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ANNUAL BUDGET

2016/2017

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l TABLE OF CONTENTS

No. Section Description Page

List of figures, tables and annexures 2-4

Glossary 5-6

Part 1 Annual budget

1 Mayoral Speech 7-9

2 Resolutions 10-11

3 Executive summary 12-13

4 Quality Certificate 14

5 Annual budgets tables 15-27

Part 2 Supporting documentation

6 Overview of annual budget process 28-35

7 Overview of alignment of annual budget with Integrated 36-40 Development Plan

8 Measurable performance objectives and indicators 41-43

9 Overview of budget-related policies 44-45

10 Overview of budget assumptions 46-50

11 Overview of budget funding 51-55

12 Expenditure on allocations and grant programmes 56

13 Monthly targets for revenue, expenditure and cash flow 57-58

14 Councillor, board member allowances and employee benefits 59-60

15 Annual budgets and service delivery and budget implementation 61-64 Plans – internal departments

16 Reconciliation of IDP strategic objectives and capital budget 65-66

17 Legislation compliance status 67

18 National Treasury directives 68-69

19 Capital expenditure details 70

20 Other supporting documents 71-72

21 Annexures 73-488

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A. LIST OF FIGURES AND TABLES

No Description Page

Table 1 Budget Summary (Table A1) 15-16

Table 2 Budgeted Financial Performance (Revenue and Expenditure by 17 Standard classification) (Table A2)

Table 3 Budgeted Financial Performance (Revenue and Expenditure by 18 Municipal vote) (Table A3) Table 4 Budgeted Financial Performance (Revenue and Expenditure) 19

(Table A4)

Table 5 Budgeted Capital Expenditure by vote, standard classification and 20 Funding (Table A5) Table 6 Budgeted Financial Position (Table A6) 21

Table 7 Budgeted Cash Flows (Table A7) 22

Table 8 Cash backed reserves/accumulated surplus reconciliation (Table A8) 23 Table 9 Asset Management (Table A9) 24-25

Table 10 Basic service delivery measurement (Table A10) 26-27

Table 11 Organizational structure 30-31

Table 12 IDP and Budget time schedule 32-35

Table 13 Performance Indicators (Support Table SA8) 41-42

Figure1 Policies amendments 45

Table 14 Transfer and grant made by the municipality (Supporting Table SA21) 49

Table 15 Detailed Capital Budget (Supporting Table SA36) 50

Table 16 Medium term operating budget 51

Table 17 Medium term capital budget and funding sources 51

Table 18 National Allocations 53-54

Table 19 Provincial Allocations 54-55

Table 20 Expenditure on allocations and grant programmes 56 (Support Table SA19) Table 21 Monthly targets for revenue and cash flow (Support Table SA30) 57-58

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No Description Page

Table 22 Salaries, allowances and benefits (Political office bearers, councilors’ and senior managers) (Support Table SA23) 59 Table 23 Councillors and board member allowances and employee benefits

(Support Table SA22) 60

Table 24 Reconciliation of IDP strategic objectives and budget (capital expenditure) (Support Table SA6) 65 Table 25 Capital Expenditure by Asset class/sub class 66 (Supporting Table SA34 (a)) Table 26 Detailed capital budget (Support TableS A36) 70

Table 27 Financial performance budget (revenue source / expenditure type and department) (Support Table SA2) 71-72

Part 3 Annexure 73-488

Annexure 1: Rates Policy 73-90

Annexure 2: Tariff Policy 90-108

Annexure 3: Credit Control and Debt Collection Policy 109-154

Annexure 4 Indigent Policy 155-160

Annexure 5: Supply Chain Management 160-205

Annexure 6: Principles and Policy on Budget Virements 218-229

Annexure 7: General Ledger Chart of Accounts 230-254

Annexure 8: Asset Management Policy 254-258

Annexure 9: Overtime Management Policy 258-286

Annexure 10: Recruitment and Selection Policy ` 286-467

Annexure 11: Cash and investment policy 468-486

Annexure 12: Borrowing Policy

Annexure 13: Funding and Reserves Policy

Annexure 14: Long term Finance Plan Policy

Annexure 15: Infrastructure investment and Capital Projects

Annexure 16: IDP

Annexure 17: Tarrifs

Annexure18: Lock certificate 487

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B. GLOSSARY

Adjustments Budgets – Prescribed in section 28 of the Municipal Finance Management Act. It is the formal

means by which a municipality may revise its budget during a financial year.

Allocations – Money received from Provincial and National Treasury.

Budget – The financial plan of a municipality.

Budget related policy – Policy of a municipality affecting or affected by the budget. Examples include traffic

policy, rated policy and credit control and debt policy.

Budget Steering Committee –Committee established to provide technical assistance to the mayor in discharging

the responsibilities set out in section 53 of the MFMA.

Capital Expenditure – Spending on municipal assets such as land, buildings and vehicles. Any capital

expenditure must be reflected as an asset on a municipality’s balance sheet.

Cash Flow Statement - A statement showing when actual cash will be received and spent by the Municipality,

and the month end balances of cash and short term investments. Cash receipts and payments do not always

coincide with budgeted income and expenditure timings. For example, when an invoice is received by the

Municipality it is shown as expenditure in the month that the services or goods are received, even though it may

not be paid in the same period.

CPI – Headline Consumer Price Index

DORA – Division of Revenue Act. Annual legislation which shows the allocations from national to local

government.

DoRb – Division of Revenue Bill. Annual legislation tabled in parliament, but not enacted, which shows the

allocations from national to local government.

Equitable Share – A general grant paid to municipalities. It is predominantly targeted to assist municipalities

with the costs of free basic services.

CDFI – Gross Domestic Fixed Investment

GFS – Government Finance Statistics. An internationally recognized classification system that facilitates

comparisons between municipalities.

IDP – Integrated Development Plan. The main strategic planning document of a municipality.

KPI – Key Performance Indicators. Measures of service output and/or outcome.

MFMA – Municipal Finance Management Act (No 53 of 2003). The principal piece of legislation relating to

municipal financial management.

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MTREF – Medium Term Revenue and Expenditure Framework as prescribed by the MFMA sets out indicative revenue and projected expenditure for the budget year plus two outer financial years to determine the affordability level thereof. It effectively represents a municipality’s medium term financial plan.

MYPD – Multi Year Price Determination

NT – National Treasury

Operating Expenditure – Spending on the day to day expenses of a municipality such as general expenses,

salaries & wages and repairs & maintenance.

Portfolio Committee – Section 79 of the Structures Act dictates that a municipal council may (a) establish one

or more committees necessary for the effective and efficient performance of any of its functions or the exercise

of any of its powers and (b) appoint the members of such a committee from among its members. Portfolio

Committees process policies and bylaws relating to the functional areas within their terms of reference, and are

responsible for implementation monitoring of these, as well as oversight of the functional areas. This oversight

function is further enhanced by the Portfolio Committee’s responsibility of assessing and monitoring the

performance of service delivery which inter alia includes ensuring that the annual budgets of the municipality’s

departments are spent wisely and that there is no wastage or corruption.

Rates – Local Government tax based on assessed valuation of a property.

TMA – Total Municipal Account

SCM – Supply Chain Management

SDBIP – Service Delivery Budget Implementation Plan. A detailed plan comprising quarterly performance

targets and monthly budget estimates.

SFA – Strategic Focus areas: The main priorities of a municipality as set out in the IDP. Budgeted spending

must contribute towards achievement of these strategic focus areas.

Vote – One of the main segments into which a budget is divided, usually at directorate level

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2 MAYORAL BUDGET SPEECH

COUNCILLORS

COMRADES, FRIENDS

LADIES AND GENTLEMEN

MUNICIPAL MANAGER, YOUR MANAGEMENT TEAM & MUNICIPAL OFFICIALS

It is indeed an honor to present the reviewed Integrated Development Plan and the Draft Medium Term

Budget for the 2016/17 financial year of the municipality.

The IDP and Budget is presented at a time when there is a growing demand for municipal services, amidst

unemployment, poverty coupled with the ever increasing cost of living.

This is our fifth budget and IDP which we were able to develop in-house as a result of continued staff training

and skills transferred. We have continued to provide services to our people and will endeavor to increase the

quality and quantity thereof. I am of the opinion that we, as a council, have fared well in this regard but

remain conscious of the challenges that we are faced with. It is a known fact that the municipality is currently

faced with staff shortage and cash flow challenges which the municipality is addressing in a concerted effort

to overcome. With the continued commitment of all Councilors and dedication of the staff we will surely

overcome these challenges to ensure the financial viability and sustainability of Thembelihle Local

municipality.

IDP consultations were held to inform the compilation of the 2016 2017 annual budget. As a Council we have,

through the budget allocations we made, move forward to address particular challenges in order to improve

on service delivery.

The SDBIP is a tool linked to the performance of managers and their Departments which clearly determines

what is to be done, where it will be done, how it is to be done, how much is budgeted for, who are the

responsible managers and the tangible reports that need to submit as proof of progress against defined

targets.

It is imported to focus on what is surely one of the biggest problems namely: debt collection, will have to be

robustly attended to with programmes that are complimenting those we have. For every expense incurred,

there must be a corresponding revenue stream to fund that expenditure.

It is with a great pleasure that I table the Draft Budget for the 2016/2017 MTREF of the municipality.

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Key figures that I would like to emphasize are:

the decrease of our annual budget from the previous year of 2015/2016 of R 81,665,231.00 by R

1,589,203.00 to the budget of 2016/2017 of R 80,076,027.00 which is a 2% decrease.

The Capital Budget decreased by 17% from R17,256,550.00 from the previous year to R14,283,100.00

for the 2016/2017 financial year.

Projected revenue being R75,397 million and expenditure being R80,072 million. We are thus

budgeting for a deficit of R4,679 million.

The budget will also indicate that tariffs have increased by a base line increase of 6.6% for the year

coming and for Electricity, which increased by an overall 12.4% which is a higher increase as per notice

from the National Energy Regulator of South Africa. All budget related National Treasury MFMA

Circulars were taken into account when compiling the budget.

The budget book contains the details in the outer years of the medium term revenue and expenditure

framework which in essence maintain this trend.

Our major cost drivers reflect as follows:

Employee Cost (both council and officials): R 27,281,813.00

Repairs and Maintenance: R 1,836,029.00

Operating Cost: R 28,893,381.00

Capital Cost: R 14,283,100.00

Depreciation: R 7,781,705.00

TOTAL EXPENDITURE R 80,076,027.00

Our Major Revenue Sources that we anticipate:

Grants & Subsidies – R 24,784,856.00

Income Generated – R 37,082,286.00

Capital Funding – R 9,085,144.00

TOTAL INCOME R 75,397,286.00

The total capital budget is funded as follows:

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National Government – R 14,283,100.00

TOTAL SOURCE – R 14,283,100.00

During the Financial Year of 2016/2017 major capital projects that we anticipate to actively progress with and

work towards completion are as follows:

Upgrading of Roads in Steynville

Ground Water in Strydenburg

Upgrading of Roads in Strydenburg

Honorable Speaker, the draft recommendations of this budget will be dealt with when the budget is presented

to Council for adoption.

I would like to propose that when the public participation process unfolds these issues be thoroughly discussed.

The public participation on the revised IDP and Budget is set for the middle of April. These inputs will need to

be considered and factored in before we finalize the budget.

In conclusion I wish to thank all those officials who work hard to render a better service to our citizens. I also

wish to thank all those personnel members who worked hard to put this IDP and budget together.

I thank my fellow councilors for their support and unwavering commitment to the people of Thembelihle

Municipality.

My gratitude goes to the members of this council and public out there for their continuous support.

I hereby table the IDP, the draft budget as stipulated on the agenda.

Councilor Danny A. Jonas

Mayor of Thembelihle Local Municipality

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3 RESOLUTION

Minutes of a General Council Meeting that took place the 31 March 2016 at the Council Chambers

Hopetown at 10:00

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4 EXECUTIVE SUMMARY

Thembelihle Municipality is situated in an area with vast differences in its area of jurisdiction. Whilst Hopetown

is situated on the banks of the Orange River, Strydenburg is continuously marred by droughts and water

shortages.

Our area is mainly dependent on the farming activities in and around the municipal areas and subsequently a

high number of unemployment is being experienced by our communities.

The preparation of the Draft 2016/2017 Medium Term Revenue and Expenditure Framework (MTREF) was

an extremely challenging one as various factors, with considerable potential impacts on core service delivery cost

and revenue components influenced the outcome of this MTREF.

The challenge to produce a sustainable, affordable budget necessitated reductions to certain budgetary

provisions. NT MFMA Budget related Circulars and related correspondence clearly prescribe that a budget must

be realistic, sustainable and relevant; and must be fully funded. To comply with these prescribes, it is a

requirement that the municipality must produce a positive cash flow budget for the 2016/2017 financial year.

This was no mean feat to achieve which resulted in having to apply a very conservative approach during the

budget process.

The MFREF-based revenue and expenditure projections assumed inflation-linked annual adjustments between

6.6% and 5,9% respectively for the 3-year budget period of 2016/2017, 2017/2018 and 2018/2019. We have

included in the budget the Inclined Block Tariff setting method for residential users of electricity and for large

users of electricity. This will mean that tariffs are set based on the units consumed.

Further key parameters applied to the Municipality’s financial framework included the following for the

2015/2016 financial year:

Revenue / tariff increases

• Rates 6.6%

Electricity 12.4%

Water 6.6%

Sanitation 6.6%

Refuse 6.6%

• Salaries and Wages adjustments 7%

• General Expenses 6.6%

Our major cost drivers reflect as follows:

Employee Cost (both council and officials): R 27,281,813.00

Repairs and Maintenance: R 1,836,029.00

Operating Cost: R 28,893,381.00

Capital Cost: R 14,283,100.00

Depreciation: R 7,781,703.00

TOTAL EXPENDITURE R 84,296,355.00

Our Major Revenue Sources that we anticipate:

Grants & Subsidies – R 24,784,856.00

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Income Generated – R 37,082,286.00

Capital Funding – R 9,085,144.00

TOTAL INCOME R 75,394,286

The total budget as indicated above reflects the following about the municipality

That both the capital expenditure and operational expenditure, excluding depreciation and debt

impairment budgets are fully funded.

Salary increase from R25,502,519 to R27,281,813

Capital budget decrease from R17,256,550 to R14,283,100

Projected Revenue increase from R73,914,859 to R75,397,286

The municipality committed to spend within the approved budgets

Ensure that a stable collection rate 68% is anticipated

Capital projects are focus on service delivery and a better living

The budget has been prepared in terms of guidelines as contained in all budget related National Treasury

Circulars and Guidelines issued. Budget related policies need to be revised or amended on a regular basis to

ensure that the municipality has effective guidelines to ensure performance of their duties.

I hereby recommend that this 2016/ 2017 draft budget presented to council will be adopted.

A. M. MUNICIPAL MOGALE

MANAGER

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4 QUALITY CERTIFICATE

THEMBELIHLE MUNICPLAITY (NC076)

Quality certificate in terms of Section 5 of the Municipal Budget Regulations;

Government Gazette 32141, 17 April 2009…

I Abraham Mpho Mogale, Municipal Manager of Thembelihle Municipality hereby

certify that the Annual Budget for 2015/16 and supporting documentation have been

prepared In accordance with the Municipal Financial Management Act No 56 of 2003

and the regulations made under the Act and that the budget and supporting documents

are consistent with the Integrated Development Plan of the Municipality.

ABRAHAM MPHO MOGALE

MUNICIPAL MANAGER

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5 ANNUAL BUDGET TABLES

The Budget schedules approved by resolution of Council:

Table 1 – Budget Summary

Table 1: Budget Summary (Table A1)

Description 2012/13 2013/14 2014/15

R thousandsAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Pre-audit

outcome

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Financial Performance

Property rates 2,373 2,289 2,599 4,220 3,357 3,357 3,357 3,578 3,800 4,024

Serv ice charges 14,847 15,175 16,230 20,633 20,710 20,710 20,710 22,041 23,444 24,870

Inv estment rev enue – 663 391 318 312 312 312 333 354 354

Transfers recognised - operational 17,316 24,215 22,424 24,059 24,059 24,059 24,059 24,032 24,785 26,434

Other ow n rev enue 3,907 3,124 6,861 7,428 13,665 13,665 13,665 11,130 6,511 6,935

Total Revenue (excluding capital transfers

and contributions)

38,443 45,465 48,504 56,658 62,103 62,103 62,103 61,114 58,894 62,618

Employ ee costs 15,280 18,712 22,188 21,976 22,695 22,695 22,695 24,278 26,220 28,580

Remuneration of councillors 1,803 1,949 2,498 2,808 2,808 2,808 2,808 3,004 3,244 3,536

Depreciation & asset impairment 10,267 8,221 8,936 9,586 9,171 9,171 9,171 7,782 8,570 8,256

Finance charges 965 1,086 3,476 685 1,622 1,622 1,622 680 771 816

Materials and bulk purchases 10,705 10,661 11,563 12,146 13,506 13,506 13,506 13,969 15,442 17,469

Transfers and grants 2,117 – – 1,408 1,189 1,189 1,189 3,257 3,459 3,621

Other ex penditure 13,622 13,343 19,971 15,771 27,416 27,416 27,416 12,823 10,589 10,907

Total Expenditure 54,759 53,973 68,633 64,380 78,407 78,407 78,407 65,793 68,295 73,186

Surplus/(Deficit) (16,316) (8,508) (20,128) (7,722) (16,304) (16,304) (16,304) (4,679) (9,401) (10,568)

Transfers recognised - capital 29,907 9,628 23,168 17,257 17,257 17,257 17,257 14,283 9,085 9,355

Contributions recognised - capital & contributed assets – – – – – – – – – –

Surplus/(Deficit) after capital transfers &

contributions

13,591 1,120 3,040 9,535 953 953 953 9,604 (316) (1,214)

Share of surplus/ (deficit) of associate – – – – – – – – – –

Surplus/(Deficit) for the year 13,591 1,120 3,040 9,535 953 953 953 9,604 (316) (1,214)

Capital expenditure & funds sources

Capital expenditure 28,484 10,948 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355


Public contributions & donations – – – – – – – – – –

Borrow ing – – – – – – – – – –

Internally generated funds 177 – – – – – – – – –

Total sources of capital funds 28,484 10,948 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355

Financial position

Total current assets 9,373 13,165 7,381 18,221 20,404 20,404 20,404 28,741 26,898 24,694

Total non current assets 196,749 217,569 229,723 221,730 247,022 247,022 247,022 252,744 253,259 254,358

Total current liabilities 32,853 46,427 50,789 26,139 51,443 51,443 51,443 42,537 39,506 38,651

Total non current liabilities 12,517 10,529 9,496 10,810 12,810 12,810 12,810 12,187 9,938 10,932

Community w ealth/Equity 160,752 173,778 176,820 203,002 203,174 203,174 203,174 226,762 230,714 229,469

Cash flows

Net cash from (used) operating 32,164 11,618 13,535 20,644 20,974 20,974 20,974 12,025 5,107 5,584

Net cash from (used) inv esting (28,502) (8,842) (20,631) (16,394) (11,756) (11,756) (11,756) (9,283) (9,085) (9,355)

Net cash from (used) financing (66) (572) (1,044) (710) (710) (710) (710) (270) (270) (270)

Cash/cash equivalents at the year end 6,662 8,863 723 4,263 9,952 9,952 9,952 12,424 8,176 4,135

Cash backing/surplus reconciliation

Cash and inv estments av ailable 6,662 8,863 723 13,942 9,952 9,952 9,952 12,424 8,176 4,135

Application of cash and inv estments 19,369 30,875 37,271 13,683 20,763 20,763 20,763 11,817 8,066 6,724

Balance - surplus (shortfall) (12,706) (22,012) (36,549) 259 (10,811) (10,811) (10,811) 607 110 (2,589)

Asset management

Asset register summary (WDV) 194,842 217,569 229,268 211,297 238,053 238,053 252,284 252,284 252,799 253,898

Depreciation & asset impairment 10,267 8,221 8,936 9,586 9,171 9,171 7,782 7,782 8,570 8,256

Renew al of Ex isting Assets – – – – – – – – – –

Repairs and Maintenance 1,900 1,089 1,191 1,095 1,143 1,143 1,836 1,836 1,613 1,703

Free services

Cost of Free Basic Serv ices prov ided – – – – – – – – 2,877 3,055

Rev enue cost of free serv ices prov ided 783 596 376 884 488 488 488 488 587 623

Households below minimum service level

Water: – – – – – – – – – –

Sanitation/sew erage: – – 1 1 1 1 1 1 1 1

Energy : 2 2 2 2 2 2 2 2 2 2

Refuse: – – – – – – – – – –

2016/17 Medium Term Revenue &

Expenditure FrameworkCurrent Year 2015/16

NC076 Thembelihle - Table A1 Budget Summary

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Table 2 – Budgeted Financial Performance (Revenue and Expenditure by standard classification)

Table 2: Budget Summary (Table A2)

NC076 Thembelihle - Table A2 Budgeted Financial Performance (revenue and expenditure by standard classification)

Standard Classification Description Ref 2012/13 2013/14 2014/15

R thousand 1Audited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Revenue - Standard

Governance and administration 20,453 21,020 25,104 27,104 31,853 31,853 28,711 25,501 27,229

Ex ecutiv e and council 14,633 15,397 17,596 18,676 18,676 18,676 16,490 17,621 18,747

Budget and treasury office 5,318 5,023 5,593 7,784 6,596 6,596 6,388 6,995 7,542

Corporate serv ices 502 600 1,916 644 6,581 6,581 5,832 885 940

Community and public safety 534 1,728 1,320 1,518 2,521 2,521 2,618 2,787 2,951

Community and social serv ices 534 1,728 1,320 1,518 2,511 2,511 2,618 2,787 2,951

Sport and recreation – – – – – – – – –

Public safety – – – – 9 9 – – –

Housing – – – – – – – – –

Health – – – – – – – – –

Economic and environmental services 12,658 7,414 22,767 15,285 15,421 15,421 12,904 12,629 13,093

Planning and dev elopment 11,918 6,923 17,587 10,311 10,318 10,318 10,049 9,597 9,882

Road transport 740 491 5,180 4,974 5,103 5,103 2,855 3,032 3,211

Env ironmental protection – – – – – – – – –

Trading services 34,705 24,931 22,481 30,008 29,566 29,566 31,164 27,062 28,700

Electricity 12,969 11,409 10,279 11,647 11,534 11,534 12,768 13,596 14,440

Water 18,319 9,728 8,817 13,996 13,953 13,953 12,231 6,919 7,327

Waste w ater management 2,207 2,484 2,150 2,825 2,717 2,717 4,042 4,293 4,546

Waste management 1,210 1,310 1,236 1,539 1,361 1,361 2,122 2,254 2,387

Other 4 – – – – – – – – –

Total Revenue - Standard 2 68,350 55,093 71,673 73,915 79,360 79,360 75,397 67,979 71,973

Expenditure - Standard

Governance and administration 32,133 22,056 32,853 25,285 40,447 40,447 24,487 23,216 24,616

Ex ecutiv e and council 5,963 6,154 7,301 6,621 6,544 6,544 5,925 6,372 6,660

Budget and treasury office 11,557 10,617 17,868 13,131 27,893 27,893 12,866 10,658 11,363

Corporate serv ices 14,613 5,285 7,683 5,534 6,011 6,011 5,696 6,186 6,592

Community and public safety 827 1,466 1,270 1,444 1,787 1,787 1,884 2,860 3,047

Community and social serv ices 819 1,443 1,253 1,425 1,754 1,754 1,849 2,822 3,007

Sport and recreation – – – – – – – – –

Public safety 8 23 17 18 33 33 35 37 40

Housing – – – – – – – – –

Health – – – – – – – – –

Economic and environmental services 7,464 11,793 13,160 13,255 11,074 11,074 11,604 12,035 12,800

Planning and dev elopment 6,314 9,905 11,614 10,468 9,581 9,581 9,959 10,267 10,887

Road transport 1,150 1,888 1,547 2,787 1,493 1,493 1,645 1,769 1,913

Env ironmental protection – – – – – – – – –

Trading services 14,335 18,657 21,350 24,395 25,098 25,098 27,817 30,184 32,723

Electricity 9,378 9,145 10,804 14,171 15,179 15,179 15,955 17,000 18,714

Water 2,906 4,802 7,082 5,896 6,628 6,628 6,593 6,992 7,449

Waste w ater management 1,011 2,157 2,009 2,094 1,731 1,731 2,995 3,196 3,414

Waste management 1,039 2,552 1,455 2,234 1,561 1,561 2,275 2,996 3,146

Other 4 – – – – – – – – –

Total Expenditure - Standard 3 54,759 53,973 68,633 64,380 78,407 78,407 65,793 68,296 73,186

Surplus/(Deficit) for the year 13,590 1,120 3,040 9,535 953 953 9,604 (316) (1,213)

Current Year 2015/162016/17 Medium Term Revenue &

Expenditure Framework

16

Table 3 – Budgeted Financial Performance (revenue and expenditure by municipal vote)

Table 3: Budgeted Financial Performance (revenue and expenditure by municipal vote) (Table A3)

NC076 Thembelihle - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)

Vote Description Ref 2012/13 2013/14 2014/15

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Revenue by Vote 1

Vote 1 - Ex ecutiv e and Council 14,633 15,397 17,596 18,676 18,676 18,676 16,490 17,621 18,747

Vote 2 - Budget & Treasury 5,318 5,023 5,593 7,784 6,596 6,596 6,388 6,995 7,542

Vote 3 - Corporate Serv ices 502 600 1,916 644 6,581 6,581 5,832 885 940

Vote 4 - Community & Social Serv ices 534 1,728 1,320 1,518 2,511 2,511 2,618 2,787 2,951

Vote 5 - Public Safety – – – – 9 9 – – –

Vote 6 - Planning & Dev elopment 11,918 6,923 17,587 10,311 10,318 10,318 10,049 9,597 9,882

Vote 7 - Road Transport 740 491 5,180 4,974 5,103 5,103 2,855 3,032 3,211

Vote 8 - Electricity 12,969 11,409 10,279 11,647 11,534 11,534 12,768 13,596 14,440

Vote 9 - Water 18,319 9,728 8,817 13,996 13,953 13,953 12,231 6,919 7,327

Vote 10 - Water Waste Management 2,207 2,484 2,150 2,825 2,717 2,717 4,042 4,293 4,546

Vote 11 - Waste Management 1,210 1,310 1,236 1,539 1,361 1,361 2,122 2,254 2,387

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 2 68,350 55,093 71,673 73,915 79,360 79,360 75,397 67,979 71,973

Expenditure by Vote to be appropriated 1

Vote 1 - Ex ecutiv e and Council 5,963 6,154 7,301 6,621 6,544 6,544 5,925 6,372 6,660

Vote 2 - Budget & Treasury 11,557 10,617 17,868 13,131 27,893 27,893 12,866 10,658 11,363

Vote 3 - Corporate Serv ices 14,613 5,285 7,683 5,534 6,011 6,011 5,696 6,186 6,592

Vote 4 - Community & Social Serv ices 819 1,443 1,253 1,425 1,754 1,754 1,849 2,822 3,007

Vote 5 - Public Safety 8 23 17 18 33 33 35 37 40

Vote 6 - Planning & Dev elopment 6,314 9,905 11,614 10,468 9,581 9,581 9,959 10,267 10,887

Vote 7 - Road Transport 1,150 1,888 1,547 2,787 1,493 1,493 1,645 1,769 1,913

Vote 8 - Electricity 9,378 9,145 10,804 14,171 15,179 15,179 15,955 17,000 18,714

Vote 9 - Water 2,906 4,802 7,082 5,896 6,628 6,628 6,593 6,992 7,449

Vote 10 - Water Waste Management 1,011 2,157 2,009 2,094 1,731 1,731 2,995 3,196 3,414

Vote 11 - Waste Management 1,039 2,552 1,455 2,234 1,561 1,561 2,275 2,996 3,146

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 2 54,759 53,973 68,633 64,380 78,407 78,407 65,793 68,296 73,186

Surplus/(Deficit) for the year 2 13,590 1,120 3,040 9,535 953 953 9,604 (316) (1,213)

Current Year 2015/162016/17 Medium Term Revenue &

Expenditure Framework

17

Table 4 – Budgeted Financial Performance (revenue and expenditure)

Table 4: Budgeted Financial Performance (revenue and expenditure) (Table A4

Table 5 – Budgeted Capital Expenditure by vote, standard classification and funding

NC076 Thembelihle - Table A4 Budgeted Financial Performance (revenue and expenditure)

Description Ref 2012/13 2013/14 2014/15

R thousand 1Audited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Pre-audit

outcome

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Revenue By Source

Property rates 2 2,373 2,289 2,599 4,220 3,357 3,357 3,357 3,578 3,800 4,024

Property rates - penalties & collection charges

Serv ice charges - electricity rev enue 2 8,780 8,729 10,795 11,204 11,401 11,401 11,401 12,184 12,976 13,785

Serv ice charges - w ater rev enue 2 2,656 3,007 2,070 5,381 5,395 5,395 5,395 5,684 6,037 6,393

Serv ice charges - sanitation rev enue 2 2,202 2,245 2,250 2,618 2,572 2,572 2,572 2,742 2,912 3,084

Serv ice charges - refuse rev enue 2 1,209 1,193 1,115 1,430 1,341 1,341 1,341 1,430 1,518 1,608

Serv ice charges - other

Rental of facilities and equipment 417 304 433 545 805 805 805 325 347 370

Interest earned - ex ternal inv estments 663 391 318 312 312 312 333 354 354

Interest earned - outstanding debtors 1,772 785 808 1,393 544 544 544 580 616 652

Div idends receiv ed – – –

Fines 717 924 3,879 4,783 4,841 4,841 4,841 2,571 2,735 2,896

Licences and permits 26 253 213 195 242 242 242 287 304 322

Agency serv ices – – –

Transfers recognised - operational 17,316 24,215 22,424 24,059 24,059 24,059 24,059 24,032 24,785 26,434

Other rev enue 2 976 674 1,527 512 1,933 1,933 1,933 2,368 2,509 2,695

Gains on disposal of PPE 183 5,300 5,300 5,300 5,000

Total Revenue (excluding capital transfers

and contributions)

38,443 45,465 48,504 56,658 62,103 62,103 62,103 61,114 58,894 62,618

Expenditure By Type

Employ ee related costs 2 15,280 18,712 22,188 21,976 22,695 22,695 22,695 24,278 26,220 28,580

Remuneration of councillors 1,803 1,949 2,498 2,808 2,808 2,808 2,808 3,004 3,244 3,536

Debt impairment 3 6,054 4,483 6,690 2,400 17,120 17,120 17,120 4,012 1,500 1,500

Depreciation & asset impairment 2 10,267 8,221 8,936 9,586 9,171 9,171 9,171 7,782 8,570 8,256

Finance charges 965 1,086 3,476 685 1,622 1,622 1,622 680 771 816

Bulk purchases 2 8,805 9,572 10,372 11,051 12,363 12,363 12,363 12,133 13,830 15,765

Other materials 8 1,900 1,089 1,191 1,095 1,143 1,143 1,143 1,836 1,613 1,703

Contracted serv ices 480 64 92 171 267 267 267 221 235 249

Transfers and grants 2,117 – – 1,408 1,189 1,189 1,189 3,257 3,459 3,621

Other ex penditure 4, 5 7,088 8,796 12,998 13,199 10,029 10,029 10,029 8,590 8,854 9,159

Loss on disposal of PPE 193

Total Expenditure 54,759 53,973 68,633 64,380 78,407 78,407 78,407 65,793 68,295 73,186

Surplus/(Deficit) (16,316) (8,508) (20,128) (7,722) (16,304) (16,304) (16,304) (4,679) (9,401) (10,568)


Contributions recognised - capital 6 – – – – – – – – – –

Contributed assets

Surplus/(Deficit) after capital transfers &

contributions

13,591 1,120 3,040 9,535 953 953 953 9,604 (316) (1,214)

Tax ation

Surplus/(Deficit) after taxation 13,591 1,120 3,040 9,535 953 953 953 9,604 (316) (1,214)

Attributable to minorities

Surplus/(Deficit) attributable to municipality 13,591 1,120 3,040 9,535 953 953 953 9,604 (316) (1,214)

Share of surplus/ (deficit) of associate 7

Surplus/(Deficit) for the year 13,591 1,120 3,040 9,535 953 953 953 9,604 (316) (1,214)



18

Table 5: Budget Capital Expenditure by vote, standard classification and funding (Table A5)

Table 6 – Budgeted Financial Position

NC076 Thembelihle - Table A5 Budgeted Capital Expenditure by vote, standard classification and funding

Vote Description Ref 2012/13 2013/14 2014/15

R thousand 1Audited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Pre-audit

outcome

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Capital expenditure - Vote

Multi-year expenditure to be appropriated 2

Vote 1 - Ex ecutiv e and Council – – – – – – – – – –

Vote 2 - Budget & Treasury – – – – – – – – – –

Vote 3 - Corporate Serv ices – – – – – – – – – –

Vote 4 - Community & Social Serv ices – – – – – – – – – –

Vote 5 - Public Safety – – – – – – – – – –

Vote 6 - Planning & Dev elopment 10,964 7,683 387 8,825 8,825 8,825 8,825 8,567 9,086 9,355

Vote 7 - Road Transport – – – – – – – – – –

Vote 8 - Electricity – – – – – – – – – –

Vote 9 - Water – – – – – – – – – –

Vote 10 - Water Waste Management – – – – – – – – – –

Vote 11 - Waste Management – – – – – – – – – –

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 7 10,964 7,683 387 8,825 8,825 8,825 8,825 8,567 9,086 9,355

Single-year expenditure to be appropriated 2

Vote 1 - Ex ecutiv e and Council 6 – – – – – – – – –

Vote 2 - Budget & Treasury 751 13 451 70 70 70 70 – – –

Vote 3 - Corporate Serv ices 74 – – – – – – – – –

Vote 4 - Community & Social Serv ices – 205 – – – – – – – –

Vote 5 - Public Safety – – – – – – – – – –

Vote 6 - Planning & Dev elopment 97 – 29 – – – – – – –

Vote 7 - Road Transport – – – – – – – – – –

Vote 8 - Electricity 1,061 1,081 1,054 – – – – – – –

Vote 9 - Water 15,532 1,274 18,683 8,362 8,362 8,362 8,362 5,716 – –

Vote 10 - Water Waste Management – 682 11 – – – – – – –

Vote 11 - Waste Management – 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 17,521 3,265 20,228 8,432 8,432 8,432 8,432 5,716 – –

Total Capital Expenditure - Vote 28,484 10,948 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355

Capital Expenditure - Standard

Governance and administration 831 13 451 70 70 70 70 – – –

Ex ecutiv e and council 6

Budget and treasury office 751 13 451 70 70 70 70

Corporate serv ices 74

Community and public safety – 205 – – – – – – – –

Community and social serv ices 205

Sport and recreation

Public safety

Housing

Health

Economic and environmental services 11,060 7,683 415 8,825 8,825 8,825 8,825 8,567 9,086 9,355

Planning and dev elopment 11,060 7,683 415 8,825 8,825 8,825 8,825 8,567 9,086 9,355

Road transport

Env ironmental protection

Trading services 16,593 3,047 19,748 8,362 8,362 8,362 8,362 5,716 – –

Electricity 1,061 1,081 1,054

Water 15,532 1,274 18,683 8,362 8,362 8,362 8,362 5,716

Waste w ater management 682 11

Waste management 11

Other

Total Capital Expenditure - Standard 3 28,484 10,948 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355

Funded by:

National Gov ernment 28,308 10,049 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355

Prov incial Gov ernment 218

District Municipality

Other transfers and grants 682

Transfers recognised - capital 4 28,308 10,948 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355

Public contributions & donations 5

Borrowing 6

Internally generated funds 177

Total Capital Funding 7 28,484 10,948 20,614 17,257 17,257 17,257 17,257 14,283 9,086 9,355



19

Table 6 – Budgeted Financial Position(Tabel A6)

Table 7 – Budgeted Cash Flows

NC076 Thembelihle - Table A6 Budgeted Financial Position

Description Ref 2012/13 2013/14 2014/15

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Pre-audit

outcome

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

ASSETS

Current assets

Cash 6,662 8,863 723 13,942 9,952 9,952 9,952 12,424 8,176 4,135

Call inv estment deposits 1 – – – – – – – – – –

Consumer debtors 1 1,580 2,749 2,981 3,828 10,000 10,000 10,000 12,688 15,094 16,930

Other debtors 999 1,409 3,676 402 402 402 402 3,579 3,579 3,579

Current portion of long-term receiv ables

Inv entory 2 131 145 2 50 50 50 50 50 50 50

Total current assets 9,373 13,165 7,381 18,221 20,404 20,404 20,404 28,741 26,898 24,694

Non current assets

Long-term receiv ables 1,907 439 455 460 460 460 460 460 460

Inv estments

Inv estment property 5,433 7,077 7,729 10,433 8,429 8,429 8,429 7,729 7,729 7,729

Inv estment in Associate

Property , plant and equipment 3 189,016 209,779 221,339 211,139 238,053 238,053 238,053 244,555 245,070 246,169

Agricultural

Biological

Intangible 394 275 200 158 80 80 80

Other non-current assets

Total non current assets 196,749 217,569 229,723 221,730 247,022 247,022 247,022 252,744 253,259 254,358

TOTAL ASSETS 206,122 230,735 237,105 239,951 267,427 267,427 267,427 281,485 280,158 279,051

LIABILITIES

Current liabilities

Bank ov erdraft 1

Borrow ing 4 633 698 1,087 710 710 710 710 270 270 270

Consumer deposits 494 476 474 487 587 587 587 694 576 574

Trade and other pay ables 4 24,154 38,593 41,421 16,863 30,120 30,120 30,120 24,000 22,000 22,000

Prov isions 7,573 6,660 7,806 8,079 20,025 20,025 20,025 17,573 16,660 15,806

Total current liabilities 32,853 46,427 50,789 26,139 51,443 51,443 51,443 42,537 39,506 38,651

Non current liabilities

Borrow ing 5,597 6,182 4,749 5,382 5,382 5,382 5,382 4,984 4,224 3,504

Prov isions 6,920 4,347 4,747 5,427 7,428 7,428 7,428 7,203 5,713 7,428

Total non current liabilities 12,517 10,529 9,496 10,810 12,810 12,810 12,810 12,187 9,938 10,932

TOTAL LIABILITIES 45,370 56,956 60,285 36,949 64,253 64,253 64,253 54,724 49,444 49,583

NET ASSETS 5 160,752 173,778 176,820 203,002 203,174 203,174 203,174 226,762 230,714 229,469

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 129,214 173,778 176,820 203,002 203,174 203,174 203,174 226,762 230,714 229,469

Reserv es 4 31,538 – – – – – – – – –

TOTAL COMMUNITY WEALTH/EQUITY 5 160,752 173,778 176,820 203,002 203,174 203,174 203,174 226,762 230,714 229,469



20

Table 7: Budgeted cash Flow (Table A7)

Table 8 – Cash backed reserves/accumulated surplus reconciliation

Table 8: Cash backed reserves/accumulated surplus reconciliation (Table A8

NC076 Thembelihle - Table A7 Budgeted Cash Flows

Description Ref 2012/13 2013/14 2014/15

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Pre-audit

outcome

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates, penalties & collection charges 2,536 1,225 653 4,009 3,290 3,290 3,290 2,505 2,660 2,817

Serv ice charges 16,377 19,197 12,783 14,732 16,568 16,568 16,568 15,428 16,411 17,409

Other rev enue 3,618 2,782 1,148 5,531 7,724 7,724 7,724 5,190 5,512 5,878

Gov ernment - operating 1 50,409 24,215 20,437 24,059 24,059 24,059 24,059 24,032 24,785 26,434

Gov ernment - capital 1 6,977 17,229 17,257 17,257 17,257 17,257 14,283 9,085 9,355

Interest 225 663 391 1,085 845 845 845 844 896 928

Div idends – – –

Payments

Suppliers and employ ees (38,711) (42,491) (35,729) (44,096) (47,148) (47,148) (47,148) (49,576) (53,471) (56,421)

Finance charges (216) (950) (3,377) (685) (1,622) (1,622) (1,622) (680) (771) (816)

Transfers and Grants 1 (2,073) (1,247) – – – – – –

NET CASH FROM/(USED) OPERATING ACTIVITIES 32,164 11,618 13,535 20,644 20,974 20,974 20,974 12,025 5,107 5,584

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 5,300 5,300 5,300 5,000 – –

Decrease (Increase) in non-current debtors 67 67 67 – – –

Decrease (increase) other non-current receiv ables 78 78 78 – – –

Decrease (increase) in non-current inv estments 55 55 55 – – –

Payments

Capital assets (28,502) (8,842) (20,631) (16,394) (17,257) (17,257) (17,257) (14,283) (9,085) (9,355)

NET CASH FROM/(USED) INVESTING ACTIVITIES (28,502) (8,842) (20,631) (16,394) (11,756) (11,756) (11,756) (9,283) (9,085) (9,355)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – –

Borrow ing long term/refinancing – – –

Increase (decrease) in consumer deposits – – –

Payments

Repay ment of borrow ing (66) (572) (1,044) (710) (710) (710) (710) (270) (270) (270)

NET CASH FROM/(USED) FINANCING ACTIVITIES (66) (572) (1,044) (710) (710) (710) (710) (270) (270) (270)

NET INCREASE/ (DECREASE) IN CASH HELD 3,596 2,204 (8,140) 3,540 8,507 8,507 8,507 2,472 (4,248) (4,041)

Cash/cash equiv alents at the y ear begin: 2 3,066 6,659 8,863 723 1,445 1,445 1,445 9,952 12,424 8,176

Cash/cash equiv alents at the y ear end: 2 6,662 8,863 723 4,263 9,952 9,952 9,952 12,424 8,176 4,135



NC076 Thembelihle - Table A8 Cash backed reserves/accumulated surplus reconciliation

Description Ref 2012/13 2013/14 2014/15

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Full Year

Forecast

Pre-audit

outcome

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Cash and investments available

Cash/cash equiv alents at the y ear end 1 6,662 8,863 723 4,263 9,952 9,952 9,952 12,424 8,176 4,135

Other current inv estments > 90 day s – – – 9,679 (0) (0) (0) (0) (0) (0)

Non current assets - Inv estments 1 – – – – – – – – – –

Cash and investments available: 6,662 8,863 723 13,942 9,952 9,952 9,952 12,424 8,176 4,135

Application of cash and investments

Unspent conditional transfers 7,269 11,620 6,785 863 – – – – – –

Unspent borrow ing – – – – – – – – –

Statutory requirements 2

Other w orking capital requirements 3 12,099 19,254 30,486 12,820 20,763 20,763 20,763 11,817 8,066 6,724

Other prov isions

Long term inv estments committed 4 – – – – – – – – – –

Reserv es to be backed by cash/inv estments 5

Total Application of cash and investments: 19,369 30,875 37,271 13,683 20,763 20,763 20,763 11,817 8,066 6,724

Surplus(shortfall) (12,706) (22,012) (36,549) 259 (10,811) (10,811) (10,811) 607 110 (2,589)



21

Table 9 – Asset Management

Table 9: Asset Management (Table A9)

22

Table 10 – Basic service delivery measurement

Table 10: Basic service delivery measurement (Table A10)

NC076 Thembelihle - Table A10 Basic service delivery measurement

2012/13 2013/14 2014/15

Outcome Outcome OutcomeOriginal

Budget

Adjusted

Budget

Full Year

Forecast

Budget Year

2016/17

Budget Year

+1 2017/18

Budget Year

+2 2018/19

Household service targets 1

Water:

Piped w ater inside dw elling 1,946 1,946 2,560 2,560 2,560 2,560 2,560 2,560 2,560

Piped w ater inside y ard (but not in dw elling) 455 455 – – – – – – –

Using public tap (at least min.serv ice lev el) 2 200 200 1,501 1,501 1,501 1,501 1,501 1,501 1,501

Other w ater supply (at least min.serv ice lev el) 4 – – – – – – – – –

Minimum Service Level and Above sub-total 2,601 2,601 4,061 4,061 4,061 4,061 4,061 4,061 4,061

Using public tap (< min.serv ice lev el) 3 – – – – – – – – –

Other w ater supply (< min.serv ice lev el) 4 – – – – – – – – –

No w ater supply – – – – – – – – –

Below Minimum Service Level sub-total – – – – – – – – –

Total number of households 5 2,601 2,601 4,061 4,061 4,061 4,061 4,061 4,061 4,061

Sanitation/sewerage:

Flush toilet (connected to sew erage) 1,761 1,761 1,761 2,229 2,229 2,229 2,229 2,229 2,229

Flush toilet (w ith septic tank) 161 161 161 – – – – – –

Chemical toilet – – – – – – – – –

Pit toilet (v entilated) 679 679 679 731 731 731 731 731 731

Other toilet prov isions (> min.serv ice lev el) – – – – – – – – –


Bucket toilet – – – – – – – – –

Other toilet prov isions (< min.serv ice lev el) – – – – – – – – –

No toilet prov isions – – 1,101 1,101 1,101 1,101 1,101 1,101 1,101

Below Minimum Service Level sub-total – – 1,101 1,101 1,101 1,101 1,101 1,101 1,101


Energy:

Electricity (at least min.serv ice lev el) 683 683 740 740 740 740 740 740 740

Electricity - prepaid (min.serv ice lev el) 43 43 1,820 1,820 1,820 1,820 1,820 1,820 1,820

Minimum Service Level and Above sub-total 726 726 2,560 2,560 2,560 2,560 2,560 2,560 2,560

Electricity (< min.serv ice lev el) – – – – – – – – –

Electricity - prepaid (< min. serv ice lev el) – – – – – – – – –

Other energy sources 1,875 1,875 1,875 1,875 1,875 1,875 1,875 1,875 1,875

Below Minimum Service Level sub-total 1,875 1,875 1,875 1,875 1,875 1,875 1,875 1,875 1,875


Refuse:

Remov ed at least once a w eek 2,601 2,601 4,061 4,061 4,061 4,061 4,061 4,061 4,061


Remov ed less frequently than once a w eek – – – – – – – – –

Using communal refuse dump – – – – – – – – –

Using ow n refuse dump – – – – – – – – –

Other rubbish disposal – – – – – – – – –

No rubbish disposal – – – – – – – – –

Below Minimum Service Level sub-total – – – – – – – – –


Households receiving Free Basic Service 7

Water (6 kilolitres per household per month) 620 2,601 2,560 2,560 2,560 2,560 2,560 2,560 2,560

Sanitation (free minimum lev el serv ice) 620 780 385 385 385 385 385 385 385

Electricity /other energy (50kw h per household per month) 620 780 385 385 385 385 385 385 385

Refuse (remov ed at least once a w eek) 620 780 385 385 385 385 385 385 385

Cost of Free Basic Services provided - Formal Settlements (R'000) 8

Water (6 kilolitres per indigent household per month) – – – – – – – 622 661

Sanitation (free sanitation serv ice to indigent households) – – – – – – – 1,146 1,217

Electricity /other energy (50kw h per indigent household per month) – – – – – – – 438 465

Refuse (remov ed once a w eek for indigent households) – – – – – – – 671 712

Cost of Free Basic Services provided - Informal Formal Settlements (R'000) – – – – – – – – –

Total cost of FBS provided – – – – – – – 2,877 3,055

Highest level of free service provided per household

Property rates (R v alue threshold) 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Water (kilolitres per household per month) 6 6 6 6 6 6 6 6 6

Sanitation (kilolitres per household per month)

Sanitation (Rand per household per month) 22 22 22 22 22 22 22 22 22

Electricity (kw h per household per month) 50 50 50 50 50 50 50 50 50

Refuse (av erage litres per w eek) 200 200 200 200 200 200 200 200 200

Revenue cost of subsidised services provided (R'000) 9

Property rates (tariff adjustment) ( impermissable values per section 17 of MPRA )

Property rates ex emptions, reductions and rebates and impermissable values in

excess of section 17 of MPRA) 783 596 376 745 363 363 363

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