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ANNUAL BUDGET OF 
JOE MOROLONG LOCAL MUNICIPALITY 



JOE MO ROLONG 

LOCAL MUNICIPALITY 


(NC 451) 


2015/16 TO 2017/18 
MEDIUM TERM REVENUE AND 
EXPENDITURE FORECASTS 

Copies of this document can be viewed: 

> In the foyers of all municipal buildings 

> All public libraries within the municipality 

> At www.treasurv.qov.za 

> At www.ioemorolonq.gov.za 


NC451-JMLM Adopted Budget 2015/16 


Page 1 


Table of Contents 


Content Page No 

Glossary 3 

PARTI 

Mayor’s Budget Speech 5 

Council Budget Resolutions 9 

Executive Summary 11 

Annual budget tables 30 

PART 2- SUPPORT DOCUMENATION 

Overview of the Annual Budget Process 48 

Budget Process Overview 48 

Integrated Development Plan 50 

IDP and Service Delivery and Budget Implementation plan 50 

Community Consultation 51 

Overview of Alignment of Annual Budget with IDP 52 

Measurable performance objectives and indicators 55 

Overview of Budget Related Policies 60 

Overview of Budget Assumptions 62 

Overview of Budget Funding 64 

Expenditure on Grants and Reconciliation of Unspent Funds 73 

Councillors and Employee benefits 75 

Monthly Target for Revenue, Expenditure and Cash Flow 78 

Contracts Flaving Future Budgetary Implication 84 

Capital Expenditure Details 84 

Legislation Compliance Status 90 

Other Supporting Documents 91 

Municipal Manager’s Quality Certificate 95 


NC451-JMLM Adopted Budget 2015/16 


Page 2 


Glossary 


Adjustments Budget - Prescribed in section 28 of the MFMA. The formal means by 
which a municipality may revise its annual budget during the year. 

Allocations - Money received from Provincial or National Government or other 
municipalities 

AFS- Annual Financial Statements 

Budget - The financial plan of the Municipality 

Budget Related Policy - Policy of a municipality affecting or affected by the budget, 
examples include tariff policy, rates policy and credit control and debt collection 
policy 

Capital Expenditure - Spending on assets such as land, buildings and machinery. 
Any capital expenditure must be reflected as an asset on the Municipality’s Statement 
of Financial Performance 

Cash Flow Statement - A statement showing when actual cash will be received and 
spent by the Municipality. Cash payments do not always coincide with budgeted 
expenditure timings. For example, when an invoice is received by the Municipality it 
is shown as expenditure in the month it is received, even though it may not be paid 
in the same period 
CFO - Chief Financial Officer 

DORA - Division of Revenue Act. Annual legislation that shows the total allocations 
made by national to provincial and local government 
Equitable Share - A general grant paid to municipalities. It is predominantly 
targeted to help with free basic services 

Fruitless and wasteful expenditure - Expenditure that was made in vain and 

would have been avoided had reasonable care been exercised 

GFS - Government Finance Statistics. An internationally recognised classification 

system that facilitates like for like comparison between municipalities 

GRAP - Generally Recognised Accounting Practice. The new standard for municipal 

accounting and basis upon which AFS are prepared. 

IDP - Integrated Development Plan. The main strategic planning document of the 
Municipality 

KPI’s - Key Performance Indicators. Measures of service output and/or outcome 


NC451-JMLM Adopted Budget 2015/16 


Page 3 


MFMA - The Municipal Finance Management Act - No. 53 of 2003. The principle 
piece of legislation relating to municipal financial management. 

MTREF - Medium Term Revenue and Expenditure Framework. A medium term 
financial plan, usually 3 years, based on a fixed first year and indicative further two 
years budget allocations. Also includes details of the previous three years and current 
years’ financial position 
NT - National Treasury 

Operating Expenditure - Spending on the day to day expenses of the Municipality 
such as salaries and wages 

Rates - Local Government tax based on the assessed value of a property. To 
determine the rates payable, the assessed rateable value is multiplied by the rate in 
the rand 

R&M - Repairs and maintenance on property, plant and equipment 
SCM - Supply Chain Management 

SDBIP - Service Delivery and Budget Implementation Plan. A detailed plan 
comprising quarterly performance targets and monthly budget estimates. 
Unauthorised expenditure - Generally, spending without, or in excess of, an 
approved budget 

Vote means one of the main segment into which a budget of a municipality is divided 
for the appropriation of money for the different departments or functional areas of the 
municipality; and which specifies the total amount that is appropriated for the 
purpose of the department or functional area concerned. 

Zero Based Budgeting means as opposed to incremental budgeting, zero-based 
budgeting means that each year’s budget is drawn up independently from that if the 
previous year. This means that items are not included simply because they were in 
the previous budget. Each item has to be justified and motivated for and the purpose 
of each item is considered. All items in the capital are treated on a “zero-basis” 


NC451-JMLM Adopted Budget 2015/16 


Page 4 


PARTI 


MAYORAL BUDGET SPEECH 

Madam Speaker, members of the Executive Committee, Councilors, Municipal 
Manager, other Senior Manager, guests, ladies and gentlemen, good morning to you 
all. 

Let me start by quoting President Jacob Zuma during his SONA when he said “the 
year 2015 is the Year of the Freedom Charter and Unity in Action to Advance 
Economic Freedom. It is the year of going the extra mile in building a united, 
democratic, non-racial, non-sexist and prosperous South Africa”. 

Madam Speaker, as the municipality we have been working tirelessly to ensure that 
the lives of our people improve and that service delivery needs are addressed. As a 
result the Council has reach the realization that going back to the basics as Minister 
Parvin Gordon’s vigorous expressed is what needs to be done. The Municipality 
launched a campaign “Operation Tsiboga” which aims to build relations with 
Traditional Leaders, communities and other stakeholders at large. It further, aim to 
improve communication and public participation in our local communities. Hence the 
establishment of the hotline which operates around the clock for community queries 
and complaints to be attended as a matter of urgent. An Audit Plan with all corrective 
measures has also been developed to address All Audit Findings of the previous 
Financial Year. 

Ladies and gentlemen it is clear that the ANC led council means business in service 
delivery issues. 

Madam Speaker allow me to extend my gratitude to all stakeholders that worked side 
by side with the Municipality in our unified struggle to improve the lives of our people. 

We acknowledge that a lot still needs to be done in addressing all our challenges which 
I strongly believe that there is need for integrated solution from Government, NGOs, 
Communities and other Stakeholder. 


NC451-JMLM Adopted Budget 2015/16 


Page 5 


Madam Speaker, the Joe Morolong Local Municipality is again for 2015/2016 budget 
year set the task to provide sustainable and economically viable local governance to 
our communities. 

We find ourselves in a phase of economic difficulties and the provision of affordable 
and sustainable, quality services to all our communities remain high on the agenda. 
We find ourselves in a position where we have to continuously adapt our strategies to 
suit prevailing economic circumstances as we cannot isolate ourselves from the 
national and global economy. 

The average inflation rate for the past year was 5.6% and the headline inflation 
forecast for forth coming financial year is estimated to be 4.8%, 5.9% and 5.6% 
respectively for 201 6/1 7 and 2017/1 8. 

It is with the aforementioned figures in mind that we still place strong emphasis on; 
value for money in all our procurement processes, the encouragement of savings and 
the maximizing of all revenue sources for the 2015/16 financial year, as we are still 
striving to secure the economic progression of the Municipality. 

The budget I am tabling here today was prepared in accordance with the prescripts of 
the Municipal Finance Management Act, (Act 56 of 2003) and complies with Generally 
Recognized Accounting Practice as applicable to Local Government. 

The budget was compiled, taking into account the Macro-economic growth parameters 
and also addresses the National Policy frameworks and provincial priorities including 
the following: 

> Building of capacity for long term growth through investment in infrastructure 

> Focus on core service delivery activities of local government 

> Job creation and sustainable economic growth 

> Participation in expanded public works programs and labour intensive projects. 

> Protection of the poor through viable local economic development and 
strengthening of the social safety net. 

> Effective and participative management through the regional management 
model. 


NC451-JMLM Adopted Budget 2015/16 


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> Maintaining of debt levels through debtor management as well as maximizing 
sources of revenue. 

> Securing the health of the municipal asset base by increasing spending on 
repairs and maintenance. 

The following underlying factors were also taken into consideration with the 
compilation of the 2015/16 budget: 

❖ The National Policy framework with regards to basic service delivery to all our 
communities. 

❖ External factors having a direct impact on the budget such as the Eskom tariff 
increase of 14.24%, bulk water tariff increase of 7.7%, consumer inflation, as 
well as other cost factors influencing service delivery. 

FOCUS OF THE 2015/2016 BUDGET 

❖ With the 2015/16 budget, emphasis is placed on the core service delivery 
obligations assigned to the municipality in the constitution. 

❖ Maintenance and renewal of existing infrastructure should enjoy preference 
and we are focusing on preventative and scheduled maintenance preceded by 
proper planning processes. 

❖ Innovative service delivery mechanisms such as the building of internal 
capacity to get more value for budget allocations. 

❖ Provision of much needed infrastructure to ensure the economic progression of 
our communities 

❖ Provision of basic services, improvement of the quality infrastructures well as 
sustainable service delivery. 

CAPITAL BUDGET 

The capital budget flows from the IDP process and contains information obtained from 
relevant stakeholders and communities through a public participation process as well 
as ward committee processes where applicable. The capital budget for the 201 5/201 6 
financial year amounts to R 126.4 Million with the main focus on the following: 

❖ Provision of water R 69.1 Million 

❖ Roads R 17.6 Million 


NC451-JMLM Adopted Budget 2015/16 


Page 7 


❖ Sanitation 

❖ Traffic Testing Centre 

❖ Sports & Recreations 

❖ Community Halls 

❖ Cemeteries 


R 20.9 Million 


R 2.4 Million 


R 8.4 Million 


R 4.0 Million 


R 2.3 Million 


❖ Computers, Offices Equipment & Other R 1 .2 Million 


Municipal Office Fencing 


R 0.5 million 


Capital projects for the 2015/16 financial year are funded from grants receivable from 
the National Government amounting to R 1 15.7 Million and own funding to the amount 
of R 10.7 Million 

IN CONCLUSION 

The budget we are tabling here today is another step closer in attaining the strategic 
goals of the municipality which includes amongst others, institutional development and 
transformation, service delivery to all our communities, the financial viability and 
sustainability of the municipality as well as good administration and public 
participation. 

Thank you to the Municipal Manager who I believe has done an excellent job in leading 
the administration in the direction we both wish to move in and to the Directors and 
staff for their continued hard work in delivering services in line with the Municipality’s 
vision of “A wealthy and prosperous local community with equal access to basic 
services and sustainable development opportunities”. 

I would like to thank Councillors who have a difficult task of balancing community 
expectation with limited resources. 

I THANK YOU 
M.D Moremi 
MAYOR 


NC451-JMLM Adopted Budget 2015/16 


Page 8 


Council’s Budget Resolution 


❖ Council of Joe Morolong Local Municipality, acting in terms of section 24 of 
the Municipality Finance Management Act: Act 56 of 2003, approves and 
adopt the Annual Budget for 2015/16 financial year and single-year capital 
appropriations as set-out in the core table contained in the bound budget 
document with effect from the a 1 July 2015. 

■/ Table A2: Budgeted Financial Performance (expenditure by 
standard classification) 

S Table A3: Budgeted Financial Performance (expenditure by 
municipal vote) 

s Table A4: Budgeted Financial Performance (revenue by source) 

■/ Table A5: Budgeted Capital Expenditure for both multi-year and 
single year appropriations by vote, standard classification and 
funding 

❖ The council also, acting in terms of Section 75A of the municipality System 
Act, Act 32 of 2000, adopted with effect from 1 July 2015. 

1 . Tariffs for property rates, electricity, water supply, sanitation services 
and solid waste services and tariffs for other services. 

2. And the Council of Joe Morolong approved cash backing implemented 
through the utilisation of bulk services fees and portion of revenue 
generated from property rates to ensure cash backing for unspent 
conditional grants for effectiveness to the Municipal budget as required 
by the legal prescripts, Section 8 of the municipality Budget and 
Reporting Regulations. 


NC451-JMLM Adopted Budget 2015/16 


Page 9 


BUDGET RELATED POLICIES TABLED TO COUNCIL ALONG-SIDE WITH THE 
BUDGET: 


1) Property Rates Policy 

2) Banking and Investment Policy 

3) Budget, Funding, Reserves & Virement Policy 

4) Credit Control and Debt Collection Policy 

5) Fixed Assets Policy 

6) Indigent Policy 

7) Risk Management Policy 

8) Supply Chain Management Policy 

9) Tariffs Policy 

10) Fruitless and Wasteful Expenditure Policy 

11) Cash Shortage Policy 

12) Bad Debt Write Off Policy 

13) Asset Management Policy 

14) Petty Cash Policy 


BUDGET RESOLUTION: 283 / 2014/15 


NC451-JMLM Adopted Budget 2015/16 


Page 10 


1.1 Executive Summary 

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

The municipality’s service delivery priorities were reviewed as part of this year’s 
planning and budget process. Where appropriate, funds were transferred from low- 
to high-priority programmes so as to maintain sound financial stewardship. A critical 
review was also undertaken of expenditures on “nice to have” items in order to save 
money and improve service delivery. Key areas where savings were realized were 
on telephone and internet usage, workshops payment and catering. 

> National Treasury’s MFMA Circular No. 67, 70, 74 and 75 was used to 
guide the compilation of the 2015/16 MTREF. 

> The main challenges experienced during the compilation of the 
2015/2016 MTREF can be summarized as follows: 

> The need to reprioritize projects and expenditure within the existing 
resource envelope given the cash flow realities and cash position of 
the municipality; 

> Elimination of non-priority expenditure that does serve the interest 
of service delivery to communities 

> The municipality’s inability to generate enough own revenue to 
assist the infrastructure challenges in our communities. 

> Wage increases for municipal staff that continue to exceed 
consumer inflation, as well as the need to fill critical vacancies; 

> Affordability of capital projects 


NC451-JMLM Adopted Budget 2015/16 


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

> The 201 4/1 5 Adjustments Budget priorities and targets, as well as 
the base line allocations contained in that Adjustments Budget were 
adopted as the upper limits for the new baselines for the 2015/16 
draft budget 

> The budget was prepared on a zero base principle and some of the 
operational expenses such as advertising, some contracted service 
and fuel expenses were prepared based on the 2014/2015 financial 
year performance. 

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

> Tariff and property rate increases should be affordable and should 
generally not exceed inflation as measured by the CPI, except 
where there are price increases in the inputs of services that are 
beyond the control of the municipality. In addition, tariffs need to 
remain or move towards being cost reflective, and should take into 
account the need to address infrastructure backlogs. For the next 
financial year, tariffs and property rates have been increased and 
there are two separate tariffs and rates applicable to municipality; 
being the one for businesses and the other for residential 

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

> 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; 


NC451-JMLM Adopted Budget 2015/16 


Page 12 


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


Table 1 Overview of the 2015/16 MTREF 



Adjustment Budget 

2014/15 

R ‘000 

Budget Year 

2015/16 

R ‘000 

Budget Year +1 

2016/17 

R 000 

Budget Year +2 

2017/18 

R 000 

Total Operating Revenue 

Total Operating Expenditure 

R 136,514 
R 114,065 

R 174,369 

R 163,655 

R 169,126 
R 162,271 

R 172,627 

R 171,870 

(Surplus)/Deficit for the year 

R 22,448 

R 10,714 

R 6,855 

R 0,757 

Total Capital Expenditure 

R 138,845 

R 126,383 

R 137,901 

R 139,122 


Total operating revenue has grown by R 37.8 million for the 2015/16 financial year 
when compared to the 2014/15 Adjustments Budget. For the two outer years, 
operational revenue will decrease by R 5.2 million and then increase by R 3.5 million 
respectively, equating to a total revenue growth of R 36.1 million over the MTREF 
when compared to the 2014/15 financial year. The decrease of R 5.2 million in 
2016/17 financial year is as result of reduction in the operational grants 


Total operating expenditure for the 2015/16 financial year has been appropriated at 
R 163.7 million and translates into a budgeted surplus of R 10.7 million. When 
compared to the 2014/15 Adjustments Budget, operational expenditure has 
increased by R 49.6 million in the 2015/16 budget as result of increase in spending 
for repairs and maintenance and will decrease by R 1 .4 million and then increase by 
R 9.6 million for each of the respective outer years of the MTREF. The operating 
surplus for the two outer years increases to R 6.9million and then reduces to R 0.8 
million. These surpluses will be used to fund capital expenditure and to further 
ensure cash backing of reserves and funds. 


The capital budget of R 126.4 million for 2015/16 is 9 per cent less when compared 
to the 2014/15 Adjustment Budget. The decrease is due to the non allocation of 
RBIG and Kumba which was added on the 2014/15 Adjustment budget. The capital 
programme increases to R137.9 million in the 2016/17 financial year and R139.1 
million in 2017/18. The capital budget will be funded from government grants and 
internally generated funds (surplus) over MTREF. 


NC451-JMLM Adopted Budget 2015/16 


Page 13 


1.2. Operating Revenue Framework 

For Joe Morolong local Municipality to continue improving the quality of services 
provided to its citizens it needs to generate the required revenue. In these tough 
economic times strong revenue management is fundamental to the financial 
sustainability of every municipality. 

The reality is that we are faced with development backlogs, poverty and high 
unemployment. 

The expenditure required to address these challenges will inevitably always exceed 
available funding; hence difficult choices have to be made in relation to tariff 
increases and balancing expenditures against realistically anticipated revenues. 

The municipality’s revenue strategy is to be built around the following key 
components: 

• National Treasury’s guidelines and macroeconomic policy; 

• Growth in the municipality and continued economic development; 

• Efficient revenue management, which aims to ensure a 95 per cent 
annual collection rate for property rates and other key service charges; 

• Electricity tariff increases as approved by the National Electricity 
Regulator of South Africa (NERSA); 

• Trading services are fully cost-reflective and ring-fenced; 

• Determining the tariff escalation rate by calculating the revenue 
requirement of each service; 

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

• Increase ability to extend new services and recover costs; 

• The municipality’s Indigent Policy and rendering of subsidised services; 
and 

• Tariff policies of the municipality. 


NC451-JMLM Adopted Budget 2015/16 


Page 14 


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


Table 2 Summary of revenue classified by main revenue source 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue 
& Expenditure Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full 

Year 

Forecast 

Pre- 

audit 

outcome 

Budget 

Year 

2015/16 

Budget 
Year +1 
2016/17 

Budget 

Year +2 
2017/18 

Revenue Bv Source 

Property rates 

3116 

6 925 

3 371 

9 651 

6 303 

6 303 

6 303 

10 489 

11 223 

12 009 

Property rates - penalties & collection 
charges 

Service charges - electricity revenue 

7 467 

5177 

4 914 

7 249 

5 855 

5 855 

5 855 

6 569 

7 403 

8 342 

Service charges - water revenue 

6 295 

10 262 

5315 

6419 

6 746 

6 746 

6 746 

6 798 

7 172 

7 566 

Service charges - sanitation revenue 

(1 844) 

1 141 

1 439 

1 510 

1 510 

1 510 

1 510 

1 585 

1 664 

1 748 

Service charges - refuse revenue 

Service charges - other 

729 

652 

838 

915 

915 

915 

915 

960 

1 008 

1 059 

Rental of facilities and equipment 

37 

171 

100 

95 

95 

95 

95 

97 

103 

108 

Interest earned - external investments 

1 303 

123 

260 


92 

92 

92 

- 

- 

- 

Interest earned - outstanding debtors 


3 385 

3 727 

50 

352 

352 

352 

50 

50 

50 

Dividends received 

Fines 

Licences and permits 

Agency services 








109 

116 

123 

Transfers recognised - operational 

62 589 

70 029 

74 257 

111 580 

113 634 

113 634 

113 634 

147 129 

140 027 

141 242 

Other revenue 

Gains on disposal of PPE 

23 451 

3 296 

1 022 

694 

1 012 

1 012 

1 012 

582 

360 

381 

Total Revenue (excluding capital transfers 
and contributions) 

103145 

101 161 

95 241 

138163 

136 514 

136 514 

136 514 

174 369 

169126 

172 627 


The following table gives a breakdown of source of income by categories for 


the year 2015/16 financial year. 



Other revenue 
0% 


Electricity revenue „ . 

Sanitation revenue 

1 % 

Rent 
0% 

Agency 

Interest earned - services 
outstanding debtors 
0% 


Refuse revenue 
1 % 


NC451-JMLM Adopted Budget 2015/16 


Page 15 



Table 3 Percentage growth in revenue by main revenue source 


Description 

Current Year 2015/16 

2015/16 Medium Term Revenue & Expenditure Framework 

R thousand 

Adjusted 

Budget 

% 

Budget Year 
2015/16 

% 

Budget Year 
2016/17 

% 

Budget Year 
2017/18 

% 

Revenue Bv Source 









Property rates 

6 303 

4.62% 

10 489 

6.02% 

11 223 

6.64% 

12 009 

6.96% 

Property rates - penalties & collection charges 

- 

0.00% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Service charges - electricity revenue 

5 855 

4.29% 

6 569 

3.77% 

7 403 

4.38% 

8 342 

4.83% 

Service charges - water revenue 

6 746 

4.94% 

6 798 

3.90% 

7 172 

4.24% 

7 566 

4.38% 

Service charges - sanitation revenue 

1 510 

1.11% 

1 585 

0.91% 

1 664 

0.98% 

1 748 

1.01% 

Service charges - refuse revenue 

915 

0.67% 

960 

0.55% 

1 008 

0.60% 

1 059 

0.61% 

Service charges - other 

- 

0.00% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Rental of facilities and equipment 

95 

0.07% 

97 

0.06% 

103 

0.06% 

108 

0.06% 

Interest earned - external investments 

92 

0.07% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Interest earned - outstanding debtors 

352 

0.26% 

50 

0.03% 

50 

0.03% 

50 

0.03% 

Dividends received 

- 

0.00% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Fines 

2 

0.00% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Licences and permits 

- 

0.00% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Agency services 

- 

0.00% 

109 

0.06% 

116 

0.07% 

123 

0.07% 

Transfers recognised - operational 

113 634 

83.24% 

147 129 

84.38% 

140 027 

82.79% 

141 242 

81.82% 

Other revenue 

1 010 

0.74% 

582 

0.33% 

360 

0.21% 

381 

0.22% 

Gains on disposal of PPE 

- 

0.00% 

- 

0.00% 

- 

0.00% 

- 

0.00% 

Total Revenue (excluding capital transfers 
and contributions) 

136 514 

100.00% 

174 369 

100.00% 

169126 

100% 

172 627 

100% 

Total Revenue from rates and service charges 

21 328 

16% 

26 401 

15% 

28 470 

17% 

30 723 

18% 


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


The municipality’s revenue from operating grants and transfers totals R147.1 million 
in 2015/16 and decreases to R141 .2 million by 2017/18 which translates to 84% in 
2015/16 and decreases to 82% by 2017/18 of total revenue of municipality 
generated from grants, the revenue from operating grants form a significant 
percentage of the revenue basket for the Joe Morolong Local Municipality. The 
increase in property rates revenue in relation to the updated valuation, whereby 
there are additional mining development in the area. In terms of services charges 
mainly water municipality is busy installing the meters in all government sector 
department (e.g. schools, clinics, etc.) where they have been receiving water for free 
and decided to install prepaid meter for all new water projects that they undertake in 
order to manage water usage. Rates, service charges and other revenues comprise 
16 percent in 2015/16 and 17 and 18 percent of the total revenue mix respectively in 
2016/17 and 2017/18. 


NC451-JMLM Adopted Budget 2015/16 


Page 16 


The following table gives a breakdown of the various operating grants and subsidies 
allocated to the municipality over the medium term: 


Table 4 Operating Transfers and Grant Receipts 


Description 

R thousand 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

RECEIPTS: 










Operating Transfers and Grants 










National Government: 

61 379 

69 806 

73 667 

107 758 

107 758 

107 758 

142 694 

135 440 

136 385 

Local Government Equitable Share 

54 260 

67 506 

71 227 

93 255 

93 255 

93 255 

115 253 

117 673 

117 381 

Water Services Operating Subsidy 

3 875 



10 000 

10 000 

10 000 

22 500 

15 000 

15 826 

Finance Management 

1 887 

1 500 

1 550 

1 600 

1 600 

1 600 

1 675 

1 810 

2145 

Municipal Systems Improvement 

965 

800 

890 

934 

934 

934 

930 

957 

1 033 

EPWP Incentive 

393 



1 969 

1 969 

1 969 

2 336 



Provincial Government: 

684 

223 

590 

969 

3 023 

3 023 

1 505 

1 541 

1 638 

Sport and Recreation 

684 

223 

590 

969 

969 

969 

1 505 

1 541 

1 638 

Housing 





2 054 

2 054 




District Municipality: 

525 

- 

- 

- 

- 

- 

- 

- 

- 

John Taolo Gaetsewe District Municipality 

525 









Other grant providers: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Operating Transfers and Grants 

62 589 

70 029 

74 257 

108 727 

110 781 

110 781 

144 199 

136 981 

138 023 


1.2.1. Operational revenue assumptions - tariffs 

Tariff -setting is a pivotal and strategic part of the compilation of any budget. When 
rates, tariffs and other charges were revised, local economic conditions, input costs 
and the affordability of services were taken into account to ensure the financial 
sustainability of the municipality 

National Treasury continues to encourage municipalities to keep increases in rates, 
tariffs and other charges as low as possible. Municipalities must justify in their 
budget documentation all increases in excess of the 6 per cent upper boundary of 
the South African Reserve Bank’s inflation target. Excessive increases are likely to 
be counterproductive, resulting in higher levels of non-payment. 

The percentage increases of both Eskom and Sedibeng Water bulk tariffs are far 
beyond the mentioned inflation target. Given that these tariff increases are 
determined by external agencies, the impact they have on the municipality’s 
electricity and water, these tariffs are largely outside the control of the municipality. 
Discounting the impact of these price increases in lower consumer tariffs will erode 
the municipality’s future financial position and viability. 

It must also be appreciated that the consumer price index, as measured by CPI, is 
not a good measure of the cost increases of goods and services relevant to 
municipalities. The basket of goods and services utilised for the calculation of the 


NC451-JMLM Adopted Budget 2015/16 


Page 17 


CPI consist of items such as food, petrol and medical services, whereas the cost 
drivers of a municipality are informed by items such as the cost of remuneration, bulk 
purchases of electricity and water, petrol, diesel, chemicals, cement etc. The current 
challenge facing the Municipality is managing the gap between cost drivers and 
tariffs levied, as any shortfall must be made up by either operational efficiency gains 
or service level reductions. 

1 .2.2. Property Rates 

Property rates cover the cost of the provision of general services. Determining the 
effective property rate tariff is therefore an integral part of the municipality’s 
budgeting process. 

National Treasury’s MFMA Circular No. 51 deals, inter alia with the implementation 
of the 

Municipal Property Rates Act, with the regulations issued by the Department of Co- 
operative Governance. These regulations came into effect on 1 July 2009 and 
prescribe the rate ratio for the non-residential categories, public service infrastructure 
and agricultural properties relative to residential properties 

The following stipulations in the Property Rates Policy are highlighted: 

> The first R15 000 of the market value of all residential properties and of all 
properties used for multiple purposes, provided one or more components of 
such properties are used for residential purposes, is exempt from the payment 
of rates in terms of Section 1 7(1 )(h) of the Property Rates Act. 

> 100% rebate will granted to registered indigents in terms of the Indigent Policy 


NC451-JMLM Adopted Budget 2015/16 


Page 18 


Table 5 Comparison of rates to be levied for the 2015/16 financial year 


Category 

Current Tariff (from 01 July 2014) 

Approved Tariff (from 01 July 2015) 


c 

c 

Residential properties 

0.00764 

0.00818 

State owned properties 

0.01399 

0.01497 

Business & Commercial 

0.01399 

0.01497 

Agricultural 

0.00764 

0.00818 

Industrial 

0.01399 

0.01657 

Mines 

0.01549 

0.01657 


1 .2.3 Sales of Water and Impact of Tariff Increases 

South Africa in general faces similar challenges with regard to water supply. 
Consequently, National Treasury is encouraging all municipalities to carefully review 
the level and structure of their water tariffs to ensure: 

> Water tariffs are fully cost-reflective - including the cost of maintenance and 
renewal of water infrastructure, water networks and the operational cost 

> Water tariffs are structured to protect basic levels of service and ensure the 
provision of free water to the poorest of the poor (indigent); and 

> Water tariffs are designed to encourage efficient and sustainable 
consumption. 

A tariff increase of 1 1 per cent as from 1 July 2015 for water. This is based on input 
cost assumption of 7.7 percent increase in the cost of bulk water (Sedibeng Water) 
and cost related to renewal of water infrastructure. In addition 6kl of water per 30 day 
period will again be granted for free to all the registered indigents. 


NC451-JMLM Adopted Budget 2015/16 


Page 19 


Table 6 Approved Water Tariffs 


Category 

Current Tariffs 2014/15 

Approved Tariffs 2015/16 

Residential 

Rand per kl 

Rand per kl 

0- 10 kl 

4.51 

5.00 

10-20 kl 

5.63 

6.25 

> 20 kl 

10.76 

11.94 

Business 



0- 10 kl 

11.26 

12.50 

10-20 kl 

14.56 

16.16 

> 20 kl 

19.87 

22.06 

Industrial 



0- 10 kl 

15.91 

35.00 

10-20 kl 

19.20 

45.00 

>20 kl 

23.18 

65.00 


1.2.4. Sanitation and Impact of Tariff Increase 

A tariff increase of 7 percent for sanitation from 1 July 2015 is approved by council. 


Table 7 Comparison between current sanitation charges and increases 


Categories 

Current Tariffs 2014/15 

Approved Tariffs 2015/16 

Residential 



Availability charge 

56.71 

60.68 

Basic charge 

56.71 

60.68 

Charge per Toilet 

78.44 

83.93 

Business 



Availability charge 

65.19 

69.75 

Basic charge 

65.19 

69.75 

Charge per Toilet 

139.92 

149.71 


NC451-JMLM Adopted Budget 2015/16 


Page 20 


1 .2.5 Refuse and Impact of Tariff Increases 

A tariff increase of 7 percent for refuse from 1 July 201 5 is approved by council 


Table 8 Comparison between current refuse charges and increases 


Categories 

Current Tariffs 2014/15 

Approved Tariffs 201516 

Van Zylsrus 



Residential 

22.79 

24.39 

Business (per container) 

47.30 

50.61 




Hotazel 



Availability charge 

38.90 

41.63 

Basic charge 

38.90 

41.63 

Basic removal charge 

114.80 

122.83 


1.2.6 Electricity and impact of Tariff Increases 

A tariff increase of 12% percent for electricity from 1 July 2015 is approved by 
council as recommended by NERSA in MFMA Circular no: 75 


Table 9 Comparison between current electricity charges and increases 


Categories 

Current Tariffs 2014/15 

Approved Tariffs 2015/16 

Hotazel 



Availability charge 

77.27 

86.69 

Single Phased pre-paid 



-basic charge 

66.31 

74.40 

-per kwh 

1.22 

1.37 

Three phase pre-paid 



-basic charge 

96.58 

108.36 

-per kwh 

1.48 

1.66 

Normal metered 



-basic charge 

96.58 

108.36 

-per kwh 

1.22 

1.37 


NC451-JMLM Adopted Budget 2015/16 


Page 21 


The tariffs for 2015/16 MTREF are based on the following assumptions: 

> That the demand for services will remain at the same levels, meaning that 
consumers will continue consuming at the same quantities as the previous 
period 

> That the paying customers will continue paying for their services and those 
who cannot afford will register as indigents and benefit from free basic 
services 

> That credit control policy will be applied to prevent customers in 
accumulating debt without paying the municipality and entering into a 
repayment arrangement with the municipality’s finance department 

> That non-paying customers including indigents who consume more that 
the approved quantum will be disconnected from services in line with the 
credit control policy until acceptable arrangements/payments are made 

> That the municipality will take a conservative approach on tariff hike taking 
into account affordability and inflation 

> That no surcharges will be implemented in their near future for all services 

> That consumers will continue to switch over from post-paid to prepaid 
electricity metering 

> That the municipality will charge a basic charge for the first 6kl of water will 
be not be charged and that indigent person will be fully subsidized for the 
same. 

> That the average tariff increases will be as affordable as possible. 

1 .2.7 Overall impact of tariff increases on households 

The following table shows the overall expected impact of the tariff increases on a 
large and small household, as well as an indigent household receiving free basic 
services. 

Note that in all instances the overall impact of the tariff increases on household’s bills 
has been kept to between 6.6 per cent and 10.4 per cent, with the increase for 
indigent households being to 6.6 per cent. 


NC451-JMLM Adopted Budget 2015/16 


Page 22 


Table 10- Table SA14 Household bills 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 








Framework 




Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget 

Budget 

Budget 

Budget 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

Year 

Year 

Year +1 

Year +2 








2015/16 

2015/16 

2016/17 

2017/18 

Rand/cent 







% incr. 




Monthly Account for Household - 

'Middle Income Range' 

Rates and services charges: 











Property rates 

Electricity: Basic levy 

Electricity: Consumption 



94.19 

99.84 

99.84 

99.84 

7.0% 

106.83 

114.31 

122.31 

Water: Basic levy 

Water: Consumption 



1 632.35 

1 811.91 

1 811.91 

1 811.91 

11.0% 

2 011.22 

2 232.45 

2 478.02 

Sanitation 



314.05 

332.89 

332.89 

332.89 

7.0% 

356.19 

381.13 

407.80 

Refuse removal 

Other 



165.30 

175.22 

175.22 

175.22 

7.0% 

187.49 

200.61 

214.65 

sub-total 

- 

- 

2 205.89 

2 419.86 

2 419.86 

2 419.86 

10.0% 

2 661.73 

2 928.50 

3 222.79 

VAT on Services 



308.82 

338.78 

338.78 

338.78 





Total large household bill: 

- 

- 

2 514.71 

2 758.64 

2 758.64 

2 758.64 

(3.5%) 

2 661.73 

2 928.50 

3 222.79 

% increase/-decrease 


- 

- 

9.7% 

- 

- 


(3.5%) 

10.0% 

10.0% 

Monthly Account for Household - 

'Affordable Range' 

Rates and services charges: 











Property rates 

Electricity: Basic levy 

Electricity: Consumption 



57.17 

57.17 

57.17 

57.17 

7.0% 

61.17 

65.45 

70.04 

Water: Basic levy 

Water: Consumption 



501.76 

501.76 

501.76 

501.76 

11.0% 

556.95 

618.22 

686.22 

Sanitation 







- 




Refuse removal 

Other 



24.50 

24.50 

24.50 

24.50 

7.0% 

26.22 

28.05 

30.01 

sub-total 

- 

- 

583.43 

583.43 

583.43 

583.43 

10.4% 

644.34 

711.72 

786.27 

VAT on Services 











Total small household bill: 

- 

- 

583.43 

583.43 

583.43 

583.43 

10.4% 

644.34 

711.72 

786.27 

% increase/-decrease 


- 

- 

- 

- 

- 


10.4% 

10.5% 

10.5% 

Monthly Account for Household - 

'Indigent' Household receiving free 

basic services 

Rates and services charges: 











Property rates 

Electricity: Basic levy 








- 

- 

- 

Electricity: Consumption 



57.00 

57.00 

57.00 

57.00 

12.7% 

63.95 

71.76 

80.51 

Water: Basic levy 



- 

- 

- 

- 





Water: Consumption 



4.06 

4.06 

4.06 

4.06 

11.0% 

4.51 

5.00 

5.55 

Sanitation 



53.12 

53.12 

53.12 

53.12 

7.0% 

56.84 

60.82 

65.07 

Refuse removal 

Other 



21.50 

21.50 

21.50 

21.50 

7.0% 

23.01 

24.62 

26.34 

sub-total 

- 

- 

135.68 

135.68 

135.68 

135.68 

9.3% 

148.30 

162.19 

177.48 

VAT on Services 



19.00 

19.00 

19.00 

81.68 





Total small household bill: 

- 

- 

154.68 

154.68 

154.68 

217.36 

(4.1%) 

148.30 

162.19 

177.48 

% increase/-decrease 


- 

- 

- 

- 

40.5% 


(31.8%) 

9.4% 

9.4% 


NC451-JMLM Adopted Budget 2015/16 


Page 23 


1.3 Operating Expenditure Framework 

The Municipality’s expenditure framework for the 201 5/1 6 budget and MTREF is 
informed by the following: 

> Budgetary constraints (operating expenditure should not exceed 
operating revenue) unless there are existing uncommitted cash- 
backed reserves to fund any deficit; 

> Funding of the budget over the medium-term as informed by 
Section 18 and 19 of the MFMA; 

> Funding compliance Budget Circular 42 

> Operational gains and efficiencies will be directed to funding repairs 
and maintenance; 

> Strict adherences to the principle of no project plan no budget. If 
there is no business plan no funding allocation can be made. 

The following table is a high level summary of the 201 5/1 6 budget and MTREF 
(classified per main type of operating expenditure): 


Table 11 Summary of operating expenditure by standard classification item 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Expenditure Bv Type 










Employee related costs 

36 563 

27 974 

37 025 

45 227 

44 715 

44 715 

49199 

52 053 

54 812 

Remuneration of councillors 

9 284 

6 718 

7 504 

8 226 

8 247 

8 247 

8 538 

9 033 

9 512 

Debt impairment 

56 089 

32 578 

2 336 

1 213 

1 213 

1 213 

3 960 

4 271 

4 609 

Depreciation & asset impairment 

67 954 

20 507 

24 326 

9 826 

7717 

7 717 

10 000 

10 550 

11 130 

Finance charges 

2 402 

96 

232 

884 

899 

899 

934 

943 

951 

Bulk purchases 

Other materials 

6 306 

8 926 

11 018 

11 169 

9 469 

9 469 

10 847 

12 085 

13 466 

Contracted services 

- 

82 

168 

4 636 

8 700 

8 700 

20 398 

22 619 

23 804 

Transfers and grants 

66 067 

115 727 

13 705 

2 021 

2 471 

2 471 

4 730 

4 938 

5 376 

Other expenditure 

Loss on disposal of PPE 

43 784 

57 503 

61 354 

26 071 

30 635 

30 635 

55 048 

45 779 

48 210 

Total Expenditure 

288 449 

270 111 

157 668 

109 273 

114 065 

114 065 

163 655 

162 271 

171 870 


The budgeted allocation for employee related costs for the 201 5/1 6 financial year 
totals R49.2 million, which equals 30 per cent of the total operating expenditure. The 
previous year’s collective SALGBC wage increase averaged above inflation. Salary 
increases have been factored into this budget at a percentage increase of 6.2 per 
cent for the 201 5/1 6 financial year. An annual increase of 5.3 per cent has been 
included in the two outer years of the MTREF. The municipality have made provision 


NC451-JMLM Adopted Budget 2015/16 


Page 24 


for under community services which was contracted with service provide to be 
incorporate to the organisational structure as the contract have come to an end. 

In addition to the above there are new positions to be filled under certain 
departments; Budget and Treasury seven positions, Community Services four 
positions, Electricity two, and Water Unit two position. 

The cost associated with the remuneration of Councillors is determined by the 
Minister of Cooperative Governance and Traditional Affairs in accordance with the 
Remuneration of Public Office Bearers Act, 1998 (Act 20 of 1998). The most recent 
proclamation in this regard has been taken into account in compiling the 
municipality’s budget. 

The provision of debt impairment was determined based on an annual collection rate 
of 95 percent and the Debt Write-off Policy of the municipality. For the 2015/16 
financial year this amount equates to R3.9 million and escalates to R4.6 million by 
2017/18. While this expenditure is considered to be a non-cash flow item, it informed 
the total cost related to rendering the services of the municipality, as well as the 
municipality’s realistically expected revenues to be collected. 

Finance charges consist primarily of the repayment of interest on long-term 
borrowing (cost of capital). Finance charges make up 1 percent (R0.93 million) of 
operating expenditure for 2015/16 and increases to R0.95 million by 2017/18. 

Bulk purchases are directly informed by the purchase of electricity from Eskom and 
bulk water from Sedibeng Water. The annual price increases have been factored into 
the budget appropriations and directly inform the revenue provisions. The 
expenditures include distribution losses. 

Contracted Service increase is as result of municipality’s plan to lease fleet for the 
period of 36 months which will cover management and repairs & maintenance, and 
at the end of the period they will be transferred to municipality without any additional 
cost. Fleet lease is budgeted at R 17.2 million, which will comprise of the following: 


NC451-JMLM Adopted Budget 2015/16 


Page 25 


DESCRIPTION 

QUANTITY 

6 Ton Crane Truck 

2 

4 Ton Crane Truck 

2 

10 Ton Drum Roller 

2 

6 Ton Chery Picker Truck 

1 

Grader for gravel roads 140H 

4 

6 Cube Tipper Truck 

2 

Water Delivery Truck minimum of 10 000 liters 

2 

Water Delivery Trailer with minimum 1000 liters 

1 

Honey Sucker(sewer) Truck with minimum 10 000 liters 

2 

Diesel Delivery Truck with minimum 5 000 liters 

2 

TLB 4x4 

2 

22 Seater Bus 

1 

Refuse Truck 10-ton 

3 

Single Cab Bakkie 4x2 

3 

Single Cab Bakkie 4x4 

2 

Double Cab Bakkie 4x2 

15 

Double Cab Bakkie 4x4 

8 


The aim of lease is to improve service delivery as the municipality realize that it will 
be difficult to afford such vehicles at once. Contracted Service make up 12 percent 
(R20.4 million) of operating expenditure for 2015/16 and increases to R23.8 million 
by 2017/18. 

Other expenditure comprises of various line items relating to the daily operations of 
the municipality including repairs and maintenance. This group of expenditure has 
also been investigated as a possible avenue where savings and efficiencies can be 
achieved but the cost under these items are relatively fixed due to the fact that we 
were already very conservative when compiling the budget, growth has been limited 
to average increase of 5.5 per cent for 2015/16 unless there was a specific reason 
for such line item to be more than inflation. 

Other expenditure increase is mainly as result of repairs and maintenance, which is 
influenced by Water Service Operating Subsidy Grant (WSOG) condition is to 
refurbish the water boreholes, the grant amount to R 22.5 million. 


NC451-JMLM Adopted Budget 2015/16 


Page 26 


The following table gives a breakdown of main expenditure categories for the 
year 2015/16 financial year. 


OPERATIONAL EXPENDITURE 


Transfers and grants 
3% 



Other expenditure 
34% 


Employee related costs 
30% 


Contracted services 
12% 



Finance charges 
1 % 


Remuneration of 
councillors 
5% 


CD 

£ 

L_ 

fO vO 
O O'' 

E " 


CD 

o 


Depreciation & asset 
impairment 
6% 


1.3.1 Repairs and Maintenance 


Table 12 Repairs and Maintenance per asset class 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/1 5 


2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

EXPENDITURE OTHER ITEMS 

Depreciation & asset impairment 

67 954 

20 507 

24 326 

9 826 

7 717 

7717 

10 000 

10 550 

11 130 

Repairs and Maintenance bv Asset Class 

5 357 

11 683 

18215 

7 730 

6515 

6515 

26 558 

19 504 

20 604 

Infrastructure - Road transport 

724 

152 

78 

205 

218 

218 

243 

262 

277 

Infrastructure - Electricity 

- 

- 

- 

200 

280 

280 

200 

225 

254 

Infrastructure - Water 

1 066 

3 763 

14 289 

6 075 

4 955 

4 955 

25 700 

18 376 

19 388 

Infrastructure - Sanitation 

- 

- 

13 

135 

80 

80 

110 

116 

122 

Infrastructure - Other 

- 

2215 

848 

310 

305 

305 

15 

16 

17 

Infrastructure 

1 790 

6129 

15 228 

6 925 

5 838 

5 838 

26 268 

18 995 

20 057 

Community 

942 

16 

187 

80 

40 

40 

80 

84 

89 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

2 625 

5 538 

2 800 

725 

637 

637 

210 

424 

458 

TOTAL EXPENDITURE OTHER ITEMS 

73 311 

32190 

42 541 

17 556 

14 231 

14 231 

36 558 

30 054 

31 734 


For the 2015/16 financial year, R26.3 million of total repairs and maintenance will be 
spent on infrastructure assets. Water infrastructure has received a significant 
proportion of this allocation totalling up to R25.7 million, followed by roads and 
electricity infrastructure by R 0.2 million each, other infrastructure and sanitation at 


NC451-JMLM Adopted Budget 2015/16 


Page 27 



R0.1 million. Community assets has been allocated R0.08 million and other assets 
has been allocated R0.2 million of total repairs and maintenance. 


The total repairs and maintenance amounts to 2.1% of the total value Property, Plant 
and Equipment in the 2015/16 budget and decreases to at least 1 .4% in the following 
year. We acknowledge that the municipality should provide at least 8% of the total 
value of assets for repair and maintenance as stated on MFMA Circular No 70, 
whereby the value of our municipal assets amount to R 1 .0 billion. Currently the 
municipality’s focus on the refurbishment of the water infrastructure mainly the old 
infrastructure. 

1.4 Capital expenditure 

The following table provides a breakdown of budgeted capital expenditure by vote: 


Table 13 2015/16 Medium-term capital budget per vote 


Vote Description 

Current Year 2014/15 

2014/15 Medium Term Revenue & Expenditure Framework 

R thousand 

Adjusted 

Budget 

% 

Budget Year 
2015/16 

% 

Budget Year 
2016/17 

% 

Budget Year 
2017/18 

% 

Executive and council 

600 

0.43% 


0.00% 


0.00% 


0.00% 

Budget and treasury office 

20 

0.01% 

50 

0.04% 

38 

0.03% 

279 

0.20% 

Corporate services 

872 

0.63% 

1 205 

0.95% 

250 

0.18% 

200 

0.14% 

Community and social services 

10 556 

7.60% 

6 576 

5.20% 

4 500 

3.26% 

- 

0.00% 

Sport and recreation 

- 

0.00% 

8 350 

6.61% 

8 680 

6.29% 

8 680 

6.24% 

Public safety 

- 

0.00% 

2 433 

1.93% 

1 592 

1.15% 


0.00% 

Planning and development 

400 

0.29% 

- 

0.00% 


0.00% 


0.00% 

Road transport 

28 259 

20.35% 

17 555 

13.89% 

20 474 

14.85% 

4 215 

3.03% 

Water 

78 890 

56.82% 

69140 

54.71% 

90 505 

65.63% 

108 391 

77.91% 

Waste water management 

19 247 

13.86% 

21 074 

16.67% 

11 863 

8.60% 

17 357 

12.48% 

Total Capital Expenditure - Standard 

138 845 

100% 

126 383 

100% 

137 901 

100% 

139122 

100% 


For 201 5/1 6 an amount of R 1 26.4 million has been budgeted for the capital 
expenses and increases to R 139.1 million in 2017/18. For 2015/16 financial year an 
amount of R 107.6 million has been appropriated for development of Infrastructure 
which represent 85.1 per cent of the total capital budget. In the outer years this 
amount totals R 122.6million, 88.9 per cent and R 130 million, 93.4 per cent 
respectively for each of the financial years. For 2015/16 financial year water receives 
the highest allocation of R 69.1 million, which represent 54.7 per cent followed by 
waste water management at R 21.1 million at 16.7 per cent and then roads at R 17.5 
million at 13.9 per cent. 


NC451-JMLM Adopted Budget 2015/16 


Page 28 


The capital budget for the 2015/2016 financial year amounts to R 126.4 Million with 
the main focus on the following: 


Provision of water 

Roads 

Sanitation 

Traffic Testing Centre 
Sports & Recreations 
Community Halls 
Cemeteries 


R 69.1 Million 
R 17.6 Million 
R 20.9 Million 
R 2.4 Million 
R 8.4 Million 
R 4.0 Million 
R 2.3 Million 


Computers, Offices Equipment & Other R 1.2 Million 
Municipal Office Fencing R 0.5 million 


Capital projects for the 2015/1 financial year are funded from grants receivable from 
the National Government amounting to R 1 15.7 Million and own funding to the 
amount of R 10.7 Million 


The following graph provides a breakdown of capital budget to spent on 

infrastructure projects over the MTREF 

160 000 000.00 


140 000 000.00 


135 118 174.00 


120 000 000.00 


100 000 000.00 


80 000 000.00 


60 000 000.00 


40 000 000.00 


20 000 000.00 


O 

o 

no 

oo 

oo 


CD 

,! d- 

r'v 


o 

q 

LO 

o 

oo 

LD 

LO 

cr> 

_o_ 


80 615 517.00 


o 

o 

LD 

'vt 

O 

tH 

LD 

no 


68 890 232 69 139 945 


00 

O 


O 

o 

LD CT> 

OO LO 

LO ™ 

00 oo ■ 

no cm 


LD 

T — I 

cr> 

LO 

nsi 


ilu llu ulu 


90 504 560 


o 

no | | o o 

'T II r^- 

LO oo 

|1 rsj cm 


o 

no 

to 


108 391 237 


cr> 

LO 

LO 
T— I 

CM 


O 

LO 

LO 

LO 

LO 

no 

I"- 



2011/12 

2012/13 

2013/14 

2014/15 

2015/16 

2016/17 

2017/18 

y Road transport 


74 916 883. 

29 361 046. 

28 259 084 

17 554 543 

20 474 100 

4 215 459 

H Water 


135 118 174 

80 615 517. 

68 890 232 

69 139 945 

90 504 560 

108 391 237 

y Sanitation 


10 956 805. 

19 385 864. 

19 246 916 

20 874 205 

11651 530 

17 356 650 


NC451-JMLM Adopted Budget 2015/16 


Page 29 





1.5 Annual Budget Tables 

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 2015/16 budget and MTREF as approved by the Council. Each 
table is accompanied by explanatory notes on the facing page 


NC451 Joe Morolong - Table A1 Budget Summary 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousands 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Pre-audit 

Budget Year J 

Budget Year 

Budget Year 

Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

outcome 

2015/16 

+1 2016/17 

+2 2017/18 

Financial Performance 











Property rates 

3 116 

6 925 

3 371 

9 651 

6 303 

6 303 

6 303 

10 489 

1 1 223 

12 009 

Service charges 

12 648 

17 232 

12 505 

16 093 

15 025 

15 025 

15 025 

15 912 

17 247 

18 715 

Investment revenue 

1 303 

123 

260 

- 

92 

92 

92 

- 

- 

- 

Transfers recognised - operational 

62 589 

70 029 

74 257 

Ill 580 

113 634 

113 634 

113 634 

147 129 

140 027 

141 242 

Other own revenue 

23 489 

6 852 

4 849 

840 

1 460 

1 460 

1 460 

839 

629 

662 

Total Revenue (excluding capital transfers 
and contributions) 

103 145 

101 161 

95 241 

138 163 

136 514 

136 514 

136 514 

174 369 

169 126 

172 627 

Employee costs 

36 563 

27 974 

37 025 

45 227 ! 

44 715 

44 715 

44 715 

49 199 

52 053 

54 812 

Remuneration of councillors 

9 284 

6 718 

7 504 

8 226 

8 247 

8 247 

8 247 

8 538 

9 033 

9 512 

Depreciation & asset impairment 

67 954 

20 507 

24 326 

9 826 j 

7 717 

7 717 

7 717 

10 000 

10 550 

11 130 

Finance charges 

2 402 

96 

232 

884 

899 

899 

899 

934 

943 

951 

Materials and bulk purchases 

6 306 

8 926 

11 018 

11 169 | 

9 469 

9 469 

9 469 

10 847 

12 085 

13 466 

Transfers and grants 

66 067 

115 727 

13 705 

2 021 

2 471 

2 471 

2 471 

4 730 

4 938 

5 376 

Other expenditure 

99 873 

90 163 

63 858 

31 921 | 

40 548 

40 548 

40 548 

79 406 

72 669 

76 622 

Total Expenditure 

288 '449 

270 1 i i 

157 668 

109 273 | 

114 065 

114 065 

'114 065 

163 "655 

162 271 

171 870 

Surplus/(Deficit) 

(185 305) 

(168 950) 

(62 426) 

28 890 | 

22 448 

22 448 

22 448 

10 714 

6 855 

757 

Transfers recognised - capital 

65 513 

136 743 

127 472 

104 205 

116 396 

116 396 

116 396 

115 669 

131 046 

138 365 

Contributions recognised - capital & contributed a 

- 

- 

- 

- 

- 

- 

- 

- 

! 

- 

Surplus/(Deficit) after capital transfers & 

contributions 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

138 845 


137 901 

139 122 

Share of surplus/ (deficit) of associate 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) for the year 

(119 791) 

(32 207) 

65 046 

133 095 | 

138 845 

138 845 

138 845 

126 383 

137 901 

139 122 

Capital expenditure & funds sources 

Capital expenditure 

2 656 

246 156 

131 146 

133 095 i 

138 845 

138 845 

138 845 

126 383 

137 901 

139 122 

Transfers recognised - capital 

2 200 

227 008 

100 292 

104 205 

120 205 

120 205 

120 205 

115 669 

131 046 

138 365 

Public contributions & donations 

- 

- 

29 340 

- 

8 160 

8 160 

8 160 

- 

- 

- 

Borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

i 

- 

Internally generated funds 

456 

19 148 

1 514 

28 890 

10 479 

10 479 

10 479 

10 714 

6 855 

757 

Total sources of capital funds 

2 656 

246 156 

131 146 

133 095 

138 845 

138 845 

138 845 

126 383 

137 901 

139 122 

Financial position 











Total current assets 

54 964 

39 103 

47 757 

9 458 

25 576 

25 576 

25 576 

19 921 

30 908 

42 507 

Total non current assets 

890 714 

1 052 533 

1 159 368 

1 017 648 | 

1 168 019 

1 168 019 

1 168 019 

1 262 412 

1 378 171 

1 488 877 

Total current liabilities 

115 822 

96 704 

52 311 

11 190 

13 606 

13 606 

13 606 

14 675 

15 236 

15 818 

Total non current liabilities 

5 406 

5 087 

4 194 

4 387 

3 851 

3 851 

3 851 

4 145 

3 834 

3 520 

Community wealth/Equity 

824 450 

989 844 

1 150 620 

1 01 1 529 

1 176 138 

1 176 138 

1 176 138 

1 263 513 

1 390 009 

1 512 046 

Cash flows 











Net cash from (used) operating 

(15 842) 

230 544 

149 643 

136 892 

150 879 

150 879 

150 879 

137 242 

149 351 

151 169 

Net cash from (used) investing 

(2 674) 

(245 794) 

(131 146) 

(133 073) 

(138 845) 

(138 845) 

(138 845) 

(126 383) 

(137 901) 

(139 122) 

Net cash from (used) financing 

2 394 

(611) 

(1 225) 

(784)| 

(784) 

(784) 

(784) 

(784) 

(784) 

(784) 

Cash/cash equivalents at the year end 

13 292 

(2 568) 

14 703 

6 048 | 

14 349 

14 349 

14 349 

13 173 

23 839 

35 102 

Cash backinq/surplus reconciliation 











Cash and investments available 

13 654 

(2 568) 

14 703 

3 231 i 

19 349 

19 349 

19 349 

13 430 

24 099 

35 365 

Application of cash and investments 

153 264 

51 647 

(18 386) 

2 036 

1 825 

1 825 

1 825 

9 035 

9 360 

9 693 

Balance - surplus (shortfall) 

(139 610) 

(54 216) 

33 089 

1 195 

17 524 

17 524 

17 524 

4 395 

14 739 

25 672 

Asset manaqement 











Asset register summary (WDV) 

890 352 

1 052 533 

1 159 368 

1 017 648 ! 

1 168 019 

1 168 019 

1 262 412 

1 262 412 

1 378 171 

1 488 877 

Depreciation & asset impairment 

67 954 

20 507 

24 326 

9 826 

7 717 

7 717 

10 000 

10 000 

10 550 

11 130 

Renewal of Existing Assets 

- 

- 

- 

10 500 i 

10 250 

10 250 

10 250 

700 

- 

- 

Repairs and Maintenance 

5 357 

11 683 

18215 

7 730 

6 515 

6 515 

26 558 

26 558 

19 504 

20 604 

Free services 











Cost of Free Basic Services provided 

- 

- 

1 915 

2 011 

2 461 

2 461 

4 730 

4 730 

4 938 

5 376 

Revenue cost of free services provided 

Households below minimum service level 

- 

- 

- 

- ! 

| 

- 

28 470 

28 470 

30 502 

32 694 

Water: 

2 

2 

2 

2 

2 

2 

2 

2 

1 

1 

Sanitation/sew erage: 

3 

3 

3 

3 

3 

3 

3 

3 

3 

3 

Energy : 

- 

- 

- 

4 

4 

4 

4 

4 

4 

4 

Refuse: 

23 

23 

23 

24 

24 

24 

24 

24 

24 

24 


NC451-JMLM Adopted Budget 2015/16 


Page 30 


Table 14 - Table A1 Budget Summary 


Explanatory notes: Table A1 Budget Summary 

> 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). 

> 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. 

> Financial management reforms emphasizes 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 surplus/deficit 
(after Total Expenditure) is positive over the next three years (MTREF) 

> Capital expenditure is balanced by capital funding sources, of which 

i. Transfers recognized is reflected on the Financial Performance 
Budget; 

ii. Internally generated funds are financed from a combination of the 
current operating surplus. 


NC451-JMLM Adopted Budget 2015/16 


Page 31 


Table 15 - Table A2 Budgeted Financial Performance (revenue and 
expenditure by standard classification) 


Standard Classification Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/1 5 


2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Revenue ■ Standard 










Governance and administration 

84 912 

82 970 

82 034 

105 857 

103 212 

103 212 

128 791 

132104 

133 031 

Executive and council 

19 022 

3 642 

4 581 

5 317 

5 446 

5 446 

5 998 

6 279 

6 564 

Budget and treasury office 

64 973 

79176 

77 307 

100 285 

97 460 

97 460 

122 522 

125 561 

126186 

Corporate services 

918 

152 

146 

256 

306 

306 

271 

264 

281 

Community and public safety 

684 

8 414 

608 

2 966 

5 021 

5 021 

4 003 

1 712 

1819 

Community and social services 

684 

225 

608 

2 966 

2 966 

2 966 

3 893 

1 596 

1 696 

Sport and recreation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Public safety 

- 

- 

- 

- 

- 

- 

109 

116 

123 

Housing 

- 

8188 

- 

- 

2 054 

2 054 

- 

- 

- 

Health 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Economic and environmental services 

61 220 

62 211 

66 204 

57 235 

65 394 

65 394 

58 615 

60 929 

64 397 

Planning and development 

61 220 

62 211 

66 204 

57 235 

57 235 

57 235 

58 615 

60 929 

64 397 

Road transport 

- 

- 

- 

- 

8160 

8160 

- 

- 

- 

Environmental protection 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Trading services 

21 842 

84 309 

73 868 

76 310 

79 283 

79 283 

98 629 

105 427 

111746 

Electricity 

7 467 

5177 

4 914 

7 249 

5 855 

5 855 

6 569 

7 403 

8 342 

Water 

15 489 

77 339 

66 677 

66 636 

71 004 

71 004 

89 515 

95 352 

100 597 

Waste water management 

(1 844) 

1 141 

1 439 

1 510 

1 510 

1 510 

1 585 

1 664 

1 748 

Waste management 

729 

652 

838 

915 

915 

915 

960 

1 008 

1 059 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Revenue ■ Standard 

168 658 

237 904 

222 714 

242 369 

252 910 

252 910 

290 038 

300 172 

310 992 

Expenditure ■ Standard 










Governance and administration 

102158 

104178 

80 554 

54 818 

57 678 

57 678 

63 967 

66 576 

70 266 

Executive and council 

74182 

13 664 

17185 

16106 

16 672 

16 672 

16419 

17 386 

18 308 

Budget and treasury office 

10 732 

72 040 

41 299 

27 019 

29 746 

29 746 

35 237 

35 000 

36 914 

Corporate services 

17 244 

18 474 

22 070 

11 693 

11 259 

11 259 

12311 

14191 

15 044 

Community and public safety 

(8 032) 

11703 

10 276 

10 528 

12 643 

12 643 

7 871 

8 434 

8 730 

Community and social services 

6 969 

6 528 

5 643 

10 528 

10 588 

10 588 

6 963 

7 474 

7 719 

Sport and recreation 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Public safety 

- 

- 

- 

- 

- 

- 

907 

960 

1 012 

Housing 

(15 001) 

5175 

4 634 

- 

2 054 

2 054 

- 

- 

- 

Health 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Economic and environmental services 

126 315 

54 302 

13 759 

8011 

7 962 

7 962 

9 931 

8187 

8 634 

Planning and development 

126 315 

54 302 

13 759 

8011 

7 962 

7 962 

9 931 

8187 

8 634 

Road transport 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Environmental protection 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Trading services 

68 008 

99 929 

53 079 

35 916 

35 782 

35 782 

81 885 

79 074 

84 240 

Electricity 

3 540 

2194 

7 002 

6 688 

5 268 

5 268 

8 375 

9415 

10 584 

Water 

64 468 

97 735 

46 077 

29 228 

30 514 

30 514 

71 914 

67 970 

71 877 

Waste water management 

- 

- 

- 

- 

- 

- 

587 

621 

654 

Waste management 

- 

- 

- 

- 

- 

- 

1 010 

1 068 

1 125 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Expenditure ■ Standard 

288 449 

270 111 

157 668 

109 273 

114 065 

114 065 

163 655 

162 271 

171 870 

Surplus/fDeficit) for the year 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

126 383 

137 901 

139122 


NC451-JMLM Adopted Budget 2015/16 


Page 32 


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

Table A2 is a view of the budgeted financial performance in relation to revenue and 
expenditure per standard classification. The modified GFS standard classification 
divides the municipal services into 15 functional areas. Municipal revenue, operating 
expenditure and capital expenditure are then classified in terms if each of these 
functional areas which enables the National Treasury to compile ‘whole of 
government’ reports. 

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

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


NC451-JMLM Adopted Budget 2015/16 


Page 33 


Table 16 - Table A3 Budgeted Financial Performance (revenue and expenditure by 
municipal vote) 


Vote Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 
Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Revenue bv Vote 










Vote 1 - Executive & Council 

19 022 

3 642 

4 581 

5317 

5 446 

5 446 

5 998 

6 279 

6 564 

Vote 2 - Budget & Treasury Office 

64 973 

79176 

77 307 

100 285 

97 460 

97 460 

122 522 

125 561 

126186 

Vote 3 - Corporate Support Services 

918 

152 

146 

256 

306 

306 

271 

264 

281 

Vote 4 - Community Services 

(430) 

10 207 

2 884 

5 391 

7 445 

7 445 

6 548 

4 385 

4 626 

Vote 5 - Technical Services 

60 302 

56 502 

63 708 

57 211 

65 370 

65 370 

58 615 

60 929 

64 397 

Vote 6 - Electricity Services 

7 467 

5177 

4 914 

7 249 

5 855 

5 855 

6 569 

7 403 

8 342 

Vote 7 - Water Services 

15 489 

77 339 

66 677 

66 636 

71 004 

71 004 

89 515 

95 352 

100 597 

Vote 8 - Development & Town Planning Services 

918 

5 709 

2 496 

24 

24 

24 

- 

- 

- 

Vote 9 - [NAME OF VOTE 9] 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Revenue by Vote 

168 658 

237 904 

222 714 

242 369 

252 910 

252 910 

290 038 

300 172 

310 992 

Expenditure bv Vote to be appropriated 










Vote 1 - Executive & Council 

74182 

13 664 

17185 

16106 

16 672 

16 672 

16419 

17 386 

18 308 

Vote 2 - Budget & Treasury Office 

10 732 

72 040 

41 299 

27 019 

29 746 

29 746 

35 237 

35 000 

36 914 

Vote 3 - Corporate Support Services 

17 244 

18 474 

22 070 

11 693 

11 259 

11 259 

12311 

14191 

15 044 

Vote 4 - Community Services 

(8 032) 

11 703 

10 276 

10 528 

12 643 

12 643 

9 468 

10123 

10 509 

Vote 5 - Technical Services 

107 534 

44 949 

3 847 

5 833 

5 936 

5 936 

5 702 

5 591 

5 900 

Vote 6 - Electricity Services 

3 540 

2194 

7 002 

6 688 

5 268 

5 268 

8 375 

9415 

10 584 

Vote 7 - Water Services 

64 468 

97 735 

46 077 

29 228 

30 514 

30 514 

71 914 

67 970 

71 877 

Vote 8 - Development & Town Planning Services 

18 781 

9 353 

9912 

2178 

2 026 

2 026 

4 229 

2 596 

2 734 

Vote 9 - [NAME OF VOTE 9] 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Expenditure by Vote 

288 449 

270 111 

157 668 

109 273 

114 065 

114 065 

163 655 

162 271 

171 870 

Surplus/fDeficit) for the year 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 


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

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 total 
budgeted operating and capital expenditure performance in relation to the 
organisational structure of the municipality. This table also presents the overall 
surplus of the municipality for each budget year. The operating expenditure is 
separately presented on table A4 and the capital expenditure presented on table A5 


NC451-JMLM Adopted Budget 2015/16 


Page 34 


Table 17 - Table A4 Budgeted Financial Performance (revenue and 


expenditure) 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 








Framework 



R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

Revenue Bv Source 

Property rates 

Property rates - penalties & collection charges 

3116 

6 925 

3 371 

9 651 

6 303 

6 303 

10 489 

11223 

12 009 

Service charges - electricity revenue 

7 467 

5177 

4 914 

7 249 

5 855 

5 855 

6 569 

7 403 

8 342 

Service charges - water revenue 

6 295 

10 262 

5315 

6419 

6 746 

6 746 

6 798 

7 172 

7 566 

Service charges - sanitation revenue 

(1 844) 

1 141 

1 439 

1 510 

1 510 

1 510 

1 585 

1 664 

1 748 

Service charges - refuse revenue 

Service charges - other 

729 

652 

838 

915 

915 

915 

960 

1 008 

1 059 

Rental of facilities and equipment 

37 

171 

100 

95 

95 

95 

97 

103 

108 

Interest earned - external investments 

1 303 

123 

260 


92 

92 

- 

- 

- 

Interest earned - outstanding debtors 


3 385 

3 727 

50 

352 

352 

50 

50 

50 

Dividends received 

Fines 

Licences and permits 

Agency services 







109 

116 

123 

Transfers recognised - operational 

62 589 

70 029 

74 257 

111 580 

113 634 

113 634 

147 129 

140 027 

141 242 

Other revenue 

23 451 

3 296 

1 022 

694 

1 012 

1 012 

582 

360 

381 

Gains on disposal of PPE 










Total Revenue (excluding capital transfers 
and contributions) 

103145 

101 161 

95 241 

138163 

136 514 

136 514 

174 369 

169126 

172 627 

Expenditure Bv Tvoe 










Employee related costs 

36 563 

27 974 

37 025 

45 227 

44 715 

44 715 

49199 

52 053 

54 812 

Remuneration of councillors 

9 284 

6718 

7 504 

8 226 

8 247 

8 247 

8 538 

9 033 

9 512 

Debt impairment 

56 089 

32 578 

2 336 

1 213 

1 213 

1 213 

3 960 

4 271 

4 609 

Depreciation & asset impairment 

67 954 

20 507 

24 326 

9 826 

7 717 

7 717 

10 000 

10 550 

11 130 

Finance charges 

2 402 

96 

232 

884 

899 

899 

934 

943 

951 

Bulk purchases 

6 306 

8 926 

11 018 

11 169 

9 469 

9 469 

10 847 

12 085 

13 466 

Other materials 

- 









Contracted services 

- 

82 

168 

4 636 

8 700 

8 700 

20 398 

22 619 

23 804 

Transfers and grants 

66 067 

115 727 

13 705 

2 021 

2 471 

2 471 

4 730 

4 938 

5 376 

Other expenditure 

Loss on disposal of PPE 

43 784 

57 503 

61 354 

26 071 

30 635 

30 635 

55 048 

45 779 

48 210 

Total Expenditure 

288 449 

270 111 

157 668 

109 273 

114 065 

114 065 

163 655 

162 271 

171 870 

Surplus/fDeficit) 

(185 305) 

(168 950) 

(62 426) 

28 890 

22 448 

22 448 

10714 

6 855 

757 

Transfers recognised - capital 

65 513 

136 743 

127 472 

104 205 

116 396 

116 396 

115 669 

131 046 

138 365 

Contributions recognised - capital 

Contributed assets 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Surplus/fDeficit) after capital transfers & 
contributions 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

126 383 

137 901 

139122 

Taxation 










Surplus/fDeficit) after taxation 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 

Attributable to minorities 










Surplus/fDeficit) attributable to 
municipality 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 

Share of surplus/ (deficit) of associate 










Surplus/fDeficit) for the year 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 35 


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

Total operating revenue is R 174.4 Million for 2015/16 and decrease to R 169.1 and 
then increases to R 172.6 Million by 2016/17 and 2017/18 respectively. 

Revenue to be generated from property rates will be R 10.5 Million in the 2015/16 
and increase to R 12.0 million by 2017/18 financial year. 

Services charges relating to electricity, water, sanitation and refuse removal 
constitutes R 15.9 million in 2015/16 and increases to R 18.7 million in 2017/18. This 
growth can mainly be attributed to the increase in the bulk prices of electricity and 
water. 

Transfers recognised - operating income includes the local government equitable 
share and other operating grants from national and provincial government. It needs 
to be noted that in real terms the grants receipts from national government are 
increasing. 

The total operational expenditure amounts to R 163.7 million for 2015/16 and 
increase to R1 71 .9 million by 201 7/1 8. 

The increase in the employee related cost is as results that the municipality will have 
to fill new positions under certain departments being; Budget and Treasury seven 
positions, Community Services four positions, Electricity two, and Water Unit two 
position 

Contracted Service increase is as result of municipality’s plan to lease fleet for the 
period of 36 months which will cover repairs and maintenance, and at the end of the 
period they will be transferred to municipality without any additional cost. The aim of 
lease is to improve service delivery as the municipality realize that it will be difficult to 
afford such vehicles at once. For more detail read with page 25 above. 

Other expenditure increase is mainly as result of repairs and maintenance, which is 
influenced by Water Service Operating Subsidy Grant (WSOG) condition is to 
refurbish the water boreholes, the grant amount to R 22.5 million. 


NC451-JMLM Adopted Budget 2015/16 


Page 36 


Table 18- Table A5 Budgeted Capital Expenditure by vote, standard 


classification and funding source 


Vote Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 








Framework 



R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Capital expenditure - Vote 

Multi-vear expenditure to be appropriated 

Vote 1 - Executive & Council 










Vote 2 - Budget & Treasury Office 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 3 - Corporate Support Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 4 - Community Services 

- 

- 

- 

23 559 

19 247 

19 247 

29 225 

20 331 

26 037 

Vote 5 - Technical Services 

- 

- 

- 

16 788 

20 099 

20 099 

17 555 

20 474 

4 215 

Vote 6 - Electricity Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 7 - Water Services 

- 

- 

- 

13 859 

14 859 

14 859 

68 890 

90 241 

108113 

Vote 8 - Development & Town Planning Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Capital multi-year expenditure sub-total 

Sinqle-vear expenditure to be appropriated 

— 

— 

— 

54 205 

54 205 

54 205 

115 669 

131 047 

138 365 

Vote 1 - Executive & Council 

2 200 

861 

667 

622 

600 

600 

- 

- 

- 

Vote 2 - Budget & Treasury Office 

- 

528 

521 

231 

20 

20 

50 

38 

279 

Vote 3 - Corporate Support Services 

456 

372 

327 

1 105 

872 

872 

1 205 

250 

200 

Vote 4 - Community Services 

- 

25 767 

19 386 

12 533 

10 556 

10 556 

9 209 

6 303 

- 

Vote 5 - Technical Services 

- 

74 976 

29 423 

2 900 

8 560 

8 560 

- 

- 

- 

Vote 6 - Electricity Services 

- 

6016 

- 

- 

- 

- 

- 

- 

- 

Vote 7 - Water Services 

- 

137 636 

80 822 

61 500 

64 031 

64 031 

250 

264 

278 

Vote 8 - Development & Town Planning Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Capital single-year expenditure sub-total 

2 656 

246 156 

131 146 

78 890 

84 640 

84 640 

10 714 

6 854 

757 

Total Capital Expenditure - Vote 

2 656 

246 156 

131 146 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 

Capital Expenditure - Standard 










Governance and administration 

2 656 

1 761 

1 515 

1958 

1492 

1492 

1 255 

288 

479 

Executive and council 

2 200 

861 

667 

622 

600 

600 

- 



Budget and treasury office 


528 

521 

231 

20 

20 

50 

38 

279 

Corporate services 

456 

372 

327 

1 105 

872 

872 

1 205 

250 

200 

Community and public safety 

- 

14810 

- 

21 092 

10 556 

10 556 

17 360 

14 772 

8 680 

Community and social services 


14810 


12 533 

10 556 

10 556 

6 576 

4 500 

- 

Sport and recreation 




8 559 

- 

- 

8 350 

8 680 

8 680 

Public safety 

Housing 

Health 







2 433 

1 592 


Economic and environmental services 

- 

74 976 

29 423 

19 688 

28 659 

28 659 

17 555 

20 474 

4215 

Planning and development 


59 

62 

2 900 

400 

400 

- 



Road transport 

Environmental protection 


74 917 

29 361 

16 788 

28 259 

28 259 

17 555 

20 474 

4215 

Trading services 

- 

154 609 

100 208 

90 359 

98137 

98137 

90 214 

102 367 

125 748 

Electricity 


6016 



- 

- 




Water 


137 636 

80 822 

75 359 

78 890 

78 890 

69140 

90 505 

108 391 

Waste water management 

Waste management 


10 957 

19 386 

15 000 

19 247 

19 247 

21 074 

11863 

17 357 

Other 










Total Capital Expenditure - Standard 

2 656 

246 156 

131 146 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 

Funded bv: 










National Government 

Provincial Government 


147 194 

100 292 

104 205 

120 205 

120 205 

115 669 

131 046 

138 365 

District Municipality 

Other transfers and grants 

2 200 

79 814 








Transfers recognised - capital 

2 200 

227 008 

100 292 

104 205 

120 205 

120 205 

115 669 

131 046 

138 365 

Public contributions & donations 



29 340 


8160 

8160 




Borrowing 

Internally generated funds 

456 

19148 

1 514 

28 890 

10 479 

10 479 

10714 

6 855 

757 

Total Capital Funding 

2 656 

246 156 

131 146 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 37 


Explanatory notes to Table A5 - Budgeted Capital Expenditure by vote, 
standard classification and funding source 

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

The MFMA provides that a municipality may approve multi-year or single-year capital 
budget appropriations. 

Capital expenditure has been appropriated at R 126.4 million for the 2015/16 
financial year and increases over the MTREF to R 137.9 million and R 139.1 million 
respectively for the two outer years. 

Unlike multi-year capital appropriations, all of our capital projects are expected to be 
completed with a single year 2015/2016. Included in our single-year appropriations is 
an expenditure that will be incurred in the 2015/16 budget year such as the 
procurement of computers and office furniture. The budget appropriations for the two 
outer years are indicative allocations based on the departmental business plans as 
informed by the I DP and will be reviewed on an annual basis to assess the relevance 
of the expenditure in relation to the strategic objectives and service delivery 
imperatives of the municipality. For the purpose of funding assessment of the 
MTREF, these appropriations have been included but no commitments will be 
incurred against single-year appropriations for the two outer-years. 

The capital programme is funded from National Treasury capital transfers and 
internally generated funds from current year surpluses. 


NC451-JMLM Adopted Budget 2015/16 


Page 38 


Table 19- Table A6 Budget Financial position 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & 








Expenditure Framework 


R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

ASSETS 

Current assets 










Cash 

13 293 

28 

3 099 

3013 

14 349 

14 349 

13173 

23 839 

35102 

Call investment deposits 

- 

1 980 

17 475 

218 

5 000 

5 000 

257 

260 

263 

Consumer debtors 

15 368 

19126 

23 976 

4 727 

4 727 

4 727 

4916 

5155 

5 406 

Other debtors 

24182 

16 657 

1 245 







Current portion of long-term receivables 
Inventory 

2121 

1 312 

1 962 

1 500 

1 500 

1 500 

1 575 

1 654 

1 736 

Total current assets 

54 964 

39103 

47 757 

9 458 

25 576 

25 576 

19 921 

30 908 

42 507 

Non current assets 










Long-term receivables 

Investments 

362 









Investment property 

Investment in Associate 

3 085 



3 085 

- 





Property, plant and equipment 

Agricultural 

Biological 

887 240 

1 052 533 

1 159 054 

1 014183 

1 167 639 

1 167 639 

1 261 992 

1 377 751 

1 488 228 

Intangible 

Other non-current assets 

28 

— 

314 

380 

380 

380 

420 

420 

649 

Total non current assets 

890 714 

1 052 533 

1 159 368 

1 017 648 

1 168 019 

1 168 019 

1 262 412 

1 378 171 

1 488 877 

TOTAL ASSETS 

945 678 

1 091 635 

1 207 125 

1 027 106 

1 193 595 

1 193 595 

1 282 333 

1 409 079 

1 531 384 

LIABILITIES 

Current liabilities 










Bank overdraft 


4 577 

5 871 







Borrowing 

Consumer deposits 

611 

627 

627 

784 

784 

784 

784 

784 

784 

Trade and other payables 

114 691 

90 855 

45120 

9 760 

12177 

12177 

13214 

13 740 

14 287 

Provisions 

519 

645 

693 

645 

645 

645 

677 

711 

747 

Total current liabilities 

115 822 

96 704 

52 311 

11 190 

13 606 

13 606 

14 675 

15 236 

15818 

Non current liabilities 










Borrowing 

4163 

3 536 

2 310 

2 836 

2 300 

2 300 

2516 

2124 

1 724 

Provisions 

1 244 

1 551 

1 884 

1 551 

1 551 

1 551 

1 629 

1 710 

1 796 

Total non current liabilities 

5 406 

5 087 

4194 

4 387 

3 851 

3 851 

4145 

3 834 

3 520 

TOTAL LIABILITIES 

121 228 

101 791 

56 505 

15 577 

17 457 

17 457 

18 820 

19 070 

19 338 

NET ASSETS 

824 450 

989 844 

1 150 620 

1 011 529 

1 176138 

1 176138 

1 263 513 

1 390 009 

1 512 046 

COMMUNITY WEALTH/EQUITY 










Accumulated Surplus/(Deficit) 

824 450 

989 844 

1 150 620 

1 011 529 

1 176138 

1 176138 

1 263 513 

1 390 009 

1 512 046 

Reserves 

Minorities' interests 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL COMMUNITY WEALTH/EQUITY 

824 450 

989 844 

1 150 620 

1 011 529 

1 176138 

1 176138 

1 263 513 

1 390 009 

1 512 046 


NC451-JMLM Adopted Budget 2015/16 


Page 39 


Explanatory notes to Table A6 - Budgeted Financial Position 


> Table A6 is consistent with international standards of good financial 
management practice, and improves understand-ability for councilors and 
management of the impact of the budget on the statement of financial position 
(balance sheet). 

> This format of presenting the statement of financial position is aligned to 
GRAP1 , which is generally aligned to the international version which presents 
Assets less Liabilities as “accounting” Community Wealth. The order of items 
within each group illustrates items in order of liquidity; i.e. assets readily 
converted to cash, or liabilities immediately required to be met from cash, 
appear first. 

> The municipal equivalent of equity is Community Wealth/Equity. The 
justification is that ownership and the net assets of the municipality belong to 
the community. 

> Any movement on the Budgeted Financial Performance or the Capital Budget 
will inevitably impact on the Budgeted Financial Position. As an example, the 
collection rate assumption will impact on the cash position of the municipality 
and subsequently inform the level of cash and cash equivalents at year end. 
Similarly, the collection rate assumption should inform the budget 
appropriation for debt impairment which in turn would impact on the provision 
for bad debt. These budget and planning assumptions form a critical link in 
determining the applicability and relevance of the budget as well as the 
determination of ratios and financial indicators. In addition the funding 
compliance assessment is informed directly by forecasting the statement of 
financial position. 


NC451-JMLM Adopted Budget 2015/16 


Page 40 


Table 20- Table A7 Budgeted Cash Flow 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 







Framework 



R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

CASH FLOW FROM OPERATING 

ACTIVITIES 

Receipts 

Property rates, penalties & collection charges 

3144 

2 453 

3 371 

9168 

4 727 

4 727 

8916 

9 540 

10 207 

Service charges 

(64 916) 

28 098 

45 458 

15 288 

13 823 

13 823 

13 526 

14 660 

15 907 

Other revenue 

23 489 

3 426 

3 355 

646 

13100 

13100 

714 

525 

555 

Government - operating 

61 664 

70 029 

74 257 

111 580 

110 781 

110 781 

147 129 

140 027 

141 242 

Government - capital 

67 916 

327 252 

127 487 

104 205 

119 249 

119 249 

115 669 

131 046 

138 365 

Interest 

1 303 

123 

260 

40 

269 

269 

40 

43 

43 

Dividends 







- 

- 

- 

Payments 










Suppliers and employees 

(106 039) 

(200 742) 

(104 313) 

(103 935) 

(108 935) 

(108 935) 

(143 873) 

(141 394) 

(149 608) 

Finance charges 

(2 402) 

(96) 

(232) 

(100) 

(115) 

(115) 

(149) 

(157) 

(166) 

Transfers and Grants 

- 




(2 021) 

(2 021) 

(4 730) 

(4 938) 

(5 376) 

NET CASH FROM/(USED) OPERATING 
ACTIVITIES 

(15 842) 

230 544 

149 643 

136 892 

150 879 

150 879 

137 242 

149 351 

151 169 

CASH FLOWS FROM INVESTING 

ACTIVITIES 

Receipts 










Proceeds on disposal of PPE 







- 

- 

- 

Decrease (Increase) in non-current debtors 







- 

- 

- 

Decrease (increase) other non-current 
receivables 







- 

- 

- 

Decrease (increase) in non-current 
investments 

Payments 

(18) 

362 








Capital assets 

(2 656) 

(246 156) 

(131 146) 

(133 073) 

(138 845) 

(138 845) 

(126 383) 

(137 901) 

(139 122) 

NET CASH FROM/(USED) INVESTING 
ACTIVITIES 

(2 674) 

(245 794) 

(131 146) 

(133 073) 

(138 845) 

(138 845) 

(126 383) 

(137 901) 

(139 122) 

CASH FLOWS FROM FINANCING 

ACTIVITIES 

Receipts 










Short term loans 







- 

- 

- 

Borrowing long term/refinancing 







- 

- 

- 

Increase (decrease) in consumer deposits 

Payments 







— 

— 

— 

Repayment of borrowing 

2 394 

(611) 

(1 225) 

(784) 

(784) 

(784) 

(784) 

(784) 

(784) 

NET CASH FROM/(USED) FINANCING 
ACTIVITIES 

2 394 

(611) 

(1 225) 

(784) 

(784) 

(784) 

(784) 

(784) 

(784) 

NET INCREASE/ (DECREASE) IN CASH 

HELD 

(16122) 

(15 861) 

17 272 

3 035 

11250 

11250 

10 074 

10 666 

11263 

Cash/cash equivalents at the year begin: 

29 414 

13 293 

(2 568) 

3 013 

3 099 

3 099 

3 099 

13173 

23 839 

Cash/cash equivalents at the year end: 

13 292 

(2 568) 

14 703 

6 048 

14 349 

14 349 

13173 

23 839 

35102 


NC451-JMLM Adopted Budget 2015/16 


Page 41 


Explanatory notes to Table A7 - Budgeted Cash Flow Statement 

The budgeted cash flow statement is the first measurement in determining if the 
budget is funded. It shows the expected level of cash in-flow versus cash out-flow 
that is likely to result from the implementation of the budget. 

The cash level of the municipality fell substantially from the 201 1/12 to 2012/13 
period resulting in an overdraft and started to increase from 2013/14 to 2017/18 
budget. 

The tabled budget for 2014/15 provide for a net increase in cash of R 3 million 
resulting in an overall projected positive cash position of R 6.1 million in the original 
budget and net increases after adjustment budget is R 1 1 .3 million resulting in 
overall projection of positive cash of R14.3 million at the year end of 2014/15. 

The budgeted cash flow for 2015/16 provide for a net increase in cash of R 10.1 
million resulting in an overall projected positive cash position of R 13.2 million at year 
end. 


NC451-JMLM Adopted Budget 2015/16 


Page 42 


Table 21- Table A8 Budgeted Cash Flow Cash Backed Reserves/ Accumulated 
Surplus Reconciliation 


Description 

R thousand 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Cash and investments available 










Cash/cash equivalents at the year end 

13 292 

(2 568) 

14 703 

6 048 

14 349 

14 349 

13173 

23 839 

35102 

Other current investments > 90 days 

0 

- 

- 

(2 817) 

5 000 

5 000 

257 

260 

263 

Non current assets - Investments 

362 

- 

- 

- 

- 

- 

- 

- 

- 

Cash and investments available: 

13 654 

(2 568) 

14 703 

3 231 

19 349 

19 349 

13 430 

24 099 

35 365 

Application of cash and investments 










Unspent conditional transfers 

17 063 

- 

- 

- 

- 

- 

- 

- 

- 

Unspent borrowing 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Statutory requirements 



526 




550 

570 

590 

Other working capital requirements 

136 202 

51 647 

(18 912) 

2 036 

1 825 

1 825 

8 485 

8 790 

9103 

Other provisions 










Long term investments committed 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Reserves to be backed by cash/investments 










Total Application of cash and investments: 

153 264 

51 647 

(18 386) 

2 036 

1825 

1825 

9 035 

9 360 

9 693 

Surplus(shortfall) 

(139 610) 

(54 216) 

33 089 

1 195 

17 524 

17 524 

4 395 

14 739 

25 672 


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

The cash backed reserves/accumulated surplus reconciliation is aligned to the 
requirements of MFMA Circular 42 - Funding a Municipal Budget. In essence the 
table evaluates the funding levels of the budget by firstly forecasting the cash and 
investments at year end and secondly reconciling the available funding to the 
liabilities/commitments that exist. 

The outcome of this exercise would either be a surplus or deficit. A deficit would 
indicate that the applications exceed the cash and investments available and would 
be indicative of non-compliance with the MFMA requirements that the municipality’s 
budget must be “funded”. 

Non-compliance with section 18 of the MFMA is assumed because a shortfall would 
indirectly indicate that the annual budget is not appropriately funded. 


NC451-JMLM Adopted Budget 2015/16 


Page 43 


Table 22- Table A9 Asset Management 


NC451 Joe Morolong - Table A9 Asset Management 


Description 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 


Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

CAPITAL EXPENDITURE 











Total New Assets 

1 

2 656 

246 156 

131 146 

122 595 

128 595 

128 595 

125 683 

137 901 

139 122 

Infrastructure - Road transport 


- 

74 917 

29 361 

16 788 

28 259 

28 259 

17 555 

20 474 

4 215 

Infrastructure - Electricity 


- 

6 016 

- 

- 

- 

- 

- 

- 

- 

Infrastructure - Water 


- 

135 118 

80 616 

63 859 

68 890 

68 890 

69 140 

90 505 

108 391 

Infrastructure - Sanitation 


- 

10 957 

19 386 

15 000 

19 247 

19 247 

20 874 

11 652 

17 357 

Infrastructure - Other 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Infrastructure 


- 

227 008 

129 362 

95 646 

116 396 

116 396 

107 569 

122 630 

129 963 

Community 


- 

14 805 

- 

18 354 

8 969 

8 969 

14 721 

13 180 

8 680 

Heritage assets 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

6 

2 643 

4 342 

1 416 

8 384 

3 142 

3 142 

3 028 

2 091 

250 

Agricultural Assets 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 


12 

- 

367 

211 

87 

87 

365 

- 

229 

Total Renewal of Existina Assets 

2 

_ 

_ 

_ 

10 500 

10 250 

10 250 

700 

_ 

_ 

Infrastructure - Road transport 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Infrastructure - Electricity 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Infrastructure - Water 


- 

- 

- 

10 000 

10 000 

10 000 

- 

- 

- 

Infrastructure - Sanitation 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Infrastructure - Other 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Infrastructure 


- 

- 

- 

10 000 

10 000 

10 000 

- 



Community 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Heritage assets 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

6 

- 

- 

- 

500 

250 

250 

700 

- 

- 

Agricultural Assets 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Intangibles 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Capital Expenditure 

4 










Infrastructure - Road transport 


- | 

74 917 

29 361 

16 788 

28 259 

28 259 

17 555 

20 474 

4 215 

Infrastructure - Electricity 


- 

6 016 

- 

- 

- 

- 

- 

- 

- 

Infrastructure - Water 


- 

135 118 

80 616 

73 859 

78 890 

78 890 

69 140 

90 505 

108 391 

Infrastructure - Sanitation 


- 

10 957 

19 386 

15 000 

19 247 

19 247 

20 874 

11 652 

17 357 

Infrastructure - Other 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Infrastructure 


- 

227 008 

129 362 

105 646 

126 396 

126 396 

107 569 

122 630 

129 963 

Community 


1 - | 

14 805 

- 

18 354 

8 969 

8 969 

14 721 

13 180 

8 680 

Heritage assets 


! 

j 

- 

- 

- 

- 

- 

- 

- 

Investment properties 


! - | 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 


2 643 

4 342 

1 416 

8 884 

3 392 

3 392 

3 728 

2 091 

250 

Agricultural Assets 


- ! 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 


- 

j 

- 

- 

- 

- 

- 

- 

- 

Intangibles 


12 

- 

367 

211 

87 

87 

365 

- 

229 

TOTAL CAPITAL EXPENDITURE - Asset class 

2 i 

2 656 

246 156 

131 146 

133 095 

138 845 

138 845 

126 383 

137 901 

139 122 

ASSET REGISTER SUMMARY - PPE (WDV) 

5 










Infrastructure - Road transport 


852 

710 368 

732 287 

704 110 

721 198 

721 198 

734 776 

751 056 

750 846 

Infrastructure - Electricity 



5 792 

5 551 

5 847 

5 551 

5 551 

5 499 

5 443 

5 384 

Infrastructure - Water 


-153 

196 665 

279 208 

145 026 

310 839 

310 839 

377 526 

465 443 

571 104 

Infrastructure - Sanitation 



10 441 

9 886 

24 867 

9 886 

9 886 

9 764 

9 635 

9 499 

Infrastructure - Other 


773 728 



2 379 

- 





Infrastructure 


774 732 \ 

923 266 

i 026 932 

882 229 

1 047 474 


:n27l^ 

f23T576~ 

"™" T33683T 

Community 

Heritage assets 



118 754 

114 448 

116 761 

106 247 

106 247 

118 710 

129 507 

135 673 

Investment properties 


3 085 

- 

- 

3 085 

- 

- 

- 

- 

- 

Other assets 


112 508 | 

10 512 

17 673 

15 193 

13 917 

13 917 

15 717 

16 668 

15 722 

Agricultural Assets 


- ! 

- 

- 

- 

- 

- 

- 

- 

- 

Biological assets 


- | 

- 








Intangibles 


28 

! 

314 

380 

380 

380 

420 

420 

649 

TOTAL ASSET REGISTER SUMMARY - PPE (WD\ 

5 | 

890 352 ! 

1 052 533 

1 159 368 

1 017 648 

1 168 019 

1 168 019 

1 262 412 

1 378 171 

1 488 877 

EXPENDITURE OTHER ITEMS 











Depreciation & asset impairment 


67 954 j 

20 507 

24 326 

9 826 

7 717 

7 717 

10 000 

10 550 

11 130 

Repairs and Maintenance bv Asset Class 

3 

5 357 

11 683 

18 215 

7 730 

6 515 

6 515 

26 558 

19 504 

20 604 

Infrastructure - Road transport 


724 

152 

78 

205 

218 

218 

243 

262 

277 

Infrastructure - Electricity 


- 

j 

- 

200 

280 

280 

200 

225 

254 

Infrastructure - Water 


1 066 I 

3 763 

14 289 

6 075 

4 955 

4 955 

25 700 

18 376 

19 388 

Infrastructure - Sanitation 


; 

| 

13 

135 

80 

80 

110 

116 

122 

Infrastructure - Other 


- 

2 215 

848 

310 

305 

305 

15 

16 

17 

Infrastructure 


1 790 \ 

6 120 

15 228 

6 925 

5 838 

5 '8 3 8 

26 '268 

18 '995 

20 057 

Community 


942 

16 

187 

80 

40 

40 

80 

84 

89 

Heritage assets 


- j 

- 

- 

- 

- 

- 

- 

- 

- 

Investment properties 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Other assets 

6, 7 

2 625 

5 538 

2 800 

725 

637 

637 

210 

424 

458 

TOTA L EXPEN D 1 TU R E OTH E R 1 TEEM S 


73 311 ! 

32 190 

42 541 

17 556 

14 231 

14 231 

36 558 

3CT054T 

31 734 

Renewal of Existing Assets as % of total capex 


0.0% 

0.0% 

0.0% 

7.9% 

7.4% 

7.4% 

0.6% 

0.0% 

0.0% 

Renewal of Existing Assets as % of deprecn" 


0.0% 

0.0% 

0.0% 

106.9% 

132.8% 

132.8% 

7.0% 

0.0% 

0.0% 

R&M as a % of PPE 


0.6% 

1.1% 

1.6% 

0.8% 

0. 6% 

0.6% 

2.1% 

1.4 % 

1.4% 

Renewal and R&M as a % of PPE 


1.0% 

1.0% 

2.0% 

2.0% 

1.0% 

1.0% 

2.0% 

1.0% 

1.0% 


NC451-JMLM Adopted Budget 2015/16 


Page 44 


Explanatory notes to Table A9 - Asset Management 


Table A9 provides an overview of municipal capital allocations to building new assets 
and the renewal of existing assets, as well as spending on repairs and maintenance 
by asset class. 

National Treasury has recommended that municipalities should allocate at least 40 
per cent of their capital budget to the renewal of existing assets, and allocations to 
repairs and maintenance should be 8 per cent of PPE. The municipality doesn’t meet 
the above recommendations. 

The total repairs and maintenance amounts to 2.1% of the total value Property, Plant 
and Equipment in the 2015/16 budget and decreases to at least 1 .4% in the following 
year. We acknowledge that the municipality should provide at least 8% of the total 
value of assets for repair and maintenance as stated on MFMA Circular No 70. The 
value of our municipal assets amount to R 1 .0 billion and the total budgeted repairs 
and maintenance amount to R 26.6 million and decreases to R 19.5 million and then 
R 20.6 million respectively for the outer years. 


NC451-JMLM Adopted Budget 2015/16 


Page 45 


Table 23- Table A10 Basic Service Delivery Measurement 


NC451 Joe Morolong - Table A10 Basic service delivery measurement 


Description 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Outcome 

Outcome 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year j 

+1 2016/17 

Budget Year 

+2 2017/18 

Household service taraets 

1 










Water: 











Piped water inside dwelling 

Piped water inside yard (but not in dwelling) 


3 718 

3 718 

3 718 

3 718 

3 718 

3 718 

3 818 

3 868 

3 918 

Using public tap (at least min. service level) 

2 

18 048 

18 048 

18 048 

18 048 

18 048 

18 048 

18 248 

18 448 

18 698 

Other water supply (at least min. service level) 

4 










Minimum Service Level and Above sub-total 


21 766 

21 766 

21 766 

21 766" 

21766“ 

21766" 

22 066“ 

22 3161 

22 616 

Using public tap (< min. service level) 

3 










Other water supply (< min. service level) 

No water supply 

4 

1 941 

1 941 

1 941 

1 941 

1 941 

1 941 

1 691 

1 491 

1 241 

Below Minimum Service Level sub-total 


1 "41 

1 941 

i 941 

1 941 

1 941 

1 941 

1 691 

1 491 | 

1 241 

Total number of households 

5 

23 707 

23 707 

23 707 

23 707 

23 707 

23 707 

23 757 

23 807 

23 857“ 

Sanitation/seweraae: 











Flush toilet (connected to sewerage) 

Flush toilet (with septic tank) 

Chemical toilet 


2 131 

2 131 

2 131 

2 131 

2 131 

2 131 

2 131 

2 131 j 

2 131 

Pit toilet (ventilated) 

Other toilet provisions (> min. service level) 


18 254 

18 254 

18 254 

18 254 

18 254 

18 254 

18 454 

18 654 

18 954 

Minimum Service Level and Above sub-total 


20 385 

20 385 

20 '385 

20 385 

20 385 

20 385 

20 585 

20 785 ! 

21 085 

Bucket toilet 


469 

469 

469 

469 

469 

469 

419 

369 

319 

Other toilet provisions (< min. service level) 

No toilet provisions 


2 432 

2 432 

2 432 

2 853 

2 853 

2 853 

2 753 

2 653 

2 453 

Below Minimum Service Level sub-total 


2 901 

2 901 

2 901 

3 322 

3 322 

3 322 

3 172 

3 022 ! 

| 2 772 

Total number of households 

5 

23 286 

23 286 

23 286 

23 707 

23 707 

23 707 

23 757 

23 807 j 

| 23 857 

Enerqy: 











Electricity (at least min. service level) 

Electricity - prepaid (min. service level) 


19 384 

19 384 

19 384 

19 384 

19 384 

19 384 

19 634 

19 834 

19 984 

Minimum Service Level and Above sub-total 


19 384 

19 384 

19 384 

19 384 


19 384 

19 634 

19 834 

19/984“ 

Electricity (< min. service level) 

Electricity - prepaid (< min. service level) 

Other energy sources 


— 



4 323 

4 323 

4 323 

4 123 

3 973 

3 873 

Below Minimum Service Level sub-total 





4 323 

4 323 

4 323 

4 123 

3 973 | 

3 873" 

Total number of households 

5 

19 384 

19 384 

19 384 

23 707 

23 707 

23 707 

23 757 

23 807 | 

| 23 857 

Refuse: 











Removed at least once a week 











Minimum Service Level and Above sub-total 


- 

- 

- 

- 

- 

- 

- 

- 

[ 

Removed less frequently than once a week 
Using communal refuse dump 


1 581 

1 581 

1 581 

1 581 

1 581 

1 581 

1 581 

1 581 

1 681 

Using own refuse dump 

Other rubbish disposal 


19 146 

19 146 

19 146 

19 146 

19 146 

19 146 

19 196 

19 246 

19 196 

No rubbish disposal 


2 707 

2 707 

2 707 

2 980 

2 980 

2 980 

2 980 

2 980 

2 930 

Below Minimum Service Level sub-total 


23 434 

23 434 

23 434 

23 707 

23 707 

23 707 

23 757 

23 807 | 

1 23 807 

Total number of households 

5 

23 434 

23 434 

23 434 

23 707 

23 707 

23 707 

23 757 

23 807 | 

23 807 

Households receivina Free Basic Service 

7 










Water (6 kilolitres per household per month) 
Sanitation (free minimum level service) 




8 480 

8 195 

8 195 

8 195 

8 195 

8 195 

8 195 

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


8 480 

8 195 

8 195 

8 195 

8 195 

8 195 

8 195 

Refuse (removed at least once a week) 






















Cost of Free Basic Services provided (R'000) 

8 










Water (6 kilolitres per household per month) 
Sanitation (free sanitation service) 




100 

105 

105 

105 

2 582 

2 518 

2 649 

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


1 815 

1 906 

2 356 

2 356 

2 148 

2 420 

2 727 

Refuse (removed once a week) 











Total cost of FBS provided (minimum social packai 

- " 

- 

1 gig 

2 Q11 

2461 

2461™ 

4 730“ 

4 9381 

j 5 376 

Highest level of free service provided 











Property rates (R value threshold) 

Water (kilolitres per household per month) 
Sanitation (kilolitres per household per month) 
Sanitation (Rand per household per month) 
Electricity (kwh per household per month) 

Refuse (average litres per week) 











Revenue cost of free services provided (R'000) 

9 










Property rates (R15 000 threshold rebate) 
Property rates (other exemptions, reductions 








15 

15 

15 

and rebates) 








19 881 

20 969 

22 115 

Water 

Sanitation 

Electricity /other energy 

Refuse 

Municipal Housing - rental rebates 

Housing - top structure subsidies 

Other 

6 







8 575 

9 518 

10 565 

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


_ 

__ 

__ 

~T 

__ 


28 470 

30 502 

32 694 


NC451-JMLM Adopted Budget 2015/16 


Page 46 


Explanatory notes to Table A10 - Basic Service Delivery Measurement 

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

The municipality continues to make good progress with the eradication of backlogs. 

It is anticipated that these Free Basic Services will cost the municipality R 4.7 million 
in 2015/16, increasing to R 5.4 million in 2017/18. This is covered by the 
municipality’s equitable share allocation from national government. Currently, the 
‘free services’ represent about 3 percent of total operating expenditure. 

It is very difficult to measure correctly the revenue cost of free basic as the 
municipality is mostly rural and the infrastructure used for water was communal 
stand pipes except Van Zylsrus and Hotazel, and the municipality is busy installing 
the prepaid meter that assist in measuring the correct cost of revenue for free basic 
service, and Eskom provide the electricity in more than 99% of municipal areas 


NC451-JMLM Adopted Budget 2015/16 


Page 47 


Part 2 - Supporting Documentation 


2.1 Overview of the annual budget process 

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

The Budget Steering Committee consists of the Municipal Manager and senior 
officials of the municipality meeting under the executive chairpersonship of Finance, 
Fluman Resource and Administration. 

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 municipality’s IDP and the budget, taking into account 
the need to protect the financial sustainability of municipality; 

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

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

2.2 Budget Process Overview 

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

The Mayor tabled in Council the required the IDP and budget time schedule on 1 1 
August 2014. Below is the table with planned and actual dates: 


NC451-JMLM Adopted Budget 2015/16 


Page 48 


NO 

REQUIRED INPUTS 

BY WHOM 

PERIOD (FINAL DATE FOR 
COMPLETION) 

ACTUAL DATES 

i. 

Preparation for IDP and budget process plan 
for approval by council 

CFO and IDP manager 

14 August 2014 

11 August 2014 

2. 

Preparation for IDP review process by 
communicating to IDP forum stakeholders 

Director 

03 to 09 September 2014 

09 September 2014 

3. 

IDP steering committee meeting 

Mayor/ IDP Manager 

10 September 2014 

22 September 2014 

4. 

IDP meeting with all stakeholders 
(representative forum meeting) 

Mayor/ IDP Manager 

11 September 2014 

22 July 2014 

5. 

Inputs for all projects from all stakeholders 
(2014/15) 

IDP manager 

15 to 19 September 2014 


6. 

IDP steering committee meeting 

Mayor/ IDP Manager 

27 October 2014 

08 October 2014 

7. 

Second IDP meeting with all the stakeholders 

IDP manager 

31 October 2014 

15 October 2014 

8. 

Comparison between 2013/14 IDP initiatives 
originating from the strategic planning session. 

All the Departments 

03 to 07 November 2014 

10 November 2014 

9. 

Formulation of key IDP priorities 

All Departments 

10 to 14 November 2014 

08-21 October 2014 

10 

First draft budget and policies to council for 
2015/16 

CFO / Municipal 

Manager 

18 November 2014 

18 November 2014 

11 

Prepare and distribute departmental total 
budgets MTEF to all heads of departments with 
actual figures and distribute the budget 
guidelines received from national treasury to all 
heads of departments. 

CFO 

19 November 2014 

06 October 2014 

12 

Meeting with heads of departments for budget 
compilation 

CFO 

20 November 2014 

03 & 04 October 2014 

13 

Adjustments of all grants gazetted for MTEF as 
per DORA 

CFO 

21 November 2014 

No DORA adjustments 

14 

Community Consultation/participation on the 
draft of the IDP 

IDP MANAGER 

25 to 28 November 2014 

08 to 21 October 2014 

15 

Community consultation for IDP inputs 

IDP Manager 

01 December 2014 

7-21 October 2014 

16 

Meeting with heads of departments for budget 
compilation 

CFO 

05 December 2014 

05 March 2015 

17 

Align total budget with IDP with National and 
provincial priorities and Growth and 

Development Plan 

All the departments 

15 January 2015 

05 March 2015 

18 

Presentation of a Draft IDP & Budget 2015/ 16 

Council 

27 March 2015 

20 March 2015 

19 

Commence public budget IDP participation 
process with all wards within Joe Morolong 

Local Municipality 

CFO / IDP(Chairpersons) 

29 April 2015 

7-17 April 2015 

20 

Presentation of public participation results to 
Council for inclusion into the final budget of 
2015/16 

Mayor/ CFO / IDP 

30 April 2015 

27 April 2015 

21 

Final total budget proposal to council for 
approval 

Mayor/ CFO / IDP 

29 May 201 5 

27 April 2015 

22 

Finalisation of top layer SDBIPs 

Directors 

04 June 2015 

27 April 2015 

23 

Finalisation of Departmental SDBIPs 

MM 

18 June 2015 


24 

Send approval IDP and budget to COGHSTA, 
Provincial and National Treasury 

CFO / MM 

25 June 2015 



NC451-JMLM Adopted Budget 2015/16 


Page 49 


There were deviations from key dates set out in the budget time schedule tabled in 
council on the 1 1 August 2014 but the activities were all carried out in different dates 
as compared to the planned dates. 

2.3 Intergrated Development Plan 

Integrated Development Planning is the process through which the municipality 
prepares a strategic developmental plan, which is the principal strategic instrument 
guiding all planning, management, budgeting, development and implementation 
decisions, taking into account inputs from all stakeholders. 

For our planning and programmes to be effective all strategic planning within the 
municipality must take place within the framework of the I DP. Through integrated 
development planning different plans are integrated, coordinated and linked to the use 
of natural, financial, human and physical resources. 

During IDP review the following are some of the issues and concerns raised as well 
as comments received during the consultation process: 

> Several complaints were received regarding poor service delivery, especially 
water and the state of road infrastructure (road sign, bridges, internal, access 
and main roads) that it need to tarred; 

> There were requests regarding the electricity for high mass lights, infill’s and 
extensions on the areas were the have been new development. 

> To increase the swiftness for construction of halls, sports fields, toilets (UDS) 
and fencing of cemeteries including maintenance. 

> The community also requested the municipality to improve on turnaround time 
relating to maintenance issues relating to water infrastructure 

2.4 IDP and Service Delivery and Budget Implementation Plan 

Municipalities are required to develop five year Integrated Development Plans which 
must be reviewed annually. It is also required that such plans must find expression in 
the Budget. The IDP and the budget are interrelated documents. The IDP is the 
budget in words, just as the budget is the IDP in figures. In the past two years 


NC451-JMLM Adopted Budget 2015/16 


Page 50 


comprehensive efforts have been made towards ensuring that the two documents 
are closely link. 

The municipality’s IDP is a principal strategic planning instrument, which directly 
guides and informs its planning, budget, management and development actions. 
This framework is rolled out into objectives, key performance indicators and targets 
for implementation which directly inform the Service Delivery and Budget 
Implementation Plan. The Process Plan applicable to the revision cycle included the 
following key IDP processes and deliverables: 

> Registration of community needs; 

> Compilation of departmental business plans including key performance 
indicators and targets; 

> Financial planning and budgeting process; 

> Public participation process; 

> Compilation of the SDBIP, and 

> The review of the performance management and monitoring processes 

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

2.5 Community Consultation 

The 2015/16 MTREF will be tabled before council on the 27 May 2015 together with 
community consultation minutes. Consultation time table was published in the 
municipal website and local newspaper and hard copies for draft budget will be 
available in the main municipal office and satellite offices and draft budget softcopy 
was loaded on the municipal website (www.joemorolong.gov.za). 


NC451-JMLM Adopted Budget 2015/16 


Page 51 


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

Ward Committees were utilised to facilitate the community consultation process from 
07 to 17 April 2015. The applicable dates and venues was published in all the local 
newspapers and notice board of public places. Other stakeholders involved in the 
consultation will include Agri Kuruman, sector departments, mining houses and 
churches and community-based organisations. 

The following are some of the issues and concerns raised as well as comments 
received during the consultation process: 

> Several complaints were received regarding poor service delivery, especially 
water and the state of road infrastructure (road sign, bridges, internal, access 
and main roads) that it need to tarred; 

> Poor performance of contractors relating to infrastructure development and 
maintenance especially in the areas of water construction and maintenance 
were raised; 

> There were requests regarding the electricity for high mass lights, infill’s and 
extensions on the areas were the have been new development. 

> To increase the swiftness for construction of halls, sports fields, toilets (UDS) 
and fencing of cemeteries including maintenance. 

> Communities also requested municipality to assist with water provision for 
their livestock, learners transport, Early Learning Centres and mobile clinics. 

> They complained about receiving their accounts (bills) late and urged 
municipality to improve on the matter. 

2.6 Overview of alignment of annual budget with IDP 

The IDP crosses departmental divisions by linking the physical, social, institutional and 
economic components of planning and development with management and 
development structure. It also integrates and aligns planning in different spheres of 
government and therefore enforcing and upholding the spirit of co-operative 
governance in the public sector. 


NC451-JMLM Adopted Budget 2015/16 


Page 52 


For our planning and programmes to be effective all strategic planning within the 
municipality must take place within the framework of the I DP. Through integrated 
development planning different plans are integrated, coordinated and linked to the use 
of natural, financial, human and physical resources. 


The following IDP’s five strategic objectives that have directly informed the 
compilation of 2015/16 MTREF budget 

> Provide quality basic services to community 

> Good governance and community participation 

> Institutional Development and Transformation 

> Local Economic Development 

> Municipal Financial Viability 


The following tables provide a reconciliation between the I DP strategic objectives 
and operating revenue, operating expenditure and capital expenditure. 

Table 24 - Table SA4: Reconciliation between the IDP strategic objectives and 
budgeted revenue 


Strategic Objective 

Goal 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & 
Expenditure Framework 

R thousand 


Audited 

Outcom 

e 

Audited 

Outcom 

e 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget 

Year 

2015/16 

Budget 

Year +1 
2016/17 

Budget 

Year +2 
2017/18 

Provide quality 
basic services to 
community 

Provision of infrastructure for water, 
sanitation, waste management, 
electricity and roads 

83 258 

139 018 

135 299 

131 096 

142 229 

142 229 

154 699 

163 683 

173 336 

Good governance 
and community 
participation 

Promote community involvement 
through planning, monitoring and 
budgeting processes. Engagement of 
ward committees to hold monthly 
meeting with communities 

(430) 

10 207 

2 884 

5 391 

7 445 

7 445 

6 548 

4 385 

4 626 

Institutional 
Development and 
Transformation 

Addressing Auditor General queries 
as per the action plan to ensure 
improvement in audit opinion. Firm 
up on performance management 
system. Managing the interface 
between the administrative and 
political structures 

19 939 

3 794 

4 727 

5 573 

5 752 

5 752 

6 269 

6 543 

6 845 

Local Economic 
Development 

Ensure sustainable rural economic 
growth; ensure that most of the 
municipal projects are implemented 
through labour intensive programme. 
Also ensure that atleast 30% of most 
municipal infrastructural projects are 
awarded to local emerging 
contractors 

918 

5 709 

2 496 

24 

24 

24 




Municipal Financial 
Viability 

Improved budgeting, revenue 
generation & protection, debtors 
control, grow and diversify revenue 
and value for money expenditure 
through an integrated financial plan 

64 973 

79176 

77 307 

100 285 

97 460 

97 460 

122 522 

125 561 

126186 

Total Revenue 


168 658 

237 904 

222 714 

242 368 

252 910 

252 910 

290 038 

300 172 

310 992 


NC451-JMLM Adopted Budget 2015/16 


Page 53 


Table 25 - Table SA5: Reconciliation between the IDP strategic objectives and 
budgeted operating expenditure 


Strategic Objective 

Goal 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 
Expenditure Framework 

R thousand 


Audited 

Outcome 

Audited 

Outcom 

e 

Audited 

Outcom 

e 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget 

Year 

2015/16 

Budget 
Year +1 
2016/17 

Budget 
Year +2 
2017/18 

Provide quality basic 
services to community 

Provision of infrastructure for water, 
sanitation, waste management, 
electricity and roads 

175 542 

144 878 

56 926 

41 749 

41 719 

41 719 

87 588 

84 665 

90140 

Good governance and 
community participation 

Promote community involvement 
through planning, monitoring and 
budgeting processes. Engagement of 
ward committees to hold monthly 
meeting with communities 

(8 032) 

11 703 

10 276 

10 528 

12 643 

12 643 

7 871 

8 434 

8 730 

Institutional Development 
and Transformation 

Addressing Auditor General queries as 
per the action plan to ensure 
improvement in audit opinion. Firm up 
on performance management system. 
Managing the interface between the 
administrative and political structures 

91 425 

32137 

39 255 

27 798 

27 932 

27 932 

28 730 

31 576 

33 352 

Local Economic 

Development 

Ensure sustainable rural economic 
growth; ensure that most of the 
municipal projects are implemented 
through labour intensive programme. 

Also ensure that atleast 30% of most 
municipal infrastructural projects are 
awarded to local emerging contractors 

18 781 

9 353 

9912 

2178 

2 026 

2 026 

4 229 

2 596 

2 734 

Municipal Financial Viability 

Improved budgeting, revenue 
generation & protection, debtors control, 
grow and diversify revenue and value 
for money expenditure through an 
integrated financial plan 

10 732 

72 040 

41 299 

27 019 

29 746 

29 746 

35 237 

35 000 

36 914 

Total Expenditure 


288 449 

270 111 

157 668 

109 273 

114 065 

114 065 

163 655 

162 271 

171 870 


Table 26- Table SA6: Reconciliation between the IDP strategic objectives and 
budgeted capital expenditure 


Strategic Objective 

Goal 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & 
Expenditure Framework 

R thousand 


Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget 

Year 

2015/16 

Budget 
Year +1 
2016/17 

Budget 
Year +2 
2017/18 

Provide quality basic 
services to community 

Provision of infrastructure for water, 
sanitation, waste management, 
electricity and roads 


218 628 

110 245 

95 046 

107 549 

107 549 

107 769 

122 841 

129 963 

Good governance and 

community 

participation 

Promote community involvement 
through planning, monitoring and 
budgeting processes. Engagement of 
ward committees to hold monthly 
meeting with communities 


25 767 

19 386 

36 092 

29 803 

29 803 

17 360 

14 772 

8 680 

Institutional 

Development and 
Transformation 

Addressing Auditor General queries 
as per the action plan to ensure 
improvement in audit opinion. Firm 
up on performance management 
system. Managing the interface 
between the administrative and 
political structures 

2 656 

1 233 

994 

1 727 

1 472 

1472 

1 205 

250 

200 

Local Economic 
Development 

Ensure sustainable rural economic 
growth; ensure that most of the 
municipal projects are implemented 
through labour intensive programme. 
Also ensure that atleast 30% of most 
municipal infrastructural projects are 
awarded to local emerging 
contractors 










Municipal Financial 
Viability 

Improved budgeting, revenue 
generation & protection, debtors 
control, grow and diversify revenue 
and value for money expenditure 
through an integrated financial plan 


528 

521 

231 

20 

20 

50 

38 

279 

Total Capital 
Expenditure 


2 656 

246 156 

131 146 

133 095 

138 845 

138 845 

126 383 

137 901 

139122 


NC451-JMLM Adopted Budget 2015/16 


Page 54 


2.7 Measurable performance objectives and indicators 


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

The following table provides the main measurable performance objectives the 
municipality undertakes to achieve this financial year. 


NC451-JMLM Adopted Budget 2015/16 


Page 55 


Table 27- Table SA7: Measurable performance objectives 


Description 

Unit of measurement 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 
Expenditure Framework 

Audited 

Outcom 

e 

Audited 

Outcom 

e 

Audited 

Outcom 

e 

Original 

Budget 

Adjusted 

Budget 

Full 

Year 

Forecast 

Budget 

Year 

2015/16 

Budget 
Year +1 
2016/17 

Budget 
Year +2 
2017/18 

Vote 1 - Executive & Council 











Function 1 ■ Council 











Sub-function 1 - (name) 











Tabling & Approval of IDP & Budget for each 

Approval before 31 May 

1 

1 

1 

1 

1 

1 

1 

1 

1 

budget year 

each year 










Hold quartely council meeting 

Number of meeting held 

4 

4 

4 

4 

4 

4 

4 

4 

4 

Approval of Sec 12 Reports by 25 January 

Approved Report & 

1 

1 

1 

1 

1 

1 

1 

1 

1 

each year 

Resolution 










Tabling & Approval of Adjusted Budget 

Number of Adjusted 

1 

1 

1 

1 

1 

1 

1 

1 

1 


Budget 










Sub-function 2 - Municipal Manager 











The keeping and compilation of minutes of all 

Number of minutes 

20 

20 

20 

20 

20 

20 

20 

20 

20 

meetings of Council and its committee 











Publication of four newsletter in financial year 

Number of newsletter 

4 

4 

4 

4 

4 

4 

4 

4 

4 

Vote 2 - Budget & Treasury Office 











Sub-function 1 - Budget & Treasury 











Financial Statements by 31 August 2014 and 

Submitted AFS 

1 

1 

1 

1 

1 

1 

1 

1 

1 

submitted to the Auditor-General 











All salaries and third party payments paid on 

Number 

12 

12 

12 

12 

12 

12 

12 

12 

12 

time 











Monthly sec 71 reports 

Number of report 

12 

12 

12 

12 

12 

12 

12 

12 

12 

Compile Quaterly reports 

7 reports per quarter 

28 

28 

28 

28 

28 

28 

28 

28 

28 

Vote 3 - Corporate Services 











Function 1 - Corporate 











Maintenance of an effective record and registry 

Continuous 




100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

system. 











Administration of Human Resource recruitment 

Continuous 




100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

and selection. 











Update of Skills Development Plan 

Number 




1 

1 

1 

1 

1 

1 

Oversee that training in terms of the Skills 

Continuous 




100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

Development Plan is being implemented. 











Reclaim all monies due in term of Skills 

4 




4 

4 

4 

4 

4 

4 

Development Plan. 











Vote 4 - Community Service 











Function 1 - Community 











Number with VIP toilets 

Number 







1494 

1200 

2545 

Construction of sportfields 

Number 







2 

2 

2 

Construction of phase 1 Testing station 

Complete testing staion 







1 

1 


This indicator reflects the number of single 

Number (1500) 




1500 

1500 

1500 

1500 

1500 

1500 

residential properties that the Municipality is 











aware of which are receiving a weekly door to 











door refuse removal service. 











Vote 5 - Techical Service 











Function 1 - Technical 











Construction of internal roads 

Kilomeetre 







6 

5 

1.5 

Construction of bridge 

Number 







1 



Vote 7 - Water Unit 











Function 1 - Water 











Water control and management - breaks and 

Continuous 




95% 

95% 

95% 

95% 

95% 

95% 

losses - daily, weekly and monthly. 











Water breaks must be repaired within twelve 

Continuous 




95% 

95% 

95% 

95% 

95% 

95% 

(12) hours after break has been reported. 











Managing total water supply system to ensure 

Continuous 




95% 

95% 

95% 

95% 

95% 

95% 

sufficient water provision. 











Monitoring of water quality and testing 

Monthly 




12 

12 

12 

12 

12 

12 

Sub-function 3 - (name) 











Insert measure/s description 











And so on for the rest of the Votes 












NC451-JMLM Adopted Budget 2015/16 


Page 56 


The following table sets out the municipalities main performance objectives and 
benchmarks for the 201 5/1 6 MTREF 

Table 28- Table SA8: Performance indicators and benchmarks. 


NC451 Joe Morolong - Supporting Table SA8 Performance indicators and benchmarks 




2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Description of financial indicator 

Basis of calculation 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Pre-audit 

Budget Year 

Budget Year 

Budget Year 



Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

outcome 

2015/16 

+1 2016/17 

+2 2017/18 

Borrowinq Management 












Credit Rating 

Capital Charges to Operating Expenditure 

Interest & Principal Paid /Operating 

Ex penditure 

0.0% 

0.3% 

0.9% 

1.5% 

1.5% 

1.5% 

1.5% 

1.1% 

1.1% 

1.0% 

Capital Charges to Own Revenue 

Finance charges & Repayment of 
borrowing / Own Revenue 

0.0% 

2.3% 

6.9% 

6.3% 

7.4% 

7.4% 

7.4% 

6.3% 

5.9% 

5.5% 

Borrowed funding of 'own' capital expenditure 

Borrowing/Capital expenditure ex cl. 
transfers and grants and contributions 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

Safety of Capital 












Gearing 

Long Term Borrowing/ Funds & 

Reserves 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

Liquidity 












Current Ratio 

Current assets/current liabilities 

0.5 

0.4 

0.9 

0.8 

1.9 

1.9 

1.9 

1.4 

2.0 

2.7 

Current Ratio adjusted for aged debtors 

Current assets less debtors > 90 

0.5 

0.4 

0.9 

0.8 

1.9 

1.9 

1.9 

1.4 

2.0 

2.7 


days/current liabilities 











Liquidity Ratio 

Revenue Management 

Monetary Assets/Current Liabilities 

0.1 

0.0 

0.4 

0.3 

1.4 

1.4 

1.4 

0.9 

1.6 

2.2 

Annual Debtors Collection Rate (Payment 

Last 12 Mths Receipts/Last 12 Mths 


-391.8% 

126.5% 

307.6% 

95.0% 

87.0% 

87.0% 

87.0% 

85.0% 

85.0% 

Level %) 

Current Debtors Collection Rate (Cash 
receipts % of Ratepayer & Other revenue) 

Billing 

-391.8% 

126.5% 

307.6% 

95.0% 

87.0% 

87.0% 

87.0% 

85.0% 

85.0% 

85.0% 

Outstanding Debtors to Revenue 

Total Outstanding Debtors to Annual 

Revenue 

38.3% 

35.4% 

26.5% 

3.4% 

3.5% 

3.5% 

3.5% 

2.8% 

3.0% 

3.1% 

Longstanding Debtors Recovered 

Debtors > 12 Mths Recovered/Total 




0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 


Debtors > 12 Months Old 











Creditors Management 












Creditors System Efficiency 

% of Creditors Paid Within Terms 




98.0% 

99.0% 

99.0% 

99.0% 

100.0% 

100.0% 

100.0% 


(w ithin'MFMA' s 65(e)) 











Creditors to Cash and Investments 


734.5% 

-3537.4% 

303.3% 

107.5% 

58.5% 

58.5% 

58.5% 

96.1% 

55.2% 

39.0% 

Other Indicators 













Total Volume Losses (kW) 

0 











Total Cost of Losses (Rand ’000) 











Electricity Distribution Losses (2) 

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












Total Volume Losses (kf) 












Total Cost of Losses (Rand ’000) 











Water Distribution Losses (2) 

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











Employee costs 

Employee costs/(Total Revenue - capital 
revenue) 

35.4% 

27.7% 

38.9% 

32.7% 

32.8% 

32.8% 

32.8% 

28.2% 

30.8% 

31.8% 

Remuneration 

Total remuneration/ (Total Revenue - 
capital revenue) 

44.4% 

34.3% 

46.8% 

38.7% 

38.8% 

38.8% 


33.1% 

36.1% 

37.3% 

Repairs & Maintenance 

R&M/(Total Revenue excluding capital 
revenue) 

5.2% 

115% 

19.1% 

5.6% 

4.8% 

4.8% 


15.2% 

11.5% 

11.9% 

Finance charges & Depreciation 

FC&D/(Total Revenue - capital revenue) 

68.2% 

20.4% 

25.8% 

7.8% 

6.3% 

6.3% 

6.3% 

6.3% 

6.8% 

7.0% 

IDP regulation financial viabilitv indicators ! 












i. Debt coverage 

(Total Operating Revenue - Operating 
Grants )/Debt service payments due 
| within financial year) 

55.2 

21.0 

25.5 

25.2 

25.2 

25.2 

27.8 

32.9 

35.2 

38.0 

ii. O/S Service Debtors to Revenue 

Total outstanding service debtors/annual 

revenue received for services 

250.3% 

147.1% 

157.9% 

18.3% 

22.1% 

22.1% 

22.1% 

18.6% 

18.0% 

17.5% 

iii. Cost coverage 

(Available cash + Investments )/monthly 
fixed operational expenditure 

1.2 

(0.3) 

2.2 

0.9 

2.0 

2.0 

2.0 

1.4 

2.4 

3.4 


NC451-JMLM Adopted Budget 2015/16 


Page 57 


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 creditworthiness and financial position. As with 
all other municipalities, municipality borrowing strategy is primarily informed by the 
affordability of debt repayments. The following financial performance indicators have 
formed part of the compilation of the 2014/15 MTREF: 

> Capital charges to operating expenditure is a measure of the cost of 
borrowing in relation to the operating expenditure. It is estimated that the cost 
of borrowing as a percentage of the operating expenditure will be 1 .1 per cent 
in 201 5/1 6 and will then decrease to 1 .0 per cent at the end of the MTREF. 

> Capital charges to own revenue is a measure of the cost of borrowing in 
relation to the municipality’s own revenue. It is estimated that the cost of 
borrowing as a percentage of the own revenue will be 6.3 per cent in 2015/16 
and will then decrease to 5.5 per cent at the end of the MTREF 

Liquidity 

> Current ratio is a measure of the current assets divided by the current 
liabilities. For the 201 5/1 6 MTREF the current ratio is 1 .4 in the 201 5/1 6 and 
will increase to 2.7 percent at the end of MTREF. Going forward it will be 
necessary to improve these levels. 

> 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. 
For the 201 5/1 6 MTREF the ratio is 0.9 in the 2015/1 6 financial year and 1 .6 
and 2.2 for the two outer years. This needs to be considered a pertinent risk 
for the municipality as any under collection of revenue will translate into 
serious financial challenges for the municipality. 


NC451-JMLM Adopted Budget 2015/16 


Page 58 


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, and credit control and debt collection. 

Creditors Management 

The municipality has managed to ensure that creditors are settled within the 
legislated 30 days of invoice. While the liquidity ratio is of concern, by applying daily 
cash flow management the municipality has managed to ensure more than 95 per 
cent compliance rate to this legislative obligation. This has had a favourable impact 
on suppliers" perceptions of risk of doing business with the municipality, which is 
expected to benefit the municipality in the form of more competitive pricing of 
tenders, as suppliers compete for the municipality’s business. 

Other Indicators 

> Electricity and Water losses: the municipality is still busy installing the meters 
that will assist in measuring the losses of both electricity and electricity with 
the assistance DBSA programme. 

> Employee costs as a percentage of operating revenue fluctuate over the 
2015/16 MTREF. 

> Repairs and maintenance as percentage of operating revenue fluctuate over 
the 2015/16 MTREF. The increasing repairs and maintenance is part of the 
municipality’s plan for protection of revenue generating assets. 


NC451-JMLM Adopted Budget 2015/16 


Page 59 


2.8 Overview budget related policies 

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

a) Budget, Funding, Reserves and Virement Policy 

The policy aim to set out; the principles which the municipality will follow in 
preparing each medium term revenue and expenditure framework budget, 
responsibilities of the mayor , the accounting officer , the chief financial officer 
and other senior managers in compiling the budget and to establish and 
maintain procedures to ensure adherence Joe Morolong Municipality’s IDP 
review and budget processes. 

b) Banking and Investment Policy 

The policy aim to gain the optimal return on banking and investments, without 
incurring undue risks, during those periods when cash revenues are not needed 
for capital or operational purposes. The effectiveness of the policy is dependent 
on the accuracy of the municipality’s cash management programme, which 
must identify the amounts surplus to the municipality’s needs, as well as the 
time when and period for which such revenues are surplus. 

c) Credit Control and Debt Collection Policy 

The policy aim to maximize revenue by timeously collecting all moneys owed 
to the municipality; ensure that action are taken to recover arrear debt is 
warranted and fair; to enable Joe Morolong Local Municipality to develop and 
maintain a sustainable service delivery relationship with its customers; to 
deliver excellent service to the communities of Joe Morolong Local Municipality 
in return for payment of their rates and service accounts and encourage and 
inculcate the culture of payment. 


NC451-JMLM Adopted Budget 2015/16 


Page 60 


d) Tariffs Policy 


The policy aim to empower council with among other things, the levying of fees 
for municipal services provided by the municipality itself or by way of service 
delivery agreements. To determine fair, transparent and affordable charges 
based on its economic regions and their impact on local economic 
development. 

e) Fruitless and Wasteful Expenditure Policy 

The policy aim to provide for measures to identify unauthorised, irregular or 
fruitless and wasteful expenditure; provide for frameworks to avoid of any 
irregular expenditure or any fruitless and wasteful expenditure; provide for 
recovery of irregular expenditure or any fruitless and wasteful expenditure and 
to provide for reporting on any irregular expenditure or any fruitless and 
wasteful expenditure. 

f) Supply Chain Management Policy 

The policy aim to ensure sound, sustainable and accountable supply chain 
management practices within the municipality, whilst promoting black economic 
empowerment as a priority in terms of the goals and objectives of the 
municipality’s preferential procurement policy. 

The above policies will be available on the municipal website 
(www.joemorolong.gov.za) as well as the following: 

> Property Rates policy 

> Fixed Assets policy 

> Indigent Policy 

> Risk Management Policy 

> Cash Shortage Policy 

> Bad Debt Written Off Policy 

> Asset Management Policy 

> Petty Cash Policy 


NC451-JMLM Adopted Budget 2015/16 


Page 61 


2.9 Overview of budget assumptions 


a) Inflation 

There are some factors that have been taken into consideration in the 
compilation of the 2015/16 budget: 

> National Government macro-economic targets; 

> The general inflationary outlook and the impact on municipal residents 
and businesses; 

> The impact of municipal cost drivers; 

> The increase in prices for bulk electricity and water; and 

> The increase in the cost of remuneration. Employee related costs 
comprise 30 per cent of total operating expenditure in the 2015/16 
MTREF. The wage agreement has not yet been concluded between 
SALGBC and municipal workers unions which can be a little risky based 
on the previous agreements that was signed. 

b) Collection rate for revenue services 

The base assumption is that tariff and rating increases will increase at a rate 
slightly higher that CPI over the long term. It is also assumed that current 
economic conditions, and relatively controlled inflationary conditions, will 
continue for the forecasted term. 

The rate of revenue collection currently has been budgeted at 95 per cent of 
annual billings for rates, services, rents, and for other revenue. The 
performance of arrear collections have been budgeted at 95 per cent collection 
for 201 5/1 6 MTREF. 

c) Salary increases 

The wage agreement has not yet been concluded between SALGBC and 
municipal workers unions which can be a little risky based on the previous 
agreements that was signed. The municipality has budget salary increase of 
6.2 percent and in case the agreement will be below the budgeted increase, 


NC451-JMLM Adopted Budget 2015/16 


Page 62 


this will be good as it will be the additional money available on improving of 
service delivery. 

d) Impact of national, provincial and local policies 

Integration of service delivery between national, provincial and local 
government is critical to ensure focussed service delivery and in this regard 
various measures were implemented to align I DPs, provincial and national 
strategies around priority spatial interventions. In this regard, the following 
national priorities form the basis of all integration initiatives: 

> EPWP and LED through the capital projects 

> Provision of clean water 

> Sanitation 

> Electricity; and 

> Decent housing 

To achieve these priorities integration mechanisms are in place to ensure 
integrated planning and execution of various development programs. The focus 
will be to strengthen the link between policy priorities and expenditure thereby 
ensuring the achievement of the national, provincial and local objectives. 

e) Ability of the municipality to spend and deliver on the programmes 

It is estimated that spending rate at an average of at least 98 per cent is to be 
achieved on operating expenditure and average of 100 per cent on the capital 
programme for the 2015/16 MTREF of which performance has been factored 
into the cash flow budget. 


NC451-JMLM Adopted Budget 2015/16 


Page 63 


2.10 Overview of budget funding 
a) Operating Revenue 

The following table is a breakdown of the operating revenue over medium term: 


Table 29 - Breakdown of the operating revenue over medium term 


Description 

2015/16 Medium Term Revenue & Expenditure Framework 

R thousands 

Budget Year 
2015/16 

% 

Budget Year 
2016/17 

% 

Budget Year 
2017/18 

% 

Financial Performance 







Property rates 

10 489 

6.02% 

11 223 

6.64% 

12 009 

6.96% 

Service charges 

15912 

9.13% 

17 247 

10.20% 

18715 

10.84% 

Transfers recognised - operational 

147 129 

84.38% 

140 027 

82.79% 

141 242 

81.82% 

Other own revenue 

839 

0.48% 

629 

0.37% 

662 

0.38% 

Total Operating Revenuef excluding capital 
transfers and contributions) 

174 369 

100% 

169126 

100% 

172 627 

100% 

Total Operating Expenditure 

163 655 


162 271 


171 870 


Surplus/fDeficit) 

10714 


6 855 


757 



The following graph is a breakdown of the operational revenue per main category for 
the 2015/16 financial year; 


Breakdown of operating revenue 



Property rates 

■ Service charges 

Transfers recognised - operational 

■ Other own revenue 


Transfers 

- operational 


Other own revenue 
1 % 


Property rates 


Service charges 
9% 


84% 


Tariff setting plays a major role in ensuring the desired level of revenue, even though 
the municipality is still dependent on grants. Getting the tariff setting right assist in the 
compilation of credible and funded budget. The municipality derives its operational 
revenue from provision of services namely: water, electricity, sanitation and solid 
waste removal including property rates. The operational grants plays a major role in 
the municipal budget funding. 


NC451-JMLM Adopted Budget 2015/16 


Page 64 


b) Capital Revenue 

The following table is a breakdown of the capital revenue over medium term: 


Table 30 - Breakdown of the capital funding over medium term 


Description 

R thousands 

2014/15 Medium Term Revenue and Expenditure Framework 

Budget Year 
2015/16 

% 

Budget Year 
2016/17 

% 

Budget Year 
2017/18 

% 

Funded bv 







National Government 

115 669 


131 046 


138 365 


Transfer Recognised Capital 

115 669 

91.52% 

131 046 

95.03% 

138 365 

99.46% 

Internally Generated Funds 

10714 

8.48% 

6 855 

4.97% 

757 

0.54% 

Public Contributions & Donations 

- 


- 

0.00% 

- 


Total Capital Funding 

126 383 

100% 

137 901 

100% 

139122 

100% 


The following graph represent the breakdown of the capital funding for the 2015/16 
financial year; 

CAPITAL FUNDING 

Internally Generated 
Funds 
8% 


Transfer Recognised Capital 
■ Internally Generated Funds 
Public Contributions & Donations 


Transfer Recognised 
Capital 
92% 



Capital grants and receipts equates to 92% of the total funding source which 
represents R115.7 Million for the 2015/16 financial year and steadily increase to 
R1 38.4 million or 99% per cent by 201 7/1 8. 


NC451-JMLM Adopted Budget 2015/16 


Page 65 


Table 31 - Table SA18: Breakdown of the capital funding over medium term 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year +1 
2016/17 

Budget Year 
+2 2017/18 

RECEIPTS: 

Capital Transfers and Grants 

National Government: 

38 350 

122 457 

116 221 

107 058 

111 089 

111 089 

118 599 

134 092 

141 584 

Municipal Infrastructure Grant (MIG) 

33114 

56 479 

55 253 

57 058 

57 058 

57 058 

58 599 

60 912 

64 379 

Regional Bulk Infrastructure 

5 235 

58 398 

43 436 


4 031 

4 031 




Municipal Water Infrastructure Grant 


5 705 

7 036 

50 000 

50 000 

50 000 

60 000 

73180 

77 205 

EPWP 



2 496 







Water Operation and Subsidy Grant 


1 875 

8 000 







Provincial Government: 

- 

8188 

- 

- 

- 

- 

- 

- 

- 

Housing 


8188 








District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 

27164 

6 098 

11252 

- 

8160 

8160 

- 

- 

- 

AC IP Sanitation 

27164 

6 098 

2 796 







Sishen Mine (Roads) 



8 455 


8160 

8160 




Total Capital Transfers and Grants 

65 513 

136 743 

127 472 

107 058 

119 249 

119 249 

118 599 

134 092 

141 584 

TOTAL RECEIPTS OF TRANSFERS & GRANTS 

128102 

206 772 

201 729 

215 785 

230 030 

230 030 

262 798 

271 073 

279 607 


c) Cash Flow Management 

Cash flow management and forecasting is a critical step in determining if the 
budget is funded over the medium-term. The table below provides 
understanding for Councillors and management. Some specific feature 
includes: 

> Clear separation of receipts and payment by category 

> Clear separation of government capital and operating receipts, which 
enables cash from ratepayers and other; to be provided for as cash 
inflow based on their actual performance and assist in determining 
collection rate for the municipality. 

> Separation of borrowing and loan repayments. 


The table below shows that cash and cash equivalent of the municipality were 
largely exhausted by 2012/13 moving from positive cash balance of R 13.3 in 
201 1/12 to a deficit of R 2.6 million in 2012/13 and moved to the positive cash 
balance of R 14.7 million by 2013/14. The 2015/16 MTREF show a steadily increase 
in cash and cash equivalent at the end of financial years. The budgeted cash flow for 
2015/16 provide for a net increase in cash of R 10.1 million resulting in an overall 
projected positive cash position of R 13.2 million. 


NC451-JMLM Adopted Budget 2015/16 


Page 66 


Table 32 - Table A7: Budgeted cash flow management 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 







Framework 



R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 

CASH FLOW FROM OPERATING 

ACTIVITIES 

Receipts 

Property rates, penalties & collection charges 

3144 

2 453 

3 371 

9168 

4 727 

4 727 

8916 

9 540 

10 207 

Service charges 

(64 916) 

28 098 

45 458 

15 288 

13 823 

13 823 

13 526 

14 660 

15 907 

Other revenue 

23 489 

3 426 

3 355 

646 

13100 

13100 

714 

525 

555 

Government - operating 

61 664 

70 029 

74 257 

111 580 

110 781 

110781 

147 129 

140 027 

141 242 

Government - capital 

67 916 

327 252 

127 487 

104 205 

119 249 

119 249 

115 669 

131 046 

138 365 

Interest 

1 303 

123 

260 

40 

269 

269 

40 

43 

43 

Dividends 







- 

- 

- 

Payments 










Suppliers and employees 

(106 039) 

(200 742) 

(104 313) 

(103 935) 

(108 935) 

(108 935) 

(143 873) 

(141 394) 

(149 608) 

Finance charges 

(2 402) 

(96) 

(232) 

(100) 

(115) 

(115) 

(149) 

(157) 

(166) 

Transfers and Grants 

- 




(2 021) 

(2 021) 

(4 730) 

(4 938) 

(5 376) 

NET CASH FROM/(USED) OPERATING 
ACTIVITIES 

(15 842) 

230 544 

149 643 

136 892 

150 879 

150 879 

137 242 

149 351 

151 169 

CASH FLOWS FROM INVESTING 

ACTIVITIES 

Receipts 










Proceeds on disposal of PPE 







- 

- 

- 

Decrease (Increase) in non-current debtors 







- 

- 

- 

Decrease (increase) other non-current 
receivables 







- 

- 

- 

Decrease (increase) in non-current 
investments 

Payments 

(18) 

362 








Capital assets 

(2 656) 

(246 156) 

(131 146) 

(133 073) 

(138 845) 

(138 845) 

(126 383) 

(137 901) 

(139 122) 

NET CASH FROM/(USED) INVESTING 
ACTIVITIES 

(2 674) 

(245 794) 

(131 146) 

(133 073) 

(138 845) 

(138 845) 

(126 383) 

(137 901) 

(139 122) 

CASH FLOWS FROM FINANCING 

ACTIVITIES 

Receipts 










Short term loans 







- 

- 

- 

Borrowing long term/refinancing 







- 

- 

- 

Increase (decrease) in consumer deposits 

Payments 







— 

— 

— 

Repayment of borrowing 

2 394 

(611) 

(1 225) 

(784) 

(784) 

(784) 

(784) 

(784) 

(784) 

NET CASH FROM/(USED) FINANCING 
ACTIVITIES 

2 394 

(611) 

(1 225) 

(784) 

(784) 

(784) 

(784) 

(784) 

(784) 

NET INCREASE/ (DECREASE) IN CASH 

HELD 

(16122) 

(15 861) 

17 272 

3 035 

11250 

11250 

10 074 

10 666 

11263 

Cash/cash equivalents at the year begin: 

29 414 

13 293 

(2 568) 

3 013 

3 099 

3 099 

3 099 

13173 

23 839 

Cash/cash equivalents at the year end: 

13 292 

(2 568) 

14 703 

6 048 

14 349 

14 349 

13173 

23 839 

35102 


NC451-JMLM Adopted Budget 2015/16 


Page 67 


Table 33 - Table SA10: Funding Compliance Measurement 


Description 

MFMA 

section 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Fundinq measures 













Cash/cash equivalents at the year end - R'000 

18(1)b 

1 

13 292 

(2 568) 

14 703 

6 048 

14 349 

14 349 

14 349 

13173 

23 839 

35102 

Cash + investments at the y r end less applications - R'000 

18(1)b 

2 

(139 610) 

(54 216) 

33 089 

1 195 

17 524 

17 524 

17 524 

4 395 

14 739 

25672 

i 

Cash year end/monthly employee/supplier payments 

18(1)b 

3 

1.2 

(0.3) 

2.2 

0.9 

2.0 

2.0 

2.0 

1.4 

2.4 

3.4 

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

18(1) 

4 

(119 791) 

(32 207) 

65 046 

133 095 

138 845 

138 845 

138 845 

126 383 

137 901 

139 122 

Service charge rev % change - macro CPIX target exclusive i 

go 

5 

N.A. 

47.2% 

(40.3%) 

56.2% 

(23.2%) 

(6.0%) 

(6.0%) 

17.8% 

1.8% 

1.9% 

Cash receipts % of Ratepayer & Other revenue 

18(1)a,(2) 

6 

(97.5%) 

109.6% 

251.8% 

94.4% 

138.9% 

138.9% 

138.9% 

85.0% 

85.0% 

85.0% 

Debt impairment expense as a % of total billable revenue 

18(1)a,(2) 

7 

355.8% 

134.9% 

14.7% 

4.7% 

5.7% 

5.7% 

5.7% 

15.0% 

15.0% 

15.0% 

Capital pay ments % of capital ex penditure 

! 18(1)c;19 

8 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

100.0% 

Borrow ing receipts % of capital ex penditure (ex cl. transfers) 

18(1)c 

9 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

Grants % of Govt, legislated/gazetted allocations 

18(1)a 

10 








100.0% 

100.0% 

100.0% 

Current consumer debtors % change - incr(decr) 

18(1)a 

11 

N.A. 

(9.5%) 

(29.5%) 

(81.3%) 

0.0% 

0.0% 

0.0% 

4.0% 

4.9% 

4.9% 

Long term receivables % change - incr(decr) 

18(1)a 

12 

N.A. 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

i 0.0% 

0.0% 

R&M % of Properly Plant & Equipment 

1 20(1 )(vi) 

13 

0.6% 

1.1% 

1.6% 

0.8% 

0.6% 

0.6% 

2.3% 

2.1% 

1.4% 

1.4% 

Asset renew al % of capital budget 

1 20(1 )(vi) 

14 

0.0% 

0.0% 

0.0% 

7.9% 

7.4% 

7.4% 

0.0% 

0.6% 

0.0% 

0.0% 


Cash and Cash equivalents 


The municipality’s cash position was discussed as part of the budgeted cash flow 
statement. If the municipality’s forecast cash position is negative, for any year of the 
medium term budget, the budget is very unlikely to meet MFMA requirements or be 
sustainable and could indicate a risk of non-compliance with section 45 of the MFMA 
which deals with the repayment of short term debt at the end of the financial year. The 
forecasted cash and cash equivalents for the 2015/16 MTREF shows R 13.2 million, 
R 23.8 million and R 35.1 million for each respective financial year. 


Cash and Investments less applications 

The purpose of this measure is to understand how the municipality has applied the 
available cash and investments as identified in the budgeted cash flow statement. The 
reconciliation is intended to be a relatively simple methodology for understanding the 
budgeted amount of cash and investments available with any planned or required 
applications to be made. A positive" cash position, for each year of the MTREF would 
generally be a minimum requirement, subject to the planned application of these funds 
such as cash-backing of reserves and working capital requirements. 


NC451-JMLM Adopted Budget 2015/16 


Page 68 


Cash at year end/monthly employee and supplier payments 

The purpose of this measure is to understand the level of financial risk should the 
municipality be under stress from a collection and cash in-flow perspective. 
Regardless of the annual cash position an evaluation should be made of the ability of 
the municipality to meet monthly payments as and when they fall due. It is especially 
important to consider the position should the municipality be faced with an unexpected 
disaster that threatens revenue collection. Remarkably, the ratio has been fluctuating 
for the period 2011/12 to 2013/14 moving from 1.2 to (2.2) with the audited 2013/14 
outcome. In 201 4/1 5 adopted budget the ratio was at positive and after revised budget 
increased to 2.0, as part of the 2015/16 MTREF the municipality continues to strive in 
improve cash position though the ratio to move downwards to 1 .4 and then continue 
to increase over the MTREF. As indicated above the municipality will be able to cover 
the municipality’s employee and supplier payments. 

Surplus/deficit excluding depreciation offsets 

The main purpose of this measure is to understand if the revenue levels are sufficient 
to conclude that the community is making a sufficient contribution for the municipal 
resources consumed each year. For the 2015/16 MTREF the suggestive outcome is 
a surplus of R126.4 million, R137.9 million and R139.1 million. 

It needs to be noted that a surplus does not necessarily mean that the budget is funded 
from a cash flow perspective and the first two measures in the table are therefore 
critical. 

Service charge revenue as a percentage increase less macro inflation target 

The purpose of this measure is to understand whether the municipality is contributing 
appropriately to the achievement of national inflation targets. This measure is based 
on the increase in revenue, which will include both the change in the tariff as well as 
any assumption about real growth such as new property development, services 
consumption growth etc. 

The factor is calculated by deducting the maximum macro-economic inflation target 
increase (which is currently 3-6 per cent). The result is intended to be an approximation 


NC451-JMLM Adopted Budget 2015/16 


Page 69 


of the real increase in revenue. From the table above it can be seen that the 
percentage increase to 17.8 then decreases slightly to 1.8 then increase to 1.9 per 
cent for the respective two outer financial years. The increase in revenue is as results 
of property rate which was informed by the updated valuation roll whereby the rates 
revenue increased by 66.4 per cent in 2014/15 financial year. Considering the lowest 
percentage tariff increase in relation to revenue generated from rates and services 
charges is 7 per cent, with the increase in water at 1 1 per cent. This trend will have to 
be carefully monitored and managed with the implementation of the budget. 

Cash receipts as a percentage of ratepayer and other revenue 

This factor is a macro measure of the rate at which funds are collected. This measure 
is intended to analyse the underlying assumed collection rate for the MTREF to 
determine the relevance and credibility of the budget assumptions contained in the 
budget. It can be seen that the outcome is at 85 per cent for each of the respective 
financial years. It must be noted that service charges, property rate and rent is 
calculated at the collection rate of 85 per cent. 

In addition the risks associated with objections to the valuation roll need to be clarified 
and hence the conservative approach, also taking into consideration the cash flow 
challenges experienced in the current financial year. This measure and performance 
objective will have to be precisely managed. Should performance with the mid-year 
review and adjustments be positive in relation to actual collections of billed revenue, 
the adjustments budget will be amended accordingly. 

Debt Impairment expense as % of billable revenue 

This factor measures whether the provision for debt impairment is being adequately 
funded and is based on the underlying assumption that the provision for debt 
impairment (doubtful and bad debts) has to be increased to offset under-collection of 
billed revenues. The provision has been appropriated at 15.0 per cent over the 
MTREF. 


NC451-JMLM Adopted Budget 2015/16 


Page 70 


Capital payments percentage of capital expenditure 


The purpose of this measure is to determine whether the timing of payments has been 
taken into consideration when forecasting the cash position. The municipality aims to 
keep this as low as possible through strict compliance with the legislative requirement 
that debtors be paid within 30 days. 

Borrowing Receipts % of Capital Expenditure 

The purpose of this measurement is to determine the proportion of a municipality’s 
own-funded capital expenditure budget that is being funded from borrowed funds to 
confirm MFMA compliance. The municipality will not be utilizing external borrowing for 
any of its capital projects and therefore the ratio is 0%. 

Transfers / Grants Revenue as a % of Government Grants Available 

The purpose of this measurement is mainly to ensure that all available transfers from 
national and provincial government have been budgeted for. A percentage less than 
100 per cent could indicate that not all grants as contained in the Division of Revenue 
Act (DoRA) have been budgeted for. The municipality has budgeted for all transfers. 

Current Consumer Debtors % change 

The purpose of these measures are to ascertain whether budgeted reductions in 
outstanding debtors are realistic. There are two measures shown for this factor; the 
change in current debtors and the change in long term receivables, both from the 
Budgeted Financial Position. The municipality is currently data cleansing which will 
reduce the debtor’s arrears. The consumer will increase by 4.0 percent for 2015/16 
then 4.9 percent for the outer years. 

Repairs and Maintenance expenditure levels 

This measure must be considered important within the context of the funding 
measures criteria because a trend that indicates insufficient funds are being committed 
to asset repair could also indicate that the overall budget is not credible and/or 


NC451-JMLM Adopted Budget 2015/16 


Page 7 1 


sustainable in the medium to long term because the revenue budget is not being 
protected. 

The total repairs and maintenance amounts to 2.1% of the total value Property, Plant 
and Equipment in the 2015/16 budget and decreases to at least 1 .4% in the following 
year. We acknowledge that the municipality should provide at least 8% of the total 
value of assets for repair and maintenance as stated on MFMA Circular No 70. The 
value of our municipal assets amount to R 1 .0 billion and the total budgeted repairs 
and maintenance amount to R 26.6 million and decreases to R 19.5 million and then 
R 20.6 million respectively for the outer years. 

Asset renewal as % of capital budget 

This measure has a similar objective to aforementioned objective relating to repairs 
and maintenance. A requirement of the detailed capital budget (since MFMA Circular 
28 which was issued in December 2005) is to categorise each capital project as a new 
asset or a renewal/rehabilitation project. The objective is to summarise and 
understand the proportion of budgets being provided for new assets and also asset 
sustainability. The municipality has made provision of 0.6, 2015/16 budget year 


NC451-JMLM Adopted Budget 2015/16 


Page 72 


2.1 1 Expenditure on grants and reconciliations of unspent funds 


Table 34 - Table SA19 - Expenditure on transfers and grants programmes 


Description 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

R thousand 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

EXPENDITURE: 

Operating expenditure of Transfers and Grants 










National Government: 

60 987 

69 806 

73 667 

107 758 

107 758 

107 758 

142 694 

135 440 

136 385 

Local Government Equitable Share 

54 260 

67 506 

71 227 

93 255 

93 255 

93 255 

115 253 

117 673 

117 381 

Water Services Operating Subsidy 

3 875 



10 000 

10 000 

10 000 

22 500 

15 000 

15 826 

Finance Management 

1 887 

1 500 

1 550 

1 600 

1 600 

1 600 

1 675 

1 810 

2145 

Municipal Systems Improvement 

965 

800 

890 

934 

934 

934 

930 

957 

1 033 

EPWP Incentive 

- 



1 969 

1 969 

1 969 

2 336 



Provincial Government: 

1 077 

223 

590 

969 

3 023 

3 023 

1 505 

1 541 

1 638 

Sport and Recreation 

684 

223 

590 

969 

969 

969 

1 505 

1 541 

1 638 

Housing 

EPWP Incentive 

393 




2 054 

2 054 




District Municipality: 

525 

- 

- 

- 

- 

- 

- 

- 

- 

John Taolo Gaetsewe District Municipality 

525 









Other grant providers: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total operating expenditure of Transfers and Grants: 

62 589 

70 029 

74 257 

108 727 

110 781 

110 781 

144199 

136 981 

138 023 

Capital expenditure of Transfers and Grants 










National Government: 

38 350 

122 457 

116 221 

107 058 

111 089 

111 089 

118 599 

134 092 

141 584 

Municipal Infrastructure Grant (MIG) 

33114 

56 479 

55 253 

57 058 

57 058 

57 058 

58 599 

60 912 

64 379 

Regional Bulk Infrastructure 

5 235 

58 398 

43 436 


4 031 

4 031 




Municipal Water Infrastructure Grant 


5 705 

7 036 

50 000 

50 000 

50 000 

60 000 

73180 

77 205 

EPWP 



2 496 







Water Operation and Subsidy Grant 


1 875 

8 000 







Provincial Government: 

- 

8188 

- 

- 

- 

- 

- 

- 

- 

Housing 


8188 








District Municipality: 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 

27164 

6 098 

11252 

- 

8160 

8160 

- 

- 

- 

AC IP Sanitation 

27164 

6 098 

2 796 







Sishen Mine (Roads) 



8 455 


8160 

8160 




Total capital expenditure of Transfers and Grants 

65 513 

136 743 

127 472 

107 058 

119 249 

119 249 

118 599 

134 092 

141 584 

TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 

128102 

206 772 

201 729 

215 785 

230 030 

230 030 

262 798 

271 073 

279 607 


NC451-JMLM Adopted Budget 2015/16 


Page 73 


Table 35 - Table SA20 - Reconciliation of transfers, grants receipts and 
unspent funds 


Description 

R thousand 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & Expenditure 
Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 
Forecast 

Budget Year 
2015/16 

Budget Year 
+1 2016/17 

Budget Year 
+2 2017/18 

Operating transfers and grants: 

National Government: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

Conditions still to be met - transferred to liabilities 

Provincial Government: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met ■ transferred to revenue 

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

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

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

Balance unspent at beginning of the year 

Current year receipts 

Conditions met ■ transferred to revenue 

Conditions still to be met - transferred to liabilities 

60 987 

69 806 

73 667 

110611 

110611 

110611 

145 624 

138 486 

139 604 

60 987 

69 806 

73 667 

110611 

110611 

110611 

145 624 

138 486 

139 604 

1 077 

223 

590 

969 

3 023 

3 023 

1 505 

1 541 

1 638 

1 077 

223 

590 

969 

3 023 

3 023 

1 505 

1 541 

1 638 

525 









525 

- 

- 

- 

- 

- 

- 

- 

- 










- 

- 

- 

- 

- 

- 

- 

- 

- 










Total operating transfers and grants revenue 

62 589 

70 029 

74 257 

Ill 580 

113 634 

113 634 

147 129 

140 027 

141 242 

Total operating transfers and grants - CTBM 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Capital transfers and grants: 

National Government: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met ■ transferred to revenue 

Conditions still to be met - transferred to liabilities 

Provincial Government: 

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

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

Balance unspent at beginning of the year 

Current year receipts 

Conditions met - transferred to revenue 

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

Balance unspent at beginning of the year 

Current year receipts 

Conditions met ■ transferred to revenue 

Conditions still to be met - transferred to liabilities 

38 350 

122 457 

116 221 

104 205 

112 046 

112 046 

115 669 

131 046 

138 365 

28 797 

122 457 

116 221 

104 205 

112 046 

112 046 

115 669 

131 046 

138 365 

9 553 









- 

- 

- 

- 

- 

- 

- 

- 

- 










- 

- 

- 

- 

- 

- 

- 

- 

- 

27164 

6 098 

11 252 


8160 

8160 




27164 

6 098 

11252 

- 

8160 

8160 

- 

- 

- 










Total capital transfers and grants revenue 

55 960 

128 555 

127 472 

104 205 

120 205 

120 205 

115 669 

131 046 

138 365 

Total capital transfers and grants ■ CTBM 

9 553 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL TRANSFERS AND GRANTS REVENUE 

118 549 

198 583 

201 729 

215 785 

233 840 

233 840 

262 798 

271 073 

279 607 

TOTAL TRANSFERS AND GRANTS ■ CTBM 

9 553 

- 

- 

- 

- 

- 

- 

- 

- 


NC451-JMLM Adopted Budget 2015/16 


Page 74 


2.12 Councillors and employee benefits 

Table 36 - Table SA 22 - Summary of councillors and staff benefits 


Summary of Employee and Councillor remuneration 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 


2015/16 Medium Term Revenue & Expenditure 








Framework 



R thousand 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 

+2 2017/18 


A 

B 

C 

D 

E 

F 

G 

H 

1 

Councillors (Political Office Bearers plus Other) 










Basic Salaries and Wages 

5 787 

3 842 

5 223 

4 648 

5 432 

5 432 

4 904 

5188 

5 463 

Pension and UIF Contributions 

1 150 

- 

- 

820 

135 

135 

707 

748 

787 

Medical Aid Contributions 



- 

- 

- 

- 

- 

- 

- 

Motor Vehicle Allowance 

1 875 

2 876 

1 928 

2 056 

2 056 

2 056 

2174 

2 300 

2 422 

Cellphone Allowance 

Housing Allowances 

Other benefits and allowances 

471 


353 

701 

623 

623 

754 

797 

840 

Sub Total ■ Councillors 

9 284 

6 718 

7 504 

8 226 

8 247 

8 247 

8 538 

9 033 

9 512 

% increase 


(27.6%) 

11.7% 

9.6% 

0.3% 

- 

3.5% 

5.8% 

5.3% 

Senior Managers of the Municipality 










Basic Salaries and Wages 

1 426 

2 035 

2 900 

2 904 

2 904 

2 904 

2 778 

2 939 

3 095 

Pension and UIF Contributions 

17 

1 

- 

564 

564 

564 

495 

523 

551 

Medical Aid Contributions 

- 

- 


43 

43 

43 

141 

150 

158 

Overtime 

- 






- 

- 

- 

Performance Bonus 

- 

- 





- 

- 

- 

Motor Vehicle Allowance 

861 

1 202 

1 522 

1 552 

1 552 

1 552 

1 561 

1 652 

1 740 

Cellphone Allowance 

11 

14 

61 

91 

91 

91 

92 

97 

102 

Housing Allowances 

- 

44 

- 

436 

436 

436 

488 

517 

544 

Other benefits and allowances 

Payments in lieu of leave 

Long service awards 

Post-retirement benefit obligations 

100 

188 

404 

0 

0 

0 

0 

0 

0 

Sub Total - Senior Managers of Municipality 

2 415 

3 484 

4 887 

5 590 

5 590 

5 590 

5 556 

5 878 

6190 

% increase 


44.3% 

40.2% 

14.4% 

- 

- 

(0.6%) 

5.8% 

5.3% 

Other Municipal Staff 










Basic Salaries and Wages 

18 550 

15 829 

17812 

25 429 

23 465 

23 465 

27 037 

28 605 

30121 

Pension and UIF Contributions 

2 968 

2 653 

3 705 

5184 

3 940 

3 940 

5 381 

5 693 

5 994 

Medical Aid Contributions 

2 043 

1 762 

2170 

2 323 

2 596 

2 596 

2 547 

2 695 

2 838 

Overtime 

1 756 

1 056 

1 513 

1 102 

1 310 

1 310 

632 

669 

704 

Performance Bonus 

225 

950 

1 679 

2 526 

1 795 

1 795 

2 429 

2 569 

2 706 

Motor Vehicle Allowance 

4 959 

2 232 

3 587 

1 692 

3713 

3 713 

2 443 

2 585 

2 722 

Cellphone Allowance 

833 

593 

437 

410 

374 

374 

549 

581 

611 

Housing Allowances 

- 

297 

519 

585 

1 464 

1 464 

2141 

2 265 

2 385 

Other benefits and allowances 

979 

208 

716 

316 

429 

429 

410 

434 

457 

Payments in lieu of leave 

1 668 

(1 184) 

- 

70 

40 

40 

75 

79 

83 

Long service awards 

166 

92 

- 


- 

- 




Post-retirement benefit obligations 


- 

- 







Sub Total - Other Municipal Staff 

34148 

24 490 

32138 

39 637 

39126 

39126 

43 644 

46175 

48 622 

% increase 


(28.3%) 

31.2% 

23.3% 

(1.3%) 

- 

11.5% 

5.8% 

5.3% 

Total Parent Municipality 

45 847 

34 692 

44 529 

53 453 

52 962 

52 962 

57 738 

61 086 

64 324 



(24.3%) 

28.4% 

20.0% 

(0.9%) 

- 

9.0% 

5.8% 

5.3% 

Board Members of Entities 

Senior Managers of Entities 

Other Staff of Entities 










Total Municipal Entities 

- 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL SALARY, ALLOWANCES & BENEFITS 

45 847 

34 692 

44 529 

53 453 

52 962 

52 962 

57 738 

61 086 

64 324 

% increase 


(24.3%) 

28.4% 

20.0% 

(0.9%) 

- 

9.0% 

5.8% 

5.3% 

TOTAL MANAGERS AND STAFF 

36 563 

27 974 

37 025 

45 227 

44 715 

44 715 

49199 

52 053 

54 812 


NC451-JMLM Adopted Budget 2015/16 


Page 75 


Table 37 - Table SA 23 - Salaries, allowance and benefits (political office 
bearers/councillors/senior managers) 


Disclosure of Salaries, Allowances & Benefits 1. 

Rand per annum 

Salary 

Contributions 

1. 

Allowances 

Performance 

Bonuses 

In-kind 

benefits 

Total 

Package 

2. 

Councillors 







Speaker 

421 798 

63 269 

177 325 



662 392 

Chief Whip 






- 

Executive Mayor 

528 970 

79 345 

213 048 



821 363 

Deputy Executive Mayor 






- 

Executive Committee 

1 580 024 

237 003 

673 576 



2 490 603 

Total for all other councillors 

2 405 694 

491 526 

1 666 660 



4 563 880 

Total Councillors 

4 936 486 

871 143 

2 730 609 



8 538 238 

Senior Managers of the Municipalitv 







Municipal Manager (MM) 

654 770 

1 902 

572 206 



1 228 878 

Chief Finance Officer 

308 039 

182 383 

374 951 



865 373 

DIRECTOR: CORPORATE SERVICES 

307 933 

101 654 

455 786 



865 373 

DIRECTOR: COMMUNITY SERVICES 

412215 

139 306 

313 852 



865 373 

DIRECTOR: TECHNICAL SERVICES 

372 789 

116215 

376 369 



865 373 

DIRECTOR: PLANNING & DEVELOPMENT 

439 694 

94 780 

330 899 



865 373 

List of each offical with packages >= senior manager 







Total Senior Managers of the Municipality 

2 495 440 

636 240 

2 424 063 

- 


5 555 743 

A Headinq for Each Entitv 







List each member of board by designation 







Total for municipal entities 

- 

- 

- 

- 


- 








TOTAL COST OF COUNCILLOR, DIRECTOR and EXECUTIVE REMUNERATION 

7 431 926 

1 507 383 

5 154 672 

- 


14 093 981 


NC451-JMLM Adopted Budget 2015/16 


Page 76 


Table 38 - Table SA 24 - Summary of personnel numbers 


Summary of Personnel Numbers 

2013/14 

Current Year 2014/15 

Budget Year 2015/16 

Number 

Positions 

Permanent 

employees 

Contract 

employees 

Positions 

Permanent 

employees 

Contract 

employees 

Positions 

Permanent 

employees 

Contract 

employees 

Municipal Council and Boards of Municipal Entities 










Councillors (Political Office Bearers plus Other 

Councillors) 

Board Members of municipal entities 

29 


29 

29 


29 

29 


29 

Municipal employees 










Municipal Manager and Senior Managers 

6 


6 

6 


6 

6 


6 

Other Managers 


10 


16 

10 

1 

14 

14 


Professionals 

22 

21 

1 

11 

8 

- 

15 

15 

- 

Finance 

16 

15 

1 

3 

2 


5 

5 


Spatial/town planning 

1 

1 








Information Technology 

Roads 

1 

1 





1 

1 


Electricity 

Water 

2 

2 


3 

2 


1 

1 


Sanitation 

2 

2 








Refuse 










Other 




5 

4 


8 

8 


Technicians 

17 

17 

- 

6 

3 

- 

9 

9 

- 

Finance 

Spatial/town planning 

Information Technology 




1 






Roads 




1 

1 


1 

1 


Electricity 




3 

1 


2 

2 


Water 




1 

1 


3 

3 


Sanitation 










Refuse 










Other 

17 

17 





3 

3 


Clerks (Clerical and administrative) 

Service and sales workers 

Skilled agricultural and fishery workers 

Craft and related trades 




55 

42 


55 

55 


Plant and Machine Operators 

1 

1 


40 

30 


26 

26 


Elementary Occupations 

29 

29 


80 

41 


80 

80 


TOTAL PERSONNEL NUMBERS 

104 

78 

36 

243 

134 

36 

234 

199 

35 

% increase 




133.7% 

71.8% 

- 

(3.7%) 

48.5% 

(2.8%) 

Total municipal employees headcount 










Finance personnel headcount 




36 

24 


37 

32 

5 

Human Resources personnel headcount 




17 

15 


18 

18 



NC451-JMLM Adopted Budget 2015/16 


Page 77 


2.12 Monthly targets for revenue, expenditure and cash flow 
Table 39 - Table SA 25 - Budgeted monthly revenue and expenditure 


NC451 Joe Morolong - Supporting Table SA25 Budgeted monthly revenue and expenditure 


Description 

Ref 

Budget Year 2015/16 

Medium Term Revenue and Expenditure 

Framework 

R thousand 


July 

August 

Sept. 

October 

November 

December | 

January 

February 

March 

April 

May 

June 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Revenue Bv Source 

















Property rates 




10 489 










- 

10 489 

11 223 

12 009 

Property rates - penalties & collection charges 














- 

- 

- 

- 

Service charges - electricity revenue 



550 

550 

550 

550 

550 

550 

550 

550 

550 

550 

550 

521 

6 569 

7 403 

8 342 

Service charges - water revenue 



567 

567 

567 

567 

567 

567 

r 817 

567 

567 

567 

567 

316 

6 798 

7 172 

7 566 

Service charges - sanitation revenue 



132 

132 

132 

132 

132 

132 

132 

132 

132 

132 

132 

132 

1 585 

1 664 

1 748 

Service charges - refuse revenue 



80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

960 

1 008 

1 059 

Service charges - other 














- 

- 

- 

- 

Rental of facilities and equipment 



8 

8 

8 

8 

8 

8 

8 

8 

8 

8 

8 

8 

97 

103 

108 

Interest earned - external investments 














- 

- 

- 

- 

Interest earned - outstanding debtors 



5 

5 

5 

5 

5 

5 

5 

5 

3 

3 

3 

3 

50 

50 

50 

Dividends received 














- 

- 

- 

- 

Fines 














- 

- 

- 

- 

Licences and permits 














- 

- 

- 

- 

Agency services 



9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

10 

109 

116 

123 

Transfers recognised - operational 


r 

55 850 

r 1 865 


r 12 003 

r 39 118 


5 625 

r 1 454 

31 215 



- 

147 129 

140 027 

141 242 

Other revenue 



49 

49 

49 

49 

49 

49 

49 

49 

49 

49 

49 

48 

582 

360 

381 

Gains on disposal of PPE 














- 

- 

- 

- 

Total Revenue (excluding capital transfers and 

coni 


57 249 

13 753 | 

1 399 

13 402 

40 517 

1 399 

7 274 

2 853 

32 611 

1 397 

1 397 

1 119 

174 369 

169 126 

172 627 

Expenditure Bv Tvoe 


















Employee related costs 



3 969 

3 969 

3 969 

3 969 

r 6 380 

3 969 

3 969 

3 969 

3 969 

3 969 

3 969 

3 134 

49 199 

52 053 

54 812 

Remuneration of councillors 



712 

712 

712 

712 

712 

712 

712 

712 

712 

712 

712 

712 

8 538 

9 033 

9 512 

Debt impairment 














3 960 

3 960 

4 271 

4 609 

Depreciation & asset impairment 





2 500 



2 500 



2 500 



2 500 

10 000 

10 550 

11 130 

Finance charges 



13 

13 

13 

13 

13 

r 405 

13 

13 

13 

13 

13 

405 

934 

943 

951 

Bulk purchases 



904 

904 

904 

904 

904 

904 

904 

904 

904 

904 

904 

899 

10 847 

12 085 

13 466 

Other materials 














- 

- 

- 

- 

Contracted services 


r 

2 337 

r 1 837 

r 1 837 

r 1 837 

r 1 837 

r 1 837 

1 337 

1 337 

1 337 

1 337 

1 337 

2 195 

20 398 

22 619 

23 804 

Transfers and grants 


r 

358 

r 358 . 

r 408 

458 

458 

458 

458 

458 

458 

r 358 

r 358 

146 

4 730 

4 938 

5 376 

Other expenditure 


r 

4 888 

4 888 

4 888 

4 888 

4 888 

4 888 

4 888 

4 888 

4 888 

4 888 

4 888 

1 281 

55 048 

45 779 

48 210 

Loss on disposal of PPE 














- 

- 

- 

- 

Total Expenditure 


13 179 

12 679 

----- 

15 229 

12 779 

~™™™TFl90™ 

15 671 

12 279 

12 279 

14 779 

12179 

12 179 

15 233 

163 655 

162 271 

171 870 

Surplus/(Deficit) 


44070™ 


(13 830) 

--- 

__ 

------ 

(5 005) 

----- 

----- 

------ 

------ 


ToTiT 

6 855 

757 

Transfers recognised - capital 


r 

32 219 



30 000 

22 614 



15 000 

15 836 



- 

115 669 

131 046 

138 365 

Contributions recognised - capital 














- 

- 

- 

- 

Contributed assets 














- 

- 

- 

- 

Surplus/(Deficitj after capital transfers & 

contributions 


76 289 

1 074 

(13 830) 

30 623 

47 940 

(14 272) 

(5 005) 

5 574 

33 669 

(10 782) 

(10 782) 

r 

(14 114) 

126 383 

137 901 

139 122 

Taxation 














- 

- 

- 

- 

Attributable to minorities 














- 

- 

- 

- 

Share of surplus/ (deficit) of associate 














- 

- 

- 

- 

Surplus/(Deficit) 

1 

76 289 

1 074 i 

(13 830) 

30 623 

47 940 

(14 272) 

(5 005) 

5 574 

33 669 

(10 782) 

(10 782) 

(14 114) 

126 383 

137 901 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 78 


Table 40 - Table SA 26 - Budgeted monthly revenue and expenditure (municipal vote) 


NC451 Joe Morolong - Supporting Table SA26 Budgeted monthly revenue and expenditure (municipal vote) 


Description 

R thousand 

Ref 

Budget Year 2015/16 

Medium Term Revenue and Expenditure 

Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February j 

March 

April 

May 

June 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Revenue by Vote 

















Vote 1 - Executive & Council 



5 998 













- 

5 998 

6 279 

6 564 

Vote 2 - Budget & Treasury Office 


r 

41 312 

r 

11 433 

14 

14 

r 

38 432 

14 

14 

14 

r 31 229 

14 

14 

14 

122 522 

125 561 

126 186 

Vote 3 - Corporate Support Serv ices 



23 


23 

23 

23 


23 

23 

23 

23 i 

23 i 

23 

23 

22 

271 

264 

281 

Vote 4 - Community Services 



226 

r 

1 160 

226 

r 978 

r 

926 

226 

226 

r 1 679 

226 

226 

226 

226 

6 548 

4 385 

4 626 

Vote 5 - Technical Services 


r 

20 150 


1 

1 

1 

r 

22 615 

1 

1 

1 i 

Y 15 838 i 

1 

1 

1 

58 615 

60 929 

64 397 

Vote 6 - Electricity Services 



550 


550 

550 

550 


550 

550 

550 

550 

550 

550 

550 

521 

6 569 

7 403 

8 342 

Vote 7 - Water Serv ices 


r 

21 210 


585 

r 585 

r 41 835 

r 

585 

r 585 

r 6 460 

r 15 585 

r 583 

Y 583 

r 583 

334 

89 515 

95 352 

100 597 

Vote 8 - Developments Town Planning Services 















- 

- 

- 

- 

Vote 9 - [NAME OF VOTE 9] 
















- 

- 

- 

- 

Vote 10 - [NAME OF VOTE 10] 
















- 

- 

- 

- 

Vote 11 - [NAME OF VOTE 11] 
















- 

- 

- 

- 

Vote 12 - [NAME OF VOTE 12] 
















- 

- 

- 

- 

Vote 13 - [NAME OF VOTE 13] 
















- 

- 

- 

- 

Vote 14 - [NAME OF VOTE 14] 
















- 

- 

- 

- 

Vote 15 - [NAME OF VOTE 15] 
















- 

- 

- 

- 

Total Revenue by Vote 



“ 468™ 




----- 




7 274 


48 448 



1 119 

290 038 

300 172 

310 992 

Expenditure bv Vote to be aooroDriated 




















Vote 1 - Executive & Council 



1 383 


1 383 

1 383 

1 383 

r 

1 530 

1 383 

1 383 

1 383 

1 383 

1 383 

1 383 

1 062 

16419 

17 386 

18 308 

Vote 2 - Budget & Treasury Office 



1 976 


1 976 

Y 4 476 

1 976 

r 

2 496 

r 4 868 

1 976 

1 976 

Y 4 476 

1 976 

1 976 

5 092 

35 237 

35 000 

36 914 

Vote 3 - Corporate Support Serv ices 



954 


954 

954 

954 

r 

1 301 

954 

954 

954 

954 

954 

954 

1 472 

12 311 

14 191 

15 044 

Vote 4 - Community Services 



742 


742 i 

742 i 

742 

r 

1 148 

742 

742 

742 i 

742 i 

742 

742 

904 

9 468 

10 123 

10 509 

Vote 5 - Technical Services 



462 


462 

462 

462 

r 

637 

462 

462 

462 

462 

462 

462 

449 

5 702 

5 591 

5 900 

Vote 6 - Electricity Services 



694 


694 

694 

694 

r 

749 

694 

694 

694 

694 

694 

694 

688 

8 375 

9 415 

10 584 

Vote 7 - Water Serv ices 


r 

6 596 

r 

6 096 

r 6 146 

Y 6 196 

r 

6 838 

r 6 196 

5 696 

5 696 

5 696 

Y 5 596 

r 5 596 

5 561 

71 914 

67 970 

71 877 

Vote 8 - Developments Town Planning Services 


374 


374 

374 

374 

r 

490 

374 

374 

374 

374 

374 

374 

4 

4 229 

2 596 

2 734 

Vote 9 - [NAME OF VOTE 9] 
















- 

- 

- 

- 

Vote 10 - [NAME OF VOTE 10] 
















- 

- 

- 

- 

Vote 11 - [NAME OF VOTE 11] 
















- 

- 

- 

- 

Vote 12 - [NAME OF VOTE 12] 
















- 

- 

- 

- 

Vote 13 - [NAME OF VOTE 13] 
















- 

- 

- 

- 

Vote 14 - [NAME OF VOTE 14] 
















- 

- 

- 

- 

Vote 15 - [NAME OF VOTE 15] 
















- 

- 

- 

- 

Total Expenditure by Vote 


13 179 

12 679 i 

| 15 229 

12 779 

15 190 

15 671 

12 279 

12 279 ] 

14 779 

| 12 179 

12 179 

15 233 

163 655 

162 271 

171 870 

Surplus/(Deficit) before assoc. 


76 289 

1 074 

(13 830) 

30 623 

47 940 

(14 272) 

(5 005) 

5 574 

33 669 

(10 782) 

(10 782) 

(14 114) 

126 383 

137 901 

139 122 

T ax ation 
















- 

- 

- 

- 

Attributable to minorities 
















- 

- 

- 

- 

Share of surplus/ (deficit) of associate 
















- 

- 

- 

- 

Surplus/(Deficit) 

1 

76 289 

1 074 i 

(13 830) 

30 623 

47 940 

(14 272) 

(5 005) 

5 574 i 

33 669 

(10 782) 

(10 782) 

(14 114) 

126 383 

137 901 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 79 


Table 41 - Table SA 27 - Budgeted monthly revenue and expenditure (standard classification) 


Description 


R thousand 


Budget Year 2015/16 


July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

47 332 

11 456 

37 

37 


38 455 

37 

37 

37 

31 252 

37 

37 

5 998 

41 312 

11 433 

14 

14 


38 432 

14 

14 

14 

31 229 

14 

14 

23 

23 

23 

23 


23 

23 

23 

23 

23 j 

23 

23 

13 

948 

13 

766 


713 

13 

13 

1 467 

13 

13 

13 

4 

939 

4 

757 


704 

4 

4 

1 458 

4 

4 

4 

9 

9 

9 

9 


9 

9 

9 

9 

9 

9 

9 

20 150 

1 

1 

1 


22 615 

1 

1 

1 

15 838 

1 

1 

20 150 

1 

1 

1 


22 615 

1 

1 

1 

15 838 

1 

1 

21 972 

1 347 

1 347 

42 597 


1 347 

1 347 

7 222 

16 347 

1 345 j 

1 345 

1 345 

550 

550 j 

550 

550 


550 

550 

550 

550 

550 

550 

550 

" 21 210 

r 585 j 

T 585 

r 41 835 

r 

585 

585 

r 6 460 

r 15 585 

r 583 j 

T 583 

r 583 

132 

132 

132 

132 


132 

132 

132 

132 

132 

132 

132 

80 

80 i 

80 

80 


80 

80 

80 

80 

80 j 

80 

80 

89 468 

13 753 i 

1 399 

43 402 


63 130 | 

1 399 

7 274 

17 853 

48 448 j 

1 397 

1 397 

4 312 

4 312 

6 812 

4 312 


5 327 

7 204 

4 312 

4 312 

6 812 

4 312 

4 312 

1 383 

1 383 

1 383 

1 383 


1 530 

1 383 

1 383 

1 383 

1 383 

1 383 

1 383 

1 976 

1 976 

4 476 

1 976 


2 496 

4 868 

1 976 

1 976 

4 476 

1 976 

1 976 

954 

954 

954 

954 


1 301 

954 

954 

954 

954 

954 

954 

534 

534 

534 

534 


778 

534 

534 

534 

534 

534 

534 

460 

460 

460 

460 

r 

676 

460 

r 460 

r 460 

r 460 

r 460 

r 460 

75 

75 

75 

75 

r 

102 

75 

75 

75 

75 

75 

75 

835 

835 

835 

835 


1 128 

835 

835 

835 

835 

835 

835 

835 

835 

835 

835 


1 128 

835 

835 

835 

835 

835 

835 

7 498 

6 998 i 

7 048 

7 098 


7 957 

7 098 

6 598 

6 598 

6 598 j 

6 498 

6 498 

694 

694 

694 

694 


749 

694 

694 

694 

694 

694 

694 

6 596 

6 096 j 

6 146 

6 196 


6 838 

6 196 

5 696 

5 696 

5 696 j 

5 596 

5 596 

114 

114 | 

114 

114 

r 

203 

114 

114 

114 

114 | 

114 

114 

94 

94 

94 

94 

r 

167 

94 

94 

94 

94 

94 

94 

13 179 

12 679 | 

15 229 

12 779 


15 190 

15 671 

12 279 

12 279 

14 779 j 

12 179 

12 179 

76 289 

1 074 i 

(13 830) 

30 623 


47 940 

(14 272) 

(5 005) 

5 574 

33 669 j 

(10 782) 

(10 782) 











76 289 

1 074 j 

(13 830) 

30 623 


47 940 | 

(14 272) 

(5 005) 

5 574 

33 669 

(10 782) 

(10 782) 


Medium Term Revenue and Expenditure 
Framework 


Budget Year j Budget Year 


2015/16 


+1 2016/17 


Budget Year 
+2 2017/18 


Revenue - Standard 

Governance and administration 

Executive and council 
Budget and treasury office 
Corporate services 
Community and public safety 
Community and social services 
Sport and recreation 
Public safety 
Housing 
Health 

Economic and environmental services 
Planning and development 
Road transport 
Environmental protection 
Trading services 
Electricity 
Water 

Waste water management 
Waste management 

Other 

Total Revenue - Standard 

Expenditure - Standard 

Governance and administration 

Executive and council 
Budget and treasury office 
Corporate services 
Community and public safety 
Community and social services 
Sport and recreation 
Public safety 
Housing 
Health 

Economic and environmental services 
Planning and development 
Road transport 
Environmental protection 
Trading services 
Electricity 
Water 

Waste water management 
Waste management 

Other 

Total Expenditure - Standard 


1 066 

521 

333 

132 

80 


791 

132 104 

133 031 

998 

6 279 

6 564 

522 

125 561 

126 186 

271 

264 

281 

003 

1 712 

1 819 

893 

1 596 

1 696 

109 

116 

123 

615 

60 929 

64 397 

615 

60 929 

64 397 

629 

105 427 

111 746 

569 

7 403 

8 342 

515 

95 352 

100 597 

585 

1 664 

1 748 

960 

1 008 

1 059 


Surplus/(Deficit) before assoc. 

Share of surplus/ (deficit) of associate 

Surplus/(Deficit) 


7 626 

1 062 
5 092 
1 472 

1 751 

1 692 


453 

453 


5 402 

688 
5 561 
(751) 
(96) 


290 038 

300 172 

310 992 

63 967 

66 576 

70 266 

16 419 

17 386 

18 308 

35 237 

35 000 

36 914 

12 311 

14 191 

15 044 


7 871 

6 963 


9 931 

9 931 


81 885 

8 375 
71 914 
587 
1 010 


15 233 


(14 114) 


8 434 

7 474 


8 187 

8 187 


79 074 

9415 
67 970 
621 
1 068 


8 730 

7 719 


8 634 

8 634 


84 240 

10 584 
71 877 
654 
1 125 


(14 114) 


NC451-JMLM Adopted Budget 2015/16 


Page 80 


Table 42 - Table SA 28 - Budgeted monthly capital expenditure (municipal votes) 


NC451 Joe Morolong - Supporting Table SA28 Budgeted monthly capital expenditure (municipal vote) 


Description 

Ref 

Budget Year 2015/16 

Medium Term Revenue and Expenditure 

Framework 

R thousand 


July 

August 

Sept. 

October 

Nov. 

Dec. 

January 

Feb. 

March 

April 

May 

June 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Multi-vear expenditure to be appropriated 

1 
















Vote 1 - Executive S Council 













- 

- 

- 

- 

Vote 2 - Budget & Treasury Office 













- 

- 

- 

- 

Vote 3 - Corporate Support Services 













- 

- 

- 

- 

Vote 4 - Community Services 


2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

2 435 

29 225 

20 331 

26 037 

Vote 5 - Technical Services 


1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

17 555 

20 474 

4 215 

Vote 6 - Electricity Serv ices 













- 

- 

- 

- 

Vote 7 - Water Serv ices 


5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

68 890 

90 241 

108 113 

Vote 8 - Developments Town Planning Services 












- 

- 

- 

- 

Vote 9 - [NAME OF VOTE 9] 













- 

- 

- 

- 

Vote 10- [NAME OF VOTE 10] 













- 

- 

- 

- 

Vote 11 - [NAME OF VOTE 11] 













- 

- 

- 

- 

Vote 12- [NAME OF VOTE 12] 













- 

- 

- 

- 

Vote 13 -[NAME OF VOTE 13] 













- 

- 

- 

- 

Vote 14- [NAME OF VOTE 14] 













- 

- 

- 

- 

Vote 15- [NAME OF VOTE 15] 













- 

- 

- 

- 

Capital multi-year expenditure sub-total 

2 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

115 669 

131 047 

138 365 

Sinale-vear expenditure to be appropriated 

















Vote 1 - Executive & Council 


- 











- 

- 

- 

- 

Vote 2 - Budget & Treasury Office 


- 

50 










- 

50 

38 

279 

Vote 3 - Corporate Support Services 




550 


655 







- 

1 205 

250 

200 

Vote 4 - Community Services 





984 

984 

r 1 184 

984 

984 

984 

984 

984 

1 134 

9 209 

6 303 

- 

Vote 5 - Technical Services 













- 

- 

- 

- 

Vote 6 - Electricity Serv ices 













- 

- 

- 

- 

Vote 7 - Water Serv ices 



250 










- 

250 

264 

278 

Vote 8 - Developments Town Planning Services 


- 










- 

- 

- 

- 

Vote 9 - [NAME OF VOTE 9] 













- 

- 

- 

- 

Vote 10- [NAME OF VOTE 10] 













- 

- 

- 

- 

Vote 11 - [NAME OF VOTE 11] 













- 

- 

- 

- 

Vote 12- [NAME OF VOTE 12] 













- 

- 

- 

- 

Vote 13 -[NAME OF VOTE 13] 













- 

- 

- 

- 

Vote 14- [NAME OF VOTE 14] 













- 

- 

- 

- 

Vote 15- [NAME OF VOTE 15] 













- 

- 

- 

- 

Capital single-year expenditure sub-total 

2 

- 

300 

550 | 

984 | 

1 639 

1 184 

984 

984 

984 

984 

984 

1 134 

10 714 

6 854 

757 

Total Capital Expenditure 

2 

9 639 

9 939 

10 189 | 

10 623 j 

11 278 

10 823 

10 623 

10 623 

10 623 

10 623 

10 623 

10 773 

126 383 

137 901 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 81 


Table 43 - Table SA 29 - Budgeted monthly capital expenditure (standard classification) 


NC451 Joe Morolong - Supporting Table SA29 Budgeted monthly capital expenditure (standard classification) 


Description 

Ref 

Budget Year 2015/16 

Medium Term Revenue and Expenditure 

Framework 

R thousand 


July 

August 

Sept. 

October 

Nov. 

Dec. 

January 

Feb. 

March 

April 

May 

June 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Capital Expenditure - Standard 

1 
















Governance and administration 


- 

50 

550 

- 

655 

- 

- 

- 

- 

- 

- 

- 

1 255 

288 

479 

Executive and council 


- 











- 

- 

- 

- 

Budget and treasury office 


- 

50 










- 

50 

38 

279 

Corporate services 




550 


655 







- 

1 205 

250 

200 

Community and public safety 


696 

696 

696 

1 680 

1 680 

1 680 

1 680 

1 680 

1 680 

1 680 

1 680 

1 830 

17 360 

14 772 

8 680 

Community and social services 


- 

- 

- 

714 

714 

714 

714 

714 

714 

714 

714 

864 

6 576 

4 500 

- 

Sport and recreation 


696 

696 

696 

696 

696 

696 

696 

696 

696 

696 

696 

696 

8 350 

8 680 

8 680 

Public safety 





270 

270 

270 

270 

270 

270 

270 

270 

270 

2 433 

1 592 

- 

Housing 













- 

- 

- 

- 

Health 













- 

- 

- 

- 

Economic and environmental services 


1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

17 555 

20 474 

4 215 

Planning and development 



- 










- 

- 


- 

Road transport 


1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

1 463 

17 555 

20 474 

4 215 

Environmental protection 













- 

- 

- 

- 

Trading services 


7 480 

7 730 

7 480 

7 480 

7 480 

7 680 

7 480 

7 480 

7 480 

7 480 

7 480 

7 480 

90 214 

102 367 

125 748 

Electricity 













- 

- 


- 

Water 


5 741 

r 5 991 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

5 741 

69 140 

90 505 

108 391 

Waste water management 


1 740 

1 740 

1 740 

1 740 

1 740 

r 1 940 

1 740 

1 740 

1 740 

1 740 

1 740 

1 740 

21 074 

11 863 

17 357 

Waste management 







- 






- 

- 

- 

- 

Other 













- 

- 

- 

- 

Total Capital Expenditure - Standard 

2 

9 639 

9 939 i 

10 189 

10 623 | 

11 278 i 

10 823 

10 623 

10 623 

10 623 

10 623 

10 623 

10 773 

126 383 

137 901 

139 122 

Funded bv: 

















National Government 


9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

115 669 

131 046 

138 365 

Provincial Government 













- 

- 


- 

District Municipality 













- 

- 

- 

- 

Other transfers and grants 













- 

- 

! 

- 

Transfers recognised - capital 


9 639 

9 639 j 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

9 639 

115 669 

131 046 

138 365 

Public contributions & donations 













- 

- 


- 

Borrowing 













- 

- 

- 

- 

Internally generated funds 



F 300 

550 

984 

\ 1 639 

1 184 

984 

984 

984 

984 

984 

1 134 

10 714 

6 855 

757 

Total Capital Funding 


9 639 

9 939 | 

10 189 

10 623 | 

11 278 | 

10 823 

10 623 

10 623 

10 623 

10 623 

10 623 

10 773 

126 383] 

137 901 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 82 


Table 44 - Table SA 30 - Budgeted monthly cash flow 


NC451 Joe Morolong - Supporting Table SA30 Budgeted monthly cash flow 


MONTHLY CASH FLOWS 

R thousand 

Budget Year 2015/16 

Medium Term Revenue and Expenditure 

Framework 

July 

August 

Sept. 

October 

November 

i December j 

January 

February 

March 

April 

May 

June 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Cash Receipts Bv Source 













1 



Property rates 


456 

906 

906 

906 | 

906 

906 

906 

906 

906 

906 

307 

8 916 

9 540 

10 207 

Property rates - penalties & collection charges 












- 

- 

- 

- 

Service charges - electricity revenue 

682 

622 

497 

522 

422 ; 

322 

372 

472 

497 

547 

622 

3 

5 584 

6 292 

7 091 

Service charges - water revenue 

338 

438 

538 

538 

568 j 

588 

573 

538 

488 

438 

388 

343 

5 778 

6 096 

6 431 

Service charges - sanitation revenue 

112 

112 

112 

112 

112 i 

112 

112 

112 

112 

112 

112 

112 

1 347 

1 415 

1 486 

Service charges - refuse revenue 

68 

68 

68 

68 

68 j 

68 

68 

68 

68 

68 

68 

68 

816 

857 

900 

Service charges - other 












- 




Rental of facilities and equipment 

8 

8 

8 

8 

8 ! 

8 

8 

8 

8 

8 

8 

8 

97 

103 

108 

Interest earned - external investments 












- 




Interest earned - outstanding debtors 

3 

3 

3 

3 

3 i 

3 

3 

3 

3 

3 

3 

3 

40 

43 

43 

Dividends received 












- 




Fines 












- 




Licences and permits 












- 




Agency services 

7 

7 

7 

7 

7 i 

7 

9 

9 

9 

9 

9 

10 

93 

99 

105 

Transfer receipts - operational 

55 850 

1 865 


w 12 003 

39 118 j 


5 625 

W 1 454 

31 215 



- 

147 129 

140 027 

141 242 

Other revenue 

44 

44 

44 

44 

44 

44 

44 

44 

44 

44 

44 

44 

524 

324 

342 

Cash Receipts by Source 

57 113 

3 623 

2 183 

14 211 

41 256 

2 058 

7 720 

3 614 

33 350 

2 135 

2 160 

899 

r 170 324 

164 794 

167 955 

Other Cash Flows by Source 
















Transfer receipts - capital 

32 219 



30 000 

22 614 



15 000 

15 836 



- 

115 669 

131 046 

138 365 

Contributions recognised - capital & Contributed assets 











- 




Proceeds on disposal of PPE 












- 




Short term loans 












- 




Borrowing long term/refinancing 












- 




Increase (decrease) in consumer deposits 












- 




Decrease (Increase) in non-current debtors 












- 




Decrease (increase) other non-current receivable 

s 











- 




Decrease (increase) in non-current investments 












- 




Total Cash Receipts by Source 

89 332 

3 623 

2 183 

44 211 

63 870 | 

2 058 ! 

7 720 

18 614 

49 187 j 

2 135 

2 160 

899 

285 993 

295 840 

306 320 

Cash Payments bv Tvoe 
















Employee related costs 

r 3 769 

3 769 

3 769 

4 012 

6 380 

3 782 

3 942 

3 942 

3 942 

3 962 

3 962 

3 967 

49 199 

52 053 

54 812 

Remuneration of councillors 

712 

712 

712 

712 

712 

712 

712 

712 

712 

712 

712 

712 

8 538 

9 033 

9 512 

Finance charges 

12 

12 

12 

12 

12 

12 

12 

12 

12 

12 

12 

12 

149 

157 

166 

Bulk purchases - Electricity 

585 

585 

485 

385 

365 

365 

365 

385 

485 

485 

555 

575 

5 618 

6 331 

7 135 

Bulk purchases - Water & Sewer 

298 

" 373 

r 373 

" 473 

523 

r 523 

523 

" 473 

r 473 

423 

r 323 

298 

5 071 

5 578 

6 136 

Other materials 












- 

- 

- 

- 

Contracted services 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

1 700 

20 398 

22 619 

23 804 

Transfers and grants - other municipalities 












- 

- 

- 

- 

Transfers and grants - other 

229 

229 

229 

229 

229 

229 

229 

229 

229 

229 

229 

2 211 

4 730 

4 938 

5 376 

Other expenditure 

4 965 

4 965 

4 965 

4 965 

4 965 

4 965 

4 965 

4 965 

4 965 

4 965 

4 965 

429 

55 048 

45 779 
------ 

48 210 

Cash Payments by Type 

12 269 

12 344 

12 244 

12 488 

T4 885H 

12 288 j 

12 448^ 

12 418 


12 488 

12 458 

9 904 

148 751 


155 150 

Other Cash Flows/Payments by Type 
















Capital assets 

9 864 

9 902 

10 189 

10 623 

10 623 

10 823 

10 623 

10 623 

10 623 

10 623 

10 623 

11 240 

126 383 

137 901 

139 122 

Repay ment of borrow ing 






392 






392 

784 

784 

784 

Other Cash Flows/Payments 












- 




Total Cash Payments by Type 

22 133 

22 246 

22 433 

23 111 

25 509 | 

23 504 j 

23 071 

23 041 

23 141 

23 111 

23 081 

21 536 

275 919 

285 175 

295 057 

NET INCREASE/(DECREASE) IN CASH HELD 

67 199 

(18 623) 

(20 250) 

21 100 

38 361 

(21 445) 

(15 351) 

(4 427) 

26 045 

(20 976) 

(20 921) 

(20 637) 

10 074 

10 666 

11 263 

Cash/cash equivalents at the month/year begin: 

aro99” 

70^298“ 

5T675" 

3T425~ 

52l>24i 

90 886 

| 69440“ 

54^089" 

49"662”1 

j 75 708" 

54 732" 

3T8lT“ 

r 3 099“ 

TT173™ 

23 83g 

Cash/cash equivalents at the month/year end: 

70 298 

51 675 

31 425 

52 524 

90 886 

69 440 

54 089 

49 662 

75 708 

54 732 

33 811 

13 173 

13 173 

23 839 

35 102 


NC451-JMLM Adopted Budget 2015/16 


Page 83 



2.13 Contracts having future budgetary implication 


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

2.14 Capital expenditure details 

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. 


NC451-JMLM Adopted Budget 2015/16 


Page 84 


Table 44: Table SA 34a - Capital expenditure on new assets by asset class 


NC451 Joe Morolong - Supporting Table SA34a Capital expenditure on new assets by asset class 


Description 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

R thousand 

1 

Audited 

Audited 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

! Budget Year 


Outcome 

Outcome 

Outcome 

Budget 

Budget 

Forecast 

2015/16 

+1 2016/17 j 

j +2 2017/18 

Capital expenditure on new assets bv Asset Class/Sub-class 









Infrastructure 


_ 

227 008 

129 362 

95 646 

116 396 

116 396 

107 569 

122 630 

129 963 

Infrastructure - Road transport 


- 

74 917 

29 361 

16 788 

28 259 

28 259 

17 555] 

20 474 

4 215 

Roads, Pavements & Bridges 

Storm water 



74 917 

29 361 

16 788 

28 259 

28 259 

17 555 

20 474 

4 215 

Infrastructure - Electricity 


- 

6 016 

- 

- 

- 

- 

- 

- 

i 

Generation 











Transmission & Reticulation 



6 016 


- 

- 





Street Lighting 











Infrastructure - Water 


- 

135 118 

80 616 

63 859 

68 890 

68 890 

69 140 

90 505 

108 391 

Dams & Reservoirs 

Water purification 

Reticulation 



135 118 

80 616 

63 859 

68 890 

68 890 

r 69 140 

\ 90 505 

F 108 391 

Infrastructure - Sanitation 


- 

10 957 

19 386 

15 000 

19 247 

19 247 

20 874 

1 1 652 

17 357 

Reticulation 



10 957 

19 386 

15 000 

19 247 

19 247 

20 874 

1 1 652 

17 357 

Sewerage purification 











Infrastructure - Other 


- 

- 

- 

- 

- 

- 

- 

- 

i 

Waste Management 

Transportation 

Gas 

2 










Other 

3 










Community 


_ 

14 805 

_ 

18 354 

8 969 

8 969 

14 721 

13 180 

8 680 

Parks & gardens 






- 

- 

35 



Sportsfields & stadia 





8 559 

- 

- 

8 350 

8 680 

8 680 

Swimming pools 






- 

- 




Community halls 



14 805 


7 000 

7 000 

7 000 

4 000 

4 500 

- 

Libraries 





- 

- 

- 




Recreational facilities 






- 

- 




Fire, safety & emergency 





100 

- 

- 




Security and policing 






- 

- 




Buses 

7 





- 

- 




Clinics 






- 

- 




Museums & Art Galleries 






- 

- 




Cemeteries 





2 696 

1 969 

1 969 

2 336 

- 

- 

Social rental housing 

8 





- 





Other 






- 





Heritaqe assets 









j _ i 

i _ 

Buildings 

Other 

9 










Investment properties 


_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Housing development 

Other 











Other assets 


2 643 

4 342 

1 416 

8 384 

3 142 

3 142 

3 028 

2 091 

250 

General vehicles 



3 566 

621 

6 250 

2 100 

2 100 

- 

- 

- 

Specialised vehicles 

10 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Plant & equipment 




141 


- 

- 

200 

211 


Computers - hardware/equipment 


198 

776 

654 

220 

191 

191 

180 

38 

50 

Furniture and other office equipment 





77 

72 

72 

160 

250 

200 

Abattoirs 






- 

- 




Markets 






- 

- 




Civic Land and Buildings 






- 

- 




Other Buildings 

Other Land 


2 200 



1 837 

779 

779 

2 433 

1 592 


Surplus Assets - (Investment or Inventory) 



- 








Other 


245 

- 





55 



Agricultural assets 


_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

List sub-class 











Bioloaical assets 


_ 

_ 

_ 

_ 

_ 

_ 

_ J 

_ 

_ 

List sub-class 











Intangibles 


12 

_ 

367 

211 

87 

87 

365 

_ 

229 

Computers - software & programming 


12 


367 

211 

87 

87 

365 


229 

Other (list sub-class) 





















Total Capital Expenditure on new assets 

1 

2 656 

246 156 

131 146 

122 595 

128 595 

128 595 

125 683 

137 901 | 

139 122 


NC451-JMLM Adopted Budget 2015/16 


Page 85 


Table 45: Table SA 34b - Capital expenditure on renewal existing assets by 
asset class 


NC451 Joe Morolong - Supporting Table SA34b Capital expenditure on the renewal of existing assets by asset class 


Description 

R thousand 

Ref 

1 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

CaDital expenditure on renewal of existina assets bv Asset Class/Sub-class 


10 000 

10 000 

10 000 




Infrastructure 


_ 

_ 

Infrastructure - Road transport 

- 

- 

- 

- 

- 

- 

- 



Roads, Pavements & Bridges 

Storm water 











Infrastructure - Electricity 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Generation 

Transmission & Reticulation 

Street Lighting 











Infrastructure - Water 


- 

- 

- 

10 000 

10 000 

10 000 

- 

- 

- 

Dams & Reservoirs 

Water purification 

Reticulation 





10 000 

10 000 

10 000 




Infrastructure - Sanitation 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Reticulation 

Sewerage purification 











Infrastructure - Other 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Waste Management 

Transportation 

Gas 

Other 

2 

3 










Community 

7 

8 

9 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Parks & gardens 

Sportsfields & stadia 

Swimming pools 

Community halls 

Libraries 

Recreational facilities 

Fire, safety & emergency 

Security and policing 

Buses 

Clinics 

Museums & Art Galleries 

Cemeteries 

Social rental housing 

Other 

Heritaqe assets 

Buildings 

Other 

Investment properties 










_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 










_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Housing development 

Other 











Other assets 

General vehicles 


_ 

_ 

_ 

500 

250 

250 

700 

_ 

_ 










Specialised vehicles 

10 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Plant & equipment 

Computers - hardware/equipment 

Furniture and other office equipment 

Abattoirs 

Markets 

Civic Land and Buildings 

Other Buildings 

Other Land 

Surplus Assets - (Investment or Inventory) 

Other 

Aqricultural assets 





500 

250 

250 

200 

500 



_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

List sub-class 











Bioloqical assets 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

List sub-class 










Intanqibles 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Computers - software & programming 

Other (list sub-class) 





















Total Capital Expenditure on renewal of existing 

1 

- 

- 

- 

10 500 

10 250 

10 250 

700 

- 

- 


NC451-JMLM Adopted Budget 2015/16 


Page 86 


Table 46: Table SA 34c - Repairs and maintenance expenditure by asset class 


NC451 Joe Morolong - Supporting Table SA34b Capital expenditure on the renewal of existing assets by asset class 


Description 

R thousand 

Ref 

1 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2015/16 

Budget Year 

+1 2016/17 

Budget Year 

+2 2017/18 

Capital expenditure on renewal of existina assets bv Asset Class/Sub-class 


10 000 

10 000 

10 000 




Infrastructure 


_ 

_ 

Infrastructure - Road transport 

- 

- 

- 

- 

- 

- 

- 


- 

Roads, Pavements & Bridges 

Storm water 











Infrastructure - Electricity 


- 

- 

- 

- 

- 

- 

- 

- [ 

- 

Generation 

Transmission & Reticulation 

Street Lighting 











Infrastructure - Water 


- 

- 

- 

10 000 

10 000 

10 000 

- 


| 

Dams & Reservoirs 

Water purification 

Reticulation 





10 000 

10 000 

10 000 




Infrastructure - Sanitation 


- 

- 

- 

- 

- 

- 

- 

- j 

- 

Reticulation 

Sewerage purification 











Infrastructure - Other 


- 

- 

- 

- 

- 

- 

- 

- j 

- 

Waste Management 

Transportation 

Gas 

Other 

2 

3 










Community 

Parks & gardens 

Sportsfields & stadia 

Swimming pools 

Community halls 

Libraries 

Recreational facilities 

Fire, safety & emergency 

Security and policing 

Buses 

Clinics 

Museums & Art Galleries 

Cemeteries 

Social rental housing 

Other 

Heritaqe assets 

7 

8 

9 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ J 

_ 










. 

. 

. 

. 

. 

. 

. 

_ 

. 

Buildings 

Other 

Investment properties 










. 

. 

_ 

. 

. 

. 

_ 

_ 

. 

Housing development 

Other 

Other assets 










. 

. 

_ 

500 

250 

250 

700 

_ 

. 

General vehicles 










Specialised vehicles 

10 

- 


- 

- 

- 

- 

- 


- 

Plant & equipment 

Computers - hardware/equipment 

Furniture and other office equipment 

Abattoirs 

Markets 

Civic Land and Buildings 

Other Buildings 

Other Land 

Surplus Assets - (Investment or Inventory) 

Other 

Aqricultural assets 





500 

250 

250 

200 

500 



| 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

List sub-class 











Bioloqical assets 


1 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

j 

List sub-class 










Intanqibles 

i _ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Computers - software & programming 

Other (list sub-class) 










Total Capital Expenditure on renewal of existing 

7 } 

- 

- 


10 500 

10 250 


700 

- I 

; ' - 


NC451-JMLM Adopted Budget 2015/16 


Page 87 


Table 47: Table SA 36 - Detailed capital budget per municipal vote 


Municipal Vote/Capital 

Program/Project description 

Individually 

Asset Class 

Asset Sub-Class 

GPS co-ordinates 

Total 

Prior year 


2015/16 Medium Term Revenue & 

Project 

project 


Approved 




Project 

outcomes 



Expenditure Framework 

information 



(Yes/No) 




Estimat 








R thousand 


6 

3 

3 

5 

e 

Audited 

Current 

Budget 

Budget 

Budget 

Ward 

New 








Outcome 

Year 

Year 

Year +1 

Year +2 

locati 

or 








2013/14 

2014/15 

2015/16 

2016/17 

2017/18 

on 

renew 









Full Year 
Forecast 





al 

Parent municipality: 

List all capital projects 
grouped by Municipal 

Vote 














Water Unit 

Wateraar Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-27°1 1, 1 7'90" E-23°48, 18'90" 




2 096 

1 111 


13 

New 

Water Unit 

Adderly Water Reticulatation 

Yes 

Infrastructure - Water 

Reticulation 

S-27°10,53'19" E-23°16,03'84" 




4 063 

- 

- 

4 

New 

Water Unit 

Makgaladi Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-27°24,36'51" E-23°45,46'63" 




2 731 

- 

- 

14 

New 

Water Unit 

Maseohatse Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 






6 750 

- 

10 

New 

Water Unit 

Segwaneng Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-27°03,46'54" E-23°58,28'18" 




- 

4 950 

- 

11 

New 

Water Unit 

Setshwatshwaneng Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-26°49,47'27" E-23°32, 24, 72" 




- 

4 250 

- 

8 

New 

Water Unit 

Kome Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-26°26,06'38" E-23°05,53,57" 




- 

- 

5183 

1 

New 

Water Unit 

Makhubung Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-26°19,04'90" E-23°06,07,29" 




- 

- 

14107 

1 

New 

Water Unit 

Perth Water Reticulation 

Yes 

Infrastructure - Water 

Reticulation 

S-26°27,28'20" E-23°05, 15,57" 




- 

- 

11 618 

1 

New 

Technical Service 

Makhubung Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 

S-26 0 1 9, 08' 55" E-23 °06, 09, 1 8" 




4 000 

5 000 

- 

1 

New 

Technical Service 

Dithakong Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 

S-27°05, 15'05" E-23°55,31, 74" 




4 000 

4 474 

- 

12 

New 

Technical Service 

Molapotlase Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 





3 000 

- 

- 

14 

New 

Technical Service 

Segwaneng Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 

S-27°03,46'54" E-23° 58,28, 18" 




3 555 



11 

New 

Technical Service 

Ga- Sehunelo Wyk 4 Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 

S-27°08,43'75" E-23°31,32,65" 




- 

- 

- 

7 

New 

Technical Service 

Churchill & Esperanza Roads 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 

S-26°49,17'16" E-23° 12,24,05" 




3 000 

5 000 

- 

7 

New 

Technical Service 

Gamagatle Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 





- 

6 000 

- 

9 

New 

Technical Service 

Padstow Road 

Yes 

Infrastructure - Road transport 

Roads, Pavements & Bridges 

S-26°49, 1 7' 63" E-23°1 2,24,40" 




- 

- 

4215 

2 

New 

Community Service 

Magobing West Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°05,27'85" E-23°4,46,31" 




600 

- 

- 

4 

New 

Community Service 

Tsineng Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-26°52,15'96" E-23°04, 15,96" 




7 191 

- 

- 

5 

New 

Community Service 

Matoro Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°03,3'17" E-23°09, 45,6V 




420 

- 

- 

5 

New 

Community Service 

Maipeing Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°8,3'95" E-23° 07 ,23,27' 




330 

- 

- 

5 

New 

Community Service 

Wyk 9 Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-26 °55, 02'20" E-23°1 5,37,38' 




465 

- 

- 

6 

New 

Community Service 

Radiatsongwa Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27 o 16,17'30"E-23 o 31,20,60' 




345 

- 

- 

7 

New 

Community Service 

Wyk 4 Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°08,43'75" E-23°31,32,65' 




615 

- 

- 

7 

New 

Community Service 

Pompong Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 





420 

- 

- 

7 

New 

Community Service 

Wyk 7 Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°10,19'89" E-23°33,43, 72' 




843 

- 

- 

6 

New 

Community Service 

Bendel Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-26°59,50'68" E-23°38,44,88' 




9 645 

- 

- 

8 

New 

Community Service 

Wesselsvlei Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°23,35'58" E-23°39, 34,0V 




- 

1280 

- 

14 

New 

Community Service 

Damros Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 





- 

1 860 

- 

13 

New 

Community Service 

Vanzylsrus Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°52,39'31" E-22°03,07,98' 




- 

2 250 

- 

4 

New 

Community Service 

Mosekeng Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°12,39'0" E-22°19,02,0' 




- 

693 

- 

6 

New 

Community Service 

Kokfontein Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°14,43'10" E-22°33,30,83' 




- 

860 

- 

7 

New 

Community Service 

Dithakong Sanitation 

Yes 

Infrastructure - Sanitation 

Reticulation 

S-27°05,15'05" E-23°55,31, 74' 




- 

4 708 

17 357 

11 

New 

Community Service 

Loopeng Sport Field 

Yes 

Community 

Sportsfields & stadia 

S-26°48,29'6" E-23°24,50, 13' 




6 936 

- 

- 

2 

New 

Community Service 

Penryn Sport Field 

Yes 

Community 

Sportsfields & stadia 

S-26°52,15'96" E-23°24, 15,96' 




1414 

5 285 

- 

3 

New 

Community Service 

Bendel Sport Field 

Yes 

Community 

Sportsfields & stadia 

S-26°59,50'68" E-23°38,44,88' 




- 

3 395 

3173 

8 

New 

Community Service 

Metsetsaneng Sport Field 

Yes 

Community 

Sportsfields & stadia 

S-27°18,53'32" E-23°40, 18, 70' 




- 

- 

5 507 

14 

New 

Water Unit 

Kiangkop Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°00'02,86' E-23° 45,34,40’ 




3 753 

- 

- 

9 

New 

Water Unit 

Tsineng Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°52'1 5,96' E-23°04, 15,96' 




11 039 

- 

- 

5 

New 

Water Unit 

Deurham Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°53'48, 66' E-23°30,37, 70' 




6 854 

- 

- 

8 

New 


NC451-JMLM Adopted Budget 2015/16 


Page 88 


Water Unit 

Diwatshane Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





5 450 

- 

- 

9 

New 

Water Unit 

Dithakong Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





19 778 

4 827 

- 

11 

New 

Water Unit 

Cassel Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26 °58'05, 25 ' E-23 ° 58,50, 81' 




13126 

7 237 

- 

11 

New 

Water Unit 

Gakoe/Garamotsokwana Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°07'47,89' E-23° 54,32,34' 




- 

14 883 

- 

13 

New 

Water Unit 

Laxey Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26 o 43'26,01' E-23°09,32,56' 




- 

12 450 

- 

3 

New 

Water Unit 

Ga- Sehunelo Wyk 4 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





- 

4 532 

- 

7 

New 

Water Unit 

Bush Buck Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





- 

5 420 

- 

13 

New 

Water Unit 

Camden Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°21'51,29' E-23°53,49,67' 




- 

5 387 

- 

13 

New 

Water Unit 

Bojelapotsane Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





- 

4 520 

- 

14 

New 

Water Unit 

Churchill Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°49'17,16'E-23°12,24,05' 




- 

6 754 

- 

7 

New 

Water Unit 

Deurward Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°36'56,51' E-23°37,03,04' 




- 

6 754 

- 

7 

New 

Water Unit 

Metsimantsi Wyk 1 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°59'21,54' E-23° 07 ,40,04' 




- 

930 

2 937 

6 

New 

Water Unit 

Makhubung Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°28'54,93'E-23°45,11,28' 




- 

- 

4 075 

15 

New 

Water Unit 

Metsimantsi Wyk 3 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°56'1 7, 93' E-23°09,48, 65' 




- 

- 

5 600 

6 

New 

Water Unit 

Metsimantsi Wyk 4 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





- 

- 

4 367 

6 

New 

Water Unit 

Metsimantsi Wyk 5 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°53'47, 40' E-23°1 2,37,53' 




- 

- 

5120 

6 

New 

Water Unit 

Metsimantsi Wyk 6 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°57'11,47' E-23°12,42,89' 




- 

- 

4 350 

6 

New 

Water Unit 

Metsimantsi Wyk 7 Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°00'28,08' E-23°12,31,89' 




- 

- 

4 061 

6 

New 

Water Unit 

Laxey Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°43'26,01' E-23°09,32,56' 




- 

- 

12 805 

3 

New 

Water Unit 

Logobate Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-27°10'15,97' E-23°24,50,85' 




- 

- 

10 900 

5 

New 

Water Unit 

Lotlhakajaneng Water Supply 

Yes 

Infrastructure - Water 

Reticulation 





- 

- 

12 500 

11 

New 

Water Unit 

Magwagwe Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26°34'31,52' E-23° 19,40,28' 




- 

- 

8 600 

15 

New 

Water Unit 

Sesipi Water Supply 

Yes 

Infrastructure - Water 

Reticulation 

S-26 °28'3 1,29' E-23 °03, 33,53' 






2 368 

1 

New 

Water Unit 

Purchase of PVC Tanks 

Yes 

Infrastructure - Water 

Other 





250 




New 

Community Service 

Construction of Hall 

Yes 

Community 

Community halls 





4 000 

4 500 



New 

Community Service 

Construction of Cemetries 

Yes 

Community 

Cemeteries 





2 336 




New 

Community Service 

Construction of Traffic testing station 

Yes 

Other Assets 

Buildings 





2 433 

1 592 



New 

Community Service 

Puchase of equipment 

Yes 

Other Assets 

Other 





90 




New 

Community Service 

Puchase of equipment 

yes 

Other Assets 

Plant & equipment 





200 

211 



New 

Budget & Treasury Office 

Purchase of Computer 

yes 

Other Assets 

Computers - hardware/equipment 





10 

38 

50 


New 

Budget & Treasury Office 

Purchase of Software 

Yes 

Other Assets 

Computers - software & programming 





40 

- 

229 


New 

Corporate Service 

Fencing of municipal yard 

Yes 

Other Assets 

Other Buildings 





500 




Renew 

al 

New 

Corporate Service 

Purchase of Office Furniture 

Yes 

Other Assets 

Furniture and other office equipment 





160 

_ 

_ 


Corporate Service 

Purchase of Computer 

Yes 

Other Assets 

Computers - hardware/equipment 





370 




New 

Corporate Service 

Purchase of Software 

Yes 

Other Assets 

Computers - hardware/equipment 





325 




New 

Parent Capital 
expenditure 









126 383 

137 901 

139 122 



Entity Capital 
expenditure 




- 

- 

- 

- 

- 



Total Capital 
expenditure 




- 

- 

126 383 

137 901 

139 122 




NC451-JMLM Adopted Budget 2015/16 


Page 89 


2.14 Legislation Compliance Status 

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

1 . In year reporting 

Reporting to National Treasury in electronic format was fully complied 
with on a monthly basis. Section 71 reporting to the Executive Mayor 
(within 10 working days) has progressively improved and includes 
monthly published financial performance on the municipality’s website. 

2. Internship programme 

The municipality is participating in the Municipal Financial Management 
Internship programme and has employed five interns undergoing 
training in various divisions of the Budget & Treasury Office. Since the 
introduction of the Internship programme the municipality has 
successfully employed 5 of the trained 12 interns through whereby 4 
interns resigned during the programme and a majority of those who 
completed the programme were appointed in the municipality. 

3. Budget and Treasury Office 

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

4. Audit Committee 

An Audit Committee has been established and is fully functional. 

5. Service Delivery and Implementation Plan 

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

6. Annual Report 

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


NC451-JMLM Adopted Budget 2015/16 


Page 90 


2.14 Other supporting documents 


Table 48: Table SA 1 - Supporting details to Budgeted Financial Performance 

NC451 Joe Morolong - Supporting Table SA1 ! 


Supportinging detail to 'Budgeted Financial Performance' 


Description 


2011/12 


2013/14 


Current Year 2014/15 


Original 

Budget 


Adjusted 

Budget 


Budget Year 


REVENUE ITEMS: 

Property rates 

Total Property Rates 
/ess Revenue Foregone 

Net Property Rates 


Service charge: 




Total Service charges - electricity revenue 
/ess Revenue Foregone 

Net Service charges - electricity revenue 
Service charges - water revenue 

Total Service charges - water revenue 
less Revenue Foregone 
Net Service charges - water revenue 
Service charges - sanitation revenue 

Total Service charges - sanitation revenue 
/ess Revenue Foregone 
Net Service charges - sanitation revenue 
- refuse revenue 

Total landfill revenue 
/ess Revenue Foregone 
Net Service charges - refuse revenue 
Other Reven u e by source 

Tender Deposit 
Grading Fees 
Cemetry Fees 
Photocopies 

Telephone Account Private 
Cellphone deductions 
Library Fines 
Connection Fees 
OTHER 

Renting Property 
Parking Fees 


3 116 

7 467 


6 925 

5 177 


3 371 

4 914 


9 651 

7 249 


6 303 

5 855 


7 467 

6 295 


5 177 

lO 262 


4 914 

5 315 


5 855 

6 746 


6 303 

5 855 


6 303 

5 855 


lO 489 

6 569 


5 855 

6 746 


5 855 

6 746 


6 569 

6 798 



1 141 

1141 

652 


1 439 

1~439 


1 510 

915 


1 510 

915 


1 510 

915 


1 585 ! 

960 j 


652 


11 223 

7 403 


7 403 

7 172 


7 172 

1 664 
”l 664~ 
1 008 


1 008 


8 342 

7 566 



EXPENDITURE ITEMS: 

Employee related costs 

Basic Salaries and Wages 
Pension and UIF Contributions 
Medical Aid Contributions 

Performance Bonus 
Motor Vehicle Allowance 
Cellphone Allowance 
Housing Allowances 
Other benefits and allowances 
Payments in lieu of leave 
Long service awards 
Post-retirement benefit obligations 

sub-total 

l ass- Employees costs capitalised to PPE 

Total Employee related costs 

ns recognised - capital 


19 993 
2 985 
2 043 
1 756 
225 
5 820 
844 


17 864 

2 654 
1 762 
1 056 

950 

3 434 
608 
341 


1 679 
5 108 
498 


28 177 
5 748 

2 366 
1 102 
2 682 

3 244 
501 

1 021 
317 
70 


26 213 

4 504 
2 638 
1 310 
1 950 

5 265 
465 

1 900 
430 
40 


27 974 
27 974 


37 025 
37 025 


45 227 
45 227 


26 213 

4 504 
2 638 
1 310 
1 950 

5 265 
465 

1 900 
430 
40 


26 213 
4 504 
2 638 


29 815 
5 875 ! 
2 689 ! 

632 
2 429 ! 
4 005 ! 
641 

2 629 I 
410 ! 
75 | 


44 715 
44 715 


44 715 
44 715 


t contributions by contract 


Total Contribu 
Depn 


Depreciation of Property , Plant & Equipment 
Lease amortisation 
Capital asset impairment 

Depreciation resulting from revaluation of PPE 
Total Depreciation & asset impairment 
Bulk purchases 

Electricity Bulk Purchases 
Water Bulk Purchases 
Total bulk purchases 
Transfers and grants 

Cash transfers and grants 
Non-cash transfers and grants 
Total transfers and grants 
Contracted services 


ns of state: 


Nashua Mobile 
Vysyem Trading cc 
Steiner 

Software License 
Internet - Telkom 
Toshiba 
Santam 

Security Service 
Fleet Lease 

Allocations to orj 

Electricity 

Water 

Sanitation 

Other 

Total contracted services 
Other Expenditure By Type 

Collection costs 

Contributions to 'other' provisions 
Consultant fees 

General expenses 
Free Basic Services 
Repair & Maintenance 
Community Participation 
Fuel & 0/7 

Pump Operating Cost 
Telephone & Fax 
Travelling & Subsistence 
Ward Com m itees 

Advertising, Printing & Stationery 

Training Costs 

Electricity : Office & Borehole 

Branding & Publications 

Uniform 

Cleaning Material 
Security 

Community Development & Training 
Departmental Expenses 

Motor Vehicle Expense 
Valuation Roll Expense 
SALGA LEVIES 
T arget Groups 

Total 'Other - Expenditure 




500 
963 
3 580 


500 
963 
6 580 


500 
963 
6 580 


5 592 
1 644 
16 806 


4 602 

1 672 

2 824 
2 273 


1 281 
3 270 
1 1 683 
606 
3 193 

1 163 

2 664 
2 984 

( 11 ) 

703 

200 


797 
t 327 
3 317 


8 362 

4 791 
2 009 

2 724 
18 215 

579 

5 170 

1 360 

3 281 

2 962 
1 309 

506 


2 692 

3 279 
428 


1 785 

2 960 

3 822 


1 OOO 
850 

2 669 
1 300 


2 200 
850 
2 679 
1 300 


500 
196 
30 635 


6 515 
580 

1 718 

2 200 
850 

2 679 
1 300 


6 515 
580 

1 718 

2 200 
850 

2 679 
1 300 


500 
196 
30 635 


500 
196 
30 635 


5 955 
3 987 ! 

1 540 ! 

26 558 ! 
370 
3 950 

2 112 
620 ! 

2 617 

1 300 ! 
636 ! 
970 

2 440 ! 
663 ! 
250 

80 ! 


550 ! 
350 

55 048 ' 


6 216 
2 845 
669 
2 569 
4 237 
678 
2 782 
434 I 
79 I 


369 
2 200 
1 130 
18 920 
22 619 


2 228 
921 
2 904 

1 332 
710 

1 016 

2 598 
789 
264 

84 


600 

369 

45 779 


390 
2 300 
1 206 
19 908 

23 804 


2 060 
4 438 
1 573 


4 396 

2 351 
951 

3 075 
1 367 

749 


650 

389 

48 210 




nd Maintenance 


Employee related costs 
Other materials 
Contracted Services 
Other Expenditure 

Total Repairs and Maintei 


NC451-JMLM Adopted Budget 2015/16 


Page 91 



Table 49: Table SA 2 - Matrix Financial Performance Budget (revenue source/expenditure type and department) 


Description 

Vote 1 ■ 

Vote 2 - 

Vote 3 ■ 

Vote 4 ■ 

Vote 5 ■ 

Vote 6- 

Vote 7 ■ 

Vote 8 ■ 

Vote 9 ■ 

Vote 10- 

Vote 11- 

Vote 12- 

Vote 13- 

Vote 14- 

Vote 15- 

Total 

R thousand 

Executive 

Budget & 

Corporate 

Community 

Technical 

Electricity 

Water 

Development 

[NAME 

[NAME 

[NAME 

[NAME 

[NAME 

[NAME 

[NAME 



& Council 

Treasury 

Support 

Services 

Services 

Services 

Services 

&Town 

OF VOTE 

OF VOTE 

OF VOTE 

OF VOTE 

OF VOTE 

OF VOTE 

OF VOTE 




Office 

Services 





Planning 

Services 

9] 

10] 

11] 

12] 

13] 

14] 

15] 


Revenue By Source 

















Property rates 


10 489 














10 489 

Property rates - penalties & collection charges 
















- 

Service charges - electricity revenue 






6 569 










6 569 

Service charges - water revenue 







6 798 









6 798 

Service charges - sanitation revenue 




1 585 












1585 

Service charges - refuse revenue 




960 












960 

Service charges - other 
















- 

Rental of facilities and equipment 



46 

52 












97 

Interest earned - external investments 
















- 

Interest earned - outstanding debtors 


50 














50 

Dividends received 
















- 

Fines 
















- 

Licences and permits 
















- 

Agency services 




109 












109 

Other revenue 


123 

225 

1 

16 


217 









582 

Transfers recognised - operational 

5 998 

111 860 


3 841 

2 930 


22 500 









147 129 

Gains on disposal of PPE 
















- 

Total Revenue (excluding capital transfers and contributions) 

5 998 

122 522 

271 

6 548 

2 946 

6 569 

29 515 

- 

- 

- 

- 

- 

- 

- 

- 

174 369 

Expenditure Bv Tvoe 

















Employee related costs 

4 261 

9 685 

7 077 

8108 

4 429 

329 

12 896 

2 414 








49199 

Remuneration of councillors 

8 538 

- 

- 

- 

- 

- 

- 

- 








8 538 

Debt impairment 

- 

3 960 

- 

- 

- 

- 

- 

- 








3 960 

Depreciation & asset impairment 

- 

10 000 

- 

- 

- 

- 

- 

- 








10 000 

Finance charges 

- 

934 

- 

- 

- 

- 

- 

- 








934 

Bulk purchases 

- 

- 

- 

- 

- 

5 699 

5148 

- 








10 847 

Other materials 

- 

- 

- 

- 

- 

- 

- 

- 








- 

Contracted services 

- 

350 

2 680 

- 

168 

- 

17 200 

- 








20 398 

Transfers and grants 

- 

- 

- 

- 

- 

2148 

2 582 

- 








4 730 

Other expenditure 

3 620 

10 306 

2 554 

1 360 

1 105 

200 

34 087 

1 815 








55 048 

Loss on disposal of PPE 
















- 

Total Expenditure 

16 419 

35 237 

12 311 

9 468 

5 702 

8 375 

71 914 

4 229 

- 

- 

- 

- 

- 

- 

- 

163 655 

Surplus/(Deficit) 

(10 421) 

87 285 

(12 040) 

(2 919) 

(2 757) 

(1 806) 

(42 399) 

(4 229) 

- 

- 

- 

- 

- 

- 

- 

10 714 

Transfers recognised - capital 





55 669 


60 000 









115 669 

Contributions recognised - capital 
















- 

Contributed assets 
















- 

Surplus/(Deficit) after capital transfers & contributions 

(10 421) 

87 285 

(12 040) 

(2 919) 

52 913 

(1 806) 

17 601 

(4 229) 

- 

- 

- 

- 

- 

- 

- 

126 383 


NC451-JMLM Adopted Budget 2015/16 


Page 92 


Table 50: Table SA 3 - Supporting details to Budgeted Financial Position 


NC451 Joe Morolong ■ Supporting Table SA3 Supportinging detail to 'Budgeted Financial Position' 


Description 

R thousand 

Ref 

2011/12 

2012/13 

2013/14 

Current Year 2014/15 

2015/16 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2015/16 

Budget Year 

+12016/17 

Budget Year 

+2 2017/18 

ASSETS 

Call investment deposits 

2 

2 

3 

2 











Call deposits < 90 days 

Other current investments > 90 days 

Total Call investment deposits 

Consumer debtors 


1 980 

17 475 

218 

5 000 

5 000 

5 000 

257 

260 

263 


1 980 

17 475 

218 

5 000 

5 000 

5 000 

257 

260 

263 

Consumer debtors 

Less: Provision for debt impairment 

Total Consumer debtors 

Debt impairment provision 

71 457 
(56 089) 

128 416 
(109 290) 

135 603 
(111 626) 

5 941 
(1 213) 

5 941 
(1 213) 

5 941 
(1 213) 

5 941 
(1 213) 

6 238 
(1 322) 

6 549 
(1 394) 

6 877 
(1 471) 

15 368 

19 126 

23 976 

4 727 

4 727 

4 727 

4 727 

4 916 | 

5155 

5 406 

Balance at the beginning of the year 
Contributions to the provision 

Bad debts written off 

Balance at end of year 

Prooertv. plant and eauinment (PPE) 




1 213 

1 213 

1 213 

1 213 

1 322 

1 394 

1 471 

' 

' 

' 

1 213 

1 213 

1 213 

1213 

1 322 

1 394 

1 471 

PPE at cost/valuation (ex cl. finance leases) 
Leases recognised as PPE 

Less: Accumulated depreciation 

Total Property, plant and equipment (PPE) 

948 031 

60 791 

1 116 041 

63 508 

1 246 819 

87 765 

1 108 824 

94 641 

1 257 280 

89 641 

1 257 280 

89 641 

1 257 280 

89 641 

1 356 115 

94 123 

1 476 580 

98 829 

1 591 998 

103 771 

887 240 

1 052 533 

1 159 054 

1 014 183 

1 167 639 

1 167 639 

1 167 639 

1 261 992 

1 377 751 

1 488 228 

LIABILITIES 

Current liabilities - Borrowina 

2 

4 











Shortterm loans (other than bank overdraft) 
Current portion of long-term liabilities 

Total Current liabilities - Borrowing 

Trade and other pavables 

611 

627 j 

627 

784 

784 

784 

784 

784 

784 

784 

611 i 

627 j 

6127 

784 

784 

784 

784 

784 

784 

784 

Trade and other creditors 

Unspent conditional transfers 

VAT 

Total Trade and other payables 

Non current liabilities - Borrowinq 

97 629 

17 063 

90 855 

44 594 

526 

6 500 

3 260 

8 391 

3 786 

8 391 

3 786 

8 391 

3 786 

12 664 

550 

13170 

570 

13 697 

590 

114 691! 

90 855 1 

45 120 

9 760 

12177 

12177 

12177 

13 214 

13 740 

14 287 

Borrowing 

Finance leases (including PPP asset element) 

Total Non current liabilities - Borrowing 

Provisions - non-current 

4 163 

3 536 

2 310 

2 836 

2 300 

2 300 

2 300 

2 516 

2 124 

1 724 

4 163 i 

3 536 j 

2 310 

2 836 

2 300 

2 300 

2 300 

2 516 

2124 

1 724 

Retirement benefits 











List other major provision items 












Refuse landfill site rehabilitation 

Other 


1 244 

1 551 

1 884 

1 551 

1 551 

1 551 

1 551 

1 629 

1 710 

1 796 

Total Provisions - non-current 


1 244 1 

ni5sii 

1 884 

1551 


1 551 

1 551 

1 629 

1 710 


CHANGES IN NET ASSETS 

Accumulated Surplus/fDeficit) 












Accumulated Surplus/(Deficit) - opening balance 
GRAP adjustments 

944 241 

1 022 051 

1 085 574 

878 434 

1 037 293 

1 037 293 

1 037 293 

1 137 129 

1 252 108 

1 372 924 

Restated balance 

Surplus/(Deficit) 


944 241 
(119 791) 

1 022 051 
(32 207) 

1 085 574 

65 046 

878 434 

133 095 

1 037 293 

138 845 

1 037 293 

138 845 

1 037 293 

138 845 

1 137 129 

126 383 

1 252 108 

137 901 

1 372 924 

139 122 

Appropriations to Reserves 

Transfers from Reserves 

Depreciation offsets 

Other adjustments 












Accumulated Surplus/(Deficit) 

Reserves 

1 

2 

f 824 450 1 

989 844] 

1 150 620 


fl76T38" 


^MI76l38" 

1 263 513" 

1 390 009 

1 512 046 

Housing Development Fund 

Capital replacement 

Self-insurance 

Other reserves 

Revaluation 

Total Reserves 











- 

- j 

- 

- 

- 

- 

- 

- i 

- 

- 

TOTAL COMMUNITY WEALTH/EQUITY 

2 

824 450 j 

989 844 j 

1 150 620 

1 011 529 

1 176 138 

1 176 138 

1 176138 

1 263 513 

1 390 009 

1 512 046 


NC451-JMLM Adopted Budget 2015/16 


Page 93 


Table 51 : Table SA 32 - List of external mechanism 


External mechanism 

Name of organisation 

Yrs / 
Mths 

Period of 
agreement 

1 . 

Service provided 

Expiry date of service delivery 
agreement or contract 

Monetary value 
of agreement 2. 

Number 

R thousand 

Sebata Municipal Solution 

Yrs 


Licencing of Sebata Financial System 

31 July 2013 

280 

Eskom 

Yrs 

1 

Electricity supply agreement with in other municipal areas(FBS) 

Yearly 

2148 

Maximum Profit Recovery 

Yrs 

2 

Review of transaction on a contingency basis (VAT) 

03 November 2015 

25% of the Claim 

Nashua Mobile 

Yrs 

7 

Installation of Nashua sim routers 

N/A but has Termination option 

160 

Vysyem Trading 

Mths 

36 

Copiers and Fax machine hire 

30 September 2015 

317 

Telkom SA Limited 

Yrs 

5 

TI-DIS Silver Access agreement 

08 May 2017 


Telkom SA Limited 

Yrs 

5 

Office Telephone PBX 

On-going 

385 

Telkom SA Limited 

Yrs 

5 

Service rental (diginet term discount agreement) 

23 April 2017 

36 

Telkom SA Limited 

Yrs 

5 

Service rental (diginet term discount agreement) 

23 April 2017 

36 


NC451-JMLM Adopted Budget 2015/16 


Page 94 


2.15 Municipal Manager’s Quality Certificate 


JOE MOROLONG LOCAL MUNICIPALITY 


JOE MO ROLONG 

LOCAL MUNICIPALITY 


NC 451 
QUALITY CERTIFICATE 

I, Tshepo Macdonald Bloom , Municipal Manager of JOE MOROLONG LOCAL 
MUNICIPALITY, hereby certify that the Annual Budget and Supporting Documentation have 
been prepared In accordance with the Municipal Finance Management Act;(Act 56 of 2003) 
and regulations made under the act and that the Annual Budget are consistent with the 
Integrated Development Plan of the municipality. 




NC451-IMLM Adopted Budget 2015/16 


Page 95 


NC451-JMLM Adopted Budget 2015/16 


Page 95