillars on which its existence 
depends. Our People, our Economy and our Environment. It promises benefits to everyone, responsibility in 
governance and leadership. The vision is supported by the following Mission Statement: 

Our mission is to be a caring, sustainable and transparent municipality. We believe In 
fa/mess, quality service delivery, productivity and use of technology to uplift all communities. 

We want all to be able to access socio-economic freedom as we live responsibly In harmony 

with the environment 

Hessequa Strategic Objectives 

As mentioned in the previous section, the vision was developed after serious consideration was given to the 
current circumstances presented to Hessequa Municipality. Analysis was done in terms of the institutional well¬ 
being to come to grips with what the municipality is facing. The financial state of the municipality was 
scrutinized, as well as the economic realities in different sectors of the economy. The well-being of our peot 
was placed under the ,, microscope , \ A valuable resource in the sustainable development in Hessequa is our 
rich bio-diverse environment. An asset, but a very fragile one, as changes in climate and extreme weather 
conditions continues to challenge management of our environment. The Hessequa Council has set the 
following five Strategic Objectives with specific impacts to be made: 

1. Good Governance & Public Participation 

2. Cost Effective Service Delivery 

3. Financial Management 

4. Social & Economic Development 

5. Environmental Management 

th< heading for this section on strategic objectives reads, these areas need to guide all planning and 
investments from the municipal budget. The feasibility of any vision is located in the change that has been 
brought about by the set objectives after focused investment, based on a plan of change. This plan should 
inevitably be the Integrated Development Plan. It is an important reminder that a plan’s credibility is located in 
the implementing ability of its objectives. “Can we achieve what we want to achieve?" should be asked If the 
answer is no to this question, a municipality is most definitely in a process of compliancy only and cannot 
claim, with any reasonable conviction, that the vision stated will become a reality. The 4 th Generation IDP of 
Hessequa Municipality departed on the principles that a vision that cannot be made a reality is not feasible 
credible or responsible towards our communities who expect an accountable government. Plainly stated a 
government which does what it says it is going to do. The following section looks at the alignment of the 
objectives conceptualized on a local level with that of National and Provincial Government 



80 | P a g e 



















Hesseaua Municipality 


2019/20 



Alignment of Priorities - National, Provincial and Local 
The Hessequa IDP process acknowledges the strategic mandate placed on government as a whole and seeks 
to align its pnnciples, strategies and targets accordingly. The strategic framework which was primarily 
considered in the development of the 3* Generation IDP was the methodology found in the national and 
provincial outcomes based approach to service delivery. 

Heaequa Munidpakty forms part of tha Western Capa and hosts several service delivery access points 

managed by other spheres of government which ranges from provincial departments, national departments 
and government funded service organizations. 

No local municipality can function in isolation from the other two spheres of government involved in its annual 
processes. Vanous platforms are maintained by the provincial sphere of government for coordination of 
oversight within local municipalities. Hessequa Municipality is committed to the development of strengthened 
service delivery through intergovernmental partnerships and continued collaboration for the good of our 
communities. Hessequa Municipality also serves as an agent for some functions allocated to provincial 

Th ® I 1 ® 8 maj ° r im P |ications on budgets and management processes that need to be well 
controlled for reporting purposes to the relevant provincial department. 

Continuous engagements based on technical factors takes place throughout the year between national 
prowncmland local spire™. of gorromment From an IDP perspective them are a fcwimportant engages 

Pro-Determined Objectives 

I"*"™,* TUT? lhe IDP and budoet, the Strategic Objectives have been broken down Into 5 

E ?£ .*? C J?“ hese are Pm-DPtemilned Objectives and creates an Integration platform 

wrth the budget structure as prescribed by mSCOA. K 

The following multi-year goals have been set in the IDP and linked to the budget in accordance to mSCOA 
requirements: 


POO# 

IDP Objective 

□ apartment 

Directorate 

Predetermined Objective 

1 

2. Cost Effective Service 
Delivery 

Housing 

Director: 

Community 

Services 

f Addressing Housing need of more 
Beneficiary Categories 

I 2 

4. Social & Economic 
Development 

Community 

Safety 

Community Safety Services 
Development 

3 

4. Social & Economic 
Development 

Social 

Development 


Social Development Strategy 
Development and Implementation 

4 

1. Good Governance & Public 
Participation 

Human 

Resource 


Personell Development and 

Improved Management 

5 

1. Good Governance & Public 
Participation 

Property 

Administration 

Director: 

Corporate 

Effective Utilisation of Municipal 
Properties 

6 

1. Good Governance & Public 
Participation 

ICT 

Services 

Systems and Governance 
improvement (ICT) 

7 

4. Social & Economic 
Development 

Libraries 


Continued Delivery of Public 

Library Service 

8 

1. Good Governance & Pubh'c 
Participation 

Town Planning 

Director: 
Development 1 

Secure and Improved Spatial 

Planning Service 


811 P a g e 



Hesseaua Municipality 


2019/20 Fi nal Annual Budget and MTRPF 


POQit 

ID P Objective 

Department 

Directorate 

Pre-Beta nnined Ohjacllve 

9 

1. Good Governance & Public 
Participation 

Building Control 

Planning 

1 

Responsive Development Planning 

10 

5. Environmental 

Management 

Environmental 

Management 

1 

Environmental Planning and 
Management 

11 

4. Social & Economic 
Development 

LED 


Implementation of Economic 
Development Strategy 

12 

3. Financial Management 

Income 


Revenue Enhancement and 
Management of Properties 

13 

3. Financial Management 

Income 

Director: 

Finance 

Affordability Review of Tariffs and 
Poor Household Support 

14 

3. Financial Management 

Supply Chain 
Management 

Efficient Procurement Processes 

15 

3. Financial Management 

CFO 


Sustainable Financial Management 

16 

2. Cost Effective Service 
Delivery 

Repairs & 
Maintenance 


Efficient Service Delivery within 
Service Standards 

17 

2. Cost Effective Service 
Delivery 

Project Planning 
& Management 


Expansion of Externally Funded 
Programmes 

16 

2. Cost Effective Service 
Delivery 

Project Planning 
& Management 

Director: 

Technical 

Development and Improvement of 
Project Planning and Management 

19 

2. Cost Effective Service 
Delivery 

Electro- 

Mechanical 

Services 

Services 

x- 

Renewable Energy Planning 

20 

2. Cost Effective Service 
Delivery 

Parks & Open 
Space 

Management 


Parks and Open Space Planning 
and Development 

21 1 

1. Good Governance & Public 
Participation 

Internal Audit 


Enhanced Assurance 

22 

- - f 

1. Good Governance & Public 
Participation 

Strategic 

Services 


Risk Mitigation Improvement 

23 

1. Good Governance & Public 
Participation 

Strategic 

Services 

Municipal 

Manager 

Integrated Planning 

24 

1. Good Governance & Public 
Participation 

Strategic 

Services 

Formalised & improved Public 
Participation 

25 

1. Good Governance & Public 
Participation 

Strategic 

Services 


Strengthened Oversight 

26 

1. Good Governance & Public 
Participation 

Strategic 

Services 


-1 

Improved Performance 


82 | Page 




Hessequa Municipality 


2019/20 Fin; 


2.2.1 District IDP Coordination 

The Garden Route District Municipality coordinates the strategic regional process and continues to facilitate 
important strategic issues on a district level through the gathering of role-players. There are also several 
technical committees in the district that creates joint planning platforms. Hessequa Municipality supports the 
processes initiated by the district municipality. 



2.2.2Provincial IDP Forum 

The provincial department of Local Government (DPLG) facilitates quarterly meetings where regulatory 
information is shared and consulted with IDP representatives from all local municipalities in the province. It 
serves as an important platform for information sharing and more specifically providing the provincial 
department with a mandate to address certain IGR issues experienced by local municipalities. These sessions 
have always proven to be helpful and supportive of local municipality’s processes 

2.2.3Provincial IDP Program 

As part of the oversight role that Provincial Treasury needs to fulfil towards local municipalities, two joint 
planning sessions is organized by DPLG. Both of these sessions aim at aligning the planning provincial 
government does in all Its departments with the realities faced on a local level. Municipalities are given the 
opportunity to communicate the issues coming from their IDP processes and all departments on a provincial 
el oommits to possible solutions. It has given local municipalities an opportunity to raise and discuss issues 
coming from our public participation processes in detail. Issues such as provincial roads maintenance, 
pedestrian safety, funding for backlogs in service delivery and many more have been raised. 

2.2.4The LGMTEC Process 

The LGMTEC process is an IGR platform where Provincial Treasury portrays their direct oversight role towards 
the municipal budget. After the adoption of Draft IDP’s and Budgets at the end of March every year, 
municipalities supply these documents to Provincial Treasury who in turn evaluate the credibility of the 
strati jic plan and the financial plan of the local municipality. Many issues concerning compliancy and financial 
sustainability are considered and debated with a set of recommendations from Provincial Treasury to the local 
municipality as an outcome." Hessequa Municipality oommits to this process and supports the oversight role of 
provincial government for transparency and accountability reasons. 



2.2.5lntegrated DEVELOPMENT Planning & Review 


wiifl lU’d DrVCI.OPMfRiT PJjMritj’li 


When the integration of processes have been dealt with, it is important not to fall into a chaotic maze o 
managing each and every little activity that the municipality is “ ~ 

already doing on a daily basis. This indirectly relates to the similar 
notion of trying to manage the performance of each and every 
person in service of the municipality through the formal 
Performance Management System. It becomes an immense task to 
manage all the information and very confusing as different 
departments have different organizational layouts where one 
person might receive instructions from two people and of a varying 
nature. Even though it is possible, it creates a problem in terms of 
the original goal when we started to “plan*. It is supposed to be 

planning of a developmental" jiature. The goal is to create a plan for “calculated changes" to the curren 

831 Page .... 







Hesseaua Municipality 


2019/20 Fin al Annual Budget and MTREF 


Status Quo . The figure above explains this logic behind the concept of planning that considers the current 
realities and creates a base line from where the implementation of change departs from, to reach a calculated 
destination of service delivery. 


Table SA4: - Reconciliation between the IDP strategic objectives and budgeted revenue - (NT - 
supporting tables) ' 

WC042 Hmaqua - Suppo rting Table SA4 Reconciliation of IDP itritgglc objective! ind 


201G/16 

vumufsi 

2016/17 

II 1 U UUUH 91 | 

2017/16 

raven ut) 

Currant Yaar 2011/19 

2019/20 Madlum Term Ravanua A 
Expenditure Framework 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Yaar 

Budgat Yaar 

Budgat Year 

Budgat Yaar 

Outcoma 

ftitcoma 

Outcoma 

Budgat 

Budgat 

Foraeaat 

2819/20 

+ 12020/21 

+2 2021/22 

457 

573 

5 225 

4 964 

4 964 j 

4964 

5 341 

5171 

5 371 

2 67S 

108642 

11226 

892 

7047 

I 

7047 

1451 

12 566 

! 21016 

' 

66 976 

72264 i 

j 

! 93 971 

i 

98 225 

98225 j 

98 225 

111 100 

119181 

12B427 

248 203 

i 


1 

255 653 

1 

296 163 

296 062 - 

i 

296 062 

306 764 

331557 

355 946 

■ 

60 592 

56 710 

51038 

51581 

i 

51 5B1 

r 

57124 j 

t 

60130 

63 900 

■ 

435014 

424790 

453*262* 

435599 1 459199 

s 

528 6071 

674962 


Strategic Objactfua 
R thouaard 


Goal 


Goal 

Coda 


Raf 


i-ENVIRONMENTAL 
MANAGEVENT 
S04 - SOC X. & ECONOMIC 
DEVELOPMENT 

S03 - FNANCIAL 

MANAGEVENT 

902 - COST EFFECT WE 

SERVICE DELIVERY 

SOI - GOOD GOVERNANCE 

A PUBLIC PARTICPATION 




Allocation! to othar priorities 


|Total Ravanua (axdu ding capital transfersand contribution!)" 


—*NT - suppordng > tables) >n bBtM9 * n the ' DP strategic objectives and budgeted operating expenditure 


201 S/16 

1 

2016/17 

2017/16 

upviucmg expenuiiurai 

CurrentYaar 2018/19 

2019/20 Madlum Tarni Ravanua A 
Expenditure Framework 

Audited 

Outcoma 

Audited 

Outcoma 

Audited 

Outcoma 

Original 

Budget 

Adjusted | 
Budgat 

Full Year 

Forecast 

Budgat Yaar 
2019/20 

Budgat Yaar 

+12020/21 

Budgat Yaar 

*9 9ID1IH 

1691 

1590 

6596 

10 091 

9963 ! 

i 

9963 

11 228 ; 

11507 

12 256 

7307 

118 515 

16392 

7731 

13 817 ‘ 
1 

13817 

1 

8 786 i 

21148 

29722 

16 962 ! 
1 

18 764 

32153 

35136 

34 205 

34205 

40872 j 

1 

42 556 

45 692 

270 740 ; 

209 731 

293 650 

359 778 

i 

359 902 j 

359 602 

369716: 

406 396 

441973 

1 

42 239 i 

l_i 

42430 

54365 

60 237 

1 

81 155 j 

61155 

66 788 1 

7104B 

73 842 



465 361 

472 975* 

1 

."478 742"t* 

476 742 

mm 

"“554656 1 

*" "M3M5" 


Strategic Objective 
R thousand 


Goal 


Coda 


1 - ENVIRONMENTAL 
MANAGEMENT 

I 

S04 - SOCK & ECONOMIC ! 
DEVELOPMENT 


903 - FNANCIAL 
MANAGEMENT 

|902- COST EFFECTIVE 
I SERVICE DELIVERY 


SOI-GOOD GOVERNANCE | 
4 PUBLIC PARTICPATION j 

_L 


AJIocrtooato other prioritise 


[Total Expenditure 


84 I Page 

































iegua Munirinalii 


iSS. t and MTRff 


^5-352?" brt ^ n ■“ IDP *** —1»*— cp.t.1 expenditure - 



; ! ‘2S3EQUA WJNj'siFAU] 

2019 - 05 -j 

Posbus2fi. R 8 wffi*-i ^ft7n 




85 | P a g e 


™“ ln Soulh A «« haw undergone radical ohangee In terms of leglsletlve requirements and 
especmlly lower oapacrty local councils have struggled to Implement the changes. Economic realities have also 
„ pr T ure °h “unorls to be mote responsible In terms of expenditure. Furthermore communities h re 
£. roWn _ t ' r ! d . 0 f .y m '! as I madB W"* h terms of planning that have been communicated with ttln 
Sc ronc^l seen where communities publicly expressed their dlssatMection with the 

in by Pro,9Ste ' Furt hermore we see how other oommunBe. are not 

ZZr I P| annln 9 processes anymore as they experience It as -useless- exercises due to Hothina 
happening after the inputs to the plans was given. ® 

Pre :° et ® rmined Objectives (PDO’s) strives to rectify this very issue. It is being requested bv 
the Auditor General of South Africa that municipalities must set their targets in their planning and be able to 
annually prove to the external auditing process how delivery was done an* progress made^onthe* obj^ Js 

obZ!rn 6& ' Thls t requ ‘ rement forces a municipality to start and be accountable to its communities Itfclces 

fLTErf T iCipa,ity and te COmmunftias ’ a " d ta ^ that « bel^etcan* 
,® ' _® h d achievable a nd implementable. No more "pies in the skies” to make use of the 

Informal figure of speech. It also forces municipalities to take stock of their capacity to Implement the chances 
promise. Uttimately . becomes e too. to m.ke ree«e«c promts u, the cZmunlTo"^^^ 

in^lrfhA 9 ^- A T"" t0 Pr0mi8e much ’ there 18 sti " a mountain of problems on the doorstep of municipalities 

2.3.1 Process Explanation 

After a set of Focus Areas have been identified, the vision is developed from it. In essence it 

■ fTi 8 summary * that what the council deems important for Strategic Change 
mstead of a completely irrational and unrealistic vision which isn’t meaningful at all 

After th Focus Areas have been Identified, each Is then broken down into Strategic 

to b m2 V< !h n6ed t0 be de,ivered d urmg Council’s term of office that is neefed 

to make the des.red Impact. This is the first set of Objectives that a municipality has direct 
control over. This means that the municipality commits to a specific set of deliverables to 
attain the change desired by the residents. 

T D ? 8 1IT b6e n developed in terms °f what Council wants to see, the officials 
“'J k braak d °" n al1 Strategic Objectives into annual Outputs that resembles the 

the Council " e8dS * * b, ° U9ht annUal,y t0 attain the objective of the 5 year term of 

Then the annual Outputs are broken down into specific Activities/Actions that need to be 
done to realize the annual Output. 

Finally of course, everything costs something and the needed resources are allocated to 
implement the actions. The resources are Human Resources, Financial Resources and 


1 . 


2 . 


3. 


4. 


5. 


86 | P a g e 









Hesseaua Municipality 


2Q19/20 Final Annual Budget and MTREF 


6. At this point the credibility of the goals is able to be tested for the first time. If any of the 
resources are not going to be available for a specific action, the plan will inevitably fail. This 
is where the balancing act between Plans and Ability to implement can be calculated in the 
measurement of Confidence. 

2.3.2 The Role of the IDP Review in Context 

It Is within this 
background, as briefly 
highlighted in the 
previous section that the 
3 rd Generation IDP 
process found its point of 
departure. 

The following diagram 
Indicates the current 
process of planning in 
many local municipalities. 

This layout of the 
budgetary cycle does 
look logical and 
systematic and it even 
includes the public's 
inputs as is required by legislation. However, there are several indirect issues that do not get 
add ssed in this , model. Indirect symptoms of this methodology that causes a municipality to 
step into an array of problematic scenarios. 

Shortages in this m odel can be summarized as follows- 

* This process clearly identifies the latent assumption that when something is in the IDP, it can be 
budgeted for. This creates the problematic scenario where every item needs to be “taken up into the 
IDP for purposes of allowing it to be budgeted for. The issue is not to get items into the IDP, but more 
of getting issues forthcoming from planning Into the budget. 

Due to the annual nature of the cycle it leaves the items from the previous year that didn’t make the 
pnorities of the previous year, to compete again against new priorities. This in effect causes some items 
to be shifted to outer years every year. It is a risk of getting used to moving certain items out of the 
annual investment and cause some items to become more and more expensive as they do need to get 
done one or other time, but the longer the wait, the larger the cost. 

‘ Another . risk that the municipality expose themselves to in this manner of going about their business 
concerning the budget process, is the competition of ad-hoc items that can cause items, which might 
come from proper sectoral or master planning documentation, to be left out as it might not seem as an 
immediate issue that needs attention. The fact is actually that municipalities invest a large amount of 
funds on master planning documentation and when the identified issues is raised, it can get lost in the 
emotion of issues that might not be as important in terms of sustainable service delivery. 

Due to the annual nature of the cycle it brings the municipality In a short term planning culture. Pro¬ 
active investment is sacrificed for quick solutions. 


Annual Municipal Plonning Cycle 



SB arifeMto 


87 | P a g e 





;33EQUA>SUN 


Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


- Even in the midst of municipalities strengthening their capacity in terms of implementation, very little of 
operational information is used to plan ahead. Thus a proper evaluative process is difficult as Impact on 
development cannot be measured with no multi-year planning that is in place. 

- The final issue that needs to be considered is that in this methodology, no resident or investor can get a 
clear perspective about what the municipality is going to do in the medium term. Except for the interest 
groups in general, the public would not experience a council that is accountable to what they say they 
are going to do. In terms of Good Governance as a strategic objective, this process fails the public as 
inputs given only creates expectations in the hearts of the residents and when the following year little 
was implemented, the question is asked by the public why they are giving inputs at all as it is not being 
implemented. Obviously every input can’t be satisfied, but at least in a different model people can see 
what the council commits themselves to over a period of time. 

The following diagram displays a medium term planning cycle, integrating the different processes as legislation 
intended it to be. 

First of all the process begins with a 3- 
5 year plan about what every line 
function is going to do strategically 
concerning the identified issues 
pertaining to their field of responsibility. 

This allows a multi-year budget to be 
conceptualized. When this is done the 
annual targets are set and transferred 
into the SDBIP process that serves the 
platform for Departmental Performance 
Management that compares 
predetermined objectives to 

implementation reports. This serves as 
a source of performance information 
that guides the municipal performance 
evaluation, which in turn compares the 
outcomes of implementation to the 
developmental need that is experienced by the average resident walking the streets of the municipal area. 

The performance reports generated by the performance management system bi-annually informs the 
adjustment budget after the second quarter of the financial year and at the end of the financial year it serves as 
departure point for the annual review of the I DP. This would then allow the review to actually fulfil its role of 
highlighting the differences between predetermined objectives and implementation. 

While this methodology seems Ideal, it has very sensitive demands. 

* First of all this model can only work where all the municipal line functions have a clear understanding 
about their challenges and have developed reachable targets for impacting their challenges within the 
municipal financial capabilities. 

* A high risk for this model is that the municipal “culture'' of how business is done, disrupts the flow of 
information from one process to the other 

* It also takes for granted that each process is perfectly aligned to the other and know exactly what it can 
ask of the previous and what is expected by the next in terms of information. 

881 






i Po8bus 29 

The following table provides the main measurable performance objectives the municip 
achieve this financial year. 


Table SA7 - Measurable performance objectives - (NT - supporting tables) 

jWCMl Hessequa - Supporting Table 6A7 NoaaupMblo performance objective * | _ ' ,' " " . 

I MOM I as WIT I aoinil I Current Yaar 2S1W1B 


Oeeerl pUon Unit of m eaaurem ant 

Qfflea «f At Uuuidpaf buigv 

B0« Expenditure of he Approved Capital budget % of budget apart 
fcr Iha Muilapdity 

90% cf l» Approved Opanbonal Budget apont % of opartounfe budget 
of Iha Municpafly_ apanl 


Pnvltbn of alectncfy k> tenflal propertiee 
«wiacted to Iha miailolpd intaafructm® network 
far both prepaid and endft Nechcd matarmg 


Prav eion of walar to raaldenM pmparttaa 
connacfed to fat munfaiprt mfrttknctura natoork 
far bate piapald and eradA matonng 

Prwknn ofratoee ramavat and aolld waafe 
dlapoid far raatoanlri account heUois 

Pirn iifen of ■arMcnfaawanga lonrnaato 
naUenlal account hotdan 


The paraantogt of ngfefand md it account 
hddara (poorhousatwki*} wAh aoaeaa to faa 
basic saw Iota 

Davatopmanlofa htopUtod IDP Process Plui 

SiAsmiaaton of Rnfe PP by May 2017 

Submission of Risk Action Plan to Risk 
Management Committee 

Corporate Ma iw gsmut 
; WtaotorOorpyatoMawagsratet^^ 
Piraotw Corporate Management 
Tho parcanfego of poopla Item amploy mam 
aquiV toigat grave employed m the tone 
higheitlevite of menagvnent r eompfcnco 
w Ah tie Mumcipdtee Amurt Eaphymut 

Equlfr import _ 

Raw** afRfek Register of Ekraefante and 
Subrnnsfan to Chief Rbk Oltaar 

Human ftaaouroas _ 

Maintain an average vacancy ratooflaea tian 
10% budgeted staff cstebBehraont 


Percentage of farmal 
k netoanM propartai 
connacted to lia 
munfcipfe ataatnete 
_ intastruckn neftork 
Parcantaga cf form to 
k raistenW propertae 

_ nnmTopsI wrier nataroik 
Pwcantega of roaidenul 
pnparaaa biad tor ratocr 
_ nmoval 

Paroantaga of midandfe 
preportss failed tor 
sandMonf sewerage 
_ aarv jobs 
Number of ngletored 
mdlgant houaaholde 

Oomplatod Pracaaa plan 
_ iiAuntted 

" IDP Submltod to Carnal 
_ fay May 2017 
" Risk Acton Plan 
BLimited to Risk 
Management CommUas 


%omptoyadof.tegK 
greupa acoordng to 
Annual Dapartmantof 
Labour Employ man! 
Equfy report 
Rev rawed nak nagwtar 
sUbmltod to Chief Rwk 


Property Admlnlsirafeon 
05% Expandtune of Approved budget far 
mfentonuca of Municipal Prapartaa 

ateugair Bwttcag "" 

Rtviann ofDttegabon Register by Bepfambar 

Rov ulon of MuntofMl coda 

Pufateo toatotoio 
Ravraw ofCllerl Servos Blaodarda 


Library len ds is _ 

Held Lfanvy ex fattens in Haaaaquqa 


Avaraga % vsemy rate 
teas then 10% raportod 
Qufeterly to PortMio 
__ commltea 

" Hof approvtd budgat 
. a P*nt 

Rav law ad mumeykal 

Dfeagaaon Rapstor 
_ ufam bad 
Rovmwsd Mumqpri 
_ Coda sitomlfed 

Raviawad Client Samoa 
Btondinte ■ limited to 
Portoho CommAtea 


I Number of ex Mora par 


BB% Sporting of Munlcprt Replace mart fund *ercentege of Mifuovte 
Raptecomant Grant apont 


I Development of'B«* of 8 


89 | P a g e 


Completed Book of 
ifendanto ■ Approved by 
Counte 


mine 

301*17 

Audited 

Outaomo 

Audited 

Outaomo 


..... 

No KPI Bat 

60 3% 

NoKFI Bst 

81 8% 

100 0% 

100.0% 

1000% 

514% 

100 0% 

81 5% 

1000% 

K5% 

100.0% 

80 3% 

1 

No KPI Sal 

1 

1 

No KPI Sat 

No KPI 8e> 

r 

Hfii 

75 0% 

00 5% 

No KPI Sal 

No KPI Sat 

7 7% 

81% 

980% 

SI 1% 

100 

1 00 

1 00 

too 

108 

1 00 

No KPI Bot 

aoeooo 

86 7% 

86 0% 

NoKPI Sat 

No KPI Set 


Original 

Budget 

Adjuatad j 
Buduat | 

ibmmmrnm 



80,0% 

90 0% 

80 0% 

90.0% 

100 0% 

90 0% 

100 0% 

80.0% 

1«0% 

BO.0% 

100 0% 

80 0% 

800% 

1 

1 

800% 

1 

1 

1 

iBBH 

1 

Hii 

080% 

1 

88 0% 

1 

t 10 0% 

10 0% 

90.0% 

80 0% 

1 00 

1 00 

100 

100 

1 00 

1 00 

872 00 

872 00 

95.0% 

86 0% 


Madlum Item Raven ua a 
endHura Framework 
' Budget Year Budgat Yaw 
■H W2<tf21 *2 amju 


bo 0 % mm 

80 0% 80,0% 

100 0 % 100 0 % 

100 . 0 % 100 0 % 

100 0 % 1000 % 

100 0% 10010% 

90.0% B00% 

1 1 

1 1 

1 1 


500% 080% 


100 too 100 100 


1010% 1Q0H 


90 0% 00.0% 


1 00 100 


100 100 


i oo J i.oa 


780 00 | 760,00 
85 0% ! 05 0% 


1 00 I 1 oo 








Table SA7 • Measurable performance objectives - (NT - supporting tables) • CONTINUE 










































































































^qugMunicjpalltv ---,- 2Q19/20 Final Annual Budget and MTREF 

Table SA7 ■ Measurable performance objectives - (NT - supporting tables) ■ CONTINUE 


WCOCHwi wuii ■ Supporting Tibh 8A7 llwwirMblt ntrfomwict obl»cttv«> 


DeeorlpUen 

Unit efmeeiu rent ent 

IB 

Ml 1/17 

2017/11 

Currant Year 201 Via 

Sivaol 

Blum Term Revenue A 
Hidlbire Framauwrk 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outeome 

Orlglnd 

Budget 

Adjusted 

Budget 

Full Year 
Foreeiet 

Budget Year 
201VW 

Budget Year 
+1M2Q/11 

Budget Year 
*2 mvn 

Geeimunlhf Sendees - 











Biff Hw Community tinien 











a e mnsa. — 1 











Ravwv of Rfifc Retfstar of DmcfanSb and 
Submiiiion b Chief Risk Ofcar 

Reviewed nit renter 
submitted to Chief Risk 
Ollcar 

NoKPISat 



1 

1 

1 

1 

1 

1 

' Human tetfementi 











Rwbw Its housing Purina in Cdrtonlon 
wifi he Department of him an SeBMiente 

Houtong pipeline 
iwlowed and submitted 
to Portfedo CommUee 

100 

100 

100 

100 

100 

100 

100 

1.00 

100 

Scheduled odisoh progrunmes far d towns ta 
updbs housing wataig Mats 

Number of outeechea 
conducted 

NoKPISat 

700 

BOO 

6.00 

e.00 

600 

6.00 

6.W 

BW 












Comm unity PaMtopmem 











hipfarientBdon of Social dwteopment n If stem 

Nwnbarofnuavee 

conducted 

1B0D 

24 00 

21 W 

12.00 

12.00 

12.00 

12X0 

12.00 

1200 

Imphmanteton d Sport Development NMvm 

Number ofFrterivse 
conducted 

12.00 

1200 

19,00 

10W 

10t00 

1000 

1000 

10LW 

10.00 

hptament fie Thusong Oirteech Propwnme 

Nunberrf motile 
outeech mutest 
conduotod 

BOO 

500 

BOO 

6 W 

600 

B00 

600 

6.00 

6 W 

frotecden Benia* 











Reodre a perform once of not less fin am far 
lie farmri Prwmoal Audi* on fie loenalbg 
Agency Services 

Average H achmed m 
Audi 

93:0014 

05.23* 

BIBO* 

WOO* 

BO 00* 

BO.00% 

woo* 

WOO* 

MOD* 

Conduct mtsgratad v stale check pom ti 

Nwnlrer of checkpoints 
perquvter 

21 

9.00 

32 

12 

12 

12 

12 

12 

12 

Establishment of Fire Flghf ng Service by fie 
procurement of Equipment by BOH of fie capital 
budget spent far 2017/18. 

teofCiptal budged far 
EqubmentfarFIn 

FltfAig San reel spend 

NoKPISat 

13* 

7707* 

B0 00* 

90 00* 

woo* 

B000K 

WOO* 

WW* 













911 P a g e 























Hesseaua Municipality 


2019/20 Final Annual 



Budget and MTREF 



The following table sets out the municipalities main performance objectives and benchmarks for 
the 2019/20 MTREF. 


Table SA8: - Performance indicators and benchmarks - (NT - supporting tables) 






















h essgqua Municipality - 2019/20 Final Annual B uH gP t ,nH mt.p. 

2-4.1 Borrowing Management 

Capital expenditure in local government can be funded by capital grants, own-source 
revenue and long term borrowing. The ability of a municipality to raise long term 
borrowing is largely dependent on its credit worthiness and financial position. As with 
all other municipalities, Hessequa Municipality's borrowing strategy is primarily 
informed by the affordability of debt repayments. The structure of the Municipality’s 
debt pon >lio is dominated by annuity loans. The following financial performance 
indicators have formed part of the compilation of the 2019/20 MTREF: 

• Capital charges to operating expenditure are a measure of the cost of borrowing in 
relation to the operating expenditure. It can be seen that the cost of borrowing has 
gradually increased from 7.4% in 2015/16 to 8.5% in the 2019/20 financial year 
For the two outer years of the 2019/20 MTREF it steadily increases. (This includes 
the rewinding of interest of Landfill Sites) 

Requirements of the B orrowing Funds and Reserves Policy 

In terms of th Borrowing Funds and Reserves Policy interest and redemption paid 
to Total Expenditure not to exceed 8%. Total Long-term Debt to Total Operating 
Revenue (excluding conditional grants and transfers) not to exceed 35% 

• Borrowing funding of own capital expenditure measures the degree to which own 
capital expenditure (excluding grants and contributions) has been funded by way 
of borrowing. The average over MTREF is 71.9%. 

2.4.2 Liguiditv 

• Current ratio is a measure of the current assets divided by the current liabilities and 
as a benchmark the Municipality has set a limit of 1.5:1, the ratio over the MTREF 
period is above this benchmark. 

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

is 1,8, For the firat V 0ar * 2019/20 MTREF period the ratio 

is 1.6,1.3 in 2020/21 and 0.9 in 2021/22. 


2-4.3 Revenue Management 

As part of the financial sustainability strategy, an aggressive revenue management 
framework has been implemented to increase cash inflow, not only from current 
billings but also from debtors that are in arrears in excess of 90 days. The intention of 
the strategy is to streamline the revenue value chain by ensuring accurate billing 
customer service, credit control and debt collection. 


2.4.4 


Creditors Management 

The Municipality has managed to ensure that creditors are settled within the legislated 
30 days of invoice. 


93 | P a g e 





Posbus2j 


116670 





Hessequa Municipality_ 2019/20 Final Annual Budget and MTREF 

2.4.5 Other Indicators 

■ The electricity distribution losses have been managed constantly between 9% - 
10% over the past years and kept at 9% over the 2019/20 MTREF period. The 
initiatives to ensure these targets are achieved include managing illegal 
connections and theft of electricity by rolling out smart metering systems, including 
prepaid meters. 

• The water distribution losses have gradually decreased from 29% in 2017/18 to 
12% over the 2019/20 MTREF period. The municipality is committed to its 
initiatives that monitor these losses and to prevent these losses. 

* Employee costs as a percentage of operating revenue is 38.7% for 2019/20. (exd. 
councillors) 

■ Repairs and maintenance as percentage of operating revenue is 17.3% in 2019/20 
and decrease to 16.9% in 2020/21. 



The following information is provided as requested in terms of Circular 58 from National 
Treasury. 


Name of the Water Service Authority in the area and the name of the Water Service 
Provider, and who actually manages the provision of drinking water and waste water 
management (If sourced). 

Hessequa Municipality is the Water Service Authority who manages the provision of drinking 
Water and Waste water. Hessequa Municipality is also the Water Service Provider for all the ten 
towns in the Hessequa Municipal area. Water is purchased from Overberg Water board for 
Heidelberg, Slangrivier and Witsand, and water is purchased from the Korrentepoort Water 
board for Riversdale. The other towns Albertinia; Still Bay; Gouritsmond; Vermaaklikheid; 
Melkhoutfontein; Jongensfontein receives water from various boreholes; fountains and overland 
flow. 


Hessequa Municipality manages the water and waste water quality In terms of 
compliance to the relevant legislation. Regular tests are carried out on the plants as part 
of the dally operational routines. Tests are also carried monthly by an external services 
provider. The results of these tests are reported to the Technical Services Committse of 
Council on a monthly basis. 

The towns where these processes are performed is listed below: 

• Albertinia 

• Gouritsmond 


941 P a g e 


; '.£o3cQon L.JiMISlFhLiTciT 

2318,-Q5- 

Posbus 29. RjyqrfSal 6870 








2019/20 Final Annual Budget and MTREF 


Hesseaua Municipality 

• Still Bay 

• Melkhoutfontein 

• Jongensfontein 

• Riversdale 

• Garcia 

• Heidelberg 

• Slangrivier 

• Wrtsand 

The Water Safety Plan will be revised In the 19/20 financial year. 

The water and sewage master plans will be revised during 2019. 

The responsibility of the municipality Is to ensure that: 

1. Personnel appointed meet the requirements as stipulated by the Department of Water 
Affairs (process controllers, supervisors) with regards to the level of education. 

2. Adequate funding is provided for maintenance with regards to calibration of bulk meters 
and purchasing of operational monitoring equipment. 

3. Funding is provided for the maintenance and rehabilitation of infrastructure. 

A Desalination Plant was completed at Witsand by the end of 2018. The plant uses solar 
generation and could be operated in hybrid mode because it Is also connected to the electrical 
ower grid. Water of excellent quality is provided to the Witsand community from this plant. The 
result is also an improvement of the water quality because it is mixed with the water supplied 
from the Overtoerg Water Board and boreholes. 

Loctel staff was t ined in the operation of the plant. Provision is made on the operational budget 
for the maintenance of the plant. a 



'..-SiscQiJA JiMiSiFAL! i ci , . 

2019 


Posbus29. 


95 | Page 








Budgets are prepared in accordance with approved policies A budoet-ralated nnli™ i* Q 

are"ne!^ by ^ annUal budget °f the municipality. TheSe policies 

i . ^ v ® * management and the achievement of priorities and strateaic 

websitt C ° mmUnrty ' A " the mentl ° ned polides are mailable on ?he 




M^iyjTjriiir-i *iiinhrg 


to **"«**'*>'*++ objectives In temts of the 

2 - Credit Contr ol and Debt Collection Policy & Bv-l «w 

dafauHL^ V M n ak« C ° l,et ^° n Jf r9 f t and outlines how the municipality will act against 
1 8 80 8 P 6C ^ I0S the framework for providing relief from the burden of rates 
and tariffs to registered or otherwise identified indigents. 

3. Indigent Policy 

Ensures that the subsidy scheme for indigent households forms part of the financ 

4 - ErindPles and Policy on Tariffs a nd Free Baste Service Poll™ a R y .i 

Prescribe uniform tariff structures on the levying of fees for municipal services. 

Sa l lowing win review*! |ntsm..v h. nen- ^ m, ^ , m . nH —„ — 

Cash Mana gement and Investment Pniky 

itek SlSi'ttSZ 6 !^ 1 " 1 ! 9 the 0 E Umal retum 0,1 lnve8tm<!rt3 ' without Incurring undue 
raMUrog them penode when cash revenues are not needed for capital or operational 

This poliqr was reviewed on 3 April 2019 by Council f.e transfer of cash from pay 
points to the bank. 1 

Insert the following „ n(S er point 4. Banking of rgceiBtS •- 

4.3 The transfer of cash from all municipal pay points for depositing into the 
municipal bank account be handled by security firms. The security firm is 

a " monie8 from munidpai »■>** *«zs 


2. Asset Management Pniirw 

Includes depreciation norms and maintenance requirements. 

3. Virement Policy 

The policy is aimed at virement of Councils budget during the year. 


96 I P a g e 


i^SSSEQUAKUNISIPAUT 














4. 


The Liquidity Policy sets out the minimum risk management measures that Hessequa 
Municipality has to implement and adhere to in order to ensure that its current and future 
liquidity position is managed in a prudent manner. 

Borrowing Funds & Reserve Pniiny 

The documented Borrowing, Funds and Reserves Policy, sets out the framework for the 
prudent use of Borrowing, Funds and Reserves available to Hessequa Municipality. 

Supply Chain Management Policy 

Demand, acquisition, disposal and logistics around the procurement of goods and 
services. 


2.7.1 


2.7.2 


2.7.3 


2.7.4 


2.7.5 


2.7.6 


Salaries and Allowances 


Based on the Bargaining Council agreement, salary increases (excluding new posts and 

on!in,o« J iave I 9 ® 011 calculated into thls budget at a percentage increase of 6.5% for the 
2019/20 financial year. 

Bulk Purchases 

Electricity 

Electricity tariffs of Eskom will increase by 15.63% as from 1 July 2019 

interest Rates for bo rrowing and investment of funds 

The interest rates used over the 2019/2020 MTREF period were 10,5%, 11% and 11.5% 
accordingly. 

The expected interest rate for investments were calculated at approximately 7 5 - 8 5 % 
per annum. 7 ’ 

Collection Rate 

It is assumed that the collection rate will be between 95% and 98%. The collection rate 
used over the MTREF period is 98.0%. (Rates and service charges) 

Grants 

National and Provincial grants as per Division of Revenue Act (DORA) which has 
been included in the budget will be received during 2019/20 financial year. 

Credit Rating 

The credit rating of the Municipality is BBB+. This rating was determined in the financial 
plan of the municipality conducted by INCA 


/’■■-SotCiuA i. (NISfFALiltjX 

2019 - 05 -^^ 

. Posbus 29, Rlvaisaal 887n 


97 | P ^ g e 








Hgjjgqua Municipality___ 2019/20 Final Annual Budget and MTREF 



2.8.1 Medium-term outlook: operating revenue 

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


Breakdown of the operating revenue over the medium-term 


WC042 Hwitqua ■ Table A1 Budgot Suirmary 


Description 

2015/16 

2016/17 

2017/11 


Currant Yssr 2011/19 


2019/20 Nlsdlum Tsrm Ravsnus a 
E^wdlturs Framsmrk . 

R thousands 

Audited 

Outoomo 

Audited 

Outooms 

Audited 

Outooms 

Original 

Budgst 

Adjusted 

Budgrt 

Full Yaw 
Foment 

Ptw-audlt 

outooms 

Budgst Yasr 
2010/20 

Budgst Yaar 
+1 2020/21 

Budgst Yssr 
422021/22 


am 

70968 

— 78149 

64 865 

84B66 

84 865 

64 665 

94 667 

101003 

109 828 

^ Ssrvlos ohagsi 

. 173 * 13 . 

188 058^ 

291489 

213928 

213 928 

213 928 

233 S44 

246124 

264681 

266 086 

kivestnantiwms 

J26J7 


17969 

5 628 

6528 

5526 

5J28^ 

8 668 

6 723 

6720 

Tmsfcn rscpplssd - operriond 

52392 

62 841 

60346 

65 751 

62 368 

62 368 

82 366 

59137 

74 694 

67106 

Otar own revenue 

66221 

94403 

66852 

03 210 

93 210 

03210 

93 210 

74174 

78415 

82914 

Total Rsvanu* fsuHudlng imp ltd transfers and 

369 608 

435 084 

424 704 

463282 

469809 

469 800 

479614 

481 770 

628 607 

574 662 

contributions) 











The following graph is a breakdown of the operational revenue per main category for the 
2019/20 financial year. {As per above table) 

Budget year 2019/20 



CTHBUJWn 




1916670 


INVESTMENT 

REVENUE 

2 % 


Tariff setting plays a major role In ensuring desired levels of revenue. The Municipality derives 
most of its operational revenue from the provision of goods and services such as water, 
electricity, sanitation and solid waste removal. Property rates, operating and capital grants from 


98 | P ^ g e 
















































Hesseqga Mumgipalltv --- 2019/20 Final Annual Budget and MTRFF 

organs of stata, and other minor charges (such as building plan fees, licenses and permits etc.) 
contribute to the total revenue budget. 

The table below provides detailed investment information and investment particulars bv 
maturity. 1 

Table SA15: - Detail Investment Information - (NT supporting tables) 

WC042 Hemqm ■ Supporting Tibia SA15 liWMtmmt pntlcutan b 


7AMJ 




SsGUrifw - Nafaial Govemmmt 
Listed Corporate Bonds 
Opposite - Bank 

Deposits - Pubic hvsstmwitCommlidonen 
Deposit * Corporation far Pubk Deposit 
Bankers Acceptance Certifcotes 
Negotiable Csrtftratei of Deposit- Banks 
Gumntesd Endowment Pokks (elnktag) 
RepimshMs Agreements - Barks 
Municipal Bonds 

Municipality eub-totd 
BiBBae 

Securities - Nation* Government 
Listed Corporate Bonds 
Depealte-Bank 

Daposlli - Pubic hvsstnentCommlsa[onan 
Depaslte - Corpontfon far Pubic Deposlte 
Bankers Acceptenos CerHoake 
Negofabb Cartikates dt Deposit - Banks 
Guaranteed Endowment Pekin (linking) 
Repurchase Apumenta-Sanka 

Entities subtotal 


iContoldated tot*: 

2.8.2 Medium-term Outlook: Capital Revenue 

The following table is a breakdown of the funding composition of the 2019/20 Medium-term 
capital program. 

WC042 Haiieque - Supporting Tibia Afi Budge ted Cipltd Expenditure by Vote, Standar d Classification raid Funding 8ouree 


2015/11 M16/17 2017/11 


Audited 

Outcome 


Current ftw 201 If 1> 


Prwudlt Budget Year I Budget Yew | Budget Yew 
outcome 201U10 | +1202«1 | 42 2021/31 



Borrowfng _ 

Internally generated tends 


l Tot* Capital Fundi 



— 1 ^ T ■ ' ■ *iW7j 133 1 M, i iw m | «<frj \ sb STM 110 409 1 77948 [ M7MI 

Borrowing is a significant funding source for the capital programme over the 2019/20 MTREF 
Budget, i.e 60.1%, 55.9% and 55.0% of the total funding of the capital budget for each of the 
respective financial years of the MTREF. 


99 | P a g e 


SoEWWNSIRN^ 

2015 -E- M# 


Fosbua 29. RNwsdal 6670 
















































-3So 2UA i\ilii\iSIFALi7ti 


2019 - 05 - 



Posbus 29. Rhai 






































tgssfjmMunldpelity_ 2019/20 Final Annual Budget anr 

Table SA18 - Capital transfers and grant receipts - (NT - supporting tables) 


WC042 Hwitqm ■ Supporting Table 8A1B Trantfws and grant maloti 


Rthousand 

D ascription 


RECBPT8: 

- 


s .. . 

- - 

~. - 


Ref 2015/16 



Currant Year 2011/19 


N attend Government 
Local Government EqLdtafals Share 
F hence Management 
Muiloipd Systems tnprov ament 
Dme/MFg Admin Stef Member 
Integrated Naional QeoHloafon Programme 
Epwpheenfve 

Mlg 5% Admfmnateahon Porlon Of Mlg 
VdOi National CaraMond Opening <3 rente 
Vat On Opermg Qrante Nakond 
Flood Dteaater Relief (National) 

Mb Opening Grant Ex pendfcrre 
Flood Qaaater - Project Manager- Admh 
Expanded Pubfa Worke Programme btegratod Gran 
Local Gwammar* Fmanolal Management Grant (So 
Munfoeul htaatuotare Grant I 




Audited Audited Original Adjueted Full Year Budget Yo* Budget Year Budget Year 
Outcome Ouloome Budget Budget Foreoert 2019/20 +1 2020/21 422021/21 



jml 

... 

m- _41M0_ 

_ 44734 | 

_ss.?k] 

f_443M 

_ jfljwj 

lLs«[T 

54728 

31 520! 

ussi | 

37497 

40 885 

40 8861 

40B66 

44 063 

47489! 

51 230 

1450 1 

1 475 ! 

1 590 

1550 

1 536 i 

i 1536 

1560 

1 550 i 

1550 

930 | 

i 








3 000 | 

3000; 

1000 

900 

1 

i 

294 

264 

_ 

800 1 

1200 

1 000 ] 

1008 i 

1 033 

1 028 I 

1028 

1 028 

1108 

1 

! 





873 | 

673 

873 

883 

™i 

746 


| Prod n dal Govarnmant 17 309 | 

Houemg ^ 9 667, 

SportAnd Reoreolon 

Flood Dteaater Prov Road Mont Cd», LIifirtas,Land,Wtater r Kao, Dm e 

Flood Dteaater Fund 

PiAlo Tranaportand System* 

Dept Of Transport-Main Road Maintenance 96 j 

Cdw Support Grant 

Library Extended Stef Lav da Grant {Cond Herd Granl) j 

Library Personnel ExpandiU* Grant (Vutimble MumofAn) I 
Thueong Cents ■ 

Finaroid Managsmont * j 

Pgwe 1 Riah Management/htemal Audit j 

Pgwo Paribrmanoe Mrniagoment System j 

WOn Operafng Grante Provincial 
Pgwo Tmtff Studies hveUgrion 

Pfl»o Capacity BulUhg Grant 300 j 

Pfl*a. Gnentag Dwetop. Grant Tun Op Qs Brak I 

(keeneet Mumoipabty Companion Ehvteonmentel A 130 j 

FInanolaJ Management Support (WC_FMG8G) 353 j 

Otier Capaoity Buldhg Grant j 

Thueong S^port Grant 100 

Ptpvo Graduate internship QrantfGqnolty Building 2B7 j 

Drought Supped grant j 

Fire Servhra Capacity Building Grant ' 

Community Devebpmmtttbrkers 
Eteotnal Master Plan 
Capaoity Building 
Hauling 

LAnvy Sorvlao 6 497 

P1AI0 Transport _ 1 

ReptaDemait Funding 

Munlogial Syetome hnprov ament - } 

Othe Capaoity Buikfeig ^ 1 

i 

District Miinfdpolity; - I 


37 990 1 MW 
28 119 [ 3 587 


9 958 1 18 908 | 16M l I 

750 6 655 i B Bwl 


300 

120! 

’ 240 


1 

i 

50 

130 

130 ! 

- 

353 

- 1 

330 

100 

j 


297 

60 i 

69 

J 

1 1000 j 

7500 

1 

1200 ! 
i 


1407 

- j 

7010 ! 

1 

7864 


8 725 10 840 10 202 


























: [li&SEQUA [viUNISIFAUTBT 

;i 

2019 -05- 


Hesseaua Municipality_2019/20 Final Annuaf-BufiffiBaafl 


Table SA18 - Capital transfers and grant receipts — (NT - supporting tables) - contini 

WCQ42 Hmiqui ■ Supporting Tabta 8A18 Tnmtfwi and grant recelpti \ \ * 



DaicrlpSon 


I 

2016/11 

R thou land 




Audited 

Outcome 


CurTWlt Ymt 2018/19 




Budget Year Budget Year I Budget Year 
2018/20 +1 2020/21 | +2 2021/22 


Other grant provident 
SeWD/tatto Rdhff Trade Unton | 

Btaktoti Engtnoamg, Cortinuout CdTud Project* 
Ottm Ask 
Othoriotto 

tfertfape Wotttm Capo. 

Arbot Cdy Amrd (Total) 

Aftfcana canto 

MbangCompm** j 

UmpocBM 1 


Totel Operating Ttanehri and Grant* 


National Government: 

Mumotpd Inteetucture Grant (Mlg) 

Pubk TraneportAnd Syetome 
fnte(pated Nakonel Eleotlballon Programme 
Municipal htaefruetifi Grant (Mlg) 

Flood Oleaster 

Dept Of WieralAnd Energy (Dme) 

Region^ Bufc htastuotie 
Expoided Pldbbo WotU Pro^em - Nat Grant 
Dept Water Mere 
Mmcjpal Sy atoms tnprov ament 
Ftaanoiei Management Grant 
OOiar capital tanetera/grente [Ineertdeco] 
Munlogial Chaster Grant [aobecUe SB] 


Prevlnofd Government: 

CXeaekr and Emergency Services 
Financial Management 
Houaing 

fianan Seflement Development 
Ldireriee Anhlvea end Museum* 

Lbranee. Ardavee and Mueeuma 
Library Senrioe 

MunapiJSyifcmi Improvement 
Otier 

(free neat Mu nWpal^ Companion 
Environmental Mtas & PNamiig 
FinanalaF Man age men! Support (WC_FMG8G) 
District Municipality: 


Other grant provider!; 

Agony Prancmt tfo Development 

Foreign Govwrwwnf and /nfomefbna/ Organ* 

kBntngComponloe 

PmtfoEntorpnoe* 


Total Capital franehra and Grante 


TOTAL RECEIPTS OF TRANSFERS & GRANTS 



78 210 1 01 840 | SBTS1 ( 82 888 1 82 HI I 88 137 1 74 804 1 I710S 













































































Hesseaua Municipality _ 

2.8.3 Cash Flow Management 


2019/20 Final Annual Budget and MTREF 


Table A7: - Budget cash flow statement (NT - supporting tables) 


WC042 Hewwua - Table A7 Budgeted C 

•eh 

Flows 

DeserlpHon 

Raf 

291W19 

2011/17 

2917/11 


Current Year 2011/10 


2919/20 Medium Ibmi Revenue 1 










Expenditure Framework 

R thousand 


Audited 

Audited 

Audited 

Original 

Adjueted 

Full Year 

PtMUdlt 

Budget Year 

Budget Year 

Budget Year 



Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecut 

outcome 

2019/20 

+12829/21 

422021/21 

CASH FLOW FROM OPERATING ACTIVITIES 












Racripte 












Proper* rates 


66375 

70167 

78166 

83167 

33167 

83187 

83167 

92784 

89859 

107 632 

Ssrvlos ohargn 


116664 

168482 

194572 

209680 

209660 

209850 

209 650 

240222 

259584 

280364 

Otiar revenue 


30 365 

33764 

33231 

35167 

36187 

36187 

35167 

35 649 

37854 

38 778 

Government-operating 

1 

52444 

76 SOI 

60 346 

66 751 

rise? 

52 567 

^557 

69 137 

74 684 

87105 

Government- oapftoj 

1 

69637 

32 896 

24 314 

16524 

30 026 

30 026 

30026 

16 243 

28 694 

16039 

kite real 


13 672 

19616 

19 909 

7069 

7 069 

7 069 

7089 

10 387 

10 559 

10710 

0b Hands 





_ 

_ 

_ 





Payments 












Suppliers and employ see 


(250 317) 

(282 BIB] 

(306691) 

(357148) 

(360918) 

(360 918) 

(380 916) 

(399 080) 

(447611) 

(491 486) 

Fhenoa chargee 


(13 685) 

(17 723) 

(IB 822) 

(14 67B) 

(211W) 

(21 180) 

(21 180) 

(21539] 

(26866) 

(27923) 

Transfers raid Grand 

u 


m\ 

(1 065) 

. . w 

(1 107) 

(1 107) 

. <1 W> 

(1 187) 

(1426) 

(1266) 


m 

123146 

iiffiSa 

33 378 

14 634 

TT4I3" 

‘ "fl fif 

" 4444 *" 


35146 

20 972 

CABH FLOWS FROM INVESTING ACTIVITIES 












Receipts 












Proceeds on depcul of PPE 


633 

1301 

539 

2 600 

2 500 

2 500 

2500 

2 696 

2 643 

2884 



241 

j 


2 

2 

2 i 

i 2 





e 

I 1 

3 

3 

_ 










1 


_ 

! 1 






Payments 


i 

I 



1 

| 







<*6694)1 

L--1122 2M)1 

(*2158) 

(94 386) 

(92 477) 

(92477) 

(92477) 

(110409) 

JfHnSS! 

(667331 

1 rHftvni i ^ 1311^1 ^ iii : 

IS 


weeb 

WM1LW 

HMiiL*] 

■e um 


■e 1 • 



I '1' 

CASH FLOWS FROM FINANCING ACTIVITIES 

■ 











Receipts 


44^ 










Short term loom 



106 

111 

_ 







Bomwfcig long brm/ralnandng 


43 000 


_ 

70 894 

30 000 

30000 

30 000 

63 282 


37 BOO 

horamt (decneee) In oowuiner depoelli 


672 

2 030 

1968 

210 

210 

210 

210 

441 

mtm 

488 

Psyment* 





■ 








■ 

(11 639) 

5 434 

(15 739) 

(16 738) 

„ (17421) 

(17421) 

(17421) 


'SHSIwl! 

(25561) 

> > I t- l i I a 1 ; i: m : ht:h t ;s i 


31171 

7 m 

Ml MS 

HIM] 

_lira 

'12789 

12 799" 


■EHH 


NET INCREASE/ (DECREASE) IN CASH HELD 

I 

79063 

4004 


mm 


(3272!) 

(32 723) 

(32 037) 

(20296) 

(M3M) 

Caehfouh equNf ate la at tie yew begin: 

D 

131700! 

nn 


WfH 


219 388 

219 SH 

117117 

19SMB 

134 844 

Cath/ouh aqub stents at tie y aer end: 


201705 

HI 770 

»ftF!T 

mm 

mUM 

117 in 

117137 

199019 

134144 

182 4U 


Cash and cash equivalents totals R155,099 million as at the end of the 2019/20 financial year 
and decrease to the amount of R134,844 million in 2020/21. 


jftESSECtUA MUNISIFAUTEIT 

2019-05 -l y 

Partus 29. Rh*ar^mflfl 7 g 

























































hiesseqgg Municipality - 2019/20 Final Annual Budget and MTREF 

2.8.4 Cash Backed Reserves/Accumulated Surplus 
Reconciliation 


Table A8 - Cash backed reserves/accumulated surplus reconciliation - (NT- supporting 
tables) 


Daaeilpdon 

R thousand 

Ref 

201911 

201917 

2017710 

Currant Year 201018 

201920 Medium Ttffli Revenue 1 

Exp an <1 tura Franework 

Audited 

Outcome 

fpil 

Audited 

Outcome 

Original 

Budgat 

Adluated 

Budgat 

Full Yaar 
Forecast 

Preaudit 

outcome 

Budget Year 
201920 

Budgat Year 
+1202921 

Budget Ynr 
+22011122 

Cwh/oaah aqiiv stank at flis y aar and 

Olhar curort Iwettni anti >80 day a 

Non ounntaaasto -liwaabnank 

I 

206 785 
0 

211779 

m 

219880 

(0) 

147706 
(1 000) 

167137 

(48) 

157137 

m 


166 099 
« 

13* 844 

m 

102 482 
<1«3 


Unspsnt aondfond transfeix 
Una pant borrow hjj 
ShMciy mqiAamanfc 
Ottwr woikhig c«p)U raqubmank 
Other pjwbkjm 

Long km hvaatncnk oommlted 

Raaarvea to be backed by oeah/lrwaaln_ 

fotd Application of aaah and Invaatm enter 


@9867 


21261 


10102 | 13187 


12 680 


4146 


30337 


22876| 


22 875 



17174 j 22 816 | 28200 

- I - i 


Unspent conditional transfers (grants) are automatically assumed to be an obligation as 
the municipality has received government transfers in advance of meeting the 
conditions. Ordinarily, 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. 


• There is no unspent borrowing from the previous financial years. 

The main purpose of other working capital is to ensure that sufficient funds are available 
to meet obligations as they fall due. 

It can be concluded that the Municipality has a surplus in 2019/20 MTREF as there is a gradual 
decrease over the MTREF period. 

2.8.5 Funding compliance measurement 


Table SA10: - Funding compliance measurement - (NT - supporting tables) 


WC042 Heiseque Supportbia 16b It 8A10 Fundlna 

uteutirai 

nail 


DtHitetton 




111917 

2017716 


Current Y 

ar 101910 


201920 Median Turn Ravwiua 1 
Expenditure Fran Mart 


ana «n 

1 

Audited 

Audited 

Audited 

Otlglad 


FCII Yaar 

ftHiidk 

1 Badflat Yaar 

Budget Yaar 

I 

| 




Qulufi# 

Outoomt 

Outran* 

Budget 

■ IT™ B 

Pereai * 

eatesma 

■nm 

41 2026121 


Cedi/eaih eqrirsknk eth yaa aid - ROOD 

Cadi +taveetnaik it the yr and lets sppkteona ■ RDOO 
Crehye*ehdkian|i|y mptoy H/iuppfar peymenta 
kfFMEMoR «olu*fl ^ealdon cteak W000 
tevtachaprev kohanoa-niaoreCPKtagitexelu** 
Gaah % of Ratopayar 1 Oka manua 

Otatteipdhnant « panes si ■ % of total falsfek maait 
C^Aal pay mink % of oaplW expaidtare 

Borowfng reaaipto % of aapltd akpaidtis (axel tantea) 
Gwnk % ef Gwt kdalakdlguated doorion 

Cured aouwmsr dabbi It ahaiga - herfdaa] 

Lonfl tarn raeab taka % ohanga ■ lm(dia) 
RAMKofPmpatt Plait & Egdpmart 

Asset mew si % el capital budgat 

1*(1Jh 

I9l]fa 
18(1)0 
18(1) 
18(1 W2] 
191)A(2) 
18(1) A P) 
1SfT)a;19 
18(1)e 
18(1)« 
18(1). 
18(1)a 

mm 

mm 

1 

2 

3 

4 

6 

8 

7 

8 

0 

10 

11 

12 

13 

; 14 

208 789 

128 717 

9L1 

57888 

NA 

610% 

tt.0% 

90.0% 

70.1% 

NA 
! NA. 

14% 

77 M 

211779 

177332 

7.3 

130 806 

2.8% 

811% 

113% 

B9.3H 

10% 

24.3% 

(17.0%) 

8l4% 

01.4% 

210860 

203094 

TjO 

92 463 

1.8% 

67.0% 

113% 

90j8% 

10% 

13% 

(22.1%) 

10% 

117% 

147706 

116361 

19 
18 036 

10% 

812% 

110% 

HL0% 

841% 

(110%) 

p.2%) 

10% 

10% 

187 137 

184114 

17 

30388 

d0%) 

84.2% 

110% 

100.0% 

48j0% 

<2.4% 

10% 

0.2% 

5,4% 

187137 

184114 

17 
30 388 
(10%) 
642% 

110% 

1010% 

410% 

10% 

0.CK 

9.2% 

5.4% 

167137 
161 B34 

17 

60004 

0J% 

812% 

117% 

1017% 

017% 

0.0% 

0.0% 

111% 

10% 

169000 

137826 

48 

831 

7.7% 

810% 

112% 

100.0% 

67.2% 

10% 

<10%) 

12% 

12% 

116% 

121344 

111038 

12 
(10 657) 
11% 

617% 

11.7% 

100,0% 

814% 

0.0% 

1.4% 

0.0% 

9.7% 

7.7% 

68882 

74140 

11 
(12 884) 
10% 

MM 

11 M 

1010% 

71.7% 

10% 

14% 

10% 

16% 

7.0% 


104 | p a g e 



iSSSequa i 

2019 -E$ 


I Posbus 29, Riferedal 6870 



































































TakU CA4A. e JU - ■ W V ■ ■ V B l_J II II H vB ■ v UD ITOi 1 I 

: Ex P endlt ‘ Jre on transfers and grant programmes - (NT - supporting tables) 

WM41 HwwaiM ■ lllMarth. T.hl. m. c-...---- ", ~ ..... ..V. - _ * ' 





Looel Gov amm ant Eqdtafafc Stov 
Fmniftf Mansgamanl 
Umlcipd Syetuni Improvement 
ftne / MJg A*mn Stef Munbv 
***** Nefend EbcMoalen fto*wwna 
^wp hoiMvt 

Mig Bit Mmnlnafrflton Porton Of Hlg I I 

Vat On Netmri CondBonal Opening Grand I 

VSt On Opwafag Grand NeSond ""”l ' 

Flood Ofeaator Raflof(N«iend) ™' [ 

Utg Opening Ore* E* pandtira 
Flood Dsaefcr - Prafeot Manager Mnln 
BcpmMRil^Mta^J^^n»hbg«MOrw| 79! 

Ued Om onvnent FhwieralM enegamant OrsdJSohediia SB) 

Hunloipal MaOuefan Grant P" I f 

i 

Prewhialil Government “ irnr 

H»uang 9 067 ) 

Sport And Roomaion 

FbodtXmtor, Pm Road, Mam, Cdw, UOnri^Lmd.Waer foe, Etna 
Flood Eftaaakr Fund j 

Pubfo Trstaport «id SyiSma J 

Dept Of Trena port- Man Road Hepnaiu gg I 

Cdw SLpport Grant 

Lteny Eabndad ftttf Lev* Grant (Condfcnel Grraii) * 

Uirny Pommel Ex pond tire Grant (Wdiaralft Uimiepdtfae) I 

HiuiongCorde ["”"1 E j 

Financial Management I 

PBwc Aisle Management/ btamal Auat ** ** J 

Pgwo Peribrmenoe Management Syalem 
Vet On Opwatig Grant Provnofd : , 

Ppse Tariff Bbuotjrf hveelgaton ~ " j 

Pgwo CepeclV Buldhg Grant ™ m \ 

Pftwo GmenaigJtodop Grant Tim Op Da BnkJ ] 

GraeneatMumogulty Campanon ewraimantdA 195 

Financial M mgamant Support {WC_FMQU3) [ " si 7 I 

Ofiar Gaped* MUng Grant 

Thuaong Support Grant "™ 1 

Pgwo GradjatantomahlpGrandCipaol^ Bitting 

Oougit airport Gant 

Fine Sarvsa Cfemci* BuUtig Grant 

Commune Development Wbrtera 

anhed Meats'Plen ' ' 

Cpped* Btttfhg 


Uirray Service 
Pufeft Transport 
Roptaoemant Fravfng 
Muntapel Syasmi knprnvefnant 
Oft* Capacity Btddhg 

Dhtrlot Munldpalty: 


Ott ar grant prwrldara: 

$**OkmfrrRtmtt Tie* Unfen 

Buimm fitguamw CorHtnuou* CiOur*/-Pwfict* 

Otto tot* 

OthwLatto 

Vantage WaatantCppa 
MorMyAMitffTbf^ 

MManaeanto ~ J 

MWW Compawaa ‘"I 

(topaodbd 


™ «P«dlng anpandltun of iftnafcn raid 


















































Table SA 20: - Reconciliation between of transfers, grant receipts and unspent funds — 
(NT - supporting tables) 



WC042 Hwiequi ■ Supporting Table SA20 Reconciliation of tnnefari, grant receipts and unipant fund* 


Daaorlpflan 

i thousand 


201 S/16 


2016/17 


2017/16 


Currant Year 201V19 


2019/20 Medium Term Revenue 6 
Expenditure Framework 


Audited 

Outcome 


Audited 

Outcome 


Adjusted 

Budflrt 


Full Yer Budget Year 
Force act 2010/20 


Budget Year 
♦1 2020/21 


Budget Year 
42 2021/22 


NMional Government: 

Balance unspent at beghm^g of tie year 
Current year receipts 

Conditioni met - transferred to revenue 
Condtona •tllltobomet-tanifHredto 
Provincial Government 
Balance unspent at betfmtag of fie year 

Currant yew receipts 

Condltlona met ■ trereferred to revenue 
Condlone eflll to be met- franafcmd to KatoBVa 
District MunldpdHy: 

Balance unspent dt beaming of fie yew 
Current yew race I pto 

Co nd Wo ns met ■ tranafsrred to revenue 
Condbns al to be mat-franshmd to labMc 
Oth ar grant provldere: 

Balance unspent at beglnnhg of he yew 
Current yew nodpto 

Condition* met - traneferred to revenue 
Com— mis a- to be met- frwwhrred to lattKee! 


| Total operating trsnefsr» end grants'^?! 


National Government: 

Batone unapent at beghnhg of tie yew 
CuTantyaarracafcto 

Condi done mat - transferred to revenue 
Contfone sfl to be met- tandtored to RdUlt 
Provincial Government: 

Balance unapent at banning of lie yew 
Civnnt year roup* 

Condition* mat -tranaferrad to revenue 
Condition* eflltobemet-tanekrradto 
Dletrfot Municipality: 

Bdsncc import at beaming of tie yaw 
Currant year receipts 

Condition■ met - transferred to revenue 
CondMone atID to be met- faneferred to lab—i 
Other grent provider* 

B atone* impart at beginning of fie yew 
Current yew receipt! 

CondWone met ■ tranaferrad to revenue 
Com-ona rill to be met - fanahirad to lablHei 


Total wpltal tranefera and grwita revenue 


iltd tranafera and granto - CTBM 


TOTAL TR AH 8FER8 AND GRANTS REVENUE 


» 371 


1 OOQ 


1055 














































Audit'd Audit'd Audited 

Outcome I Oirtoom* Outaomt 



Currant Yw 1011/19 


2010/20 Mfdlum Tmui Rwonu* A 
Exptfidltur# Fromowork 


Budgte Ymt | Budgol Yiir Budgot Y*«r 
+1 2020/21 +2 2021/22 



am 

>51) 

11.0% 

T.0% 





f Total Pmut MunldpMlly 


TOTAL SALARY, ALLOWANCES A BENEFITS 


% Inarm* 


TOTAL MANAGERS AND STAFF 


in «i) 

110% 

1 ST in 

157181 

ITT 143 

11 *% 

174410 

17)241 

171240 

1I45I4 


I ESI 


174410 

17)248 

10.1% 
















































































































Hesseaua Municipality _ 2019/20 Final Annual Budget and MTREF 

Table SA23: - Salaries, allowances and benefits (political office bearers/counclllors/ 
senior managers) - (NT - supporting tables) 



WC042 Hwwqua ■ Supporting Table SA23 Salarlw, alio wan cat & b«wflt» (political office baarera/counclllotifwnlor managwa) 


Councillors 


ExecuSve Mayor 
Deputy Executive Mayor 
Execulve Committee 
Total for all otter councilors 


Municipal Manager {MM} 

Chief Finance Olfeer 

SM COM 

SM COR 

SMD01 

SMD02 

SM 003 

SMD04 


1 659 656 
1450 074 
1 443 622 
1 450 073 


|ifef of each office/ with packages >= santor manager 


[Total Senior Managers of the Municipality 


Lfetaach member of board by daelpnaton 


Total for municipal entltlee 


TOTAL COST OF COUNCILLOR, DIRECTOR end 


EXECUTIVE REMUNERATION 


6119656 

1 045279 

649 961 

1 075 952 











































Hesseaua Municipality_ : _ 2019/20 Final Annual Budget and MTREF 



HESSEQUA MUNICIPALITY 

HESSEQUA MUNICIPALITY 

__New Posts 2019/20 


POSTS PER DIRECTORATE 

Grade 

REQUEST TO FUND (These are the posts that 
the Directorates request to be additionally 
funded for 19/2Q) 

CORPORATE MANAGEMENT 


394030.00 

| COORDINATOR PROPERTY MANAGEMENT 


K114 

T10 

394030.00 

FINANCIAL SERVICES 


895817.00 

CLERK PROPERTY RATES & TAXES 



F048 

T6 

242803.00 

CLERK TENDER MANAGEMENT 



F076 

T6 

278864.00 

PRINCIPAL CLERK BUDG ET & FINANCIAL REPORTS 


F051 

T10 

374150.00 

TECHNICAL SERVICES 


1670488.00 

ACCESS CONTROLLER 



T456 

T4 

170130.00 

T457 

T4 

170130.00 

ELECTRICIAN 



T468 

T10 

566173.00 

FOREMAN SOUD WASTE, FACILITIES & AMENITIES 


T399 

no 

406335.00 

GENERAL ASSISTANT 



T26S 

T5 

192697.00 

SMALL PLANT OPERATOR 



T320 

T4 

165023.00 

Coucil General 


390000.00 

Mayor (Comm. Officer} 

Contract 

195000.00 

Speaker (PA) 

Contract 

195000.00 

Grand Total 


3350335.00 


U9 j Page 


>;= ksIuua ttUM8fHUisr.'( 


“ans-G- 



Posbus 29. RfeMj&l 667D 




























































Empty* r*M onto 
. Rwiuiniaa of eoundton 
Dabt bipfkiMrt ■ 
CtapMdUM & «m<( bnprinart 

■lie pwehiMi „ 
OhtrmthrMa 
CentaoM hiv lata 
TranttnudfiMd* 
OlMTMpandhn 
LonandtpnalofPPE 
Tbtd bpandtun 


VUrplll^DiffBR} 

Ttanrtn and tMii - tap*! (manta? 

(NnkiwJ / Pro ha HI mi DUfaq 
Tiwiitai id tityfi* - wpM (nwmtay 
ifcite*) {Ntfcfld f Piwbiold Dapartiwital 
Agtndn, Hau n hcHi. N^p^tkMlkitona, 
Prh* Entaprit*. ftHfc C«poratait, Hghtr 
EAcifemlhinilMa) 



EES 


110 | Page 



1MW7 

(iotm}| 

(MWU 

(««*| 

| n* 074)| 

P«7)| 

(11*12) 

| (117*7} 



4W 

1010 

TOO 

»2 

nos; 

1930 

770 

000 

BOO 










1 

— 

, - .T. 

—- - -j- 

**... 



- 



- 


lot ar 

i 

P4M)| 

Pin* 

(12103} 

(117W}^ 

(7OT)J 

(1184* 

fllMT) 

(4 on) 


i 



_J 







MilmlM II I1EESM I IIMil||Hjggg«rrT 


I} ]E 33 EGUA MISIPALIT£tT 1 


20 ® -m-iy 

Posbus 29. RWroal 6670 









































































































































Hesseoua Municipality 


. 2019/20 Final Annual Budaet and MTHEF 


Table 8A27: -Budgeted monthly revenue and expenditure (standard classification) - (NT - supporting ^t) 

















































































Table 8A29: ■ Budgeted monthly capital expenditure (standard classification) - (NT - aupportlng tables) 

















































Table SA30: - Budgeted monthly cash flow - (NT - supporting tables) 



a as y p a g a 






















































External mochanlam 

Y nl 
Mths 

Period of 
agreement 1. 

Service provided 

Expiry date of 
service delivery 
agreement or 

Monetary 
value of 
agreement 2. 

Name of organisation 


Number 


contract 

Rthouund 

Wtarking On Fire 

Yre 

3 

Fire Brigade Services 

'0612018 TO 31/03/zd 

2610 

Manque Waste 

Yre 

3 

Refuse Recycling 

'09/2017 TO 30/06/2C 

922 

SYNTELL (PTY) LTD 

Yre 

4 

ITHE PROVISION OF TRAFFIC LAWENFORCEMI 

'07/2018 TO 3Q/06/2C 

1/09/2016 - 30/06/201 

2 060 

JIRAH CONSTRUCTION CC 

Yre 

3 

Cteanlg of Stormwater pipes 

303 

KONICA MINOLTA SOUTH AFRICA 

Yre 

3 

SUPPLY AND INSTALLATION OF PHOTO COPIEF 

i- New expiry date: 

601 

VOX Telecommunications (PTY) Ltd 

Yre 

3 

Telecommunication system 

1/07/2016 - 30/06/201! 

1442 

IGNITE ADVISORY SERVICES 

Yre 

3 1 

PROVISION OF AN ELECTRONIC INFORMATION 

'12/2017 TO 30/11/2lj 
1/07/2017-30/06/2011 

330 

ITRON METERING SOLUTIONS SOUTH AFRICA 

Yre 

3 i 

Tf€ IMPLEMENTATION OF PREPAID ELECTRICI 

571 

ROUTEMASTER 

Yre 

i 

SUPPLY AND DELIVERY OF HARDWARE AND SOFTWARE FOR CONV 

140 

DDP VALUERS 

BUSINESS CONNEXION (VENUS) 

Yre 

Yre 

7 i 

i 

Tf€ COMPILATION OF GENERAL VALUATION R 
FINANCIAL SOFTWARE MAINTENANCE 

new completion date) 
i 

2 000 

875 

Mubesko Africa (PV) LU/ Moore Stephans MO Ihc 

Yre 

3 

PROVISIONING OF ACCOUNTING SERVICES FC 

10/2016 TO 3QK>6/2<| 

560 

Stophaan & Moore 

Yre 

3 1 

COMPILATION OF ANNUAL FINANCIAL STATEM 

10/2018 TO 30/06/20 

500 

CAB HOLDINGS (PTY) LTD 

Yre 

3 ! 

i 

CAB HOLDINGS (PTY) LTD 

07/2018 TO 30/06/2(2 

826 

PAYDAY SOFTWARE SYSTEMS (PTY) LTD 

Yre 

3 

RENDERING OF PORSONNEL PAYDAY SOFTWA 

07/2016 TO 30/06/2d 

213 

INCA 

Yre 

1 | 
! 

Financial Plan 

30 June 2020 j 
( 

750 


























The following three tables present details of the municipality’s capital expenditure programme, 
firstly on new assets, then the renewal of assets and finally on the repair and maintenance of 
assets. 


Table SA 34a: - Capital expenditure on new assets by asset class - (NT - supporting 
tables) 

WC043 Hast equa-Supporting Table SAMa CaplVsl expendltimion nw assets hveaerta".. . . . .. 


Dssarlptlon 



Current Year HI I/It 


201 W20 Medium Tarm Rsvmui A 
expenditure Framework 


Audited Audited Audited Original I Adjusted Full Yeer Budget Yev Budget Year Budget Yev 
Outeome Outeome Outoome Budnet t Budaat Famuit anerse +1 satant *a an mi» 








































































Hesseaua Municipality _ 2019/20 Final Annual Budget and MTREF 

Table SA 34a: - Capital expenditure on new assets by asset class - (NT - supporting 
tables) - CONTINUE 


.WC042 Heaaequa - Supporting Table SA34e Capital expenditure on new aevete by meet date 


Commuity Faollfles 
Hah 


CMftl* 

Crtc/wt 

CIMotfCm Gantna 
FMAnbulma Station* 


CamatariaalCnmaoria 

ram 

Pmka 

StOa 

Abdtoln 

Airport* 

Taxt Rarki/Bua Tbnntab 
Cf&alfyara* 


Sport and Recreation FocIHaa 
Indoor FaoNtfaa # 

Outdoor FrcAMm 
Capita Spam 


Menu m enli 
Hrtoria BuUIngt 


Walks oT Art 
Coniirvaflon Atom 
O far Heritage 


Revenue Oanenrihg 
ImpmadPnpaity 
UnfafHwed Property 


NotHWMua Ganarafeig 
Impnvad Property 
Urtimprovad Propatty 


Operational BuUIng* 
Uwkdpal Qtfku 
ParfEnqulryPdnt* 
SuffAy titan Qflfcet 
Workt tnp * __ 
Yantii 
Stom 

Capita Spam 











































Hesseaua Municipality _ 2019/20 Final Annual Budget and MTREF 

Table SA 34a: - Capital expenditure on new assets by asset class - {NT - supporting 
tables) - CONTINUE 



} iH&SEQUA iliUNISlFAUTft 


2019 - 05 - 


P08bus29.RK 



119 | p a g c 










































Hesseaua Municipality _ 

Table SA34b: - Capital expenditure on the renewal 
(NT supporting tables) 


_ 2019/20 Final Annual Budget and MTRFF 

of existing assets by asset class - 


WCM2 HMMqu. -Supporting T .bl* SA34b Cialtil wpwdltHW on'th. r»™.l _. 


Deeerlpdon 


Current Year mini 


Original 

Budget 


Full Veer 
Fences! 


Expenditure Frei 


Budget Year Budget Year f Budget Year 
201 W10 *180W/21 


Roads htaatniebna 


^ ftoed Wruofiffee 
Road Fumflwe ^ 


itaTB wato tntatoture 
Ste m t watarConvey a na e ^ 


BecWcajhtartuclura 
Rower Hants 


_HV Swffort*® SfWton ^ 


, HY™! £** tf * t fon l C or xfe o ftirs 
SjAslartwis^ _ 

„ Sfsffant^J^~ 

MViWwarts^ 

LVAMwcrti .. 


a CapltalJ3pvm~ 

Mwlnjckre 
Dents and Make 


v fiwtfl Sfstton* 

Meter TteatmerdWorte 


DietrOufon 

i> +..|HJ= ■’ 11 Ti I ■! 


_C^afJ§panj* 
Sanltatan jntsst 
Pump Station 


WmtaWatjr 
QutiW Sewers 


-Wft?"_ 

Bold Week htsefruclure 


W»d« Protmtlny Feotttfet 
IjftsteDng-pffPqWs ' ~ *" 
Wssfe^epMon F«^ju 
fiMMMQr ^anaratita Fecitffes 
ip Csptfa/ Sgerea^^ 
Rdhteslruetjre^ 

Resume 


Res Fwrffwe 


Stem? water Conveyance 


MV Sutatatfens 
LVAMimNu 
c*6af Spans 
Cosstal htaatuobr* 
Send Pump? 


GepStiSgane 


ft tonn aUo n andl Cw^Ladoafcn 
Date Canties 


JCoreLajran _ 
DktritutfaiLayan 
CapKIBpam' 

120 | P a g e 


10 446 
10 466 


I 5060 


- I 


66 624 
66 624 


6 744 | 


7 770 
7 770 


_ I 

J f 


_ I 

-I 




827 

627 


- I 


- l 


200 

160 


180 

160 


-I 































Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 


Table SA34b: - Capital expenditure on the renewal of existing assets by asset class — 
(NT supporting tables) 


WC042 H—tqui - Supporting Tibli SAMb C»pluil txpiijiurt on th> ruiewil of txirtng iwti by tim'd m 


Comma* FmIIMm 


Cmntm 


Ctiehae 


CSnh*/Can Cantma 
FJnfAnbdanoe Station 
natkig Station 


C mat artaa/Gnmatoria 


Parka 

PubH Sptet 
Natum Rnarvaa 
PuMc AtMm PocMa* 


^ TaKlRantofBn ^ 

Sport «id Ramadan 
tabor FadMba 
Outdoor FtsMIm 
GapkMSpam 


Monumanto 


VtorkadArt^ 
Canaan afonAraaa 
OhwKaritaga 


_Rtv«nu« Gflnarafnj _ 
tmprcvad Propart y 
" OnbnptXMd Pmparty 
Noiwavanirt Ganaralng 

^Jmprovtd Proparty _ 

Unlmpmvad Property 


Opartfeni BUUIngt 
Ktunidpal QITiii^ 
Poy/Enpdry Poitdt^ 

Workahoga __ 

Stont 
Laboratories 
TMdttgCaatna 
UmriKturingPtmd 


CspMS pv* 

Houohg __ __ 

Staff Homing 

|_ Soa W Mouatoq 

Capitol Spin* 

1211 Page 


znsfii 


2019/17 


2 576 


2 m\ 


184 


2477 

2179 

299 


Cuirait Yur 2016/19 


Orifllnd I Adjuatad 


180 


ioo! 


j 

i 

4032 j 

2 042! 

1990 I 

i 


3906 

1918 

1990 


3908 

1918 

1990 


2011/20 Madlum Twin Ravariuai 
Expand Run Framamrit 


Budgat Yaar 


6120 


Budgat Yair 
■H2O20J21 


1 


~T 


MM 


Budgat Yaar 
*2 2921/22 


100 ? 


180 


3 300 


SOTO | 5150 

710 ! 1020 i 1 300 

4900 ; 4130] 2 000 

i 


- i 


i 



m -o f 

poaMsfLS; 











Table SA34b: - Capital expenditure on the renewal of existing assets by asset class - 
(NT supporting tables) 


WC042 Hwiequi ■ Supporting Table SA34b Capital axpendlture on the renewal of wilting mm ta by awrt claw 


201 w 20 Medium Twin Revenue ft 
Expenditure Framework 





Renew# of firfetfng Aeeste w % of Mat oapax 
Renew# ofExtating Peseta et % otdopraon" 


BIB3S 

112 m 

10 430 







0.0% 

Hint 

01.4% 

mo% 

1B.7X 

. 34.7% 


5013 

11 570 

5 WO 

5430 









5.4% 

13.9% 

10.5% 

33.3% 

7.7% 

10.0% 

7.0% 

14.2% 



122 | P a g e 




















































_ folds Jiftas^bra_ 

Road* ^ 

Road Stnnttn* 

_ RoadFu m ^oa _ 

___ , CqpjM Bp*]—. 

Worm wate r htaafcuctv* 

_ Drt/fl *B* _ 

_ Stem w^ Conv^wwa _____ 
^^ArrwHJBTfon_ 

SaoHaal htnfruckn 
ftwirPtetfi 

WVJftrt*Wtote__ 

_HVSw#oi^»tefan^_ 

WV TtmamigMlon Canduata n 

__ MV Sidtteflbw_ 

* ..JfVjSjiifcN^aftjfttan*_ 

wywteteflrtt_ 

LVWatwortj 
Cqpffaf $pwaa 

Wrt r ^pp ly tetM tyolura __ 

™. Pi?! 4 •El w***_ 

ffmnnti 

——?i!f^E!S_ 

______ __Water Jteate^JMoriti ___ 

^BuftUflftn 

JWM/ftuttan 

_ DRUfMlmPoM* _ 

_WVStetate_ 

_ Capital Spna __ 

Banltelan hiiiOuote ra ___ 

. 1 
_ 

Watte Water Tterimanf Wort* 
Outfit Sawan 

_ GajXI 8puna _ 

Solid Waate teMuobra 
LteidWM w,/ 1 _Z1 
Waite TtoMfwrStlhna 
^_^___W«tfo Arrow itopFacdWai 

Waite Oop-off Mi 
Watte Stpantffen FmMm 
BmMatty Qananiio fi FmMim , 
CapHl Spans ______ 

RtIMnfriMiiuclura. . 

_____ fftefUwi__ 

p-,.p?j£Pi7 i !iSfJSppv. m , 

Fumffum 

Di#Ni# Gritacttart 
Stem water Canvayanoa 
Atte nua ti on ^ 

UVttoMWm a_ 

_LVMafnm*i _____ 

C^w^aw_ 

JCohW htaalruclute 
Sand Pump 


7 ess | 7 m I 


Amtmnti 

_ftOBIMld M 

_____ Cdpfttf Spirt__ 

^MtarrnaAar and CoT imunfcialon htaalrucbra 
Dd>C wtei 
_CoteL«tete 
Dkiributian L^yan 
Spans 


320 i 320 


1 340 I 1 340 

i 

400 j 400 


3 717 3 717 


21 484 J 21 484 


8832 | 8«2 

14 003 • 14 063 


11 000 | 0 801 

11 000 ! 6 001 


3 340 ; 2 088 


2070 ] 2 300 I 


2 070 i 2 300) 


28 818 | 16140 1 


2 880 | 1 708 | 

22 008! 13 344 


-i &5SECj 0 a fTji iiolPALilH 

m -05^ : 

, P08teJ829/Rtaj^|flS7B 


123 I P a g e 






































Currant YuirMllfW 


_2019/20 Final Annual Budeet and MTREF 


Table SA34e: - Capital Expenditure on the upgrading of existing assets by asset class - 
(NT- supporting tables) - CONTINUE 

WCM2 Haiaaqua - Supporting Tabla SAM* Capital axpandltura on tha upgrading of existing asaata by aasat data 


Description M 

Rthauuna.i I I *"*«*" I *“ dlw I 

I Outcome Outcome [ Outcome Budget 


Canniiiily FadHei 
Cenfme 


CMi/Cn Canfrec 
Fin/Ambulance SMfant 


TMfingSfeftow 


Mjmumv 



Thoetna 


_ 

CemaiwWCramatoria 

Mb* 

Pariia 


^ ftifcfc Open Space 


Natan AaMrwc 


PubteAbluthnFacm* 


Umkata 


StA 




^ Airport s 


Tkxl RankafBua Termtafe 


Capital Spam 


Sport and Rsoraakn FadHei 


Indoor FacfflfJea 


OufttarFMflNu 


CapMSpam 
















































esseaua Municipality_ 2019/20 Final Annual Budget and MTREF 


Table SA34e: - Table SA34e: - Capital Expenditure on the upgrading of existing assets 
by asset class - (NT - supporting tables) - CONTINUE 




125 | P a g e 




















































Hesseaua Municipality_2019/20 Final Annual Budget and MTREF 


Table SA34c: > Repairs and maintenance expenditure by asset class - (NT - supporting 
tables) 



Roads jirftastructan_ 

_ftM dja ^ 

Rottt Stntetu nt _ 

Roud FunAun ^ 

M| C ^WflpSff t 

- y sjsr htii fcuclu ie.. 

___ pn biayt C aBaotf on ^ 

ste m w tteir Cemmysncs _ 

^ __ 

JHsrtteid jnAvInjcfen 

PawrPbnt * 

HV SubttetbnM _ 

_ HV Swkobfng Btigan ^ 

H V TJamimiM fen^ C cwduefws __ 

_ Ml/ MteMgBaton_ 

WMJwn*i _ 

LVNtfwartt 


1 B 41 18 412 I 


CefSeiSpene 
AMsr Bufjjg JrAnMtrucAn^ 
Dans aid WsAi 


^Rsssnwfts 

HMirDHtownl Worts 

AifcMaht 

jmwmm 

DftWbwftet AMs 
r PR V Baton 
CepSeiJEpene 
BinHan Infrastructure 
Pump Stethn 
Rsflbiditoi 

Warts HMsr Tlsstmsflt Worts 
Ort/alT Aswan 
Twtmmim ^ 

Gep&wlSfmms 

Bdjd Wetafrr frsi Siiglurs _ 

_ ( 

.Wife Tttnsftr Baton _ _ 

Apossijhjj Feortif ^ 

Waits Drop-off Point* _ 

Waifs Sgawlfaft _ 

Bscfri rity flam tor FacBW ss 

_Spare*_ 

Ra n Infra structu re_. 

mi Raff Bra twss ^ 

ffaB Fumfr as 

_ OfrtMjp Csisoto^ __ 

Wo rm water CamngwMS 
_ fllsnuatoi ^ 

^«ya*staton... 

_ LVftowwkM _ 

Capital Spwm _ 

Coast* Msstructm 


_Rswrtmsrtt 

a Captts/Sjparei 

Irribnniflan and Communlcsttai hfr—fracture 
^DstijCsrtrs^ ^ 

ConLqwi 
OMtojtorIjqwi 
C^pOaf^jasi^ 


m 10 337 
I 

f 

i 


I 10 018 

I 104 


0607 I 0 464 


6 766 0040 

634 

1 202 

7604 1400 

60 

2 061 2 014 


10 000 

10 070 [ 

20 016 | 

20016 

20 300 f 

22 082 | 

24100 

16 000 

19 776 1 

10 816 

10 010 

10 009 j 

22 187 : 

| 

23724 

100 

200 j 

" 

Jfit 

200 

420 ! 

446 | 

472 

236 

200 | 

H 

» 

303 

ml 

i 

341 

236 


JH 

200 

an 

1 

321 ; 

341 

10 602 

13 302 | 

13 OOs) 

13003 

16038 

16 720 | 

17003 

470 

01O ! 

i tv* 

1026 

B3S j 

1 

1004 


12 078 I 11 7631 11763 

314 I 314 j 014 


11 290 1 11 670 1 11670 


14836 16 344 10424 

137 ^3 374 

12127 | 12 074 | 13 881 


772 | 

010 

010 

310 

*? 

160 ! 

J 3 t 

200 

106 

176 ; 

10 3721 

10446 

10408 

11 143 

11002 ; 


070 G | 0610 | 

420 \ 426 


11 160 | 11 S 34 | 12 774 


420 : 

426 

403 

481 j 

009 


0003 

10 466 

11 106 ; 


220 : 

220 

242 

260 j 

271 

2307 | 

2 307 

3616 

8 807 ) 

1 

4137 

2807 

2 307 

3016 

8 007 j 

4137 



; "jssfewk i 

' MB ' 

Pe w* 29. 3fca^Kkl6870 


126 | P g e 

































Messeaua Municipality_ 2019/20 Final Annual Budget and MTREF 

Table SA34c: - Repairs and maintenance expenditure by asset class - (NT - supporting 
tables) - continue 









































































Hessequa Municipality _ 2019/20 Final Annual Budget and MTREF 

Table $A34c: - Repairs and maintenance expenditure by asset class - (NT - supporting 
tables) - continue 



WCQ42 Hessaqua ■ Supporting Table SA34c Repairs and maintenance expenditure by asset class 


Currint Ysv 2011/19 



Description 

R thousand 



2019m 

M1W17 

2017MB 

Audited 

Outoome 

Audited 

Outcome 

Audited 

Outoome 






























































Hesseaua Municipality _ 2019/20 Final Annual Budget and MTREF 

Table SA35 - Future financial implications of the capital budget - (NT - supporting tables) 


WC042 Hmaqm ■ Supporting Tabla SAM Future financial Impllcatlona ofthu capital budflut 


Vote Description 

Ref 

2019/20 Medium Term Revenue & 
Expenditure Framework 


R thousand 


Budget Year 
2019/20 

Budget Year 
+1 2020/21 

Budgat Vmt 
*32621/21 

Foment 

2022/23 



■H 

367 

363 

59 

Vote 02 - Corporate Services 



4593 

2 511 

2 940 

Vote 03 - Financial Services 


447 

8112 

2134 

293 

Vote 04 - Community Services 


3476 

1092 

8 895 

3 665 

Vote 06 * Technical Services 


103292 

63 143 

54 801 

62 546 

Vote 06 - Spaial Plannign & Envicnmental Mans 

s 

35 

640 

10 

67 


Vote 07-Health 



- 

- 

- 

- 

Vote 08 *■ Planning And Development 



- 

- 

- 

- 

Vote 09 - Environmental Protection 



- 

- 

- 

- 

Vote 10 - Electricity 



- 

- 

- 

- 

Vote 11 - Water Management 



- 

- 

- 

- 

Vote 12 - Waste Water Management 



- 

- 

- 

- 

Vote 13 - Waste Management 



- 

- 

- 

- 

Vote 14 - Road Transport 



- 

- 

- 

- 

Vote 15 ■ Olier 

Usi entity summary ff applicable 



— 

_ 

_ 


Total Capital Expenditure 

2 


110409 

77913 

uni 

60 591 

Vote 01-Office Of The Mm 

Vote 02 - Corporate Services 

Vote 03 - Financial Services 

Vote 04 - Community Services 

Vote 05 - Technical Services 







Vote 06 - Spatial Plannign & Environmental Management 





Vote 07 - Healft 

Vote 08 - Planning And Development 

Vote 09 - Environmental Protection 

Vote 10-Electric lly 

Vote 11 - Water Management 

Vote 12 - Waste water Management 

Vote 13 - Waste Management 

Vote 14-Road Transport 

Vote 15 - Otiar 

U$s entity summary if applicable 







Total future operational coats 

Future revenue bv source 



- 



- 

Properly rates 



94657 

101693 

i 109628 


Service chafes - electricity revenue 



157911 

171272 

184 999 


Service charges - water revenue 



40967 

44256 

47786 


Service charges - sanitation revenue 



23 332 

25199 

27214 


Service charges - refuse revenue 



22 695 

24154 

26087 


Rental ofteciKee and equipment 



2660 

2 871 

3099 


Usi o(her revenues sources If applicable 



8 686 

8 723 

8729 


Ust erAity summary If applicable 







Total future revenue 


351129 

"'THIS 1 

407742 

- 

Net Financial Implications 

r 

(240729) 

(300 225) 

(339 000) 

11 HI 


Forecast! 


1 Forecast 1 Forecast 1 

Present 




71 767 76 161 










































130 | P a g e 














































































































131 {Page 


v- JocCtUA 

2019 

Posblrt 29, 6670 





























































































































































Development of Sportgronds - SlanpMer - Counter 
6.3 Fundbig 


6w4 Uptradbig of Sportoflelds - Mekhoutfonteln 


Uppadiig of SporiEflMS - MeKhouMen Counter 
6.6 Fun' 




Loan 

1000 000 

MIG 

2000 000 

Loan 

1000 000 



7.1 


ding ewknmln 

9 pool 

t floor-HaM 



Booster pum 


I 7.4 Concrete benches and tables-TakHeskknf 


Upgrade Supply cable to SS Albertlnfa (W> 5.3.8) 


MS FourlestNo. 1 & MS Kloof Street 


Refurbishment of substations - Rlversdal 


Refurbishment of sub-statfon& - Heidelberg 


Replace cable between Bultakant street and Fourie Street 


MV retie MS Krag Stasle & RMU Mekerk Str, Incl RMU 
Markplefn 


Replace cable between MS Kragstasie & PMT 
Watonmsa 


Replace OH lln between RMU Uys Street & PMT Rugby 
Feld 


MV Rette between MS Joubert Street & Sub 6 


MV Reft between MS Protea St A Sub IQ 


Recto SS Hoeottaal to switch with RMU 


S8 Hoapttaal (MP 5,2.2) 


Rebc bewaen SS Hospital & Kragstaele ifJP 6.2.3) 


Replace Relic between MS Mulder & SS Pauw St 
(MP&2.4) 


RMU Bauhlnla St (MP 5.2.5) 







976000 


150000 

150000 

150000 

150000 



1420000 

1 140 000 


560000 


570000 



































































































































































































































































Upgrade MV line from Middafcanp to Hoofwag - W/S 


MV Retie between MS Tofriheon & OH Line Ejke Road 


RMU Ixia Street (MP 5.3,1} 


Retie fromRMU IxIitoRMU Bauhlna (MP 5.12) 


Retie SS PauwSt - RMU Tdddeikloof (MP 5.13) 


MS Lb Roux RMU (MP 5.116) 


SS-2-RMU 2-3 - Ufty) Street - rKonflgurecable 
connections (MP 12.1) 


MS Nautilus (MP5.Z 


Loan 250000 


Loan 216000 


CRR 55000 


Loan 700000 



134 | P a | e 


20J0 

rOSDUS 5s Aomt 

=" - ^ ^ • •.. j| Oo70 

















































































































































2019/20 Final Annual Bud«t and MTREF 


ira 


Nh* Budgtl 

wot 

nrisyg | 

Budgat 

2021/2022 . 

awns 

■E2E3H 

S/B 

Loan 

420000 





SB 

CRR 

40 000 





SB 

CRR 

70000 





SB 

Loan 

420000 



















G/M 

Loan 

825 600 





A/B 

Loan 

550000 





IBS 


500600 






ns 

«msnb 

n*stt» 

» 710800 

1..cJ 

1 H 

BffB 

CRR 

100 000 

100000 




runi 


IWMt 

•mm. 

• 

m » 

t 

SB 

Loan 


6 000 000 

13000000 



SB 

CRR 


60000 

60000 



R/D 

CRR 


301000 




SB 

CRR 


300000 




SB 

Loar 

650 000 





H/Q 

K9V '?■: 

5060000 




H/Q 

CRR 

200000 

300000 




H/Q 

CRR 


150000 


250 000 

250 000 

H/Q 

CRR 

260 000 





G/M 

Loan 

400000 





IKS 

Loan 

450000 





SB 

Loan 

260 000 





AB 

EI9 

1650 000 





SB 

IBB 

560000 





-68 

Loan 

1750 000 






J i. 



.^rtlSif-hLi I uii j 


ft • 29, Rivorc-i 




















































































































hSSSeOM ^ISifhLiT 

2019 -35 

Poebus 29, Riv 






















































































































































































































































































































HQWOflUg Municipality _Z019/20 Final Annual Budget and MTREF 


Ho 

fatetdiioiMtan 

HIM 

Ref 

IBB 



WMM 


pm 


.TOTAL WATER 




: 

19672816 

■omomS 

I-frr#^3 


5660006 

13.1 

Burglar Ban - Civic Cento - gnoundfloor - CMc Centre - 

R/D 

HO 




55000 




13.5 

Upgrade UPS Server Room - ICT - R/D 

HO 




65000 




13,8 

Fencing - Library - Abertnia 

2 

m 


35000 





13.9 


1 


ESS 


270000 




13.10 

Fencing of newextentfon beiiind Dfeokbof- H/B 

4 

H/B 

CRR 


260 000 

250000 



13.11 

Fencing of Locomotive - Rivemdal 

in 

R/D 

CRR 


75000 




mm 

Sl7il?^7rr«ia;: 1 >iii izi\’ ^ 




LL-imat 

718000 

M069 

B o 

n 

14.1 

1X Computer Screen 23’ - kmm&u&m - Finance 

HO 

R/D 

CRR 


2600 




14.2 

1X Scanner - Asaeti - Finance 

HO 

H/Q 

CRR 

30000 

35000 




14.3 

lx Laptop-SCM- Finance 

HO 



14 000 


. 


15 000 

144 

2 X Desktop computers - onlne vendng - Income - 
Finance 

HO 



20000 


23 000 


24000 

143 

2 X LX300 printers - Income - Finance 

HO 

H/Q 

CRR 

6 000 

6000 

6500 

6500 

6 500 

144 

2 X Laptop - Income - Finance (Interna) 

HO 

H/Q 

CRR 


26000 




147 

1X Desktop Computer - Income - Finance 

HO 

h/q 

CRR 


10000 


12 000 


148 

1X Routemaster Handwtd - Income - Finance 

HO 

H/Q 

CRR 

32000 


36 000 


38 000 

149 

1X Routemaster Grade - Income - Finance 

HO 

H/Q 

CRR 


17000 




1410 

1X Token Reader- Income - Finance 

HO 

H/Q 

CRR 

10 000 


12000 


12 000 

1411 

1X Racetot Printer - Income - Finance 

HO 

H/Q 

CRR 

10 000 


16000 


16000 

1412 

4 x Thermal Token Printers - Income - Finance 

HO 

H/Q 

CRR 

20000 



22000 


14.13 

1X Scanner - Expenditure - Finance 

HO 

H/Q 

CRR 


3500 




1414 

1X Desktop Computers - Expenditure - Finance 

HO 

H/Q 

CRR 


10000 

10000 

10 000 


1415 

Main Frame Computer System - Finance 

HQ 

H/Q 

Loan 


8 000 000 

2000000 





HO 

H/Q 

CRR 



15 000 



14.17 

1X Lsotoo Gourits - Finance 

HO 

H/Q 

CRR 



15000 



14.18 

1 X Laptop* MMO 

HO 


CRR 



18000 



14.19 

17 X Laptops - MMO - Counselors 

HO 

H/Q 

CRR 







138 | P a g e 


: .HwocUiJA ■riUi^iiSitoLiTciT j 





























































































































































































































































































mi 1 x Stove-S 


140 | * a £ s 


HESSECWA^UHlSlPAUitil 

2019 -e§^ - 

'BwhuaaB.'fWMf IfifiSfi— 




































































































































1411 P a g 6 


MtJfflsmJTpT 
2019 -05 




























































































































































Hesseaua Municipality 



Dmiuf ilajnrlntlnn 

_prong OMOTBBPn_ 


15.35 


1.3 

15.36 

Stoves-Elenerust 

1,3 

15.37 

Microwaves-EHensrust 

1,3 

15.38 

Malteses. Beds & metres coven - Ellensrust 

1,3 

15.38 

TsHas & Chain - EHensrust 

1,3 



1 l 3 _ 

15l41 

Stoves - Preekstoel 

1,3 

15.42 

Tables* Chain -Preekstoel 

. 1,3 

1543 

Matnesses & Beds - Preekstoel 

1,3 

1544 

6 X Study Tables -Library - Protea 

2 

15.45 

8X Blinds-Ubrarv - Pratea 

2 

1546 

24 X Chats - Ubrav - Prates 

2 

1547 

Stefcular - Ubrarv - MalkhGutfcfiteln 

1 

1546 

Bookcase 

3 

1549 

Cupboard wttti Shakes - MM 

HO 

15.50 

EffESHSRB! 

HO 

15.61 

lx Punch (larae)-MM 

HO 

15.62 

IX Typist Chair-MM 

HO 

16.66 

IX Heavy duty drill-id 

HQ 

15.66 

12 x Shelves - Library - Rfvanddle 

6,7.6 

16.67 

Shelves - Ltwary - Stilbay 

1.3 

15.68 

5 x Curtains / Hinds - Library - Stancrtvlsr 

4 

ill 

New floormat for Office - Manager Parka 

HO 

1561. 

Table 6 Chair - Landfll site - Alberthla 

2 

15.62 

1X Standard 2 Drawer - Environment 

Deep Flier 

HO 

1563 

Roller Door Credenza 900x600-Sbetf - Environment 

HO 

15.64 

10 x Officers Parade Room Tables - Traffic 

HO 

1565 

10 x Ofllcen Parade Room Chrira - Traffic 

HO 


142 | Page 

















































































































































Hem-aua Municipality 


2019/20 Final Annual Budget and MTREF 


No 

Rmlanl jIibjijIiJIjlh 

_■_"SBSL* ■ SB's*! _- 

! us. ! 

m 

biHZfiJ 

NewBudget 

Budget 

__mm t 

Budget 

mmm 

Bttdgrt 

xmm 


15.66 

2 x Cashlere Chafe--Traffic 

HO 

H/Q 

CRR 

5000 





15.67 

1X Desk with drawers - Anknal Pound - LE 

HO 

H/O 

CRR 



3000 



15j68 

1X Office Chafe- - Animal Pound - LE 

HO 

H/Q 

CRR 

1500 





15.69 

Matrasses - Disaster Management 

HQ 

H/Q 

CRR 

20000 

20000 




15.70 

Blanket* - Dlsaslter Management 

HQ 

H/Q 

CRR 

10000 

20000 




15.71 

2 X Dlaltal Clock - SCM - Fin 

HO 

H/Q 

CRR 

2000 





15.72 

4 X Heavy Duty High back Chair - Income - Rn 

HO 

H/Q 

CRR 

14000 





15.73 

10 X Visitors Chafes with arms - Income - Rn 

HO 

H/O 

CRR 

3500 





15.74 

2 X Visitors chafes - Rd Odendal 

HQ 

H/Q 

CRR 

1450 





15.75 

1 X 3 Seat bate 1 dark brown coach-Mavor 

HQ 

H/Q 

CRR 

10000 





15.76 

1X Executive Hlah Beck Chafe- - Mayor 

HQ 

H/Q 

CRR 

4700 





15.77 

1X Hldh Back Chafe- - Mayor PA 

HQ 

H/Q 

CRR 

2390 





15.7S 

1X Laminating Machfeie - Mayor PA 

HQ 

H/Q 

CRR 

3000 





15.79 

1X Rina Binder - Mayor PA 

HQ 

H/Q 

CRR 

3 000 





15.80 


HO 

H/Q 

CRR 

1400 





16.81 

1X White Board-Deputy Mayor 

HQ 

H/Q 

CRR 

1340 





15.82 

IX White Board-Rdl Odendal 

HQ 

H/Q 

CRR 

1340 





15.83 

IX White Board-RdIM Jakobs 

HQ 

H/Q 

CRR 

1340 





15.84 

2 X Hfah Beck Chair Black with arms 1 Income - Rnanco 

HO 

H/Q 

CRR 

3000 





15.85 

1X Heavy Duty High Back Chair with arms - Income - 
Finance 

HO 

H/Q 

CRR 

2800 





15.88 

3X3 Drawer Desk - Income- Finance 

HO 

H/Q 

CRR 

13500 





15.87 

3 X System Cupboard - Income - Finance 

HO 

H/Q 

CRR 

11250 





15.88 

6 X Visitors Chairs with arms - Income - finance 

HO 

H/Q 

CRR 

4500 





15.80 

1X Cabinet Server Room - ICT 

HO 

H/Q 

CRR 

60000 






I TOTAL' FUlWmmE AND 0TH5H OFHC? 

EtyNMffNT 

i 


■1 

mm 

WHS 


28 0M 

• -Qrl? 

iai 

LDV-Public Works-A/B 

2 

A/B 

CRR 


260000 



300000 

16.2 

LDV-Sewerage-H/B 

4.5 

m 


280 000 



300000 


163 

LDV-Sewerage-S/B 

_u_ 

SB 

CRR 


300 odo 





143 | Page 
















































































































































































1 


Mi 

_PwhBtftwiMiM_ 

[_ETH_! 

| J>r ] 

Lgh-eJ 

NterBudgut 

mm 

H:!T T ! F TR1 

Budget 

mmm 

PUB 

phih 

16.4 


4.5 

H/B 

CRR 


300 000 




16.5 

1X Sedan vehicb - IT 

HO 

H/Q 

CRR 



250000 



166 

Cherry Picker-Bectncitv-SB 

2 

AB 

CRR 

1400 000 





167 

Double Cab Truck Tipper- Public Worts - SIR 

4 

SIR 

CRR 

600000 





16.0 

Double Cab Truck Tipper- Pubic Works - SB 


SB 

CRR 


600000 




1&9 

Suction Tanker - Sewerage - W/5 

4 

W/S 

CRR 



1 100 000 



16.10 

Suction Tanker - Sewerage - S/R 

4 

S/R 

CRR 


900 000 




16.11 


HQ 

h/q 

CRR 

1 500000 





16.13 

Rohr-Pubic Works-R/D 

HQ 

R/D 

CRR 


600 000 




16.14 

1 

1.3 

S/B 

CRR 


1400000 




16.15 


4.5 





1400 000 



16.16 

RWwn Broom-H/Q 

HQ 




850 000 




16.17 

Tractor-Parts -SB 

1.3 


CRR 



650000 



16.18 

Industrial Chippers - Refuse - H/Q 

HQ 



500000 

500 000 

250000 



16.19 

LDV-Pubic Works-W/S 

4 

W/S 

CRR 


300000 




16.20 

LDV-Water-$/B 

1.3 

SB 

CRR 



300000 



1651 

LDV-Water-R/D 

678 

R/D 

CRR 



300000 



1652 

Double Cab 4x4 LDV - Environmental Manaoement - H/Q 

HQ 

H/Q 

CRR 


500000 




1655 

1 x 4x4 Dubbto Cab LDV with Modified Sldd Unit - Fire 

HQ 

H/Q 

CRR 



650000 



16.26 

1 x Mobh Joe eoulot with Disaster Eauloment - Fire 

HQ 

H/Q 

CRR 


300000 




16.2B 

Compact Tractor - Camping Sites 

HQ 

H/Q 







16.29 

Compact Mower - Camping Sites 

HQ 

HJO 

CRR 

185 000 







15 

SB 

Loon 

1400090 


_ 



5i 


15 

SB 

CRR 

■5TH1 

■ 





■SiJitei Tanksr - Sewerage-A/B 

2 

AB 

CRR 

■itll.1 





ill 


45 

HB 

CRR 

■■sm 

9 




16.35 


15 

SB 

CRR 

700000 





1656 

; Wutb-purwse Loader ■ Public Warts - m _ 

2 

AB 

CRR 

1300090 






144 j P a g e 


























































































































































145'|~P ag e 


HbStitUUA MUNISIPAUTElfi 






















































































































































Weedeatora - Public Works-S/R 


Weedeators -Public Works-W/S 


Weedeators-Piiblfc Works-GM 


SoMraoa Rods - H/Q 


High Pressure 


Tar Cutter-Public Works- H/Q 




i 



DoubtoDnin pavement rotor-Pubic Wbrka-H/Q 


WAP - Pubic Works - R/D 


Jackhammers - Public Works - RIO 


Tods- Mechanical -H/Q 


Tools - Electricity - H/Q 


Tools - Pufelc works 


Tools fer Camp -Preekstoal 


Grtader- Patrol - Public Works - S/Q 


Cut off Machkie/saw - Elsctrfclty - H/B 


MIG Welder-Bectrtdty-R/D 


1.B m Ladders - Electricity - H/B 


2A m Ladders - Electricity - R/D 


4.0m Extortion Ladders-E 


Fibre Ladders - Electricity - RIB 


Oil Taster - for Nedric or Insulation level to 


VLF-AC Pressure Tester-H/Q 


Ltek Stick damps OISP head - Electricity - R/D 


30 X Fault Imteatara - Electricity - H/Q 


Brush Cutters 1,6m-Public Works - H/Q 


Waftle-Teikle Rafts - Electricity - Hei 


New Road, Inlb and street Skins - Traffic 


i^ivi 


SIR 

CRR 

m 

CRR 

G/M 

CRR 

H/Q 

CRR 

SIR 

CRR 

H/Q 

CRR 

H/Q 

CRR 

H/Q 

CRR 

R/D 

CRR 

R/D 

CRR 

H/Q 

CRR 

H/Q 

CRR 

H/Q 

CRR 

SIS 

CRR 

S IB 

CRR 

HIS 

CRR 

R/D 

CRR 

H/B 

CRR 

RIO 

CRR 

HIS 

CRR 

HIS 

CRR 

HJQ 

CRR 

H/Q 

CRR 

R/D 

CRR 

H/Q 

CRR 

H/Q 

CRR 

H/Q 

CRR 

H/Q 

CRR 


Budget Budget Budget Budget 


8300 


8300 8 500 


17000 | 17Q00 16000 20000 20000 


140000 


85 000 



26000 


25000 


10000 | ioooo 12 000 12000 


15000 



3 000 . 3000 


120000 


38000 | 38000 1 40 000 I 40 000 I 42000 


55000 55000 60000 


150000 | 150000 I 150000 170000 I 170000 







































































































































































































Hesseaua Municipality_2019/20 Final Annual Budget and MTREF 


n 

Ffotant dwcrtatton 


1 Rif' 

Fund 2 

NnrBudgat 

wm 


»«»£? 

Budgat 

Budget 

wwm 

20.47 

1 x Storaoe Contained - Traffic 

HQ 

h/q 

CRR 

40 000 





20.48 

5 xLockera-Traffic 

HQ 


CRR 

50 000 





20.49 

1 x Motorcycle Test Device - Traffic 

HQ 


CRR 

70 000 






1 x 2.4(8 stop) Ladder - Traffic (Road Maintonace) 

HQ 

H/Q 

CRR 

4000 





20.61 

1 xProttef-Animal Pound-LE 

HQ 

m 

CRR 

3000 





20.62 

Cable & Fault detector - Low & Hlah teuton - Electr. 

HQ 

H/Q 

CRR 



300 000 



20.63 

Coficrato Mixer-Public Works - R/D 

6.7.8 

RID 

CRR 

50000 





20.54 

Redo Network-Fire 

HQ 

H/Q 

CRR 

50000 





20j5S 

Hoses-Fire 

HQ 

H/Q 

CRR 

10000 

10000 





6 x Bnafrilna Apparatus eflh back date-Fire 

HQ 

H/Q 

CRR 

50000 

60000 





10 x Cylinders* Fin 

HQ 

H/Q 

CRR 

15000 

15000 






HQ 


CRR 

7000 





20.99 

6 x PASS Devices-Fire 

HQ 

H/Q 

CRR 

20000 

20 000 




20.60 

5 x Bolt Cutters-Fire 

HQ 

HIQ 

CRR 

5000 





20.61 

5 x Hose Ramps - Fire 

HQ 

H/Q 

CRR 

10 000 

10 000 




20.62 

5x HoseDMdres - Fke 

HQ 

H/Q 

CRR 

20 000 

20 000 

10 000 



20.63 

2x Nozzles-Fbe 

HQ 

H/Q 

CRR 

20 000 

15 000 




20.64 

5 x Tree Axe’s- Fire 

HQ 

H/Q 

CRR 

2 000 





20.65 

5 x Rreman Axe - Fire 

HQ 

H/Q 

CRR 

10 000 

10 000 




20.66 

SxCeeina Hooks - Fire 

HQ 

H/Q 

CRR 

5 000 





20.67 

5 x Hdlaan Tool - Fire 

HQ 

H/Q 

CRR 

10 000 

10000 

10000 



20.68 

IxProMGaa Detector-Fie 

HQ 

H/Q 

CRR 



100000 



20.69 


HQ 

H/Q 

CRR 

10000 





20.70 

4xChalnSaw-Fke 

HQ 

H/Q 

CRR 

16000 

15000 




20.71 

5 x 101b Hammer-Fire 

HQ 

H/Q 

CRR 

2000 





20.72 

S x 41b Hammer-Fire 

HQ 

H/Q 

CRR 

2000 





20.73 

6x Tommy Bar - Fire 

HQ 

H/Q 

CRR 

1000 





20.74 

lx Heat meter Camera-Fke 

HQ 

H/Q 

CRR 



90 000 




147 | P a g e 


























































































































































He 

20.75 

20.76 

20.77 

20.78 

20.79 

20.80 
20.81 
20.82 
20.83 


_ mEimmm _ 

5 xHaamat Spades-Fire 

5xSpadeB-Rre _ 

1 x Floating Suction Pimp - Fire _ 

1 x Stand, Gas Cylinder and Cutting Torch - Ffea 

lx Generator-Fire _ 

lx Blower-Fire _ 

lx Brush Cutler-Fie _ 

5x Nae Sack -Fire _ 

5 x Hazmat Squeegee, Slftm Rubber Blade - Fie 


20.84 

20J85 

2086 

2087 

2088 
2089 

20.90 

20.91 

20.92 

20.93 

20.96 

20.97 
20.18 


5 x Rate Hoe-Fie _ 

I x Fte isgtsu - vB&pfet hands ■ Fm 

10 X Two Wav Radio Pewlcoa - Protection Services 

FjrgJHydran t s Rtogradate Fire 

Rre Hydrants - Heidelberg - Fire _ 

Rrei^dranteiSfljbaaL^ _ 

Fire Hydrants - Albertinla ■ Fire _ 

Fire Hydrants-S lano fotar -Fire _ 

Fhe Hyfranta - Gouritamond - Fire _ 

Fhe Hydrants - Wltoand - Fire _ 

1 x 40 HP 4 stroke outboard Motor- Erwfconmental - H/Q 

Grinder - Environment - H/Q ■ _ 

Comoreeior 12 v 160 Im - Environment - H/Q _ 


20.99 


Belt aander - Environment - H/Q 


20.100 


Walkie-Talkie Radtos ■ Environment - H/Q 


20.101 


IX 22 ton Winch with power pack-Mechanical-HJQ 


20.102 


Chato Saw - Environment - H/Q 






( 


21.1 


Refuse Compactor-H/Q 


148 | Page 












































































































































































149 | P a g e 

















H«?«ma Municipality _Z019/20 Final Annual Budaet and MTREF 



150 j Page 



















n n u r n 



Table SA38 - Projects delayed from previous financial year (NT-Supporting Tables) - continue 


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HESSEQUA MUNIStFKUTEIT 



































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2019/20 Final Annual Budget and MTHEF 




154 | P a g e 



































Hesseaua Municipality _ 2019/20 Final Annual Budget and MTREF 



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


1. In year reporting 

Reporting to National Treasury in electronic format was fully complied with on a monthly 
basis. Section 71 reporting to the Executive Mayor (within 10 working days) has 
progressively improved and Includes monthly published financial performance on the 
Municipal website. 

2. Internship programme 

The Municipality is participating In the Municipal Financial Management Internship 
programme and has employed four Interns undergoing training in the Financial Services 
Department. 

3. Budget and Treasury Office 

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

4. Audit Committee 

An Audit Committee has been established and is fully functional. 

5. Service Delivery and Implementation Plan 

The detail SDBIP document will be finalized after approval of the 2019/20 MTREF in May 
2019, directly aligned and informed by the 2019/20 MTREF. 

6. Annual Report 

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


IHESSEQUA MUNIS1RMJTEIT 



156 I P a g e 








































































































Table SA1: - Supporting detail to budgeted financial performance - (NT - supporting 
tables) - CONTINUE 


WCMlHtntaua-Su 




















































Table SA2: - Matrix financial performance budget (revenue source/expenditure type and department) - (NT - supporting tables) 










































Hesseaua Municipality _ 2019/20 Final Annual Budget and MTREF 

Table SA9: - Social, economic and demographic statistics and assumptions - (NT - 
supporting tables) 


WCM1 Hhmqui - Supporting Tibia SM Seal 


enomlc and donoanDhle ftitirieiind ittunpHoiii 









2017710 


2011120 laduia Tarm Raima S 










m 

Imandltura Framawork 

UtHifptlBB ef aaanamlo Initiator 


BaaltefdataMon 

2001 CanaiiB 

2007 fumy 

Mil Caiuua 




Wmm 









Outcama 

Outaoma 

Outaama 

' OriBlnd 

Outaama 

Outaoma 

OiSmmt 


Rat 








Budnat 




"Tiff" 



44 


03 

06 

68 






Ferriaaigad6-14 






4 

4 






Mate ipd 6 -14 







4 






Fanpaa agarf IE - 34 






7 

S 






MriaqtolB-U 

■ 






8 







■ 













1.12 












Nb fonma 



BOS 


IMS 

1361 

1422 






ri-ruoo 



430 


276 

161 

230 





R1 Ml - RJ 200 



IBM 


470 

362 

304 





R3 201 - RO 400 



2B07 


2 241 

2131 

Z 076 





RB401-R12 000 



3 002 


3570 

3 707 

3773 





R12B01 -RiiflOO 



1086 


3570 

4 OH 

4 324 





S23W1-R61 



1004 


2 274 

2092 

2104 





RB2201-R1Q24M 



370 


1423 

1367 

2121 





R102401-R2048M 



74 


007 

m 

1044 





R2fl4001-R4»toS 



07 


127 

103 

170 





Ml HI- REIS 200 



42 


47 

46 

43 






> Mil 200 



1 


41 

n 

16 






< R2 NO pr hsutolnld p* monfi 

13 

2 


0141 










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44111 


62 401 

83 

94 

» 





Nitotarof pmr paqfc ai raiaMpal an 





2673! 








NuftriMralhmiaahofcfc ai iminoeal m 





IB 873 








NMw d par hutahekb n minofed ana 





7813 








Datoaon afpoar HoboMI p par mm 





4800 








Fmnal 



16 000 



M 







Hbrnial 

Total nwnbaref tourthslda 



. ttL 

IE 073 

- 

.... -- - 

tih 

H iiT i 



[ 1 
! -1 

~. T 


Dtadegi pnwdtd lay manirbalRf 










i l 



QadhgapmaMby pmilntaft 







1 





DtaAgapmaladfay pmabaaotar 







i 





Total nawhaualni dwalllnga 




- 



. 

- 

. 

f-■ 

. 

. 

^SSSftlrtM} oUfeek (CPK) 

0 












Hnatmta-browing 












hhnatnb - Iwaafnant 










■ 

i 


CoMUmplon powh (alaoHalV) 












Zmsmetoft growi (wakr) 













ProparV tafenvleadsigaa 

7 









| 



RanMaftaMaataqAmant 













htanal-atord hwaahmb 













htaaat-fkbkn 










! j 



Havana ton agamy am loaa 










i ; 




I.HESSEQUA MUNISIRWJTEITi 

m -05v 

Posbus29, 



160 | P a g e 


































Hesseaua Municipality_ 2019/20 Final Annual Budget and MTREF 

Table SA21: - Transfers and Grants made by the Municipality 































































External mechanism 

y m 

Mtha 

Period of 
agreement 1. 

Service provided 

Name of organisation 


Number 



Wtofkmg On Fire 

Henque Waste 

SYNTELL(PTY) LTD 

JIRAH CONSTRUCTION CC 

KONICA MINOLTA SOUTH AFRICA 

VOX Tetocomiminlcatons (PTY) Ltd 

IGNITE ADVISORY SERVICES 

ITRON METERING SOLUTIONS SOUTH AFRICA 

ROUTEMASTER 

DDR VALUERS 

BUSNESS CONNEXION (VENUS) 

Mubesko Africa (Ply) Lkf / Moore Stephens MO Inc 

Stephaan & Moore 

CAB HOLDINGS (PTY) LTD 

PAYDAY SOFTWARE SYSTEMS (PTY) LTD 

INCA 


|Fire Brigade Services 
jRelUee Recycling 
!THE PROVISION OF TRAFF 
Icieanlg of Stormwater pipes 
[supply AND INSTALLATIOI 
(Telecommunication system 


'FINANCIAL SOFTWARE MAINTENANCE 


ICAB HOLDINGS (PTY) LTD 


■Financial Plan 


Expiry dale of Monetary 

eervlca delivery value of 

agreement or agreem snt 1 

R thousand 

/08/2018TO 31/03/20 

2610 

/09/2017 TO 30/06/2Cj 

922 

/07/2018 TO 30/06/2Cj 

2 060 

1/09/2016 - 30/06/20lj 

303 

>- New expiry date | 

601 

1/07/2016 - 30/06/201| 

1 442 

f 12/2017 TO 30/11/20 

330 

1/07/2017 - 30/06/201} 

571 

FTWARE FOR CON\j 

149 

new complelon datej 

2 000 


875 

10/2016 TO 3Q/06/2d 

550 

10/2016 TO 30/06/20 

500 

07/2018 TO 30/06/20 

826 

07/2016 TO 30/06/2cj 

213 

30 June 2020 | 

750 


HESSEQUA MUNISiRALfTHT 

2013 


Posbiw 29.1 


>18870 


162 | Page 











Hesseaua Municipality 


2019/20 Final Annual Budget and MTREF 



_ KUtzNTEDIENS BELEID EN DIENSSTANDAARDE _ 

File number / Verwysingsnommer: 6/4/1 

Meeting date / Vergadering datum: 27 Junie 2018 

Report by / Verslag deur: Openbare Betrekkinge Beampte - Me S Geldenhuys 

STRATEGIC PURPOSE / STRATEGIESE REDE 

Doeltreffende, koste effektiewe en beste kwaliteit dienslewering deur goeie regeerkunde. 

PURPOSE OF REPORT / DOEL VAN VERSLAG 

Dat die Raad die aangepaste KliSntediens beleid en diensstandaarde goedkeur. 

BACKGROUND AND DISCUSSION / AGTERGROND EN BESPREKING 

'll KliSntediens Beleid Werkswinkel is op 06 Maart 2018 aangebled, waar Raadslede en die onderskele 
direktorate, hul Insette kon bied rakende die konsep beleid, prosedures, riglyne, asook nuwe insette en 
wyslglngs aan die huidige diensstandaarde. 

Tydens die werkswinkel is daar nuwe insette en verskeie aanpasslngs aangebring aan die huidige 
diensstandaarde. 

Die beleid en diensstandaarde het by die Korporatiewe Bestuur Portefeulje Komltee vergadering van 18 
April 2018 gedien, asook by die Uitvoerende Burgemeesterskomitee op 30 Met 2018, waar die 
volgende aanbevelings gemaak is: 

“1. Dat kennis geneem word van die hersiene Kli&ntediens Beleid en aangepaste 
diensstandaarde. 

2. Dat die Uitvoerende Burgemeesterskomitee die hersiene beleid en aangepaste 
diensstandaarde ondersteun en aanbeveel. 

3. Dat die item verwys word na die volgende Raadsvergadering vir goedkeuring. 

3. Dat daar maandeliks to moniteringsverslag van die afhandeling van klagtes en 

take in terme van diensstandaarde, aan die Uitvoerende Burgemeesterskomitee 
voorgelS word.’’ 

COMMENTS: MUNICIPAL MANAGER / KOMMENTAAR: MUNISIPALE BESTUURDER 

Die aanbevelings word ondersteun. 

COMMENTS: DIRECTOR CORPORATE MANAGEMENT / KOMMENTAAR: DIREKTEUR KORPORATIEWE 
BESTUUR 

Die aanbevelings word ondersteun. 

COMMENTS: DIRECTOR FINANCIAL SERVICES /.KOMMENTAAR: DIREKTEUR FINANSlELE DIENSTE 
Neem kennis. 

COMMENTS: DIRECTOR DEVELOPMENT PLANNING / KOMMENTAAR: DIREKTEUR 
ONTWIKKELINGSBEPLANNING 



163 | P a g e 








Hesseaua Municipality 
Neem kennls. 


2019/20 Final Annual Budget and MTREF 


COMMENTS: DIRECTOR TECHNICAL SERVICES / KOMMENTAAR: DIREKTEUR TEGNIESE DIENSTE 
Die aanbevelings word gesteun. 

COMMENTS: DIRECTOR COMMUNITY SERVICES / KOMMENTAAR: DIREKTEUR GEMEENSKAPSDIENSTE 

COMMENTS: MANAGER LEGAL SERVICES / KOMMENTAAR: BESTUURDER REGSDIENSTE 
Daar word kennls geneem van die inhoud en die aanbevelings word ondersteun. 

COMMENTS: OTHER / KOMMENTAAR: ANDER 

RECOMMENDATION / AANBEVELING 

Dat die Raad die aangepaste Kligntediens Beleid en diensstarrdaarde goedkeur. 

AGENDA ITEM APPROVED BY / AGENDA ITEM GOEDGEKEUR DEUR: 

Direkteur: Korporatiewe Bestuur - Me M GrieselDIRECTOR CORPORATE SERVICES / DIREKTEUR 
KORPORATIEWE DIENSTE 

ATTACHMENTS / STAWENDE DOKUMENTE 

1. Konsep Kligntediens Beleid 

2. Diensstandaarde 2018 

3. Teenwoordigheidsregister - Kllgntedlens werkswlnkel 


HES&OUAMUNISJWUTBir 

208 H 

- Poabua 29. Rl 



164 | P a g e 



Name 


Service Description 


Service 

level Department 
days_ 


CORPORATE SERVICES: 
Council Resolutions 
Distribution to Managers 
and personnel 

CORPORATE SERVICES: Distribution of 
Council Resolutions from the Administration 
Department to applicable Directors, Managers 
and personnel for implementation or 
information. 

1 

Corporate Services 

CORPORATE SERVICES: 
Correspondence 

Distribution 

CORPORATE SERVICES: The Distribution of 
Incoming correspondence to various 
departments for action. 

3 

Corporate Services 

CORPORATE SERVICES: 
Implementation of council 
resolution 

CORPORATE SERVICES: 

Implementation and completion of council 
resolution to applicable Directors, Managers 
and personnel. 

30 

Corporate Services 

CORPORATE SERVICES: 
Appointment of Personnel 

CORPORATE SERVICES: Appointment of 
Personnel 

90 

Corporate Sen/Ices 

CORPORATE SERVICES: 
Contractual Legal Advice 

CORPORATE SERVICES: Contractual Legal 
Advice 

14 

Corporate Services 

CORPORATE SERVICES: 
Website Updates 

CORPORATE SERVICES: Website Updates 

2 

Corporate Services 

CORPORATE SERVICES: 
Repair of pre-paid electricity 
sale points 

CORPORATE SERVICES: 

Repair of IT network connection at the pre-paid 
electricity sale points 

2 

Corporate Services 

CORPORATE SERVICES: 
Telephone complaints 

CORPORATE SERVICES: 

Attention and action to municipal telephone 
complaints and faults. 

1 

Corporate Services 

COMMUNITY SERVICES: 
Implementation of council 
resolution 

COMMUNITY SERVICES: 

Implementation and completion of council 
resolution to applicable Directors, Managers 
and personnel. 

30 

Community Services 

COMMUNITY SERVICES: 
Replace Traffic Signs 

COMMUNITY SERVICES: Replace Traffic 
Signs 

21 

Community Services 

COMMUNITY SERVICES: 
Licensing and Road Worthy 
Certificates 

COMMUNITY SERVICES: Licensing and Road 
Worthy Certificates 

56 

Community Services 

COMMUNITY SERVICES: 
Learners and Driver’s 
License 

COMMUNITY SERVICES: Availability of 
learners and driver's License appointment 

56 

Community Services 

COMMUNITY SERVICES: 
Traffic Control Complaint 

COMMUNITY SERVICES: Traffic Control 
Complaint 

10 

Community Services 

COMMUNITY SERVICES: 
By-laws Contravention 

COMMUNITY SERVICES: By-laws 
Contravention 

14 

Community Services 

COMMUNITY SERVICES: 
Complaints wit Vagrants 

COMMUNITY SERVICES: Complaints wit 
Vagrants 

14 

Community Services 

COMMUNITY SERVICES: 
Illegal Traders 

COMMUNITY SERVICES: Illegal Traders 

2 

Community Services 

COMMUNITY SERVICES: 
Burning of Transfer Station 

COMMUNITY SERVICES: Burning of Transfer 
Station 

3 

Community Services 

COMMUNITY SERVICES: 
Outdoor Advertising 
Enquiries 

COMMUNITY SERVICES: Outdoor Advertising 
Enquiries 

5 

Community Services 

COMMUNITY SERVICES: 
Sound Disturbance 

LAW ENFORCEMENT: Sound Disturbance 

3 

Community Services 


tfeSSEQUA MUNISIRALITEjfj 







































































TECHNICAL SERVICES: 
Implementation of council 
resolution 

TECHNICAL SERVICES: 

Implementation and completion of council 
resolution to applicable Directors, Managers 
and personnel. 

30 

uai uuukcloiiu ivi i r 

Technical Services 

TECHNICAL SERVICES: 
Repair Water Pipe Bursts 

TECHNICAL SERVICES: Repair Water Pipe 
Bursts 

1 

Technical Services 

TECHNICAL SERVICES: 
Clear Blocked Sewerage 
Drains 

TECHNICAL SERVICES: Clear Blocked 
Sewerage Drains 

3 

Technical Services 

TECHNICAL SERVICES: 
Sewerage Connections 

TECHNICAL SERVICES: Sewerage 
Connections 

21 

Technical Services 

TECHNICAL SERVICES: 
Repair Potholes 

TECHNICAL SERVICES: Repair Potholes 

14 

Technical Services 

TECHNICAL SERVICES: 
Repair Water Leakages 

TECHNICAL SERVICES: Repair Water 
Leakages 

2 

Technical Services 

TECHNICAL SERVICES: 
Repair/Replace Faulty 
Water Meters 

TECHNICAL SERVICES: Repair/Replace 

Faulty Meters 

5 

Technical Services 

TECHNICAL SERVICES: 

No Water Available 

TECHNICAL SERVICES: No Water Available 

1 

Technical Services 

TECHNICAL SERVICES: 
Low Water Pressure 

TECHNICAL SERVICES: Low Water Pressure 

5 

Technical Services 

TECHNICAL SERVICES: 
Water Quality Complaints 

TECHNICAL SERVICES: Water Quality 
Complaints 

5 

Technical Services 

TECHNICAL SERVICES: 
Water Connections 

TECHNICAL SERVICES: Water Connections 

21 

Technical Services 

TECHNICAL SERVICES- 
SEWER: Smells 

TECHNICALSERVICES - SEWER: Smells 

5 

Technical Services 

TECHNICAL SERVICES - 
SEWER: Leakages 

TECHNICAL SERVICES - SEWER: Leakages 

1 

Technical Services 

TECHNICAL SERVICES: 
Rubbish removal 

TECHNICAL SERVICES: Rubbish removal 

2 

Technical Services 

TECHNICAL SERVICES: 
General Dumping 
Complaints 

TECHNICAL SERVICES: General Dumping 
Complaints 

10 

Technical Services 

TECHNICAL SERVICES- 
SEWER: Broken / Missing 
Manhole Cover 

TECHNICAL SERVICES - SEWER: Broken / 
Missing Manhole Cover 

3 

Technical Services 

TECHNICAL SERVICES- 
SEWER: Removal Services 

TECHNICAL SERVICES - SEWER: Removal 
Services 

3 

Technical Services 

TECHNICAL SERVICES- 
ROADS & STORMWATER: 
Pavement Related 

TECHNICAL SERVICES - ROADS & 
STORMWATER: Pavement Related 

14 

Technical Services 

TECHNICAL SERVICES - 
ROADS & STORMWATER: 
Blocked Storm Water 

Drains 

TECHNICAL SERVICES- ROADS & 
STORMWATER: Blocked Storm Water Drains 

14 

Technical Services 

TECHNICAL SERVICES- 
ROADS & STORMWATER: 
Uneven Road Surfaces / 
Gravel Roads 

TECHNICAL SERVICES - ROADS & 
STORMWATER: Uneven Road Surfaces / 
Gravel Roads 

14 

Technical Services 

TECHNICAL SERVICES 
Damaged Road Repairs 

TECHNICALSERVICES Damaged Road 
Repairs 

30 

Technical Services 

TECHNICAL SERVICES: 
Storm Water Pipe Repairs 

TECHNICAL SERVICES: Storm Water Pipe 
Repairs (Breakage and Blockage) 

30 

Technical Services 


166| Page 


riESSEQUA MUNISiPALtTEIT 

2019 - 05 - 

PaBbuaM/WlOOTdal 6870 













































































TECHNICAL SERVICES: 
Repair of Sidewalks 

TECHNICAL SERVICES: Make of Side walks 

14 

Technical Services 

TECHNICAL SERVICES: 
Make of Driveways 

TECHNICAL SERVICES: Make of Driveways 

30 

Technical Services 

TECHNICAL SERVICES: 
Cutting of Trees and Grass 

TECHNICAL SERVICES: Cutting of Trees and 
Grass 

■ 

Technical Services 

TECHNICAL SERVICES: 
Clearing of Open 

Overgrown Areas 

TECHNICAL SERVICES: Clearing of Open 
Overgrown Areas 

30 

Technical Services 

TECHNICAL SERVICES: 
Grave Preparation for 
Burials 

TECHNICAL SERVICES: Grave Preparation for 
Burials 

3 

Technical Services 

TECHNICAL SERVICES: 
General Repairs (Small 
defects) 

TECHNICAL SERVICES: General Repairs 
(Small defects) 

3 

Technical Services 

TECHNICAL SERVICES: 
Problem at Sport Facilities 

TECHNICAL SERVICES: Problem at Sport 
Facilities 

3 

Technical Services 

TECHNICAL SERVICES: 
Power Interruptions 

TECHNICAL SERVICES: Power Interruptions 

1 

Technical Services 

TECHNICAL SERVICES: 
Meter Queries / Complainls 

TECHNICAL SERVICES: Meter Queries / 
Complaints 

2 

Technical Services 

TECHNICAL SERVICES - 
STREET LIGHTS: Entire 
Street Is Off 

TECHNICAL SERVICES - STREET LIGHTS: 
Entire Street Is Off 

2 

Technical Services 

TECHNICAL SERVICES - 
STREET LIGHTS: Single 
Street Light Is Off 

TECHNICAL SERVICES - STREET LIGHTS: 
Single Street Light is Off 

5,21 

Technical Services 

TECHNICAL SERVICES: 
Electricity: Reconnections 
After Payment is Made 

TECHNICAL SERVICES: Reconnections After 
Payment Is Made 

1 

Technical Services 

TECHNICAL SERVICES: 
Electricity: New 

Connections Where 

Existing Infrastructure can 
be Used and After Payment 
is Made 

TECHNICAL SERVICES: New Connections 
Where Existing Infrastructure can be Used and 
After Payment is Made 

5 

Technical Services 

TECHNICAL SERVICES 
Faulty Powerbox (Repair of 
Replacement) 

TECHNICAL SERVICES Faulty Powerbox 
(Repair of Replacement) 

1 

Technical Services 

TECHNICAL SERVICES: 
Geyser Control 

TECHNICAL SERVICES: Geyser Control 

2 

Technical Sen/ices 

FINANCIAL SERVICES: 
Implementation of council 
resolution 

FINANCIAL SERVICES: 

Implementation and completion of council 
resolution to applicable Directors, Managers 
and personnel. 

30 

Financial Services 

FINANCIAL SERVICES: 
Electricity Blocked 

FINANCIAL SERVICES: Electricity Blocked 

■ 

Financial Services 

FINANCIAL SERVICES: 
Water Blocked (Placed on 
Drip) 

FINANCIAL SERVICES: Water Blocked 
(Placed on Drip) 

■ 

Financial Services 

FINANCIAL SERVICES: 
Prepaid Vendor Off 

FINANCIAL SERVICES: Prepaid Vendor Off 

■ 

Financial Services 

FINANCIAL SERVICES: 
Account Enquiries 

FINANCIAL SERVICES: Account Enquiries 

10 

Financial Services 

FINANCIAL SERVICES: 
Financial enquiries 

FINANCIAL SERVICES: 

Financial enquiries pertaining to all 

Departments within the municipality 

20 

Financial Services 



hess^^^^!p wlitb1 

p^hMiaa. RheradalBWO 
















































































Hesseaua Municmalitv 2019/20 Final A 


FINANCIAL SERVICES 
Social Assistance 
Applications 

FINANCIAL SERVICES: Social Assistance 
Applications 

60 

Financial Services 

TOWN PLANNING: 
Implementation of council 
resolution 

TOWN PLANNING: 

Implementation and completion of council 
resolution to applicable Directors, Managers 
and personnel. 

30 

Town Planning 

BUILDING CONTROL: 
Building Inspection 
Confirmation 

BUILDING CONTROL: Building Inspection 

3 

Development Planning 

BUILDING CONTROL: 
Builders Deposit Refund 
Application processed 

BUILDING CONTROL: Builders Deposit 

3 

Development Planning 

BUILDING CONTROL: On¬ 
site Queries 

BUILDING CONTROL: On-site Queries 

5 

Development Planning 

BUILDING CONTROL: 
Building Plan Application 
Progress 

BUILDING CONTROL: Building Application 
Progress 

5 

Development Planning 

TOWN PLANNING: 
Complaint: General 

TOWN PLANNING: Complaint: General 

5 

Development Planning 


BUILDING CONTROL: Building Plan Approval 

30 

Development Planning 

TOWN PLANNING Zoning 
Certificate 

TOWN PLANNING Zoning Certificate 

10 

Development Planning 

TOWN PLANNING: Land 
Use/Scheme Regulation 
Queries 

TOWN PLANNING: Land Use/Scheme 
Regulation Queries 

5 

Development Planning 

TOWN PLANNING Land 

Use Applications - 
Delegated Official 

TOWN PLANNING Land Use Applications 

60 

Development Planning 

TOWN PLANNING Land 

Use Applications - Tribunal 

TOWN PLANNING Land Use Applications 

120 

Development Planning 

ENVIRONMENTAL: Air 
Pollution 

TOWN PLANNING: Air Pollution 

3 

Development Planning 



168| Page 



























































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