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06 December 2017: 2nd Adjustment Budget 2017/2018

OUDTSHOORN MUNICIPALITY

Medium Term Revenue & Expenditure Framework (MTREF) 2nd Adjustments Budget 2017/2018 and Outer 2 Years

1

Table of Contents

PART 1 – ADJUSTMENTS BUDGET ........................................................................................................... 2

Section 1 – Mayoral Report .................................................................................................................... 2

Section 2 – Resolutions ........................................................................................................................... 4

Section 3 – Executive Summary .............................................................................................................. 5

Section 4 – Adjustments budget tables .................................................................................................. 9

PART 2 – SUPPORTING DOCUMENTATION ........................................................................................... 20

Section 5 – Adjustments to budget assumptions ................................................................................. 20

Section 6 – Adjustment to budget funding ........................................................................................... 20

Section 7 – Adjustment to expenditure on allocations and grant programs ........................................ 20

Section 8 – Adjustment to allocations or grants made by the municipality ......................................... 20

Section 9 – Adjustment to councillor allowances and employee benefits. .......................................... 20

Section 10 – Adjustment to capital expenditure. ................................................................................. 21

Section 11 – Other supporting documents. .......................................................................................... 21

Section 12 – Municipal Managers Quality Certification ....................................................................... 22

2

PART 1 – ADJUSTMENTS BUDGET

Section 1 – Mayoral Report

1.1 Foreword

Section 23 of the Municipal Budget Regulations (MBRR) –Timeframes for tabling of adjustments

budget stipulates as follows:

“23(3) If a national or provincial adjustments budget allocates or transfers additional revenues to the

municipality, the mayor of the municipality must, at the next available council meeting, but within 60

days of approval of the relevant national or provincial adjustments budget, table an adjustment

budget referred to in section 28(2) (b) of the Act in the municipal council to appropriate these

additional revenues.

Section 30 of the MFMA states:

“The appropriation of funds in an annual or adjustment budget lapses to the extent that those funds

are unspent at the end of the financial year to which the budget relates, except in the case of an

appropriation for expenditure made for a period longer than that financial year in terms of section 16

(3).”

Conditional grant funding must be refunded to the transferring authority, except where there is a roll-

over request, in terms of National Treasury Circulars 67 which outlines the process to be followed

regarding unspent Grant funding. Provincial Treasury has adopted the same approach with regard to

unspent provincial grant funding.

The adjusted budget tabled in council here today was compiled after consideration of the additional

funds allocated to the municipality and roll-overs from the 2016/17 financial year.

1.2 Background/Discussion

The additional grant receipt as promulgated in Government Gazette 7841 Dated 27 October 2017 and

Government Gazette 7848 Dated 23 November 2017, entails an R 2.780 million in respect of Western

Cape Financial Management Support Grant of which the municipality will only receive R2.580 million

as per the Memorandum of Agreement, R1.5 million in respect of the Cango Caves Infrastructure

Grant and R 66 000 in respect of Local Government Graduate Internship Grant. The amounts of R 1.1

million in respect of Human settlement development grant was allocated through additional

Memorandum of Agreements signed.

The provincial roll overs from the 2016/17 financial year entails an R 400 000 for the Western Cape

Financial Management Support Grant, R 1.2 million in respect of the Fire Service Capacity Building

Grant, R959 416 in respect of the Municipal Drought Support Grant and R54 904 in respect of the Local

Government Graduate Internship Grant.

The National roll overs from the 2016/17 financial year entails an R 3 million in respect of the

Integrated National Electrification Programme.

3

The total additional allocations to Oudtshoorn amounts to R 5.246 million, total provincial roll over

amount to R 2.5 million and the total national roll overs R 3 million.

1.3 Legal requirements

In order to submit a report to Council to consider possible adjustments to the MTREF, the stipulations

of Section 28 of the MFMA as well as Section 23(3) of the MBRR need to be highlighted:

The compilation of an adjustments budget is given in Sections 28 and 72(3) (b) of the Municipal

Finance Management Act and the Municipal Budget and Reporting regulations.

Section 28 of the MFMA – Municipal adjustments budgets;

“28 (1) A municipality may revise an approved annual budget through an adjustments budget.

(2) An adjustments budget—

(a) Must adjust the revenue and expenditure estimates downwards if there is material under

collection of revenue during the current year;

(b) may appropriate additional revenues that have become available over and above those

anticipated in the annual budget, but only to revise or accelerate spending programmes

already budgeted for;

(C) may, within a prescribed framework, authorise unforeseeable and unavoidable expenditure

recommended by the mayor of the municipality;

(d) May authorise the utilisation of projected savings in one vote towards spending under

another vote;

(e) May authorise the spending of funds that were unspent at the end of the past financial year

where the under-spending could not reasonably have been foreseen at the time to include

projected roll-overs when the annual budget for the current year was approved by the council;

(f) May correct any errors in the annual budget; and

(g) May provide for any other expenditure within a prescribed framework.

(3) An adjustments budget must be in a prescribed form.

(4) Only the mayor may table an adjustments budget in the municipal council, but an adjustments

budget in terms of subsection (2) (b) to (g) may only be tabled within any prescribed limitations as

to timing or frequency.

(5) When an adjustments budget is tabled, it must be accompanied by—

(a) An explanation how the adjustments budget affects the annual budget;

(b) A motivation of any material changes to the annual budget;

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(c) An explanation of the impact of any increased spending on the annual budget and the

annual budgets for the next two financial years; and

(d) Any other supporting documentation that may be prescribed.

(6) Municipal tax and tariffs may not be increased during a financial year except when required in

terms of a financial recovery plan.

(7) Sections 22(b), 23(3) and 24(3) apply in respect of an adjustments budget, and in such

application a reference in those sections to an annual budget must be read as a reference to an

adjustments budget.

Section 72(3) for the Mid-year budget and performance assessment determines as follows;

“72 (3) the accounting officer must, as part of the review—

(a) Make recommendations as to whether an adjustments budget is necessary; and

(b) Recommend revised projections for revenue and expenditure to the extent that this may be

necessary.

Section 2 – Resolutions

Oudtshoorn Municipality Adjustments MTREF 2017/2018

Recommendation by the Mayor

(a) That it be noted that an adjustment budget is necessary in accordance with Section 23(3) of

the Municipal Budget and reporting regulations as a result of the additional funding

allocations made to Oudtshoorn.

(b) That the 2nd Annual Adjustments Budget of Oudtshoorn Municipality for the Financial year

2017/2018, as set-out in the schedules contained in Section 4, be considered as contained in

the following prescribed budget tables;

(i.) Table B1: Adjustments budget summary

(ii.) Table B2: Adjustments Budget Financial Performance (expenditure by standard

classification)

(iii.) Table B3: Adjustments Budget Financial Performance (expenditure by municipal vote)

(iv.) Table B4: Adjustments Budget Financial Performance (revenue by source)

(v.) Table B5 to B10 as well as supporting tables SB1 to SB19

(c) That adjustments permitted in terms of Section 28(2) (b) and (c) and Section 30 of the

Municipal Finance Management Act and reflected in the tables referred to in resolution (a)

above be approved.

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Section 3 – Executive Summary

3.1 Background

A municipality may incur expenditure only in terms of an approved budget and within the limits of the

amounts appropriated for the different votes of an approved budget. It is therefore necessary to

ensure that all available funding is brought into the annual budget to ensure that service delivery and

other programs are executed in accordance with the legislative requirements.

3.2 Framework for Adjustments Budget

a) The adjustments budget compiled within the above legal provisions which clearly prescribe

the process to be followed for the compilation of an adjustments budget. Specific attention

was given to part 4 of the municipal budget and reporting regulations.

b) The compilation of an adjustments budget must not be confused with shifting of funds in

terms of the provisions of the virement policy; however all virements made would be

accounted for in the changes within the adjustments budget.

3.3 Effect of the adjustments budget

The effect of the adjustments budget, especially in terms of the impact on the IDP and the addressing

of community priorities will be reflected in the revised IDP, it will form part of the medium term

strategy of the municipality.

3.4 Long term financial sustainability

The additional sources of funding will aid in the financial recovery process of the municipality and the

long term financial sustainability of the municipality.

3.5 Reasons for the adjustments budget

The adjustments budget consists of a capital and operating budget which is included in this report.

The budget was compiled within the provisions of the current legal framework applicable to

municipalities as set out above. The section hereunder includes a narrative in respect of all proposed

adjustments and reference to the budget tables where relevant.

6

3.5.1 Capital Budget

A comparison between the funding sources applicable to the originally approved and revised capital

budget is set out in the table below.

Funding Source Original Budget

1st

Adjustments

Budget Adjustments

2nd Adjustments

Budget

EEDSM 2 631 579.00 2 631 579.00 - 2 631 579.00

FMG - - - -

INEP - - 2 631 579.00 2 631 579.00

MIG 18 483 333.85 18 483 333.85 176 317.00 18 659 649.00

FMSG - 275 000.00 (33 771.93) 241 228.07

Libraries Services Conditional Grant - - 43 859.65 43 859.65

Fire Service Capacity Building Grant - - 1 052 632.00 1 052 632.00

Transfer from Operational Revenue 7 349 000.00 7 349 000.00 - 7 349 000.00

Water Services operating grant 8 771 930.00 8 771 930.00 - 8 771 930.00

Cango Caves Infrastructure Grant 1 315 789.47 1 315 789.47

Municipal Drought Support Grant - 841 593.00 841 593.00

37 235 843 37 510 843 6 027 998 43 538 839

National Government 29 886 842.85 2 807 896.00 32 694 737.00

Provincial Government - 275 000.00 3 220 102.19 3 495 102.19

Internally generated funds 7 349 000.00 - 7 349 000.00

37 235 843 275 000 6 027 998 43 538 839

Capital is mainly funded from grants with the exception of refurbishment of parts of the electrical

network and a few small capital items that needed to be replaced and were essential for service

delivery and/or revenue generation that are funded through own revenue in the amount of

R7,349,000. Total Capital Expenditure for the 2nd Revised Budget is R43.538 Million.

The main factors contributing to the adjustment of the capital budget are as follows:

Making provision for the Rose Valley Phase 2 Electrification in the amount of R 2.632 million

(VAT Excl.). This is funded from the Integrated National Electrification programme, which was

approved for roll-over from 2016/17, by the National Treasury

Making provision for the Fire Service Capacity Building Grant in the amount of R1.052 million

(VAT Excl.) which was approved by Provincial Treasury as a roll-over from the 2016/17

financial year to purchase a fire truck.

Making provision for the Cango Caves Infrastructure Grant in the amount of R1.315 million

(VAT Excl.).

Making provision as a for the Municipal Drought Support Grant, which was approved by

Provincial Treasury as a roll-over from the 2016/17 financial year, R841 593 (VAT Excl.)

There are also small adjustments to the Libraries Services Conditional Grant, Municipal

Infrastructure Grant and Finance Management Support Grant for small capital items, which

were incorrectly allocated in the original budget.

7

The SB19 below reflects all capital projects for the 2017/2018 financial year as revised in this 2nd

adjustments budget

WC045 Oudtshoorn - Supporting Table SB19 List of capital programmes and projects affected by Adjustments Budget - 6 December 2017

IDP Goal

Code

Individually

Approved

Yes/No

Asset Class Asset Sub-Class GPS co-

ordinates

R thousand 3 6 4 4 5Original

Budget

Adjusted

Budget

Parent municipality:

Tehcnical Services LAPTOP/COMPUTER AND SOFTWARE NEW N/A YES Other Assets Computers - hardware/equipment N/A 96

Tehcnical Services OFFICE FURNITURE EQUIPMENT NEW N/A YES Other Assets Furniture and Office Equipment N/A 79

Tehcnical Services CAMERAS NEW N/A YES Other Assets Machinery and Equipment N/A 9

Community Services USB MODULE & PS NEW N/A YES Other Assets Machinery and Equipment N/A 9

Community Services EM SENSITISER/DISENSITISER NEW N/A YES Other Assets Machinery and Equipment N/A 8

Community Services VACUUM CLEANER NEW N/A YES Other Assets Machinery and Equipment N/A 3

Community Services LED TV NEW N/A YES Other Assets Machinery and Equipment N/A 16

Community Services BAR FRIDGES NEW N/A YES Other Assets Furniture and Office Equipment N/A 8

Community Services FIRE TRUCK NEW N/A YES Community Fire, safety & emergency N/A 1 053

Community Services SWIMMING POOL WEISER NEW N/A YES Sport and Recreation Facilities Outdoor Facilities N/A 70

Community Services REPLACEMENTS OF BEDS NEW N/A YES Furniture and Office Equipment Furniture and Office Equipment N/A 70

Community Services REPLACEMENT OF EQUIPMENT NEW N/A YES Machinery and Equipment Machinery and Equipment N/A 101

Community Services REHAB OF SPORTS FIELD LIGHTING UPGRADING N/A YES Infrastructure - Other Sportsfields & stadia N/A 6 403 –

Community Services DYSSELSDORP SPORTSFIELD PHASE2 UPGRADING N/A YES Infrastructure - Other Sportsfields & stadia N/A 926 970

Tehcnical Services OLD NEW WASTE DISPOSAL SITE-SOLID WASTE UPGRADING N/A YES Infrastructure - Other Waste Management N/A 3 947 3 407

Tehcnical Services ROADS STREETS (MIG) UPGRADING N/A YES Infrastructure - Road transport Roads, Pavements & Bridges N/A 1 340 2 880

Tehcnical Services REHAB STREETS STORMWATER-MIG UPGRADING N/A YES Infrastructure - Road transport Storm water N/A 1 920 –

Tehcnical Services UPGRADING OF STORMWATER SYSTEM-DE RUST UPGRADING N/A YES Infrastructure - Other Storm water N/A 439 –

Tehcnical Services UPGRADING OF STORMWATER SYSTEM-DYSSELSDORP UPGRADING N/A YES Infrastructure - Other Storm water N/A 439 –

Tehcnical Services UPGRADING OF STORMWATER SYSTEMS UPGRADING N/A YES Infrastructure - Other Storm water N/A 877 1 316

Tehcnical Services PAVING OF STREETS UPGRADING N/A YES Infrastructure - Road transport Roads, Pavements & Bridges N/A – 2 885

Tehcnical Services UPGRADING WASTE WATER TREATMENT WORKS-MIG UPGRADING N/A YES Infrastructure - Sanitation Sewerage purification N/A 2 193 2 895

Tehcnical Services DE RUST/DYSSELSDORP DRUOGHT RELIEF BOREHOLES AND INFRASTRUCTUREUPGRADING N/A YES Infrastructure - Water Reticulation N/A 842

Tehcnical Services BULK WATER SUPPLY UPGRADING N/A YES Infrastructure - Water Reticulation N/A – 439

Tehcnical Services NEW HIGHMAST LIGHT UPGRADING N/A YES Infrastructure - Electricity Street Lighting N/A – 3 684

Tehcnical Services ROSEVALLEY PHASE 2- ELECTRICAL CONNECTIONS UPGRADING N/A YES Infrastructure - Electricity Housing development N/A – 842

Tehcnical Services ROSEVALLEY PHASE 2- ELECTRICAL CONNECTIONS UPGRADING N/A YES Infrastructure - Electricity Housing development N/A – 1 526

Tehcnical Services ROSEVALLEY PHASE 2- ELECTRICAL CONNECTIONS UPGRADING N/A YES Infrastructure - Electricity Housing development N/A – 263

Municipal Manager SEWERAGE INFRASTRUCTURE UPGRADING N/A YES Other Assets Buildings N/A 1 316

18 483 24 786

(6 303)

Municipal Vote/Capital

projectProgram/Project description Project number

Medium Term Revenue

and Expenditure

Framework

Budget Year 2017/18

8

3.5.2 Operating budget

a. Operating revenue and expenditure summary

The following table indicates the effect of the adjustments budget on the operating revenue and

expenditure budget for 2017/18:

The 2017/2018 2nd Adjustments Budget (Total Revenue) amounts to R 665,502 million which consists

of operating revenue in the amount of R624.245 Million and capital grant revenue in the amount of

R41,256 Million. Budgeted operating expenditure amounts to R668.028 million.

Total revenue has increased by R10.860 Million from the 1st Adjustments budget to the 2nd

Adjustments budget, as a result of the increase in grant funding received as indicated above.

Total operating expenditure for the 2017/2018 2nd adjustments budget increases with R 2.900 Million

from the 1st Adjustments budget also as a result of the additional funding received that is budgeted to

be spent in accordance with the grant conditions during the 2017/2018 financial year.

Original Budget

1ST Adjustments

Budget 2nd Adjustments

Budget

Operating Revenue R 617 244 837 R 619 304 787 R 624 245 691

Operating Expenditure R 663 069 000 R 665 128 949 R 668 028 853

9

Section 4 – Adjustments budget tables

Table B1 Adjustments Budget Summary

WC045 Oudtshoorn - Table B1 Adjustments Budget Summary - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

1 2 3 4 5 6 7 8

R thousands A A1 B C D E F G H

Financial Performance

Property rates 83 694 83 694 – – – – – – 83 694 89 552 95 821

Serv ice charges 361 771 361 771 – – – – – – 361 771 390 512 415 487

Inv estment rev enue 2 757 2 757 – – – – – – 2 757 3 267 3 778

Transfers recognised - operational 108 062 109 693 – – – 4 941 – 4 941 114 634 96 095 81 022

Other ow n rev enue 60 961 61 390 – – – – – – 61 390 64 367 67 918

Total Revenue (excluding capital transfers

and contributions)

617 245 619 305 – – – 4 941 – 4 941 624 246 643 793 664 026

Employ ee costs 214 344 214 449 – – – – 5 315 5 315 219 764 228 681 244 358

Remuneration of councillors 10 591 10 591 – – – – – – 10 591 11 332 12 125

Depreciation & asset impairment 24 491 24 491 – – – – – – 24 491 26 950 29 645

Finance charges 6 929 6 929 – – – – – – 6 929 6 090 5 154

Materials and bulk purchases 155 080 155 080 – – – – – – 155 080 164 221 173 736

Transfers and grants 850 850 – – – – – – 850 900 952

Other ex penditure 250 784 252 739 – – – 2 900 (5 315) (2 415) 250 324 247 265 241 800

Total Expenditure 663 069 665 129 – – – 2 900 – 2 900 668 029 685 439 707 771

Surplus/(Deficit) (45 824) (45 824) – – – 2 041 – 2 041 (43 783) (41 646) (43 745)

Transfers recognised - capital 35 062 35 337 – – – 5 919 – 5 919 41 256 51 083 76 236

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

Surplus/(Deficit) after capital transfers &

contributions

(10 762) (10 487) – – – 7 960 – 7 960 (2 527) 9 437 32 491

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

Surplus/ (Deficit) for the year (10 762) (10 487) – – – 7 960 – 7 960 (2 527) 9 437 32 491

Capital expenditure & funds sources

Capital expenditure 37 236 37 511 – – – 6 028 – 6 028 43 539 49 582 72 524

Transfers recognised - capital 29 887 30 162 – – – 6 028 – 6 028 36 190 44 809 66 874

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

Borrow ing – – – – – – – – – – –

Internally generated funds 7 349 7 349 – – – – – – 7 349 4 773 5 650

Total sources of capital funds 37 236 37 511 – – – 6 028 – 6 028 43 539 49 582 72 524

Financial position

Total current assets 67 015 77 148 – – – 1 932 – 1 932 79 080 79 884 72 380

Total non current assets 751 007 778 223 – – – 6 028 – 6 028 784 251 806 343 849 221

Total current liabilities 95 355 103 113 – – – – – – 103 113 114 689 118 086

Total non current liabilities 216 263 251 200 – – – – – – 251 200 253 303 256 934

Community wealth/Equity 506 404 501 057 – – – 7 960 – 7 960 509 017 518 236 546 581

Cash flows

Net cash from (used) operating 45 318 47 380 – – – 7 960 – 7 960 55 340 48 976 75 234

Net cash from (used) inv esting (37 236) (37 511) – – – (6 028) – (6 028) (43 539) (49 582) (72 524)

Net cash from (used) financing (10 101) (9 633) – – – – – – (9 633) (10 444) (11 350)

Cash/cash equivalents at the year end 27 906 28 805 – – – 1 932 – 1 932 30 738 19 688 11 049

Cash backing/surplus reconciliation

Cash and inv estments av ailable 27 906 28 805 – – – 1 932 – 1 932 30 738 19 688 11 049

Application of cash and inv estments 1 278 13 852 – – – – – – 13 852 10 050 9 780

Balance - surplus (shortfall) 26 628 14 954 – – – 1 932 – 1 932 16 886 9 638 1 269

Asset Management

Asset register summary (WDV) 750 876 778 223 – – – 6 028 – 6 028 784 251 806 343 849 221


Renew al of Ex isting Assets 29 887 29 887 – – – (6 963) – (6 963) 22 923 5 702 2 490

Repairs and Maintenance 17 042 17 042 – – – – – – 17 042 17 709 18 889

Free services

Cost of Free Basic Serv ices prov ided – – – – – – – – – – –

Rev enue cost of free serv ices prov ided – – – – – – – – – – –

Households below minimum service level

Water: – – – – – – – – – – –

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

Energy : – – – – – – – – – – –

Refuse: 24 24 – – – – – – 24 24 24

Budget Year 2017/18

Description

10

The table above reflects a summary of the financial result of the municipality after

incorporating the adjustments proposed

Table B2 Adjustment Budget Financial Performance (standard classification)

WC045 Oudtshoorn - Table B2 Adjustments Budget Financial Performance (functional classification) - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

5 6 7 8 9 10 11 12

R thousands 1, 4 A A1 B C D E F G H

Revenue - Functional

Governance and administration 145 165 147 000 – – – 6 460 – 6 460 153 460 177 367 207 783

Ex ecutiv e and council 59 681 61 087 – – – 3 659 – 3 659 64 747 84 889 109 416

Finance and administration 85 484 85 913 – – – 2 801 – 2 801 88 714 92 477 98 366

Internal audit – – – – – – – – – – –

Community and public safety 42 686 43 186 – – – 1 100 – 1 100 44 286 27 547 8 460

Community and social serv ices 5 438 5 438 – – – – – – 5 438 5 597 6 016

Sport and recreation 2 182 2 682 – – – – – – 2 682 2 310 2 444

Public safety – – – – – – – – – – –

Housing 35 066 35 066 – – – 1 100 – 1 100 36 166 19 640 –

Health – – – – – – – – – – –

Economic and environmental services 55 013 55 013 – – – 300 – 300 55 313 54 807 57 761

Planning and dev elopment – – – – – 300 – 300 300 – –

Road transport 55 013 55 013 – – – – – – 55 013 54 807 57 761

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

Trading services 409 444 409 444 – – – 3 000 – 3 000 412 444 436 192 467 258

Energy sources 239 997 239 997 – – – 3 000 – 3 000 242 997 259 943 278 461

Water management 93 963 93 963 – – – – – – 93 963 96 312 104 224

Waste w ater management 43 681 43 681 – – – – – – 43 681 46 257 48 940

Waste management 31 803 31 803 – – – – – – 31 803 33 679 35 633

Other – – – – – – – – – – –

Total Revenue - Functional 2 652 307 654 642 – – – 10 860 – 10 860 665 502 695 913 741 262

Expenditure - Functional


Ex ecutiv e and council 92 473 92 473 – – – – – – 92 473 97 723 103 247

Finance and administration 64 810 65 239 – – – 2 801 – 2 801 68 040 70 571 74 361

Internal audit – – – – – – – – – – –

Community and public safety 107 825 109 456 – – – – 0 0 109 456 97 860 83 992

Community and social serv ices 33 944 33 944 – – – – 0 0 33 944 36 942 39 773

Sport and recreation 22 022 22 247 – – – – – – 22 247 23 868 25 758

Public safety 7 575 7 575 – – – – – – 7 575 7 421 7 883

Housing 44 284 45 690 – – – – – – 45 690 29 629 10 578

Health – – – – – – – – – – –

Economic and environmental services 93 862 93 862 – – – 99 – 99 93 961 95 932 102 704

Planning and dev elopment 22 152 22 152 – – – 300 – 300 22 452 22 282 23 733

Road transport 71 710 71 710 – – – (201) – (201) 71 509 73 650 78 971

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

Trading services 299 351 299 351 – – – – – – 299 351 318 346 338 183

Energy sources 190 909 190 909 – – – – – – 190 909 205 412 217 653

Water management 38 238 38 238 – – – – – – 38 238 40 317 42 980

Waste w ater management 40 714 40 714 – – – – – – 40 714 43 294 46 129

Waste management 29 489 29 489 – – – – – – 29 489 29 323 31 421

Other 4 747 4 747 – – – – – – 4 747 5 007 5 285

Total Expenditure - Functional 3 663 069 665 129 – – – 2 900 0 2 900 668 029 685 439 707 771

Surplus/ (Deficit) for the year (10 762) (10 487) – – – 7 960 (0) 7 960 (2 527) 10 474 33 491

Standard Description Ref

Budget Year 2017/18

11

The above table B2, illustrates the budgeted financial result for the 2017/2018 budget year as

amended in terms of the submitted adjustments budget. The budgeted financial result for the

2017/2018 financial year, amounts to a deficit of R4.027 million before capital spending.

Table B3 – Adjustments Budget Financial Performance (Revenue and expenditure by

municipal vote)

Table B3 below illustrates the revenue and expenditure by municipal vote, it is therefore also

indicative of the departments that mainly contribute to the adjustment of the budget for the

2016/2017 financial year.

WC045 Oudtshoorn - Table B3 Adjustments Budget Financial Performance (revenue and expenditure by municipal vote) - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Nat. or Prov.

Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

[Insert departmental structure etc] 3 7 8 9 10

R thousands A A1 E F G H

Revenue by Vote 1

Vote 1 - Vote 1 - Ex ecutiv e & Council 41 914 43 320 2 159 – 2 159 45 480 66 077 89 517

Vote 2 - Vote 2 - Municipal Manager 17 767 17 767 1 800 – 1 800 19 567 18 812 19 900

Vote 3 - Corporate Serv ices 240 669 121 – 121 790 360 480

Vote 4 - Financial Serv ices 85 244 85 244 2 680 – 2 680 87 924 92 117 97 886

Vote 5 - Vote 5 - Community and Public Safety 104 410 104 910 1 100 – 1 100 106 010 92 914 77 618

Vote 6 - Vote 6 - Technical Serv ices 402 732 402 732 3 000 – 3 000 405 732 424 595 454 862

Total Revenue by Vote 2 652 307 654 642 10 860 – 10 860 665 502 694 876 740 262

Expenditure by Vote 1

Vote 1 - Vote 1 - Ex ecutiv e & Council 70 166 70 166 – – – 70 166 74 011 78 036

Vote 2 - Vote 2 - Municipal Manager 37 408 37 408 300 – 300 37 708 38 498 40 966

Vote 3 - Corporate Serv ices 25 691 26 119 121 – 121 26 240 27 588 29 422

Vote 4 - Financial Serv ices 39 389 39 389 2 680 – 2 680 42 069 43 233 45 176

Vote 5 - Vote 5 - Community and Public Safety 181 181 182 812 – 0 0 182 812 174 151 165 559

Vote 6 - Vote 6 - Technical Serv ices 309 235 309 235 (201) – (201) 309 034 327 958 348 612

Total Expenditure by Vote 2 663 069 665 129 2 900 0 2 900 668 029 685 439 707 771

Surplus/ (Deficit) for the year 2 (10 762) (10 487) 7 960 (0) 7 960 (2 527) 9 437 32 491

Vote Description

Ref

Budget Year 2017/18

12

Table B4 – Adjustments Budget Financial Performance (Revenue and Expenditure)

WC045 Oudtshoorn - Table B4 Adjustments Budget Financial Performance (revenue and expenditure) - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10

R thousands 1 A A1 B C D E F G H

Revenue By Source

Property rates 2 83 694 83 694 – – – – – – 83 694 89 552 95 821

Serv ice charges - electricity rev enue 2 229 535 229 535 – – – – – – 229 535 243 078 257 176

Serv ice charges - w ater rev enue 2 72 691 72 691 – – – – – – 72 691 84 375 91 595

Serv ice charges - sanitation rev enue 2 35 700 35 700 – – – – – – 35 700 37 807 40 000

Serv ice charges - refuse rev enue 2 23 845 23 845 – – – – – – 23 845 25 252 26 716

Serv ice charges - other – – – – – – – – – – –

Rental of facilities and equipment 1 638 1 638 – – – 1 638 1 737 1 840

Interest earned - ex ternal inv estments 2 757 2 757 – – – 2 757 3 267 3 778

Interest earned - outstanding debtors 6 604 6 604 – – – 6 604 6 799 7 002

Div idends receiv ed – – – – – – – –

Fines, penalties and forfeits 11 896 11 896 – – – 11 896 12 598 13 329

Licences and permits 18 196 18 196 – – – 18 196 19 270 20 387

Agency serv ices – – – – – – – –

Transfers and subsidies 108 062 109 693 4 941 – 4 941 114 634 96 095 81 022

Other rev enue 2 22 627 23 056 – – – – – – 23 056 23 964 25 360

Gains on disposal of PPE – – – – – – – – – – –

Total Revenue (excluding capital transfers and

contributions)

617 245 619 305 – – – 4 941 – 4 941 624 246 643 793 664 026

Expenditure By Type

Employ ee related costs 214 344 214 449 – – – – 5 315 5 315 219 764 228 681 244 358

Remuneration of councillors 10 591 10 591 – – – 10 591 11 332 12 125

Debt impairment 24 382 24 382 – – – 24 382 25 853 27 391


Finance charges 6 929 6 929 – – – 6 929 6 090 5 154

Bulk purchases 155 080 155 080 – – – – – – 155 080 164 221 173 736

Other materials – – – – – – –

Contracted serv ices 30 155 30 155 – – – – – – 30 155 31 752 33 516

Transfers and subsidies 850 850 – – – 850 900 952

Other ex penditure 196 248 198 203 – – – 2 900 (5 315) (2 415) 195 788 189 660 180 893

Loss on disposal of PPE – – – – –

Total Expenditure 663 069 665 129 – – – 2 900 – 2 900 668 029 685 439 707 771

Surplus/(Deficit) (45 824) (45 824) – – – 2 041 – 2 041 (43 783) (41 646) (43 745)

Transfers and subsidies - capital (monetary

allocations) (National / Prov incial and District) 35 062 35 337 5 919 – 5 919 41 256 51 083 76 236 Transfers and subsidies - capital (monetary

allocations) (National / Prov incial Departmental

Agencies, Households, Non-profit Institutions,

Priv ate Enterprises, Public Corporatons, Higher – – – – –

Transfers and subsidies - capital (in-kind - all) – – – – –

Surplus/(Deficit) before taxation (10 762) (10 487) – – – 7 960 – 7 960 (2 527) 9 437 32 491

Tax ation – – – – –

Surplus/(Deficit) after taxation (10 762) (10 487) – – – 7 960 – 7 960 (2 527) 9 437 32 491

Attributable to minorities – – – – –

Surplus/(Deficit) attributable to municipality (10 762) (10 487) – – – 7 960 – 7 960 (2 527) 9 437 32 491

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

Surplus/ (Deficit) for the year (10 762) (10 487) – – – 7 960 – 7 960 (2 527) 9 437 32 491

Budget Year 2017/18

RefDescription

Table B4 above reflects the budgeted financial performance (Revenue and Expenditure) for the

revised budget. The revenue is listed per revenue source and the expenditure by type, a detailed

discussion on the major items are done in the narrative under section 3 above to place the proposed

adjustments in context.

13

Table B5 Adjustments Capital Expenditure Budget by Vote and Funding

WC045 Oudtshoorn - Table B5 Adjustments Capital Expenditure Budget by vote and funding - 6 December 2017

Budget Year

+1 2018/19

Budget Year +2

2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

BudgetAdjusted Budget

5 6 7 8 9 10 11 12


Capital expenditure - Vote

Multi-year expenditure to be adjusted 2

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

Vote 2 - Vote 2 - Municipal Manager 50 50 – – – – – – 50 – –

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

Vote 4 - Financial Serv ices 1 900 1 900 – – – – – – 1 900 – –

Vote 5 - Vote 5 - Community and Public Safety 12 176 12 176 – – – (496) – (496) 11 680 2 661 –

Vote 6 - Vote 6 - Technical Serv ices 23 109 23 109 – – – 6 680 – 6 680 29 790 29 666 49 191

Capital multi-year expenditure sub-total 3 37 236 37 236 – – – 6 184 – 6 184 43 420 32 327 49 191

Single-year expenditure to be adjusted 2

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

Vote 2 - Vote 2 - Municipal Manager – – – – – 1 316 – 1 316 1 316 – –

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

Vote 4 - Financial Serv ices – – – – – – – – – 1 500 1 650

Vote 5 - Vote 5 - Community and Public Safety – 275 – – – (5 340) – (5 340) (5 065) 640 –

Vote 6 - Vote 6 - Technical Serv ices – – – – – 3 868 – 3 868 3 868 15 115 21 682

Capital single-year expenditure sub-total – 275 – – – (156) – (156) 119 17 255 23 332

Total Capital Expenditure - Vote 37 236 37 511 – – – 6 028 – 6 028 43 539 49 582 72 524

Capital Expenditure - Functional


Ex ecutiv e and council 50 50 1 316 – 1 316 1 366 – –

Finance and administration 1 900 1 900 – – – 1 900 1 500 1 650

Internal audit – – – – – – – –

Community and public safety 8 229 8 504 – – – (5 297) – (5 297) 3 208 640 –

Community and social serv ices 350 350 44 – 44 394 – –

Sport and recreation 7 529 7 804 (6 393) – (6 393) 1 411 640 –

Public safety 350 350 1 053 – 1 053 1 403 – –

Housing – – – – – – – –

Health – – – – – – – –

Economic and environmental services 5 014 5 014 – – – 2 251 – 2 251 7 265 7 298 4 543

Planning and dev elopment – – – – – – – –

Road transport 5 014 5 014 2 251 – 2 251 7 265 7 298 4 543

Env ironmental protection – – – – – – – –

Trading services 22 043 22 043 – – – 7 758 – 7 758 29 801 40 145 66 331

Energy sources 6 831 6 831 6 316 – 6 316 13 146 12 483 15 872

Water management 9 072 9 072 1 280 – 1 280 10 352 20 175 41 668

Waste w ater management 2 193 2 193 702 – 702 2 895 4 825 8 791

Waste management 3 947 3 947 (540) – (540) 3 407 2 661 –

Other – – – – – – – –

Total Capital Expenditure - Functional 3 37 236 37 511 – – – 6 028 – 6 028 43 539 49 582 72 524

Funded by:

National Gov ernment 29 887 29 887 2 808 – 2 808 32 695 44 809 66 874

Prov incial Gov ernment – 275 3 220 – 3 220 3 495 – –

District Municipality – – – – – – – –

Other transfers and grants – – – – – – – –

Transfers recognised - capital 4 29 887 30 162 – – – 6 028 – 6 028 36 190 44 809 66 874

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

Borrowing – – – – – – – –

Internally generated funds 7 349 7 349 – – – 7 349 4 773 5 650

Total Capital Funding 37 236 37 511 – – – 6 028 – 6 028 43 539 49 582 72 524

Description Ref

Budget Year 2017/18

14

The proposed adjustments to the capital expenditure is included in the executive summary, the details

in respect of the funding sources are also included under section 3 to the report. Table B5 above

indicates the revised capital expenditure and sources of funding by vote.

Table B6 Adjustments Budget Financial Position

WC045 Oudtshoorn - Table B6 Adjustments Budget Financial Position - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. GovtOther Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


ASSETS

Current assets

Cash 17 906 5 287 1 932 1 932 7 220 4 688 1 049

Call inv estment deposits 1 10 000 23 518 – – – – – – 23 518 15 000 10 000

Consumer debtors 1 37 709 46 742 – – – – – – 46 742 58 485 59 500

Other debtors – – – – –

Current portion of long-term receiv ables – – – – – –

Inv entory 1 400 1 600 – 1 600 1 712 1 832

Total current assets 67 015 77 148 – – – 1 932 – 1 932 79 080 79 884 72 380

Non current assets

Long-term receiv ables – – – – – –

Inv estments – – – – – –

Inv estment property 65 861 63 334 – 63 334 63 334 63 334

Inv estment in Associate – – – – – –

Property , plant and equipment 1 684 729 694 631 – – – 6 028 – 6 028 700 659 722 251 767 149

Agricultural – – – – – –

Biological – – – – – –

Intangible 418 421 – 421 421 421

Other non-current assets – 19 836 – 19 836 20 337 18 317

Total non current assets 751 007 778 223 – – – 6 028 – 6 028 784 251 806 343 849 221

TOTAL ASSETS 818 022 855 370 – – – 7 960 – 7 960 863 331 886 227 921 601

LIABILITIES

Current liabilities

Bank ov erdraft – – – – – –

Borrow ing 10 101 10 101 – – – – – – 10 101 11 876 11 876

Consumer deposits 7 500 8 271 – 8 271 8 768 9 294

Trade and other pay ables 37 500 57 923 – – – – – – 57 923 65 216 65 925

Prov isions 40 254 26 818 – 26 818 28 829 30 991

Total current liabilities 95 355 103 113 – – – – – – 103 113 114 689 118 086

Non current liabilities

Borrow ing 1 46 775 80 489 – – – – – – 80 489 72 348 65 122

Prov isions 1 169 488 170 712 – – – – – – 170 712 180 955 191 812

Total non current liabilities 216 263 251 200 – – – – – – 251 200 253 303 256 934

TOTAL LIABILITIES 311 618 354 314 – – – – – – 354 314 367 991 375 020

NET ASSETS 2 506 404 501 057 – – – 7 960 – 7 960 509 017 518 236 546 581

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 506 404 501 057 – – – 7 960 – 7 960 509 017 518 236 546 581

Reserv es – – – – – – – – – – –

Minorities' interests – – – – –

TOTAL COMMUNITY WEALTH/EQUITY 506 404 501 057 – – – 7 960 – 7 960 509 017 518 236 546 581

Budget Year 2017/18

Description Ref

15

Table B6 above provides a summary of the financial position of the municipality after consideration

and inclusion of the proposed budget amendments.

Table B7 Adjustments Budget Cash Flows

WC045 Oudtshoorn - Table B7 Adjustments Budget Cash Flows - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates 81 183 79 509 – – – 79 509 85 075 91 030

Serv ice charges 350 918 343 683 – – – 343 683 370 986 394 713

Other rev enue 54 358 54 705 – – – 54 705 57 481 60 824

Gov ernment - operating 1 108 062 109 693 4 941 – 4 941 114 634 96 095 81 022

Gov ernment - capital 1 35 062 35 337 5 919 – 5 919 41 256 51 083 76 236

Interest 9 360 9 030 – – – 9 030 9 726 10 430

Div idends – – – – – –

Payments

Suppliers and employ ees (585 846) (576 798) (2 900) – (2 900) (579 698) (614 480) (632 914)

Finance charges (6 929) (6 929) – – – (6 929) (6 090) (5 154)

Transfers and Grants 1 (850) (850) – – – (850) (900) (952)

NET CASH FROM/(USED) OPERATING ACTIVITIES 45 318 47 380 – – – 7 960 – 7 960 55 340 48 976 75 234

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE – – – – – – –

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

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

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

Payments

Capital assets (37 236) (37 511) (6 028) – (6 028) (43 539) (49 582) (72 524)

NET CASH FROM/(USED) INVESTING ACTIVITIES (37 236) (37 511) – – – (6 028) – (6 028) (43 539) (49 582) (72 524)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – – – – –

Borrow ing long term/refinancing – – – – – –

Increase (decrease) in consumer deposits – 468 – – 468 496 526

Payments

Repay ment of borrow ing (10 101) (10 101) – (10 101) (10 940) (11 876)

NET CASH FROM/(USED) FINANCING ACTIVITIES (10 101) (9 633) – – – – – – (9 633) (10 444) (11 350)

NET INCREASE/ (DECREASE) IN CASH HELD (2 018) 236 – – – 1 932 – 1 932 2 169 (11 050) (8 639)

Cash/cash equiv alents at the y ear begin: 2 29 924 28 569 – 28 569 30 738 19 688

Cash/cash equiv alents at the y ear end: 2 27 906 28 805 – – – 1 932 – 1 932 30 738 19 688 11 049

Description Ref

Budget Year 2017/18

The closing balance of the budgeted cash flow reflects a slight increase in cash after taking into

consideration the proposed adjustments contained in this report

16

Table B8 Cash Backed reserves / accumulated surplus reconciliation

WC045 Oudtshoorn - Table B8 Cash backed reserves/accumulated surplus reconciliation - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or

Prov. Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

3 4 5 6 7 8 9 10


Cash and investments available

Cash/cash equiv alents at the y ear end 1 27 906 28 805 – – – 1 932 – 1 932 30 738 19 688 11 049

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

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

Cash and investments available: 27 906 28 805 – – – 1 932 – 1 932 30 738 19 688 11 049

Applications of cash and investments

Unspent conditional transfers 7 500 9 839 – – – – – – 9 839 9 438 4 775

Unspent borrow ing – –

Statutory requirements – –

Other w orking capital requirements 2 (6 222) 4 013 – – 4 013 612 5 005

Other prov isions – –

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

Reserv es to be backed by cash/inv estments – – – – – – –

Total Application of cash and investments: 1 278 13 852 – – – – – – 13 852 10 050 9 780

Surplus(shortfall) 26 628 14 954 – – – 1 932 – 1 932 16 886 9 638 1 269

RefDescription

Budget Year 2017/18

17

Table B9 Asset Management

WC045 Oudtshoorn - Table B9 Asset Management - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or Prov.

Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

7 8 9 10 11 12 13 14


CAPITAL EXPENDITURE

Total New Assets to be adjusted 1 7 349 7 624 – – – 8 404 – 8 404 16 028 13 983 20 842

Electrical Infrastructure 4 199 4 199 – – – 6 316 – 6 316 10 515 12 483 15 872

Water Supply Infrastructure 300 300 – – – 842 – 842 1 142 – –

Sanitation Infrastructure – – – – – – – – – – 3 320

Infrastructure 4 499 4 499 – – – 7 157 – 7 157 11 656 12 483 19 192

Community Facilities 50 50 – – – – – – 50 – –

Sport and Recreation Facilities 200 280 – – – (10) – (10) 270 – –

Community Assets 250 330 – – – (10) – (10) 320 – –

Computer Equipment 1 500 1 500 – – – 96 – 96 1 596 1 500 1 650

Furniture and Office Equipment 350 430 – – – 122 – 122 552 – –

Machinery and Equipment 450 565 – – – (14) – (14) 551 – –

Transport Assets 300 300 – – – 1 053 – 1 053 1 353 – –

Total Renewal of Existing Assets to be adjusted 2 29 887 29 887 – – – (6 963) – (6 963) 22 923 5 702 2 490

Roads Infrastructure 5 014 5 014 – – – (1 920) – (1 920) 3 094 3 070 –

Storm water Infrastructure – – – – – – – – – – –

Electrical Infrastructure 2 632 2 632 – – – – – – 2 632 – –

Water Supply Infrastructure 8 772 8 772 – – – – – – 8 772 2 632 2 490

Sanitation Infrastructure 2 193 2 193 – – – – – – 2 193 – –

Solid Waste Infrastructure 3 947 3 947 – – – – – – 3 947 – –

Infrastructure 22 558 22 558 – – – (1 920) – (1 920) 20 638 5 702 2 490

Community Facilities – – – – – – – – – – –

Sport and Recreation Facilities 7 329 7 329 – – – (6 359) – (6 359) 970 – –

Community Assets 7 329 7 329 – – – (6 359) – (6 359) 970 – –

Total Upgrading of Existing Assets to be adjusted 2a – – – – – 4 587 – 4 587 4 587 29 897 49 191

Roads Infrastructure – – – – – 3 987 – 3 987 3 987 4 228 4 543

Water Supply Infrastructure – – – – – 439 – 439 439 17 544 39 178

Sanitation Infrastructure – – – – – 702 – 702 702 4 825 5 471

Solid Waste Infrastructure – – – – – (540) – (540) (540) 2 661 –

Infrastructure – – – – – 4 587 – 4 587 4 587 29 257 49 191

Sport and Recreation Facilities – – – – – – – – – 640 –

Community Assets – – – – – – – – – 640 –

Total Capital Expenditure to be adjusted 4

Roads Infrastructure 5 014 5 014 – – – 2 067 – 2 067 7 081 7 298 4 543


Electrical Infrastructure 6 831 6 831 – – – 6 316 – 6 316 13 146 12 483 15 872

Water Supply Infrastructure 9 072 9 072 – – – 1 280 – 1 280 10 352 20 175 41 668

Sanitation Infrastructure 2 193 2 193 – – – 702 – 702 2 895 4 825 8 791

Solid Waste Infrastructure 3 947 3 947 – – – (540) – (540) 3 407 2 661 –

Infrastructure 27 057 27 057 – – – 9 824 – 9 824 36 881 47 442 70 874

Community Facilities 50 50 – – – – – – 50 – –

Sport and Recreation Facilities 7 529 7 609 – – – (6 369) – (6 369) 1 240 640 –

Community Assets 7 579 7 659 – – – (6 369) – (6 369) 1 290 640 –

Computer Equipment 1 500 1 500 – – – 96 – 96 1 596 1 500 1 650

Furniture and Office Equipment 350 430 – – – 122 – 122 552 – –

Machinery and Equipment 450 565 – – – (14) – (14) 551 – –

Transport Assets 300 300 – – – 1 053 – 1 053 1 353 – –

TOTAL CAPITAL EXPENDITURE to be adjusted 4 37 236 37 511 – – – 6 028 – 6 028 43 539 49 582 72 524

Description Ref

Budget Year 2017/18

18

ASSET REGISTER SUMMARY - PPE (WDV) 5

Roads Infrastructure 134 278 138 826 2 067 2 067 140 892 141 959 140 441

Electrical Infrastructure 64 434 64 120 6 316 6 316 70 436 79 681 92 152

Water Supply Infrastructure 220 412 215 169 1 280 1 280 216 449 232 821 270 395

Sanitation Infrastructure 39 680 39 500 702 702 40 201 43 925 51 550

Solid Waste Infrastructure 5 993 6 943 (540) (540) 6 403 8 282 7 094

Infrastructure 464 798 464 556 – – – 9 824 – 9 824 474 381 506 668 561 631

Community Facilities 129 902 37 445 – – 37 445 37 427 37 416

Sport and Recreation Facilities 82 212 53 365 (6 369) (6 369) 46 996 47 046 46 595

Community Assets 212 114 90 810 – – – (6 369) – (6 369) 84 441 84 473 84 010

Heritage Assets – 12 893 – – 12 893 12 055 11 223

Rev enue Generating – 63 334 – – 63 334 63 334 63 334

Inv estment properties – 63 334 – – – – – – 63 334 63 334 63 334

Operational Buildings 49 818 114 219 1 316 1 316 115 535 105 186 92 746

Other Assets 49 818 114 219 – – – 1 316 – 1 316 115 535 105 186 92 746

Licences and Rights 418 421 – – 421 421 421

Intangible Assets 418 421 – – – – – – 421 421 421

Computer Equipment 3 757 3 363 96 96 3 459 4 959 6 609

Furniture and Office Equipment 7 676 4 048 122 122 4 170 4 170 4 170

Machinery and Equipment 4 855 3 388 (14) (14) 3 374 3 374 3 374

Transport Assets 7 440 17 486 1 053 1 053 18 539 18 539 18 539

Libraries – 3 703 – – 3 703 3 163 3 163

TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 5 750 876 778 223 – – – 6 028 – 6 028 784 251 806 343 849 221

EXPENDITURE OTHER ITEMS


Repairs and Maintenance by asset class 3 17 042 17 042 – – – – – – 17 042 17 709 18 889

Roads Infrastructure 3 831 3 831 – – – – – – 3 831 4 109 4 358


Electrical Infrastructure 3 092 3 092 – – – – – – 3 092 3 238 3 402

Water Supply Infrastructure 3 222 3 222 – – – – – – 3 222 2 958 3 199

Sanitation Infrastructure 1 186 1 186 – – – – – – 1 186 1 186 1 231

Solid Waste Infrastructure 647 647 – – – – – – 647 663 680

Infrastructure 11 978 11 978 – – – – – – 11 978 12 152 12 870

Community Facilities 865 865 – – – – – – 865 1 016 1 167

Sport and Recreation Facilities 936 936 – – – – – – 936 1 207 1 448

Community Assets 1 801 1 801 – – – – – – 1 801 2 223 2 614

Operational Buildings 2 036 2 036 – – – – – – 2 036 2 094 2 152

Other Assets 2 036 2 036 – – – – – – 2 036 2 094 2 152

Computer Equipment 165 165 – – – – – – 165 175 185

Furniture and Office Equipment 197 197 – – – – – – 197 199 202

Machinery and Equipment 865 865 – – – – – – 865 866 866

TOTAL EXPENDITURE OTHER ITEMS to be adjusted 41 533 41 533 – – – – – – 41 533 44 659 48 535

Renewal and upgrading of Existing Assets as % of total capex 80.3% 79.7% 63.2% 71.8% 71.3%

Renewal and upgrading of Existing Assets as % of deprecn" 122.0% 122.0% 112.3% 132.1% 174.3%

R&M as a % of PPE 2.3% 2.2% 2.2% 2.2% 2.2%

Renewal and upgrading and R&M as a % of PPE 6.2% 6.0% 5.7% 6.6% 8.3%

19

Table B10 Basic Service Delivery Measurement

WC045 Oudtshoorn - Table B10 Basic service delivery measurement - 6 December 2017

Budget Year

+1 2018/19

Budget Year

+2 2019/20

Original

Budget

Prior

Adjusted

Accum.

Funds

Multi-year

capital

Unfore.

Unavoid.

Nat. or Prov.

Govt

Other

Adjusts.

Total

Adjusts.

Adjusted

Budget

Adjusted

Budget

Adjusted

Budget

7 8 9 10 11 12 13 14

A A1 B C D E F G H

Household service targets 1

Water:

Piped w ater inside dw elling 21759 21759 – 22 21759 21759

Piped w ater inside y ard (but not in dw elling) 35 35 – 0 35 35

Using public tap (at least min.serv ice lev el) 2 1367 1367 – 1 1367 1367

Other w ater supply (at least min.serv ice lev el) 8633 8633 – 9 9 9

Minimum Service Level and Above sub-total 32 32 – – – – – – 32 32 32

Using public tap (< min.serv ice lev el) 3 0 0 – – 0 0

Other w ater supply (< min.serv ice lev el) 3,4 0 0 – – 0 0

No w ater supply 0 0 – – 0 0

Below Minimum Servic Level sub-total – – – – – – – – – – –

Total number of households 5 32 32 – – – – – – 32 32 32

Sanitation/sewerage:

Flush toilet (connected to sew erage) 15957 15957 – 15 957 15957 15957

Flush toilet (w ith septic tank) 1444 1444 – 1 444 1444 1444

Chemical toilet 0 0 – – 0 0

Pit toilet (v entilated) 0 0 – – 0 0

Other toilet prov isions (> min.serv ice lev el) 0 0 – – 0 0

Minimum Service Level and Above sub-total 17 401 17 401 – – – – – – 17 401 17 401 17 401

Bucket toilet 0 – – 0 0

Other toilet prov isions (< min.serv ice lev el) 0 – – 0 0

No toilet prov isions 0 – – 0 0


Total number of households 5 17 401 17 401 – – – – – – 17 401 17 401 17 401

Energy:

Electricity (at least min. serv ice lev el) 24012 24012 – 24 012 24012 24012

Electricity - prepaid (> min.serv ice lev el) 0 0 – – 0 0

Minimum Service Level and Above sub-total 24 012 24 012 – – – – – – 24 012 24 012 24 012

Electricity (< min.serv ice lev el) 0 – –

Electricity - prepaid (< min. serv ice lev el) 0 – –

Other energy sources 0 – –



Refuse:

Remov ed at least once a w eek (min.serv ice) 0 – – 0 0

Minimum Serv ice Lev el and Abov e sub-total – – – – – – – – – – –

Remov ed less frequently than once a w eek 24012 24012 – 24 012 24012 24012

Using communal refuse dump 0 – – 0 0

Using ow n refuse dump 0 – – 0 0

Other rubbish disposal 0 – – 0 0

No rubbish disposal 0 – – 0 0

Below Minimum Servic Level sub-total 24 012 24 012 – – – – – – 24 012 24 012 24 012


Households receiving Free Basic Service 15

Water (6 kilolitres per household per month) 9 035 9 035 – 9 034 659 9 568 10 123

Sanitation (free minimum lev el serv ice) 7 307 7 307 – 7 306 705 7 738 8 187

Electricity /other energy (50kw h per household per month) 6 823 6 823 – 6 822 953 7 226 7 645

Refuse (remov ed at least once a w eek) 7 439 7 439 – 7 439 404 7 878 8 335

Cost of Free Basic Services provided (R'000) 16

Water (6 kilolitres per household per month) – –

Sanitation (free sanitation serv ice) – –

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

Refuse (remov ed once a w eek) – –

Total cost of FBS provided (minimum social package) – – – – – – – – – – –

Highest level of free service provided

Property rates (R'000 v alue threshold) – –

Water (kilolitres per household per month) – –

Sanitation (kilolitres per household per month) – –

Sanitation (Rand per household per month) – –

Electricity (kw per household per month) – –

Refuse (av erage litres per w eek) – –

Revenue cost of free services provided (R'000) 17

Property rates (R15 000 threshold rebate) – –

Property rates (other ex emptions, reductions and rebates) – –

Water – –

Sanitation – –

Electricity /other energy – –

Refuse – –

Municipal Housing - rental rebates – –

Housing - top structure subsidies 6 – –

Other – –

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

Description Ref

Budget Year 2017/18

20

PART 2 – SUPPORTING DOCUMENTATION

Section 5 – Adjustments to budget assumptions

5.1 Revenue

There were no adjustments to the budget assumptions, the main factors influencing the adjustments are already alluded to above. A conservative approach to revenue estimations will thus continue to be used in future budget years.

Section 6 – Adjustment to budget funding

6.1 Summary of the impact of the adjustments budget

6.1.1 Funding of operating and capital expenditure

Funding of expenditure and revenue alike has increased as stated above and this is due to adjustments

made to grant receipts in accordance with the additional funding allocation received and approved

conditional grant roll-overs from the 2016/17 financial year.

6.1.2 Financial Sustainability

The principle of financial sustainability for all services were applied in the initially approved budget,

the proposed adjustments will continue to move towards a position of financial viability yet it needs

to emphasized that this will not be attained easily. Financial sustainability will only be attained

through a combination of continued revenue enhancement, debt collection, staff rationalization and

savings initiatives across the board.

Section 7 – Adjustment to expenditure on allocations and grant programs

Disclosure of expenditure on allocations and grant programs is illustrated in Annexure 2, Supporting

table SB8

Section 8 – Adjustment to allocations or grants made by the municipality

Refer to Annexure 2, Supporting table SB 7 and SB 8

Section 9 – Adjustment to councillor allowances and employee benefits.

Refer to Annexure 2, Supporting table SB 11. The adjustment is due to the correct allocation of

Libraries Services Conditional Grant as per the Memorandum of agreement.

21

Section 10 – Adjustment to capital expenditure.

The adjustment to capital expenditure is disclosed in detail under the executive summary and in table

SB19. The table indicates the adjustment from the originally approved budget to the adjustments

budget as submitted.

Section 11 – Other supporting documents.

The following supporting documents are attached in support of the adjustment budget

Annexure 1 – Main Budget Tables

Annexure 2 - Supporting Budget Tables

22

OUDTSHOORN

MUNICIPALITY Section 12 – Municipal Managers Quality Certification

I, Allen Paulse, the Municipal Manager of Oudtshoorn Municipality, hereby certify that the

adjustments budget and supporting documentation have been prepared in accordance with the

Municipal Finance Management Act and regulations made under that Act, and that the adjustments

budget and supporting documentation are consistent with the Integrated Development Plan of the

municipality

Print Name: ______________________________

Municipal Manager of Oudtshoorn Municipality (WC045)

Signature: _______________________________

Date: ________________________________

oudtshoorn · pdf filemaking provision for the cango caves infrastructure grant in the amount...

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