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DRAFT ANNUAL BUDGET OF 
DAWID KRUIPER MUNICIPALITY 

2018/2019 TO 2020/2021 
MEDIUM TERM REVENUE AND 
EXPENDITURE FORECASTS 


Approved by Council on 
27 March 2018 


Copies of this document can be viewed: 

• In the foyers of all municipal buildings 
• All public libraries within the municipality 
• At www.dkm.gov.za 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table of Contents 

PART 1 - ANNUAL BUDGET.2 

1.1 Mayor’s Report.2 

1.2 Council Resolutions.3 

1.3 Executive Summary.5 

1.4 Operating Revenue Framework.9 

1.5 Operating Expenditure Framework.24 

1.6 Capital expenditure.30 

1.7 Annual Budget Tables - Parent Municipality.32 

2 PART 2 - SUPPORTING DOCUMENTATION.54 

2.1 Overview of the annual budget process.54 

2.2 Overview of alignment of annual budget with IDP.58 

2.3 Measurable performance objectives and indicators.70 

2.4 Overview of budget related-policies.79 

2.5 Overview of budget assumptions.83 

2.6 Overview of budget funding.86 

2.7 Expenditure on grants and reconciliations of unspent funds.104 

2.8 Councillor and employee benefits.106 

2.9 Monthly targets for revenue, expenditure and cash flow.109 

2.10 Annual budgets and SDBIPs - internal departments.115 

2.11 Contracts having future budgetary implications.116 

2.12 Capital expenditure details.116 

2.13 Legislation compliance status.136 

2.14 Other supporting documents.138 

2.15 Municipal manager’s quality certificate.145 

List of Tables 

Table 1 Consolidated Overview of the 2018/2019 MTREF.8 

Table 2 Summary of revenue classified by main revenue source.10 

Table 3 Percentage growth in revenue by main revenue source.11 

Table 4 Operating Transfers and Grant Receipts.12 

Table 5 Comparison of proposed rates to levied for the 2018/2019 financial year.15 

Table 6 Proposed Water Tariffs.17 

Table 7 Comparison between current water charges and increases (Domestic).17 

Table 8 Comparison between current electricity charges and increases (Domestic).19 

Table 9 Comparison between current sanitation charges and increases.20 

Table 10 Comparison between current sanitation charges and increases, houses.21 

Table 11 Comparison between current waste removal fees and increases.22 

Table 12 MBRR Table SAM - Household bills.23 

Table 13 Summary of operating expenditure by standard classification item.24 

Table 14 Operational repairs and maintenance.28 


27 March 2018 i 









































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 15 Repairs and maintenance per asset class.29 

Table 16 2018/2019 Medium-term capital budget per vote.31 

Table 17 MBRR Table A1 - Budget Summary.34 

Table 18 MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by 

standard classification).36 

Table 19 MBRR Table A3 - Budgeted Financial Performance (revenue and expenditure by 

standard classification).38 

Table 20 Suplus/(Deficit) calculations for the trading services.39 

Table 21 MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure).... 41 

Table 22 MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and 

funding source.43 

Table 23 MBRR Table A6 - Budgeted Financial Position.45 

Table 24 MBRR Table A7 - Budgeted Cash Flow Statement.47 

Table 25 MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation.49 

Table 26 MBRR Table A9 - Asset Management.50 

Table 27 MBRR Table A10 - Basic Service Delivery Measurement.53 

Table 28 IDP Strategic Objectives.60 

Table 29 MBRR Table SA4 - Reconciliation between the IDP strategic objectives and budgeted 

revenue.66 

Table 30 MBRR Table SA5 - Reconciliation between the IDP strategic objectives and budgeted 

operating expenditure.67 

Table 31 MBRR Table SA6 - Reconciliation between the IDP strategic objectives and budgeted 

capital expenditure.69 

Table 32 MBRR Table SA7 - Measureable performance objectives.72 

Table 33 MBRR Table SA8 - Performance indicators and benchmarks.74 

Table 34 Credit rating outlook.84 

Table 35 Breakdown of the operating revenue over the medium-term.87 

Table 36 Proposed tariff increases over the medium-term.90 

Table 37 MBRR Table SA15 - Detail investment information.90 

Table 38 MBRR Table SA16 - Investment particulars by maturity.90 

Table 39 Sources of capital revenue over the MTREF.91 

Table 40 MBRR Table SA17 - Details of borrowings.92 

Table 41 MBRR Table SA18 - Capital transfers and grants receipts.93 

Table 42 MBRR Table A7 - Budget cash flow statement.94 

Table 43 MBRR Table A8 - Cash backed reserves/accumulated surplus reconciliation.96 

Table 44 MBRR Table SA10 - Funding compliance measurement.98 

Table 45 MBRR Table SA19 - Expenditure on transfers and grant programmes.104 

Table 46 MBRR Table SA20 - Reconciliation between transfers, grant receipts and unspent funds 

.105 

Table 47 MBRR Table SA22 - Summary of councillor and staff benefits.106 


27 March 2018 



































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 48 MBRR Table SA23 - Salaries, allowance and benefits (political office bearers/councillors / 

senior managers).107 

Table 49 MBRR Table SA24 - Summary of personnel numbers.108 

Table 50 MBRR Table SA25 - Budgeted monthly revenue and expenditure.109 

Table 51 MBRR Table SA26 - Budgeted monthly revenue and expenditure (municipal vote)110 
Table 52 MBRR Table SA27 - Budgeted monthly revenue and expenditure 

(standard classification).Ill 

Table 53 MBRR Table SA28 - Budgeted monthly capital expenditure (municipal vote).112 

Table 54 MBRR Table SA29 - Budgeted monthly capital expenditure (standard classification)113 

Table 55 MBRR Table SA30 - Budgeted monthly cash flow.114 

Table 56 Water Services Department - operating revenue by source, expenditure by type and 

total capital expenditure.115 

Table 57 Water Service Department - Performance objectives and indicators.115 

Table 58 MBRR Table SA34a, SA34b en SA34e - Capital expenditure on new, renewal en upgrade 

of assets by asset class.117 

Table 59 MBRR Table SA34d - Capital expenditure on depreciation of assets by asset 

class.120 

Table 60 MBRR Table SA34c - Repairs and maintenance expenditure by asset class.121 

Table 61 MBRR Table SA35 - Future financial implications of the capital budget.122 

Table 62 MBRR Table SA36 - Detailed capital budget per municipal vote.123 

Table 63 MBRR Table SA1 - Supporting detail to budgeted financial performance.138 

Table 64 MBRR Table SA2 - Matrix financial performance budget (revenue 

source/expenditure type and department).141 

Table 65 MBRR Table SA3 - Supporting detail to Statement of Financial Position.142 

Table 66 MBRR Table SA9 - Social, economic and demographic statistics and assumptionsl43 
Table 67 MBRR Table SA32 - List of external mechanisms.144 

List of Figures 

Figure 1 Main operational expenditure categories for the 2018/2019 financial year.27 

Figure 2 Capital Infrastructure Programme.70 

Figure 3 Expenditure by major type.71 

Figure 4 Depreciation in relation to repairs and maintenance over the MTREF 87 

Figure 5 Planning, budgeting and reporting cycle.92 


27 March 2018 
























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Abbreviations and Acronyms 


AMR 

Automated Meter Reading 

ASGISA Accelerated and Shared Growth 
Initiative 

BPC 

Budget Planning Committee 

CBD 

Central Business District 

CFO 

Chief Financial Officer 

CM 

City Manager 

CPI 

Consumer Price Index 

CRRF 

Capital Replacement Reserve 
Fund 

DBSA 

Development Bank of South 
Africa 

DoRA 

Division of Revenue Act 

DWA 

Department of Water Affairs 

EE 

Employment Equity 

EEDSM 

Energy Efficiency Demand Side 
Management 

EM 

Executive Mayor 

FBS 

Free basic services 

GAMAP 

Generally Accepted Municipal 
Accounting Practice 

GDP 

Gross domestic product 

GDS 

Gauteng Growth and 
Development Strategy 

GFS 

Government Financial Statistics 

GRAP 

General Recognised Accounting 
Practice 

HR 

Human Resources 

HSRC 

Human Science Research 

Council 

IDP 

Integrated Development Strategy 

IT 

Information Technology 

kt 

kilolitre 

km 

kilometre 

KPA 

Key Performance Area 

KPI 

Key Performance Indicator 

kWh 

kilowatt per hour 

i 

litre 

LED 

Local Economic Development 


MEC Member of the Executive 
Committee 

MFMA Municipal Financial Management 
Act 

MIG Municipal Infrastructure Grant 
MMC Member of Mayoral Committee 
MPRA Municipal Properties Rates Act 
MSA Municipal Systems Act 
MSCOA Municipal Standard Chart Of 
Accounts 

MTEF Medium-term Expenditure 
Framework 

MTREF Medium-Term Revenue and 
Expenditure Framework 
NERSA National Electricity Regulator 
South Africa 

NGO Non-Governmental organisations 
NKPIs National Key Performance 

Indicators 

OHS Occupational Health and Safety 
OP Operational Plan 

PBO Public Benefit Organisations 

PHC Provincial Health Care 

PMS Performance Management 

System 

PPE Property Plant and Equipment 

PPP Public Private Partnership 

PTIS Public Transport Infrastructure 

System 

RG Restructuring Grant 

RSC Regional Services Council 

SALGA South African Local Government 
Association 

SAPS South African Police Service 

SDBIP Service Delivery Budget 

Implementation Plan 
SMME Small Micro and Medium 

Enterprises 


27 March 2018 


IV 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Part 1 - Annual Budget 


1.1 Mayor’s Report 

In his Budget Speech to Parliament on 17 February 2010, the Minister of Finance said: 
“We cannot expect to do the same old things and expect different results”. In the past 
three years, the world economy has gone through its deepest recession in over 70 years. 
Signals are that the recovery is still fragile and many commentators caution that current 
positive economic trends may be short-lived and that the world economy may yet 
experience a second recessionary wave. Dawid Kruiper Municipality was in no way 
immune to the harsh economic realities associated with the recession. Among the impacts 
are the serious cash flow challenges currently being experienced by the municipality due 
to among other things the depletion of cash-backed reserves; historic expenditure patterns 
and a general lack of “doing business smarter”. 

Management within local government has a significant role to play in strengthening the link 
between the citizen and government’s overall priorities and spending plans. The goal 
should be to enhance service delivery aimed at improving the quality of life for all people 
within the Dawid Kruiper Municipality. Budgeting is primarily about the choices that the 
municipality has to make between competing priorities, available financial resources and 
fiscal realities. The challenge is to do more with the available resources. We need to 
remain focused on the effective delivery of the core municipal services through the 
application of efficient and effective service delivery mechanisms. 

We, as leaders, have the power to take decisions and had to take hard decisions on how 
we will use available resources. We cannot please everyone and everyone will not 
necessarily agree with these decisions. Bill Cosby once said: “I don’t know the key to 
success, but the key to failure is trying to please everybody. ” 

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


27 March 2018 


2 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


We as councillors and senior management together with the inputs and comments of the 
local community has developed an IDP and a credible and sustainable budget with 
realistically anticipated revenue sources to improve the quality of our people’s life. 
Unfortunately our needs are far greater than our available resources and therefore not 
nearly enough of the developmental needs identified in our developed IDP could be met 
with the available financial resources. It is however a worldwide problem that identified 
needs by far exceeds available financial resources and therefore we had to prioritise our 
needs and implement those projects and programmes that have the biggest affect in 
improving our people’s quality of life. 

Based on the comments and inputs received on the draft IDP and draft budget and 
proposed tariffs, it is recommended that Council adopt the following budget resolutions. 

1.2 Council Resolutions 

On 27 March 2018 the Council of Dawid Kruiper Municipality met in the Council Chambers 
of Dawid Kruiper Municipality to consider the draft annual budget of the municipality for the 
financial year 2018/2019. The Council approved and adopted the following resolutions: 

1. The Council of Dawid Kruiper Municipality, acting in terms of section 24 of the 
Municipal Finance Management Act, (Act 56 of 2003) approves and adopts: 

1.1. The draft annual budget of the municipality for the financial year 2018/2019 and 
the multi-year and single-year operating and capital appropriations as set out in 
the following tables: 

1.1.1. Budgeted Financial Performance (revenue and expenditure by standard 
classification) as contained in Table 18 on page 36; 

1.1.2. Budgeted Financial Performance (revenue and expenditure by municipal 
vote) as contained in Table 19 on page 38; 

1.1.3. Budgeted Financial Performance (revenue by source and expenditure by 
type) as contained in Table 21 on page 41; and 


27 March 2018 


3 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


1.1.4. Multi-year and single-year capital appropriations by municipal vote and 
standard classification and associated funding by source as contained in 
Table 22 on page 43. 

1.2. The financial position, cash flow budget, cash-backed reserve / accumulated 
surplus, asset management and basic service delivery targets are approved as 
set out in the following tables: 

1.2.1. Budgeted Financial Position as contained in Table 23 on page 45; 

1.2.2. Budgeted Cash Flows as contained in Table 24 on page 47; 

1.2.3. Cash backed reserves and accumulated surplus reconciliation as 
contained in Table 25 on page 49; 

1.2.4. Asset management as contained in Table 26 on page 50; and 

1.2.5. Basic service delivery measurement as contained in Table 27 on page 
53. 

2. The Council of Dawid Kruiper Municipality is planning to, acting in terms of section 

75A of the Local Government: Municipal Systems Act (Act 32 of 2000) approve and 

adopt with effect from 1 July 2018: 

2.1. The tariffs for property rates - as set out in Annexure A (Draft Tariff List); 

2.2. The tariffs for electricity - as set out in Annexure A (Draft Tariff List); 

2.3. The tariffs for the supply of water - as set out in Annexure A (Draft Tariff List); 

2.4. The tariffs for sanitation services - as set out in Annexure A (Draft Tariff List); 
and 

2.5. The tariffs for solid waste services - as set out in Annexure A (Draft Tariff List). 

3. The Council of Dawid Kruiper Municipality is planning to, acting in terms of section 

75A of the Local Government: Municipal Systems Act (Act 32 of 2000) approve and 

adopt with effect from 1 July 2018 the tariffs for all other services, as set out in 
Annexure A (Draft Tariff List). 


27 March 2018 


4 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


4. To give proper effect to the municipality’s draft annual budget, the Council of Dawid 

Kruiper Municipality approves: 

4.1. That cash backing is implemented through the utilisation of a portion of the 
revenue generated from property rates to ensure that all capital reserves and 
provisions, unspent long-term loans and unspent conditional grants are cash 
backed as required in terms of the municipality’s funding and reserves policy as 
prescribed by section 8 of the Municipal Budget and Reporting Regulations. 

4.2. That the municipality do not plan to commit to any new long term loans for the 
2018/2019 MTREF. 

4.3. That the Municipal Manager be authorised to sign all necessary agreements 
and documents to give effect to the above funding programme. 


1.3 Executive Summary 

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

The municipality’s business and service delivery priorities were reviewed as part of this 
year’s planning and budget process. Where appropriate, funds were transferred from low- 
to high-priority programs so as to maintain sound financial stewardship. A critical review 
was also undertaken of expenditures on non-core and ‘nice to have’ items. This has 
resulted in savings to the municipality. Key areas were savings for councillors on 
telephone and internet usage, printing, attending of workshops, overseas and national 
travel and accommodation and catering. 


27 March 2018 


5 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The municipality has embarked on implementing a range of revenue collection strategies 
to collect of debt owed by consumers. Furthermore, the municipality has undertaken 
various customer care initiatives to ensure the municipality truly involves all citizens in the 
process of ensuring a people lead government. 

National Treasury’s MFMA Circulars Number 89 and 90 were used to guide the 
compilation of the 2018/2019 MTREF. 

The main challenges experienced during the compilation of the 2018/2019 MTREF can be 
summarised as follows: 

• The on-going difficulties in the national and local economy; 

• Aging water, sewerage, roads and electricity infrastructure; 

• The need to reprioritised projects and expenditure within the existing resource 
envelope given the cash flow realities; 

• The increased cost of bulk water and electricity (due to tariff increases from DWA and 
Eskom), which is placing upward pressure on service tariffs to residents. Continuous 
high tariff increases are not sustainable - as there will be point where services will 
no-longer be affordable; 

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

• Affordability of capital projects - original allocations had to be reduced and the 
operational expenditure associated with prior year’s capital investments needed to be 
factored into the budget as part of the 2018/2019 MTREF process. 

The following budget principles and guidelines directly informed the compilation of the 
2018/2019 MTREF: 

• The 2017/2018 Adjustments Budget priorities and targets, as well as the base line 
allocations contained in that Adjustments Budget were adopted as the upper limits for 
the new baselines for the 2018/2019 draft annual budget; 

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

• Tariff and property rate increases should be affordable and should generally not 
exceed inflation as measured by the CPI; except where there are price increases in 
the inputs of services that are beyond the control of the municipality, for instance the 


27 March 2018 


6 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


wage negotiations as well as cost of bulk water and electricity. In addition, tariffs 
need to remain or move towards being cost reflective, and should take into account 
the need to address infrastructure backlogs; 

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

• The municipality did budget for two allocations that were not gazetted. As the 
municipality is not allowed to increase income via the Virement Policy and the 
adjustment budget is only approved after the festival took place; this should remain 
on the budget. The municipality is not allowed to increase income via virements. 

• The amalgamation of Dawid Kruiper and Mier Municipalities in the 2017/2018 
Financial year also put immeasurable strain on the 2018/2019 Draft budget as the 
two municipality’s budget needs to be aligned to ensure that when the amalgamation 
takes place, that the combination of the two budgets are done seamlessly. 

• Expenditure on certain items were limited and for the following items and allocations 
to these items it had to be supported by a list and / or motivation setting out the 
intention and cost of the expenditure which was used to prioritise expenditures: 

Special Projects; 

Consultant Fees; 

Furniture and office equipment; 

Special Events; 

Refreshments and entertainment; 

Donations; 

Ad-hoc travelling; and 

Subsistence, Travelling & Conference fees (national & international). 

In view of the aforementioned, the following table is a consolidated overview of the 
proposed 2018/2019 Medium-term Revenue and Expenditure Framework: 

Due to changes in the accounts brought about by mSCOA (Municipal Standard Chart Of 
Accounts) as well as the merger between //Khara Hais Municipality and Mier Municipality, 
no comparative totals for 2014/2015 to 2015/2016 are available. Subsequently no % 
increase/decrease will be shown for the 2018/2019 budget year in the tables that follow. 


27 March 2018 


7 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Ta 

ble 1 Consolidated Overview of the 2018/2 

319 MTF 

IEF 

Rthousands 

2016/2017 

Audited 

2017/2018 

Adjusted 

Budget Year 

2018/19 

2018/19 % 

Increase 

Budget Year 

+12019/20 

2019/20 % 

Increase 

Budget Year 

+2 2020/21 

2020/21 % 

Increase 

Total Operating Revenue 

543764 

622 461 

711607 

14.3% 

736713 

3.5% 

785765 

6.7% 

Total Operating Expenditure 

590 942 

663798 

751140 

13.2% 

796279 

6.0% 

842 000 

5.7% 

Surplusl(Deficit) 

(47 178) 

(41 338) 

(39534) 

4.4% 

(59566) 

50.7% 

(56235) 

■5.6% 

Total Capital Expenditure 

35364 

69 457 

44 060 

■36.6% 

28874 

■34.5% 

30 433 

5.4% 


Total operating revenue for 2018/2019 is R 711.607 million. For the two outer years, 
operational revenue will increase by 3.5% and 6.7% respectively; equating to a total 
revenue growth of R 74.2 million over the MTREF when compared to the 2018/2019 
financial year. 

Total operating expenditure for the 2018/2019 financial year has been appropriated at 
R 751.140 million and translates into a budgeted deficit of R 39.534 million. When 
compared to the respective outer years of the MTREF 2018/2019 Budget; operating 
expenditure grow by 6.0% and 5.7%. The operating deficit for the two outer years 
increases to R 59.566 million and R 56.235 million. Note that the implementation of GRAP 
17 accounting standard has meant bringing a range of assets previously not included in 
the assets register onto the register. This has resulted in a significant increase in 
depreciation relative to previous years. This depreciation is not allowed to be offset as per 
SA1 as the municipality is not on the revaluation model of GRAP 17. The municipality only 
adopted GRAR 17 with the higher DRC values, and therefore the municipality MUST 
budget for the full budgeted amount for depreciation, otherwise it will result in unauthorised 
expenditure. This depreciation is not included in the budget for tariff calculation purposes. 
Flowever, the municipality can expect to generate an non-cash operating deficit when the 
2018/2019 annual financial statements are compiled compliant with the Accounting 
Standards since this off-setting depreciation is reflected in the Statement of Financial 
Performance and not directly to the Statement of Changes in Net Assets. 

The capital budget for 2018/2019 is R 127.478 million. The capital programme then 
decreases to R 36.190 million in the 2019/2020 financial year and decreases then to 
R 30.433 million in the 2020/2021 financial year. More than half of the 2018/2019 capital 


27 March 2018 


8 




















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


budget will be funded from own funding (revenue) over MTREF with anticipated own 
funding of R 83.417 million and R 7.316 million in 2018/2019 and 2019/2020 of the 
MTREF. Own funding will contribute 65.4% and 20.2% of capital expenditure in 
2018/2019 and 2019/2020 of the MTREF; and, government grants and transfers will 
contribute 34.6%, 79.8% and 100% of capital expenditure in each of the MTREF years. 
No projects will be funded from external borrowing. Note that the municipality has reached 
its prudential borrowing limits and so there is very little scope to substantially increase 
these borrowing levels over the medium-term. The repayment of capital and interest (debt 
services costs) has substantially increased over the past four years as a result of the 
aggressive capital infrastructure programme implemented over the past four years. 
Consequently, the capital budget remains relatively flat over the medium-term. 

1.4 Operating Revenue Framework 

For Dawid Kruiper Municipality to continue improving the quality of services provided to its 
citizens it needs to generate the required revenue. In these tough economic times strong 
revenue management is fundamental to the financial sustainability of every municipality. 
The reality is that we are faced with development backlogs and poverty. The expenditure 
required to address these challenges will inevitably always exceed available funding; 
hence difficult choices have to be made in relation to tariff increases and balancing 
expenditures against realistically anticipated revenues. 

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

• National Treasury’s guidelines and macroeconomic policy; 

• Growth in the municipality and continued economic development; 

• Efficient revenue management, which aims to ensure a 98 per cent (98%) annual 
collection rate for property rates and other key service charges; 

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

• Achievement of full cost recovery of specific user charges especially in relation to 
trading services; 

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


27 March 2018 


9 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


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

Increase ability to extend new services and recover costs; 

The municipality’s Indigent Policy and rendering of “free” basic services; and 
Tariff policies of the municipality. 


The following Table 2 is a summary of the 2018/2019 MTREF (classified by main revenue 
source). In line with the formats prescribed by the Municipal Budget and Reporting 
Regulations, capital transfers and contributions are excluded from the operating statement, 
as inclusion of these revenue sources would distort the calculation of the operating surplus 
/ (deficit). 


Table 2 Summary of revenue classified by main revenue source 



2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Description / R thousand 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget 

Year 

2018/19 

Budget 

Year +1 

2019/20 

Budget 

Year +2 

2020/21 

Revenue Bv Source 








Property rates 

75 406 

97 249 

93 832 

93 832 

99 462 

105 429 

112 282 

Service charges - electricity revenue 

242 247 

274 113 

278 151 

278 151 

316 656 

335 656 

357 473 

Service charges - water revenue 

47 585 

66 226 

59 458 

59 458 

62 987 

66 766 

71 106 

Service charges - sanitation revenue 

27 264 

34 235 

33 399 

33 399 

34 657 

36 736 

39124 

Service charges - refuse revenue 

20 263 

29 653 

26 626 

26 626 

33 295 

35 292 

37 586 

Rental of facilities and equipment 

8 341 

9 640 

9 029 

9 029 

7 987 

8 466 

9 015 

Interest earned - external investments 

2 844 

2 590 

4 055 

4 055 

4 350 

4 568 

4 819 

Interest earned - outstanding debtors 

2 985 

3 710 

3 000 

3 000 

3 000 

3 150 

3 323 

Fines 

4 459 

668 

737 

737 

5 702 

6 043 

6 434 

Licences and permits 

1 571 

1 644 

1 707 

1 707 

1 986 

2 105 

2 242 

Agency services 

4 208 

3 657 

1 765 

1 765 




Transfers recognised - operational 

70 984 

89 758 

82 646 

82 646 

93 221 

96 855 

104 663 

Other revenue 

34 879 

13 714 

15 056 

15 056 

19 220 

19 897 

21 080 

Gains on disposal of PPE 

729 

13 064 

13 000 

13 000 

29 086 

15 750 

16 616 

Total Revenue (excluding capital transfers 
and contributions) 

543 764 

639 921 

622 461 

622 461 

711 607 

736 713 

785 765 


The following Table 3 shows the percentage growth in revenue by main revenue source 
for the two outer years of the MTREF. 


27 March 2018 


10 
















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 3 Percentage growth in revenue by main revenue source 


Description / R thousand 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure Framework 

Adjusted 

Budget 


Budget 


Budget 


Budget 



% 

Year 

% 

Year +1 

% 

Year +2 

% 



2018/19 


2019/20 


2020/21 


Revenue Bv Source 









Property rates 

93 832 

15.1% 

99 462 

13.2% 

105 429 

14.3% 

112 282 

14.3% 

Service charges - electricity revenue 

278 151 

44.7% 

316 656 

44.5% 

335 656 

45.6% 

357 473 

45.5% 

Service charges - water revenue 

59 458 

9.6% 

62 987 

8.9% 

66 766 

9.1% 

71 106 

9.0% 

Service charges - sanitation revenue 

33 399 

5.4% 

34 657 

4.9% 

36 736 

5.0% 

39 124 

5.0% 

Service charges - refuse revenue 

26 626 

4.3% 

33 295 

4.7% 

35 292 

4.8% 

37 586 

4.8% 

Rental of facilities and equipment 

9 029 

1.5% 

7 987 

1.1% 

8 466 

1.1% 

9 015 

1.1% 

Interest earned - external investments 

4 055 

0.7% 

4 350 

0.6% 

4 568 

0.6% 

4 819 

0.6% 

Interest earned - outstanding debtors 

3 000 

0.5% 

3 000 

0.4% 

3 150 

0.4% 

3 323 

0.4% 

Fines 

737 

0.1% 

5 702 

0.8% 

6 043 

0.8% 

6 434 

0.8% 

Licences and permits 

1 707 

0.3% 

1 986 

0.3% 

2 105 

0.3% 

2 242 

0.3% 

Agency services 

1 765 

0.3% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Transfers recognised - operational 

82 646 

13.3% 

93 221 

13.1% 

96 855 

13.1% 

104 663 

13.3% 

Other revenue 

15 056 

2.4% 

19 220 

2.7% 

19 897 

2.7% 

21 080 

2.7% 

Gains on disposal of PPE 

13 000 

2.1% 

29 086 

4.1% 

15 750 

2.1% 

16 616 

2.1% 

Total Revenue (excluding capital 
transfers and contributions) 

622 461 

100.0% 

711 607 

100.0% 

736 713 

100.0% 

785 765 

100.0% 

Total Revenue from rates and service 


¥ 




¥ 



charges 

491 465 

79.0% 

547 056 

76.9% 

579 880 

78.7% 

617 572 

78.7% 


Revenue generated from rates and services charges forms a significant percentage of the 
revenue basket of the municipality. Rates and service charge revenues comprise more 
than three quarters of the total revenue mix. In the 2018/2019 financial year, revenue from 
rates and services charges totals R 547.056 million or 76.9%. This increases to 
R 579.880 million and R 617.572 million in the respective outer financial years of the 
MTREF. A notable trend is the how the total percentage revenue generated from rates 
and services have stabilised at an average of around 79.0% over the MTREF with it being 
76.9% in 2018/2019, 78.7% in 2019/2020 and 78.7% in 2020/2021. This shows that the 
municipality tariffs are reasonably in line with their goals. The above table excludes 
revenue foregone arising from discounts and rebates associated with the tariff policies of 
the Municipality. Details in this regard are contained in Table 63 MBRR SA1. 


Electricity sales is the largest revenue source totalling R 316.656 million rand and 
increases to R 357.473 million by 2020/2021. Property rates is the third largest revenue, 
source totalling R 99.462 million rand and increases to R 112.282 million by 2020/2021, 
after Transfer recognised - Operational that is in second, totalling R 93.221 million rand 


27 March 2018 


11 


















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


and increases to R 104.663 million by 2020/2021. Water is the fourth largest revenue 
source, Departments have been urged to review the tariffs of these items on an annual 
basis to ensure they are cost reflective and market related. 

Note that the year-on-year growth for Operating Transfers and Grants are 13.1%, 13.1% 
and 13.3% for the MTREF years. The following table gives a breakdown of the various 
operating grants and subsidies allocated to the municipality over the medium term: 


Table 4 Operating Transfers and Grant Receipts 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget 

Year 

2018/19 

Budget 

Year +1 

2019/20 

Budget 

Year +2 

2020/21 

RECEIPTS: 








Operatinq Transfers and Grants 








National Government: 

75 635 

80 679 

73 600 

73 600 

89 858 

93 292 

101 100 

Local Government Equitable Share 

57 989 

70 769 

70 769 

70 769 

77 934 

84 739 

92 253 

Finance Management 

3 635 

4 045 

2 804 

2 804 

4115 

3 000 

3 000 

Energy Efficiency and Demand Management 

886 

26 

26 

26 

391 

522 

522 

Municipal Infrastructure Grant (MIG) 

4 250 

1 273 

- 

- 

4 287 

4 363 

4 574 

Integrated National Elekctrification Programme 

604 

- 

- 

- 

1 826 

668 

751 

EPWP 

213 

- 

- 

- 

- 

- 

- 

Water Service Infrastructure Grant 

« 

- 

- 

- 

1 304 

- 

- 

Municipal Demarcation Grant 

8 057 

4 565 

- 

- 

- 

- 

- 

Provincial Government: 

3 138 

2 404 

1 950 

1 950 

3 363 

3 563 

3 563 

r 

Housing 

- 

- 

650 

650 

650 

650 

650 

Sport and Recreation 

3 138 

2 404 

1 300 

1 300 

2 713 

2 913 

2 913 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 

253 

6 675 

7 096 

7 096 

- 

- 

- 

LGSETA 

50 

- 

- 

- 

- 

- 

- 

VAT on Grants 

_ 

6 675 

7 096 

7 096 




r 





r 

r 

r 

Directo Signs 

203 

- 

- 

- 

- 

- 

- 

Total Operating Transfers and Grants 

79 026 

89 758 

82 646 

82 646 

93 221 

96 855 

104 663 


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


National Treasury continues to encourage municipalities to keep increases in rates, tariffs 
and other charges as low as possible. Municipalities must justify in their budget 
documentation all increases in excess of the 5.4% upper boundary of the South African 


27 March 2018 


12 





























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Reserve Bank’s inflation target. Excessive increases are likely to be counterproductive, 
resulting in higher levels of non-payment. 

The percentage increases of Eskom and DWA bulk tariffs determined by external 
agencies, the impact they have on the municipality’s electricity and in these tariffs are 
largely outside the control of the municipality. Discounting the impact of these price 
increases in lower consumer tariffs will erode the municipality’s future financial position 
and viability. 

It must also be appreciated that the consumer price index, as measured by CPI, is not a 
good measure of the cost increases of goods and services relevant to municipalities. The 
basket of goods and services utilised for the calculation of the CPI consist of items such as 
food, petrol and medical services; whereas the cost drivers of a municipality are informed 
by items such as the cost of remuneration of salaries and allowances, bulk purchases of 
electricity and water, petrol, diesel, chemicals, cement, etcetera. The current challenge 
facing the municipality is managing the gap between cost drivers and tariffs levied, as any 
shortfall must be made up by either operational efficiency gains or service level reductions. 
Within this framework the municipality has undertaken the tariff setting process relating to 
service charges as follows. 


1.4.1 Property Rates 

Property rates partially cover the cost of the provision of general services. However, some 
of these costs are subsides through profits generated from trading services (electricity and 
water sales). Determining the effective property rate tariff is therefore an integral part of 
the municipality’s budgeting process. 

National Treasury’s MFMA Circular No. 51 deals, inter alia with the implementation of the 
Municipal Property Rates Act, with the regulations issued by the Department of Co¬ 
operative Governance. These regulations came into effect on 1 July 2009 and prescribe 
the rate ratio for the non-residential categories, public service infrastructure (PSI) and 
agricultural properties relative to residential properties to be 0.25:1. The implementation of 


27 March 2018 


13 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


these regulations was done in the 2009/2010 budget process and the Property Rates 

Policy of the Municipality has been amended accordingly. 

The following stipulations in the Property Rates Policy are highlighted: 

• The first R 15 000 of the market value of a property used for residential purposes is 
excluded from the rate-able value (Section 17(h) of the MPRA); 

• 100% rebate may be granted to registered indigents in terms of the Customer Care, 
Credit Control, Debt Collection and Indigent Support Policy; 

• For pensioners, physically and mentally disabled persons, a rebate of 20% to 100% 
(calculated on a sliding scale) will be granted to owners of rate-able property if the 
total gross income of the applicant and / or his / her spouse, if any, does not to 
exceed the amount of R 6 340 per month. In this regard the following stipulations are 
relevant: 

The rate-able property concerned must be occupied only by the applicant and 
his/her spouse, if any, and by dependents without income; 

The applicant must submit proof of his/her age and identity and, in the case of a 
physically or mentally handicapped person, proof of certification by a Medical 
Officer of Health, also proof of the annual income from a social pension; 

The applicant’s account must be paid in full, or if not, an arrangement to pay the 

debt should be in place; and 

The property must be categorised as residential. 

• The Municipality may award a 100% grant-in-aid on the assessment rates of rate¬ 
able properties of certain classes such as registered welfare organisations, 
institutions or organisations performing charitable work, sports grounds used for 
purposes of amateur sport. The owner of such a property must apply in the 
prescribed format and time for such a grant. 

• Agricultural properties in terms of the Dawid Kruiper Municipality’s Property Rates 
Policy may qualify for a further rebate of up to 20%. The owner of such a property 
must apply in the prescribed format for such a rebate before August. 

A new valuation roll was implemented on the 1 st of July 2014. This valuation roll is valid 

for a period of 4 years. The municipality has requested extension for a further 1 year. 

Approval was granted by the MEC for a further two years on the 6 th of December 2017. 


27 March 2018 


14 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The categories of rate-able properties for purposes of levying rates and the proposed rates 
for the 2018/2019 financial year based on the ±6% increase from 1 July 2018 is contained 
in Table 5 below. 


Table 5 Comparison of proposed rates to levied for the 201 

3/2019 financial year 



Proposed Tariff 

Proposed Tariff 

Category 


from 1 July 2017 

from 1 July 2018 



Cent / R 1 

Cent / R 1 

Former//Khara Hais Municipality's Tariffs 

Residential Properties 

(Ratio 1.00: 1.00) 

1.23078 

1.16111 

Residential Zone 3 Properties 

(Ratio 1.00: 1.25) 

1.53853 

1.45144 

Public Benefit Organisations 

(Ratio 1.00: 0.25) 

0.30769 

0.29028 

Undeveloped Properties 

(Ratio 1.00: 2.00) 

2.46155 

2.32222 

Business Properties 

(Ratio 1.00: 1.50) 

1.84617 

1.74167 

Industrial Properties 

(Ratio 1.00: 1.50) 

1.84617 

1.74167 

State Other Properties 

(Ratio 1.00: 1.50) 

1.84617 

1.74167 

State Residential Properties 

(Ratio 1.00: 1.00) 

1.23078 

1.16111 

Public Infrastructure 

(Ratio 1.00: 0.25) 

0.30769 

0.29028 

Institutional / Educational Properties 

(Ratio 1.00: 1.50) 

1.84617 

1.71670 

Agricultural Properties (including small holdings) 

(Ratio 1.00: 0.25) 

0.30769 

0.29028 

Resorts with access to refuse and sanitation services 

(Ratio 1.00: 1.25) 

1.53853 

1.45144 

Forner Mier Municipality's Tariffs 



Residential Properties 

(Ratio 1.00: 1.00) 

1.07244 

0.99300 

Public Benefit Organisations 

(Ratio 1.00: 0.25) 

0.26892 

0.24900 

Business Properties 

(Ratio 1.00: 1.50) 

1.60936 

1.49015 

State Other Properties 

(Ratio 1.00: 1.50) 

1.60936 

1.49015 

Institutional / Educational Properties 

(Ratio 1.00: 1.00) 

1.07244 

0.99300 

Agricultural Properties (including small holdings) 

(Ratio 1.00: 0.25) 

0.00046 

0.00043 


1.4.2 Sale of Water and Impact of Tariff Increases 

South Africa faces similar challenges with regard to water supply as it did with electricity, 
since demand growth outstrips supply. Consequently, National Treasury is encouraging 
all municipalities to carefully review the level and structure of their water tariffs to ensure: 

• Water tariffs are fully cost-reflective - including the cost of maintenance and renewal 
of purification plants, water networks and the cost associated with reticulation 
expansion; 

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

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


27 March 2018 


15 

































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


In addition National Treasury has urged all municipalities to ensure that water tariff 
structures are cost reflective by 2014. Better maintenance of infrastructure and cost- 
reflective tariffs will ensure that the supply challenges are managed in future to ensure 
sustainability. The municipality pumps its raw water from the Orange River and pays DWA 
for it. 

A tariff increase of ±6% from 1 July 2018 for water is proposed. This is based on input 
cost assumptions (bulk water purchases from DWA); the cost of other inputs like 
chemicals, vehicle costs and salaries; etc. Furthermore, more tariffs were introduced for 
water. This is being done to ensure that the community use water sparingly and treat 
water as a rare commodity. In addition, 6 kl water per month will again be granted through 
the equitable share grant to all registered indigent households. 

A summary of the proposed tariffs for households (residential) and non-residential are as 
follows: 


27 March 2018 


16 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 6 Proposed Water Tariffs 


Category 

Proposed Tariff from 1 July 
2018 (exclusive of VAT) 

Rand per kl 


RESIDENTIAL 

Basic charge per month 

- 

1 to 6 kl per month 

6.88 

7 to 10 kl per month 

7.91 

11 to 15 kl per month 

9.10 

16 to 30 kl per month 

10.46 

31 to 40 kl per month 

13.83 

41 to 50 kl per month 

15.91 

51 to 70 kl per month 

17.50 

71 to 90 kl per month 

19.25 

more than 91 kl per month 

21.18 

NON-RESIDENTIAL 

Basic charge per month 

- 

1 to 6 kl per month 

8.26 

7 to 10 kl per month 

9.49 

11 to 15 kl per month 

10.92 

16 to 20 kl per month 

12.55 

21 to 30 kl per month 

14.55 

31 to 40 kl per month 

16.60 

41 to 50 kl per month 

19.08 

51 to 70 kl per month 

20.99 

71 to 90 kl per month 

23.09 

more than 91 kl per month 

25.40 


The following Table 7 shows the impact of the proposed increases in water tariffs (for 
different usages) on the water charges for a single dwelling-house. 


Table 7 Comparison between current water charges and increases (Domestic) 


Monthly 

Consumption 

kl 

Current Amount 
Payable (VAT 
Exclusive) 

R 

Proposed 
Amount Payble 
(VAT Exclusive) 

R 

Difference / 
Increase (VAT 
Exclusive) 

R 

Percentage 

Change 

20 

155.72 

170.72 

15.00 

9.63% 

30 

217.92 

275.32 

57.40 

26.34% 

40 

280.12 

413.62 

133.50 

47.66% 

50 

342.32 

572.72 

230.40 

67.31% 

80 

547.52 

1115.22 

567.70 

103.69% 

100 

705.12 

1519.52 

814.40 

115.50% 


27 March 2018 


17 












































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The tariff structure of the 2018/2019 financial year has not been changed. The tariff 
structure is designed to charge higher levels of consumption a higher rate, starting at 
R6.88 (VAT exclusive) for water consumption between 0-6kt, steadily increasing to a rate 
of R 14.30 (VAT exclusive) per kiloliter for consumption in excess of 91 kt per month. 


1.4.3 Sale of Electricity and Impact of Tariff Increases 

NERSA has announced the revised bulk electricity pricing structure. An increase of 7.32 
in the Eskom bulk electricity tariff to municipalities will be effective from 1 July 2018. 

Considering the Eskom bulk purchases increases, the consumer tariff had to be increased 
by an average of 6.84% to offset the additional bulk purchase cost from 1 July 2018. 
Furthermore, it should be noted that given the magnitude of the tariff increase, it is 
expected to increase growth in electricity consumption, which will have a positive impact 
on the municipality’s revenue from electricity. Furthermore, note should be taken that 
should load-shedding be implemented again by Eskom, this will have a negative effect on 
the income from the sale of electricity. 

Registered indigents will again be granted 50 kWh per month as a free basic service 
through the equitable share grant. Only registered indigent households receive free basic 
services (property rates, electricity, water, refuse removal and sanitation services). 
Registered indigent consumers’ tariffs will increase with 6.84%. 

The following Table 8 shows the impact of the proposed increases in electricity tariffs on 
the electricity charges for domestic customers: 


27 March 2018 


18 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 8 Comparison between current electricity charges and increases (Domestic) 


Monthly 

Consumption 

60 amp (1 phase) 
units 

Current Amount 
Payable (VAT 
Exclusive) R 

Proposed Amount 
Payble (VAT 
Exclusive) R 

Difference / 
Increase (VAT 
Exclusive) R 

Percentage 

Change 

100 

173.27 

185.12 

11.85 

6.84% 

250 

433.18 

462.80 

29.63 

6.84% 

500 

866.35 

925.60 

59.25 

6.84% 

750 

1299.53 

1 388.40 

88.88 

6.84% 

1000 

1732.70 

1851.20 

118.50 

6.84% 

2 000 

3 465.40 

3 702.40 

237.00 

6.84% 


It should further be noted that NERSA has advised that a stepped tariff structure for the 
sale of electricity needs to be implemented from 1 July 2011. The effect thereof will be 
that the higher the consumption, the higher the cost per kWh. The aim is to subsidise the 
lower consumption users (mostly the poor). The municipality is granted exemption for the 
implementation of step / block tariffs for now, although this might change in the future. 


Owing to the high increases in Eskom’s bulk tariffs over the last five years, it is clearly not 
possible to fund necessary upgrades through increases in the municipal electricity tariff - 
as the resultant tariff increases would be unaffordable for the consumers. As part of the 
2018/2019 medium-term capital programme, funding has been allocated to electricity 
infrastructure. These infrastructure is being funded by INEP allocations and own revenue. 
The total INEP funding of R 14.0 million and own funding of R16.6 million will be used to 
connect new households in Louisvale to the electricity network. 


1.4.4 Sanitation and Impact of Tariff Increases 

A tariff increase of ±6% for sanitation from 1 July 2018 is proposed. This is based on the 
input cost assumptions related to sanitation services. It should be noted that electricity 
costs, chemical costs, and, salaries and allowances contributes approximately 45% of 
waste water treatment input costs; therefore the higher than CPI increase of 6% per cent 
for sanitation tariffs. 


The following factors also contribute to the proposed tariff increase: 

• Sanitation charges are calculated according to the size of the improvements on the 
property with the argument that properties with bigger improvements on it will 


27 March 2018 


19 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


accommodate more people or business activities that will lead to the use more water 
to be discharged in the sewerage distribution networks - see calculations made in 
Table 9 below; 

• Free sanitation services will be applicable to all registered indigents households; and 

• The total revenue expected to be generated from rendering sanitation services 
amounts to R 34.657 million for the 2018/2019 financial year. 

The following Table 9 compares the current and proposed tariffs for household, business 

and other consumers. 


Table 9 Comparison between current sanitation charges and increases 


Category 

Proposed Tariff from 

1 July 2017 

Proposed Tariff 
from 1 July 2018 

Rand per month 

Rand per month 

HOUSEHOLD PROPERTIES 



Improvements to 70 m 2 

104.08 

110.33 

Improvements between 71 m 2 and 100 m 2 

133.67 

141.68 

Improvements between 101 m 2 and 200 m 2 

204.75 

217.03 

Improvements between 201 m 2 and 400 m 2 

244.92 

259.60 

Improvements between 401 m 2 and 600 m 2 

New Tariff 

311.52 

Improvements between 601 m 2 and 800 m 2 

New Tariff 

373.82 

Improvements larger than 800 m 2 

New Tariff 

448.83 

HOTELS, BUSINESSES AND OFFICES 



For improvements up to 200 m 2 

228.42 

251.26 

The next 300 m 2 or portion thereof 

228.42 

251.26 

For the next 400 m 2 or portion thereof above 500 m 2 

228.42 

251.26 

INDUSTRIAL PROPERTIES 



For improvements up to 200 m 2 

228.42 

251.26 

The next 300 m 2 or portion thereof 

191.67 

210.83 

For the next 400 m 2 or portion thereof above 500 m 2 to 4100 rr 

154.67 

170.13 

For the next 400 m 2 or portion thereof above 4100 m 2 

76.50 

84.15 


Above tariffs are applicable on the former //Khara Hais Municipality. The previous Mier 
Municipality’s tariffs are available in the tariff list. 

The following table shows the impact of the proposed increases in sanitation tariffs on the 
sanitation charges for a single dwelling-house: 


27 March 2018 


20 

























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 10 Comparison between current sanitation charges and increases, houses 


Category 

Current Amount 
Payable (VAT 
Exclusive) R 

Proposed Amount 
Payble (VAT 
Exclusive) R 

Difference / 
Increase (VAT 
Exclusive) R 

Percentage 

Change 

Improvements to 70 m 2 

104.08 

110.33 

6.25 

6.00% 

Improvements between 71 m 2 and 100 m 2 

133.67 

141.68 

8.01 

6.00% 

Improvements between 101 m 2 and 200 m 2 

204.75 

217.03 

12.28 

6.00% 

Improvements between 201 m 2 and 400 m 2 

244.92 

259.60 

14.68 

6.00% 

Improvements between 401 m 2 and 600 m 2 

New Tariff 

311.52 

311.52 

27.19% 

Improvements between 601 m 2 and 800 m 2 

New Tariff 

373.82 

373.82 

52.63% 


Above tariffs are applicable on the former //Khara Hais Municipality. The previous Mier 
Municipality’s tariffs are available in the tariff list. 

1.4.5 Waste Removal and impact of Tariff Increases 


Currently solid waste removal is operating at a deficit. It is widely accepted that the 
rendering of this service should at least break even, which is currently not the case. The 
municipality will have to implement a solid waste strategy to ensure that this service can 
be rendered in a sustainable manner over the medium to long-term. The main contributors 
to this deficit are repairs and maintenance on vehicles, increases in general expenditure 
such as petrol and diesel and the cost of remuneration, the vast area of the service area of 
the municipality that needs to be serviced and the emergence of new informal settlements. 


A ±6% increase in the waste removal tariff is proposed from 1 July 2018. 


The following table compares current and proposed amounts payable from 1 July 2018 for 
refuse removal services. 


27 March 2018 


21 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 11 Comparison between current waste removal fees and increases 


Category 

Proposed Tariff 
from 1 July 

2017 

Proposed Tariff 
from 1 

July 2018 

Rand per 
month 

Rand per 
month 

HOUSEHOLD PROPERTIES 



Improvements less than 100 m 2 

110.50 

117.15 

Improvements between 101 m 2 and 200 m 2 

161.67 

171.35 

Improvements largerthan 200 m 2 

206.00 

218.35 

BUSINESS PROPERTIES 



For improvements up to 1 500 m 2 with minimum of 125m 2 

1 597.50 

1 725.00 

Improvements between 1 501 m 2 - 3 000 m 2 

800.00 

855.00 

Per m 2 above 3000 m 2 

0.35 

0.37 


Above tariffs are applicable on the former //Khara Hais Municipality. The previous Mier 
Municipality’s tariffs are available in the tariff list. 


The monthly amount payable for one removal per week varies from R 117.15 (VAT 
Exclusive) to R 218.35 (VAT Exclusive) for a household. This tariff includes free black 
plastic bags. Indigent households will get this basic service free by means of an indigent 
subsidy through the equitable share allocation from National Government. 


1.4.6 Overall impact of tariff increases on households 

The following table shows the overall expected impact of the tariff increases on a middle 
income household (property with a municipal valuation of R 700 000; 1 000 kWh electricity 
consumption and 30 kl of water consumption per month); affordable income household 
(property with a municipal valuation of R 500 000; 500 kWh electricity consumption and 
25 kl of water consumption per month) and a low income household (property with a 
municipal valuation of R 300 000; 350 kWh electricity consumption and 20 kl of water 
consumption per month). Note that in all instances the overall impact of the tariff increases 
on household’s bills has been kept to less than 6.0%. This is mainly due to the increase of 
electricity of 1.88%. Indigent household’s bills are fully subsidised where the indigent 
household have prepaid services Where the indigent household have conventional 


27 March 2018 


22 
















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


services, the household will be responsible for the services received more than the 
subsidized amount of 6 kf water and 50kW electricity. 


Table 12 MBRR Table SA14 - Household bills 


Description 

Rand/cent 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

% incr. 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Monthly Account for Household ■ 'Middle 









Income Ranqe' 









Rates and services charges: 









Property rates 

622.32 

662.80 

662.80 

662.80 

6.0% 

702.57 

744.72 

789.41 

Electricity: Basic levy 

242.20 

246.75 

246.75 

246.75 

6.8% 

263.63 

279.45 

296.21 

Electricity: Consumption 

1 384.60 

1 395.90 

1 395.90 

1 395.90 

6.8% 

1 491.40 

1 580.88 

1 675.74 

Water: Basic levy 

- 

- 

- 

- 

- 

- 

- 

- 

Water: Consumption 

204.30 

217.56 

217.56 

217.56 

5.6% 

229.82 

243.61 

258.23 

Sanitation 

230.00 

244.92 

244.92 

244.92 

14.7% 

259.60 

275.18 

291.69 

Refuse removal 

193.50 

206.00 

206.00 

206.00 

6.0% 

218.35 

231.45 

245.34 

sub-total 

2 876.92 

2 973.93 

2 973.93 

2 973.93 

6.4% 

3 165.37 

3 355.29 

3 556.61 

VAT on Services 

315.64 

346.67 

346.67 

346.67 


369.42 

r 391.59 

415.08 

Total large household bill: 

3 192.56 

3 320.60 

3 320.60 

3 320.60 


3 534.79 

3 746.88 

3 971.69 

% increase/-decrease 

- 

4.0% 

- 

- 


6.5% 

6.0% 

6.0% 

Monthly Account for Household - 'Affordable 









Ranqe' 









Rates and services charges: 









Property rates 

440.62 

469.28 

469.28 

469.28 

6.0% 

497.44 

527.29 

558.92 

Electricity: Basic levy 

242.20 

246.75 

246.75 

246.75 

6.8% 

263.63 

279.45 

296.21 

Electricity: Consumption 

692.30 

697.95 

697.95 

697.95 

6.8% 

745.70 

790.44 

837.87 

Water: Basic levy 

- 

- 

- 

- 


- 

- 

- 

Water: Consumption 

175.05 

186.41 

186.41 

186.41 

19.6% 

223.02 

236.40 

250.59 

Sanitation 

192.25 

204.78 

204.78 

204.78 

6.0% 

217.03 

230.05 

243.85 

Refuse removal 

151.75 

161.67 

161.67 

161.67 

6.0% 

171.35 

181.63 

192.53 

Other 


- 

- 






sub-total 

1 894.17 

1 966.84 

1 966.84 

1 966.84 

7.7% 

2118.17 

2 245.26 

2 379.98 

VAT on Services 

203.50 

205.46 

205.46 

205.46 


243.11 

r 257.70 

273.16 

Total small household bill: 

2 097.67 

2 172.30 

2 172.30 

2 172.30 

8.7% 

2 361.28 

2 502.96 

2 653.13 

% increase/-decrease 

- 

3.6% 

- 

- 


8.7% 

6.0% 

6.0% 

Monthly Account for Household - 'Indiqent' 









Household receivinq free basic services 









Rates and services charges: 









Property rates 

- 

- 

- 

- 


- 

- 

- 

Electricity: Basic levy 

- 

- 

- 

- 


- 

- 

- 

Electricity: Consumption 

415.38 

419.46 

419.46 

419.46 

27.3% 

448.14 

475.03 

503.53 

Water: Basic levy 

- 

- 

- 

- 


- 

- 

- 

Water: Consumption 

111.42 

118.66 

118.66 

118.66 

(17.6%) 

97.80 

103.67 

109.89 

Sanitation 

- 

- 

- 

- 


- 

- 

- 

Refuse removal 

- 

- 

- 

- 


- 

- 

- 

Other 


- 

- 




- 

- 

sub-total 

526.80 

538.12 

538.12 

538.12 

1.5% 

545.94 

578.70 

613.42 

VAT on Services 

72.75 

75.34 

75.34 

75.34 


81.89 



Total small household bill: 

599.55 

613.46 

613.46 

613.46 

2.3% 

627.83 

578.70 

613.42 

% increase/-decrease 

- 

2.3% 

- 

- 


2.3% 

(7.8%) 

6.0% 


27 March 2018 


23 









































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


1.5 Operating Expenditure Framework 

The municipality’s expenditure framework for the 2018/2019 budget and MTREF is 

informed by the following: 

• The asset renewal strategy and the repairs and maintenance plan; 

• Balanced budget constraint (operating expenditure should not exceed operating 
revenue) unless there are existing uncommitted cash-backed reserves to fund any 
deficit; 

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

• The capital programme is aligned to the asset renewal strategy and backlog 
eradication plan; 

• Operational gains and efficiencies will be directed to funding the capital budget and 
other core services; and 

• Strict adherence to the principle of no project plans no budget. If there is no 
business plan no funding allocation can be made. 


The following table is a high level summary of the 2018/2019 budget and MTREF 
(classified per main type of operating expenditure). 


Table 13 Summary of operating expenditure by standard classification item 



2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Description / R thousand 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget 

Year 

2018/19 

% 

Budget 

Year +1 

2019/20 

Budget Year 

+2 2020/21 

Expenditure Bv Tvoe 

Employee related costs 

221 902 

259 650 

274 025 

274 025 

325 494 

43.3% 

348 933 

369 740 

Remuneration of councillors 

8 514 

11 416 

10916 

10 916 

11 571 

1.5% 

12 323 

13 063 

Debt impairment 

18 409 

5 000 

5 300 

5 300 

- 

0.0% 

- 

- 

Depreciation & asset impairm 

93 761 

80 534 

80 538 

80 538 

95 594 

12.7% 

100 385 

105 919 

Finance charges 

11 838 

12 481 

12 527 

12 527 

12 225 

1.6% 

12 836 

13 542 

Bulk purchases 

159 260 

177 976 

183 085 

183 085 

186 291 

24.8% 

195 606 

206 364 

Other materials 

- 

18 388 

17 985 

17 985 

30 247 

4.0% 

31 760 

33 506 

Contracted services 

15 252 

19 490 

17 247 

17 247 

22 352 

3.0% 

23 469 

24 760 

Transfers and grants 

464 

610 

867 

867 

862 

0.1% 

905 

955 

Other expenditure 

61 541 

77 501 

61 309 

61 309 

66 504 

8.9% 

70 061 

74 150 

Loss on disposal of PPE 

- 

- 

- 

- 

- 

0.0% 

- 

- 

Total Expenditure 

590 942 

663 046 

663 798 

663 798 

751 140 

100.0% 

796 279 

842 000 


27 March 2018 


24 


















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The budgeted allocation for employee related costs for the 2018/2019 financial year totals 
R 325.5 million, which equals 43.3% per cent of the total operating expenditure and 49.7% 
of operating expenditure excluding non-cash items. No salary collective agreement for 
2018/2019 has been met and therefore the municipality budgeted in terms of the 
guidelines provided for 4.5% and onwards exists and the municipality has budgeted for a 
cost-of-living increase of 6%. Provision was made for critical vacant positions and 
increase in contributions towards medical aid above inflation rate. 

An annual cost-of-living increase of 6.0% has been included in the two outer years of the 
MTREF. As part of the municipality’s cost reprioritisation and cash management strategy 
vacancies have been significantly rationalised downwards. In addition expenditure against 
overtime was significantly reduced, with provisions against this budget item only being 
provided for emergency services and other critical functions. All overtime is being 
approved by the Accounting Officer to ensure that the overtime is monitored at all times. 

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

No provision for debt impairment was made. Provision for write off bad debt of R 5.5 
million was budgeted for as part of other expenditure in terms of MSCOA. For the 
2018/2019 financial year this amount equates to R 5.5 million and R 5.8 million and R 6.1 
million for the two outer years. While this expenditure is considered to be a non-cash flow 
item, it informed the total cost associated with rendering the services of the municipality, 
as well as the municipality’s realistically anticipated revenues. The moratorium on the 
handover of residential consumers was lifted in 2016/2017 and therefore defaulting 
consumer debtors will be handed over for collection. 

Provision for depreciation and asset impairment has been informed by the Municipality’s 
Asset Management Policy. Depreciation is widely considered a proxy for the 
measurement of the rate asset consumption. Budget appropriations in this regard total 
R 95.6 million for the 2018/2019 financial and equates to 12.7% of the total operating 


27 March 2018 


25 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


expenditure. Note that the implementation of GRAP 17 accounting standard has meant 
bringing a range of assets previously not included in the assets register onto the register. 
This has resulted in a significant increase in depreciation relative to previous years. This 
additional off-setting depreciation is not included in the budget for tariff calculation 
purposes. However, the municipality can expect to generate an non-cash operating deficit 
when the 2018/2019 annual financial statements are compiled compliant with the 
Accounting Standards since this off-setting depreciation is reflected in the Statement of 
Financial Performance and not directly to the Statement of Changes in Net Assets. 

Finance charges consist primarily of the repayment of interest on long-term borrowing 
(cost of capital). Finance charges make up 1.6% (R 12.3 million) of operating expenditure 
excluding annual redemption for 2018/2019 and increases to R 12.5 million by 2020/2021. 
As previously noted, the municipality has reached its prudential limits for borrowing. 
Therefore no external borrowing is being budgeted for from 2018/2019 - 2020/2021. 

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

Repairs and maintenance to be procured for the maintenance of the municipality’s assets 
are included under other materials. This includes an amount of R 30.2 million for the 
2018/2019 financial year and R 31.8 million and R 33.5 million for the two outer years of 
the MTREF. With the adoption of GRAP 17 Dawid Kruiper Municipality adopted the 
revaluation method with the higher Depreciated Replacement Cost (DRC), this resulted in 
a net asset value of R 1.8 billon. Circular 55 requires that municipalities should ensure that 
repairs and maintenance is at least 8% of the total value of Property, Plant and Equipment, 
this is however impossible to budget for repairs and maintenance of R 145.6 million as this 
expenditure must be funded with tariff increases. Therefore the implication of the 
revaluation method of GRAP 17 is taken into consideration when determining the 
budgeted amounts for repairs and maintenance. 

Contracted services have been identified as a cost saving area for the municipality. As 
part of the compilation of the 2018/2019 MTREF this group of expenditure was critically 
evaluated and operational efficiencies were enforced. In the 2018/2019 financial year, this 


27 March 2018 


26 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


group of expenditure totals R 22.4 million and has increased compared to the 2017/2018 
adjustments budget, clearly. For the two outer years growth has been limited to 5.0% and 
5.4%. As part of the process of identifying further cost efficiencies, a business process re¬ 
engineering project will commence in the 2018/2019 financial year to identify alternative 
practices and procedures, including building in-house capacity for certain activities that are 
currently being contracted out. The outcome of this exercise will be factored into the next 
budget cycle and it is envisaged that additional cost savings will be implemented. Further 
details relating to contracted services can be seen in Table 63 MBRR SA1. 

Other expenditure comprises of various line items relating to the daily operations of the 
municipality. As mentioned above it includes other materials for repair and maintenance of 
the municipality’s assets. This group of expenditure has also been identified as an area in 
which cost savings and efficiencies can be achieved. Further details relating to other 
expenditure can be seen in Table 63 MBRR SA1. 

The following chart gives a breakdown of the main expenditure categories for the 
2018/2019 financial year. 


2018/19 Budget Year 



■ Employee related costs 

■ Remuneration of councillors 

■ Debt impairment 

■ Depreciation & asset impairment 

■ Finance charges 

■ Bulk purchases 

■ Other materials 

■ Contracted services 

■ Transfers and grants 

■ Other expenditure 

■ Loss on disposal of PPE 


Figure 1 Main operational expenditure categories for the 2018/2019 financial year 


27 March 2018 


27 







Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


1.5.1 Priority given to repairs and maintenance 

Aligned to the priority being given to preserving and maintaining the municipality’s current 
infrastructure, the 2018/2019 budget and MTREF provide for extensive growth in the area 
of asset maintenance (higher than the inflation rate), as informed by the asset renewal 
strategy and repairs and maintenance plan of the municipality. In terms of the Municipal 
Budget and Reporting Regulations, operational repairs and maintenance is not considered 
a direct expenditure driver but an outcome of certain other expenditures, such as 
remuneration, purchases of materials, vehicle costs and contracted services. 

Unfortunately the financial system of the municipality is set up in such a way that these 
costs cannot be calculated and allocated very easily to the different asset classes. 
Therefore the following table will only reflect other materials to be procured for repairs and 
maintenance purposes. Table 14 gives a better picture of the consolidated cost drivers of 
all the expenditures associated with repairs and maintenance. 


Table 14 Operational repairs and main 


:enance 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget 

Year +1 

2019/20 

Budget Year 

+2 2020/21 

Repairs and Maintenance 
by Expenditure Item 

Employee related costs 

Other materials 

Contracted Services 

Other Expenditure 

11 216 

18 435 

17 985 

17 985 

10 023 

5 893 

10 524 

6 188 

11 103 

6 528 

Total Repairs and Maintenance Expenditure 

11 216 

18 435 

17 985 

17 985 

15 916 

16 712 

17 631 


During the compilation of the 2017/2018 Adjustment Budget operational repairs and 
maintenance was identified as a strategic imperative owing to the aging of the 
municipality’s infrastructure. To this end, total repairs and maintenance was increased in 
the 2018/2019 financial year to R 15.9 million from R 11.2 million in 2016/2017. As part of 
the 2018/2019 MTREF this strategic imperative remains a priority as can be seen by the 


27 March 2018 


28 


















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


budget appropriations over the MTREF. Table 15 below provides a breakdown of the 
repairs and maintenance (only other materials costs) in relation to asset class. 


Table 15 Repairs and maintenance per asset class 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium 

Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

Repairs and maintenance expenditure bv Asset 








Class/Sub-class 








Infrastructure 

2 383 

7 303 

3 526 

3 526 

5 313 

5 578 

5 885 

Roads Infrastructure 

71 

1 245 

1 100 

1 100 

2 170 

2 279 

2 404 

Roads 

71 

838 

950 

950 

2 010 

2 111 

2 227 

Road Furniture 

- 

407 

150 

150 

160 

168 

177 

Storm water Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Electrical Infrastructure 

1 246 

1 372 

571 

571 

1 578 

1 657 

1 748 

MV Substations 

- 

7 

- 

- 

23 

24 

25 

MV Networks 

1 246 

138 

- 

- 

- 

- 

- 

LV Networks 

- 

1 228 

571 

571 

1 555 

1 633 

1 723 

Capital Spares 

- 

- 

- 

- 




Water Supply Infrastructure 

557 

2 375 

1 095 

1 095 

1 000 

1 050 

1 108 

Reservoirs 

- 

96 

- 

- 

- 

- 

- 

Pump Stations 

- 

10 

- 

- 

- 

- 

- 

Water T reatment Works 

553 

748 

60 

60 

- 

- 

- 

Distribution 

4 

894 

825 

825 

1 000 

1 050 

1 108 

Distribution Points 

- 

626 

210 

210 

- 

- 

- 

Sanitation Infrastructure 

498 

1 288 

722 

722 

510 

536 

565 

Reticulation 

- 

1 040 

510 

510 

380 

399 

421 

Waste Water Treatment Works 

498 

36 

- 

- 

- 

- 

- 

Toilet Facilities 

- 

212 

212 

212 

130 

137 

144 

Solid Waste Infrastructure 

11 

3 

- 

- 

- 

- 

- 

Waste Processing Facilities 

11 

- 

- 

- 

- 

- 

- 

Waste Drop-off Points 

- 

3 

- 

- 

- 

- 

- 

Rail Infrastructure 

- 

650 

- 

- 

- 

- 

- 

Rail Lines 

- 

650 

- 

- 

- 

- 

- 

Coastal Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Information and Communication Infrastructure 

- 

371 

38 

38 

55 

58 

61 

Data Centres 

- 

221 

- 

- 

- 

- 

- 

Distribution Layers 

- 

150 

38 

38 

55 

58 

61 

Community Assets 

56 

607 

620 

620 

1 588 

1 667 

1 759 

Community Facilities 

- 

8 

278 

278 

922 

968 

1 021 

Halls 

- 

- 

8 

8 

705 

740 

781 

Fire/Ambulance Stations 

- 

- 

- 

- 

32 

33 

35 

Libraries 

- 

- 

250 

250 

10 

11 

11 

Cemeteries/Crematoria 

- 

8 

20 

20 

- 

- 

- 

Parks 

- 

- 

- 

- 

175 

184 

194 

Sport and Recreation Facilities 

56 

599 

343 

343 

666 

699 

738 

Indoor Facilities 


224 

- 

- 

- 

- 

- 

Outdoor Facilities 

56 

376 

343 

343 

666 

699 

738 

Heritage assets 

- 

- 

- 

- 

- 

- 

- 

Investment properties 

- 

- 

- 

- 

- 

- 

- 

Other assets 

679 

2 021 

1 109 

1 109 

1 467 

1 540 

1 625 

Operational Buildings 

679 

2 021 

1 109 

1 109 

1 467 

1 540 

1 625 

Municipal Offices 

679 

1 800 

1 109 

1 109 

1 467 

1 540 

1 625 

Workshops 

- 

1 

- 

- 

- 

- 

- 

Yards 

- 

220 

- 

- 

- 

- 

- 

Intangible Assets 

- 

- 

- 

- 

490 

515 

543 

Licences and Rights 

- 

- 

- 

- 

490 

515 

543 

Computer Software and Applications 

- 

- 

- 

- 

490 

515 

543 

Computer Equipment 

- 

- 

- 

- 

153 

161 

169 

Computer Equipment 

- 

- 

- 

- 

153 

161 

169 

Furniture and Office Equipment 

- 

- 

- 

- 

537 

563 

594 

Furniture and Office Equipment 

- 

- 

- 

- 

537 

563 

594 

Machinery and Equipment 

2 666 

1 529 

7 401 

7 401 

140 

147 

155 

Machinery and Equipment 

2 666 

1 529 

7 401 

7 401 

140 

147 

155 

Transport Assets 

5 432 

6 975 

5 329 

5 329 

6 229 

6 540 

6 900 

Transport Assets 

5 432 

6 975 

5 329 

5 329 

6 229 

6 540 

6 900 

Total Repairs and Maintenance Expenditure 

11 216 

18 435 

17 985 

17 985 

15 916 

16 712 

17 631 


27 March 2018 


29 






















































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


1.5.2 Free Basic Services: Basic Social Services Package 

The social package assists households that are poor or face other circumstances that limit 
their ability to pay for services. To receive these free services the households are required 
to register in terms of the municipality’s Indigent Policy. It should be noted that the 
Indigent Subsidy Policy was reviewed and that changes were made. For more detail on 
the policy visit our website at www.dkm.qov.za . Detail relating to free services, cost of 
free basis services, revenue lost owing to free basic services as well as basic service 
delivery measurement is contained in Table 27 MBRR A10 (Basic Service Delivery 
Measurement). 

The cost of the social package of the registered indigent households is largely financed by 
national government through the local government equitable share received in terms of the 
annual Division of Revenue Act. 


1.6 Capital expenditure 

The following table provides a breakdown of budgeted single- and multi-year capital 
expenditure by vote. For 2018/2019 an amount of R 127.5 million has been appropriated 
for investment in property, plant and equipment. In the outer years this amount totals 
R 36.2 million and R 30.4 million respectively for each of the financial years. Electro- 
Mechanical Services receives the highest allocation of R 39.7 million in 2018/2019 which 
equates to 31.2% of the capital budget. 


27 March 2018 


30 





Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 16 2018/2019 Medium-i 


:erm capital budget per vote 



Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure Framework 

Description / R thousand 

Adjusted 

Budget 

% 

Budget 

Year 

2018/19 

% 

Budget 

Year +1 

2019/20 

% 

Budget Year 

+2 2020/21 

% 

Capital expenditure - Vote 

IVIulti-vear expenditure to be appropriated 









Vote 1 - Municipal Manager 

- 

0.0% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 2 - Corporate Services 

- 

0.0% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 3 - Budget & Treasury Office 

- 

0.0% 

1 000 

0.8% 

- 

0.0% 

- 

0.0% 

Vote 4 - Community Services 

- 

0.0% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 5 - Technical Director 

- 

0.0% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 6 - Electro Mech Services 

- 

0.0% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 7 - Civil Engineering Services 

- 

0.0% 

13 769 

10.8% 

- 

0.0% 

- 

0.0% 

Vote 8 - Planning and Development Services 

- 

0.0% 

20 301 

15.9% 

20 727 

57.3% 

21 729 

71.4% 

Capital multi-year expenditure sub-total 

- 

0.0% 

35 070 

27.5% 

20 727 

r 57.3% 

21 729 

71.4% 

Sinqle-vear expenditure to be appropriated 









Vote 1 - Municipal Manager 

576 

0.5% 

36 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 2 - Corporate Services 

341 

0.3% 

2 292 

1.8% 

- 

0.0% 

- 

0.0% 

Vote 3 - Budget & Treasury Office 

18 504 

15.9% 

7 400 

5.8% 

- 

0.0% 

- 

0.0% 

Vote 4 - Community Services 

1 462 

1.3% 

1 691 

1.3% 

217 

0.6% 

217 

2.5% 

Vote 5 - Technical Director 

- 

0.0% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Vote 6 - Electro Mech Services 

51 538 

44.4% 

59 440 

46.6% 

15 246 

42.1% 

8 487 

97.5% 

Vote 7 - Civil Engineering Services 

28 949 

24.9% 

21 479 

16.8% 

- 

0.0% 

- 

0.0% 

Vote 8 - Planning and Development Services 

14 672 

12.6% 

70 

0.1% 

- 

0.0% 

- 

0.0% 

Capital single-year expenditure sub-total 

116 042 

100.0% 

92 408 

r 72.5% 

15 464 

42.7% 

8 704 

28.6% 

Total Capital Expenditure - Vote 

116 042 

100.0% 

127 478 

100.0% 

36 190 

100.0% 

30 433 

100.0% 


Further detail relating to asset classes and proposed capital expenditure is contained in 
Table 26 MBRR A9 (Asset Management). In addition to the MBRR Table A9, MBRR 
Tables SA34a, b and c provides a detailed breakdown of the capital programme relating to 
new asset construction; capital asset renewal as well as operational repairs and 
maintenance by asset class. 


Refer to pages 123 to 137 contain a detail breakdown of the capital budget per project 
over the medium-term. 


1.6.1 Future operational cost of new infrastructure 

The future operational costs and revenues associated with the capital programme have 
been included in Table 61 MBRR SA35. This concomitant operational expenditure is 
expected to escalate as new capital projects are implemented. It needs to be noted that as 
part of the 2018/2019 MTREF, this expenditure has been factored into the two outer years 
of the operational budget. 


27 March 2018 


31 

























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


1.7 Annual Budget Tables - Parent Municipality 

The following eighteen pages present the ten main budget tables as required in terms of 
section 8 of the Municipal Budget and Reporting Regulations. These tables set out the 
municipality’s 2018/2019 budget and MTREF as approved by the Council. Each table is 
accompanied by explanatory notes. 

Explanatory notes to MBRR Table A1 - Budget Summary 

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

2. The table provides an overview of the amounts approved by Council for operating 
performance, resources deployed to capital expenditure, financial position, cash and 
funding compliance, as well as the municipality’s commitment to eliminating basic 
service delivery backlogs. 

3. Financial management reforms emphasises the importance of the municipal budget 
being funded. This requires the simultaneous assessment of the Financial 
Performance, Financial Position and Cash Flow Budgets, along with the Capital 
Budget. The Budget Summary provides the key information in this regard: 

a. The operating surplus/deficit (after Total Expenditure) is positive over the 
MTREF. 

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

• Transfers recognised is reflected on the Financial Performance Budget; 

• Borrowing is incorporated in the net cash from financing on the Cash Flow 
Budget; and 

• Internally generated funds are financed from a combination of the current 
operating surplus and accumulated cash-backed surpluses from previous 
years. The amount is incorporated in the net cash from investing on the 
Cash Flow Budget. The fact that the municipality’s cash flow remains 


27 March 2018 


32 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


positive, and is improving indicates that the necessary cash resources are 
available to fund the Capital Budget. 

4. The Cash backing / surplus reconciliation shows that in previous financial years the 
municipality was not paying much attention to managing this aspect of its finances, 
and consequently many of its obligations are not cash-backed. This place the 
municipality in a very vulnerable financial position, as the recent slow-down in 
revenue collections highlighted. Consequently Council has taken a deliberate 
decision to ensure adequate cash-backing for all material obligations in accordance 
with the recently adopted Funding and Reserves Policy. This cannot be achieved in 
one financial year. But over the MTREF there is progressive improvement in the 
level of cash-backing of obligations. 

5. Even though the Council is placing great emphasis on securing the financial 
sustainability of the municipality, this is not being done at the expense of services to 
the poor. The section of Free Services shows that the amount spent on Free Basic 
Services and the revenue cost of free services provided by the municipality continues 
to increase. In addition, the municipality continues to make progress in addressing 
service delivery backlogs. 


27 March 2018 


33 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 17 MBRR Table A1 - Budget Summary 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

Financial Performance 








Property rates 

75 406 

97 249 

93 832 

93 832 

99 462 

105 429 

112 282 

Service charges 

337 359 

404 227 

397 633 

397 633 

447 595 

474 450 

505 290 

Investment revenue 

2 844 

2 590 

4 055 

4 055 

4 350 

4 568 

4 819 

Transfers recognised - operational 

70 984 

89 758 

82 646 

82 646 

93 221 

96 855 

104 663 

Other own revenue 

57 172 

46 098 

44 295 

44 295 

66 980 

55 411 

58 711 

loiai Kevenue (excluding capnai transTers ana 








contributions) 

543 764 

639 921 

622 461 

622 461 

711 607 

736 713 

785 765 

Employee costs 

221 902 

259 650 

274 025 

274 025 

325 494 

348 933 

369 740 

Remuneration of councillors 

8 514 

11 416 

10 916 

10 916 

11 571 

12 323 

13 063 

Depreciation & asset impairment 

93 761 

80 534 

80 538 

80 538 

95 594 

100 385 

105 919 

Finance charges 

11 838 

12 481 

12 527 

12 527 

12 225 

12 836 

13 542 

Materials and bulk purchases 

159 260 

196 364 

201 070 

201 070 

216 538 

227 365 

239 870 

Transfers and grants 

464 

610 

867 

867 

862 

905 

955 

Other expenditure 

95 201 

101 991 

83 856 

83 856 

88 856 

93 531 

98 911 

Total Expenditure 

590 942 

663 046 

663 798 

663 798 

751 140 

796 279 

842 000 

Surplus/(Deficit) 

(47 178) 

(23 124) 

(41 338) 

(41 338) 

(39 534) 

(59 566) 

(56 235) 

Transfers recognised - capital 

35 364 

48 280 

69 457 

69 457 

44 060 

28 874 

30 433 

Contributions recognised - capital & 








contributed assets 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after capital transfers & 








contributions 

(11 813) 

25 155 

28 120 

28 120 

4 527 

(30 692) 

(25 802) 

Share of surplus/ (deficit) of associate 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) for the year 

(11 813) 

25 155 

28 120 

28 120 

4 527 

(30 692) 

(25 802) 

Capital expenditure & funds sources 








Capital expenditure 

192 885 

91 817 

116 042 

116 042 

127 478 

36 190 

30 433 

Transfers recognised - capital 

34 984 

48 280 

69 537 

69 537 

44 060 

28 874 

30 433 

Public contributions & donations 

- 

- 

- 

- 

- 

- 

- 

Borrowing 

- 

10 000 

10 000 

10 000 

- 

- 

- 

Internally generated funds 

157 900 

33 537 

36 505 

36 505 

83 417 

7 316 

- 

Total sources of capital funds 

192 885 

91 817 

116 042 

116 042 

127 478 

36 190 

30 433 

Financial position 








Total current assets 

126 649 

96 800 

102 545 

102 545 

89 755 

122 533 

150 873 

Total non current assets 

2 405 770 

2 315 050 

2 436 832 

2 436 832 

2 488 769 

2 435 074 

2 370 666 

Total current liabilities 

181 997 

105 714 

117 114 

117 114 

175 400 

176 900 

157 900 

Total non current liabilities 

366 199 

268 615 

278 615 

278 615 

386 255 

394 530 

403 263 

Community wealth/Equity 

1 984 223 

2 037 521 

2 143 648 

2 143 648 

2 016 870 

1 986 178 

1 960 375 

Cash flows 








Net cash from (used) operating 

81 342 

89 981 

164 452 

164 452 

124 497 

52 268 

52 249 

Net cash from (used) investing 

(38 042) 

(78 747) 

(103 042) 

(103 042) 

(98 392) 

(20 440) 

(13 817) 

Net cash from (used) financing 

(11 999) 

340 

340 

340 

(14 000) 

(16 000) 

(18 000) 

Cash/cash equivalents at the year end 

43 754 

24 395 

74 572 

74 572 

19 934 

35 761 

56 194 

Cash backinq/surplus reconciliation 








Cash and investments available 

43 754 

24 395 

17 445 

17 445 

19 934 

35 761 

56 194 

Application of cash and investments 

34 868 

(12 041) 

(38 248) 

(38 248) 

31 736 

19 961 

(8 909) 

Balance - surplus (shortfall) 

8 887 

36 437 

55 694 

55 694 

(11 802) 

15 800 

65 103 

Asset manaqement 








Asset register summary (WDV) 

2 405 770 

2 315 050 

2 315 050 

2 315 050 

2 488 769 

2 435 074 

2 370 666 

Depreciation & asset impairment 

- 

80 534 

80 538 

80 538 

95 594 

100 385 

105 919 

Renewal of Existing Assets 

19 525 

19 774 

10 806 

10 806 

32 202 

10 794 

3 478 

Repairs and Maintenance 

11 216 

18 435 

17 985 

17 985 

15 916 

16 712 

17 631 

Free services 








Cost of Free Basic Services provided 

23 551 

23 551 

20 117 

20 117 

23 551 

23 551 

23 551 

Revenue cost of free services provided 

8 224 

10 884 

10 109 

10 109 

10 715 

11 358 

12 096 

Households below minimum service level 








Water: 

- 

- 

- 

- 

- 

- 

- 

Sanitation/sewerage: 

1 

1 

1 

1 

1 

1 

1 

Energy: 

2 

2 

2 

2 

2 

2 

2 

Refuse: 

10 

10 

10 

10 

10 

10 

10 


27 March 2018 


34 


































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Explanatory notes to MBRR Table A2 - Budgeted Financial Performance (revenue 

and expenditure by standard classification) 

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

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

3. Note that as a general principle the revenues for the Trading Services should exceed 
their expenditures. The table highlights that this is the case for Electricity, but not for 
Water, Waste Water Management and Waste Management functions. This deficit 
shown on the above mentioned functions is non-cash deficits as the depreciation 
cost are included in the deficit. This is a result of the implementation of GRAP 17 - 
as detailed discussed on page 21. 

4. Other functions that show a deficit between revenue and expenditure are being 
financed through the trading services profit, from rates revenues and other revenue 
sources reflected in the table. 


27 March 2018 


35 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 18 MBRR Table A2 - Budgeted Financial Performance 
(Revenue and expenditure by standard classification) 


Standard Classification Description / R 

thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Revenue - Standard 








Governance and administration 

210 742 

257 502 

256 724 

256 724 

233 655 

232 810 

249 408 

Executive and council 

4 011 

- 

- 

- 

- 

- 

- 

Finance and administration 

206 730 

257 502 

256 724 

256 724 

233 655 

232 810 

249 408 

Internal audit 

- 

- 

- 

- 

- 

- 

- 

Community and public safety 

7 255 

8 566 

12 099 

12 099 

8 783 

9 295 

9 653 

Community and social services 

1 656 

2 656 

2 709 

2 709 

3 179 

3 393 

3411 

Sport and recreation 

4 774 

5 870 

4 680 

4 680 

4 684 

4 965 

5 288 

Public safety 

53 

39 

4 060 

4 060 

218 

231 

246 

Housing 

772 

- 

650 

650 

703 

706 

709 

Health 

- 

- 

- 

- 

- 

- 

- 

Economic and environmental services 

17 157 

12 847 

19 607 

19 607 

38 608 

39 884 

42 058 

Planning and development 

6 295 

6 186 

15 088 

15 088 

31 015 

31 834 

33 486 

Road transport 

10 862 

6 661 

4 520 

4 520 

7 594 

8 049 

8 573 

Environmental protection 

- 

- 

- 

- 

- 

- 

- 

Trading services 

343 974 

409 286 

403 487 

403 487 

474 621 

483 598 

515 079 

Energy sources 

248 785 

278 955 

282 844 

282 844 

333 680 

344 801 

367 260 

Water management 

47 662 

66 305 

60 458 

60 458 

72 989 

66 768 

71 108 

Waste water management 

27 264 

34 373 

33 559 

33 559 

34 657 

36 736 

39 124 

Waste management 

20 263 

29 653 

26 627 

26 627 

33 295 

35 292 

37 586 

Other 

0 

- 

0 

0 

- 

- 

- 

Total Revenue - Standard 

579 128 

688 201 

691 918 

691 918 

755 667 

765 587 

816198 

Expenditure ■ Standard 








Governance and administration 

142 173 

151 884 

149 806 

149 806 

243 650 

260 660 

275 783 

Executive and council 

31 645 

44 957 

53 882 

53 882 

73 874 

80 923 

85 637 

Finance and administration 

110 528 

105 545 

94 799 

94 799 

167 043 

176 830 

187 066 

Internal audit 

- 

1 382 

1 125 

1 125 

2 733 

2 907 

3 080 

Community and public safety 

48 596 

59 841 

64 214 

64 214 

64 686 

68 735 

72 805 

Community and social services 

8 804 

8 633 

9 173 

9 173 

12 319 

13 089 

13 863 

Sport and recreation 

28 070 

34 843 

33 870 

33 870 

32 401 

34 403 

36 431 

Public safety 

11 048 

12 835 

16 488 

16 488 

15 039 

16 007 

16 964 

Housing 

2 559 

2 526 

4 682 

4 682 

4 926 

5 236 

5 547 

Health 

(1 885) 

1 005 

- 

- 

- 

- 

- 

Economic and environmental services 

66 578 

85 280 

72 388 

72 388 

69 662 

73 698 

77 956 

Planning and development 

16 305 

26 966 

17 493 

17 493 

13 843 

14 691 

15 555 

Road transport 

50 273 

58 314 

54 895 

54 895 

55 819 

59 007 

62 401 

Environmental protection 

- 

- 

- 

- 

- 

- 

- 

Trading services 

331 898 

363 714 

375 180 

375 180 

370 524 

390 398 

412 502 

Energy sources 

196 863 

216 353 

218 349 

218 349 

235 150 

247 278 

261 164 

Water management 

54 804 

69 753 

72 763 

72 763 

62 943 

66 460 

70 247 

Waste water management 

38 874 

43 207 

44 191 

44 191 

30 039 

31 863 

33 730 

Waste management 

41 357 

34 401 

39 878 

39 878 

42 392 

44 796 

47 361 

Other 

1 697 

2 326 

2 211 

2 211 

2 619 

2 788 

2 954 

Total Expenditure - Standard 

590 942 

663 046 

663 798 

663 798 

751 140 

796 279 

842 000 

Surplus/(Deficit) for the year 

(11 813) 

25 155 

28 120 

28 120 

4 527 

(30 692) 

(25 802) 


27 March 2018 


36 




















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Explanatory notes to MBRR Table A3 - Budgeted Financial Performance (revenue 

and expenditure by municipal vote) 

i. Table A3 is a view of the budgeted financial performance in relation to the revenue 
and expenditure per municipal vote. This table facilitates the view of the budgeted 
operating performance in relation to the organisational structure of the municipality. 
This means it is possible to present the operating surplus or deficit of a vote. 

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

trading services. 

1. The electricity trading surplus is sustained over the 2018/2019 MTREF around 33.8% 
- 33.1% from 2018/2019 to 2020/2021. This is primarily as a result of the high 
increases in Eskom bulk purchases and the tariff setting policy of the municipality and 
NERSA to buffer the impact of these increases on individual consumers. 

2. The surplus on the water account remains relatively constant over the MTREF 
translating into a surplus of 35.4%, 25.3% and 25.9% for each of the respective 
financial years. 

3. Note that the surpluses on these trading accounts are accounted for as an internal 
funding source for the capital programme for asset renewal, refurbishment and the 
development of new asset infrastructure, and to cross-subsidise other municipal 
services. 


27 March 2018 


37 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 19 MBRR Table A3 - Budgeted Financial Performance 



2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Description / R thousand 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year 

+2 2020/21 

Revenue bv Vote 








Vote 1 - Municipal Manager 

4 011 

- 

- 

- 

- 

- 

- 

Vote 2 - Corporate Services 

5 527 

17 579 

18 208 

18 208 

44 780 

31 910 

33 715 

Vote 3 - Budget & Treasury Office 

201 204 

239 921 

238 584 

238 584 

188 875 

200 901 

215 693 

Vote 4 - Community Services 

33 995 

40 056 

39 024 

39 024 

45 509 

48 264 

51 198 

Vote 5 - Technical Director 

- 

- 

- 

- 

- 

- 

- 

Vote 6 - Electro Mech Services 

248 785 

278 955 

282 844 

282 844 

333 680 

344 801 

367 260 

Vote 7 - Civil Engineering Services 

75 087 

100 932 

101 255 

101 255 

107 748 

103 613 

110 348 

Vote 8 - Planning and Development 

Services 

10 519 

10 758 

12 003 

12 003 

35 075 

36 099 

37 984 

Total Revenue by Vote 

579 128 

688 201 

691 918 

691 918 

755 667 

765 587 

816198 

Expenditure bv Vote to be appropriated 








Vote 1 - Municipal Manager 

31 645 

47 050 

45186 

45186 

69 528 

76 291 

80 726 

Vote 2 - Corporate Services 

25125 

31 114 

33 266 

33 266 

44 324 

46 962 

49 695 

Vote 3 - Budget & Treasury Office 

58 311 

50 878 

42 712 

42 712 

65 746 

69 576 

73 596 

Vote 4 - Community Services 

108 306 

120 372 

124 932 

124 932 

129 096 

136 994 

145 042 

Vote 5 - Technical Director 

- 

- 

- 

- 

- 

- 

- 

Vote 6 - Electro Mech Services 

208 408 

220 056 

221 852 

221 852 

268 333 

282 281 

298 149 

Vote 7 - Civil Engineering Services 

138 533 

166 600 

167 350 

167 350 

144 799 

153 044 

161 827 

Vote 8 - Planning and Development 

Services 

20 614 

26 974 

28 501 

28 501 

29 314 

31 130 

32 967 

Total Expenditure by Vote 

590 942 

663 046 

663 798 

663 798 

751 140 

796 279 

842 000 

Surplus/(Deficit) for the year 

(11 813) 

25155 

28120 

28120 

4 527 

(30 692) 

(25 802) 


27 March 2018 


38 























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 20 Surplus/(Deficit) calculations for the trading services 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Electricity 








Total Revenue (Excluding capital) 

248 785 

278 955 

282 844 

282 844 

333 680 

344 801 

367 260 

Operating Expenditure (excluding 








depreciation) 

182 754 

203 632 

205 627 

205 627 

221 040 

232 463 

245 533 

Surplus/(Deficit) for the year 

66 032 

75 323 

77 217 

77 217 

112 640 

112 338 

121 727 

Percentage Surplus 

26.5% 

27.0% 

27.3% 

27.3% 

33.8% 

32.6% 

33.1% 

Water 








Total Revenue (Excluding capital) 

47 662 

66 305 

60 458 

60 458 

72 989 

66 768 

71 108 

Operating Expenditure (excluding 








depreciation) 

38 986 

51 347 

54 357 

54 357 

47 125 

49 851 

52 725 

Surplus/(Deficit) for the year 

8 677 

14 959 

6 101 

6101 

25 864 

16 917 

18 383 

Percentage Surplus 

18.2% 

22.6% 

10.1% 

10.1% 

35.4% 

25.3% 

25.9% 


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

expenditure) 

1. Total revenue is R 711.6 million in 2018/2019 and escalates to R 785.8 million by 
2020/2021. This represents a year-on-year increase of 3.5% for the 2019/2020 
financial year and 6.7% for the 2020/2021 financial year. 

2. Revenue to be generated from property rates is R 99.5 million in the 2018/2019 
financial year and increases to R 112.3 million by 2020/2021 which represents 12.9% 
of the operating revenue base of the municipality and therefore remains a significant 
funding source for the municipality. It remains relatively constant over the medium- 
term and tariff increases have been factored in at ±6.0% for each of the respective 
financial years of the MTREF. 

3. Services charges relating to electricity, water, sanitation and refuse removal 
constitutes the biggest component of the revenue basket of the municipality totalling 
R 447.6 million for the 2018/2019 financial year and increasing to R 505.3 million by 
2020/2021. For the 2018/2019 financial year services charges amount to 44.5% of 


27 March 2018 


39 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


the total revenue base and increases to 45.5% by 2020/2021. This increase can 
mainly be attributed to the increase in the bulk prices of electricity and water. 

4. Transfers recognised - operating includes the local government equitable share and 
other operating grants from national and provincial government. Operating grants 
and transfers totals R 93.2 million in the 2018/2019 financial year and increases to 
R 104.7 million for 2020/2021. The following table gives a breakdown of the various 
operating grants and subsidies allocated to the municipality over the medium term: 


27 March 2018 


40 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 21 MBRR Table A4 - Budgeted Financial Performance (revenue and 
__ expenditure) __ 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

Revenue Bv Source 








Property rates 

75 406 

97 249 

93 832 

93 832 

99 462 

105 429 

112 282 

Service charges - electricity revenue 

242 247 

274 113 

278 151 

278 151 

316 656 

335 656 

357 473 

Service charges - water revenue 

47 585 

66 226 

59 458 

59 458 

62 987 

66 766 

71 106 

Service charges - sanitation revenue 

27 264 

34 235 

33 399 

33 399 

34 657 

36 736 

39124 

Service charges - refuse revenue 

20 263 

29 653 

26 626 

26 626 

33 295 

35 292 

37 586 

Rental of facilities and equipment 

8 341 

9 640 

9 029 

9 029 

7 987 

8 466 

9 015 

Interest earned - external investments 

2 844 

2 590 

4 055 

4 055 

4 350 

4 568 

4 819 

Interest earned - outstanding debtors 

2 985 

3 710 

3 000 

3 000 

3 000 

3150 

3 323 

Fines 

4 459 

668 

737 

737 

5 702 

6 043 

6 434 

Licences and permits 

1 571 

1 644 

1 707 

1 707 

1 986 

2105 

2 242 

Agency services 

4 208 

3 657 

1 765 

1 765 

- 

- 

- 

Transfers recognised - operational 

70 984 

89 758 

82 646 

82 646 

93 221 

96 855 

104 663 

Other revenue 

34 879 

13 714 

15 056 

15 056 

19 220 

19 897 

21 080 

Gains on disposal of PPE 

729 

13 064 

13 000 

13 000 

29 086 

15 750 

16 616 

Total Revenue (excluding capital 








transfers and contributions) 

543 764 

639 921 

622 461 

622 461 

622 461 

711 607 

736 713 

Expenditure Bv Tvoe 








Employee related costs 

221 902 

259 650 

274 025 

274 025 

274 025 

325 494 

348 933 

Remuneration of councillors 

8 514 

11 416 

10 916 

10 916 

10 916 

11 571 

12 323 

Debt impairment 

18 409 

5 000 

5 300 

5 300 

5 300 

- 

- 

Depreciation & asset impairment 

93 761 

80 534 

80 538 

80 538 

80 538 

95 594 

100 385 

Finance charges 

11 838 

12 481 

12 527 

12 527 

12 527 

12 225 

12 836 

Bulk purchases 

159 260 

177 976 

183 085 

183 085 

183 085 

186 291 

195 606 

Other materials 

- 

18 388 

17 985 

17 985 

17 985 

30 247 

31 760 

Contracted services 

15 252 

19 490 

17 247 

17 247 

17 247 

22 352 

23 469 

Transfers and subsidies 

464 

610 

867 

867 

867 

862 

905 

Other expenditure 

61 541 

77 501 

61 309 

61 309 

61 309 

66 504 

70 061 

Loss on disposal of PPE 

- 

- 

- 

- 

- 

- 

- 

Total Expenditure 

590 942 

663 046 

663 798 

663 798 

663 798 

751 140 

796 279 

Surplus/(Deficit) 

(47 178) 

(23 124) 

(41 338) 

(46 838) 

(46 838) 

(39 534) 

(59 566) 

Transfers recognised - capital 

35 364 

48 280 

69 457 

69 457 

69 457 

44 060 

28 874 

Surplus/(Deficit) after capital transfers & 








contributions 

(11 813) 

25155 

28120 

22 620 

22 620 

4 527 

(30 692) 

Taxation 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) after taxation 

(11 813) 

25155 

28120 

22 620 

22 620 

4 527 

(30 692) 

Attributable to minorities 

- 

- 

28120 

- 

- 

- 

- 

Surplus/(Deficit) attributable to 








municipality 

(11 813) 

25155 

56 239 

22 620 

22 620 

4 527 

(30 692) 

Share of surplus/ (deficit) of associate 

- 

- 

- 

- 

- 

- 

- 

Surplus/(Deficit) for the year 

(11 813) 

25155 

56 239 

22 620 

22 620 

4 527 

(30 692) 


27 March 2018 


41 



























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Explanatory notes to Table A5 - Budgeted Capital Expenditure by vote, standard 

classification and funding source 

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

2. The MFMA provides that a municipality may approve multi-year or single-year capital 
budget appropriations. In relation to multi-year appropriations, for the 2018/2019 
financial year R35.1 million has been allocated of the total R 127.4 million capital 
budget, which totals 27.5%. This allocation decreases to R 20.7 million in 2019/2020 
and then increases to R 21.7 million in 2020/2021. 

3. Single-year capital expenditure has been appropriated at R 92.4 million for the 
2018/2019 financial year and R 15.5 million and R 8.7 million respectively for the two 
outer years. 

4. Unlike multi-year capital appropriations, single-year appropriations relate to 
expenditure that will be incurred in the specific budget year such as the procurement 
of vehicles and specialised tools and equipment. The budget appropriations for the 
two outer years are indicative allocations based on the departmental business plans 
as informed by the IDP and will be reviewed on an annual basis to assess the 
relevance of the expenditure in relation to the strategic objectives and service 
delivery imperatives of the municipality. For the purpose of funding assessment of 
the MTREF, these appropriations have been included but no commitments will be 
incurred against single-year appropriations for the two outer-years. 

5. The capital programme is funded from capital and provincial grants and transfers, 
public contributions and donations and internally generated funds from current year 
surpluses. For 2018/2019, capital transfers totals R 44.1 million (34.6%) and 
decrease to R 28.6 million (79.8%) for 2019/2020 and then increases to R 30.4 
million (100.0%) for 2020/2021. 


27 March 2018 


42 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 22 MBRR Table A5 - Budgeted Capital Expenditure by vote, standard 
_ classification and funding source _ 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Capital expenditure - Vote 

Multi-vear expenditure to be appropriated 








Vote 1 - Municipal Manager 

- 

- 

- 

- 

- 

- 

- 

Vote 2 - Corporate Services 

- 

- 

- 

- 

- 

- 

- 

Vote 3 - Budget & Treasury Office 

- 

- 

- 

- 

1 000 

- 

- 

Vote 4 - Community Services 

- 

- 

- 

- 

- 

- 

- 

Vote 5 - Technical Director 

- 

- 

- 

- 

- 

- 

- 

Vote 6 - Electro Mech Services 

1 889 

- 

- 

- 

- 

- 

- 

Vote 7 - Civil Engineering Services 

118 

6 140 

- 

- 

13 769 

- 

- 

Vote 8 - Planning and Development 








Services 

17 577 

21 223 

- 

- 

20 301 

20 727 

21 729 

Capital multi-year expenditure sub-total 

19 584 

27 364 

- 

- 

35 070 

20 727 

21 729 

Sinale-vear expenditure to be appropriated 








Vote 1 - Municipal Manager 

52 

1 524 

576 

576 

576 

36 

- 

Vote 2 - Corporate Services 

46 

- 

341 

341 

341 

2 292 

- 

Vote 3 - Budget & Treasury Office 

517 

- 

18 504 

18 504 

18 504 

7 400 

- 

Vote 4 - Community Services 

64 710 

936 

1 462 

359 

359 

1 691 

217 

Vote 5 - Technical Director 

- 

- 

- 

- 

- 

- 

- 

Vote 6 - Electro Mech Services 

19 668 

38 230 

51 538 

47 178 

47 178 

59 440 

15 246 

Vote 7 - Civil Engineering Services 

88 095 

23 739 

28 949 

28 949 

28 949 

21 479 

- 

Vote 8 - Planning and Development 








Services 

186 

44 

14 672 

87 

87 

70 

- 

Capital single-year expenditure sub-total 

173 274 

64 473 

116 042 

95 994 

95 994 

92 408 

15 464 

Total Capital Expenditure - Vote 

192 858 

91 837 

116 042 

95 994 

131 064 

113 135 

37 192 

Capital Expenditure - Standard 








Governance and administration 

686 

1 524 

32 652 

32 652 

32 652 

29 976 

7 316 

Executive and council 

79 

1 524 

578 

578 

578 

3 

- 

Budget and treasury office 

607 

- 

32 074 

32 074 

32 074 

29 973 

7 316 

Corporate services 

- 

- 

- 

- 

- 

- 

- 

Community and public safety 

3 902 

5 296 

1 438 

1 438 

1 438 

2 008 

5 777 

Community and social services 

22 

626 

1 104 

1 104 

1 104 

1 032 

217 

Sport and recreation 

3 832 

4 360 

52 

52 

52 

706 

5 559 

Public safety 

49 

311 

282 

282 

282 

270 

- 

Economic and environmental services 

95 876 

46 686 

24 884 

24 884 

24 884 

11 885 

15 167 

Planning and development 

4 

28 426 

14 734 

14 734 

14 734 

70 

- 

Road transport 

95 872 

18 260 

10 150 

10 150 

10 150 

11 815 

15 167 

Trading services 

92 421 

38 310 

57 068 

57 068 

57 068 

83 609 

7 930 

Electricity 

19 930 

27 270 

38 334 

38 334 

38 334 

39 742 

7 930 

Water 

4 106 

11 040 

17 372 

17 372 

17 372 

36 891 

- 

Waste water management 

2 904 

- 

1 362 

1 362 

1 362 

6 971 

- 

Waste management 

65 480 

- 

- 

- 

- 

4 

- 

Other 

- 

- 

- 

- 

- 

- 

- 

Total Capital Expenditure - Standard 

192 885 

91 817 

116 042 

116 042 

116 042 

127 478 

36 190 

Funded bv: 








National Government 

33 381 

47 654 

64 633 

64 633 

64 633 

43 843 

28 657 

Provincial Government 

1 603 

626 

4 904 

4 904 

4 904 

217 

217 

Transfers recognised - capital 

34 984 

48 280 

69 537 

69 537 

69 537 

44 060 

28 874 

Borrowing 

- 

10 000 

10 000 

10 000 

10 000 

- 

- 

Internally generated funds 

157 900 

33 537 

36 505 

36 505 

36 505 

83 417 

7 316 

Total Capital Funding 

192 885 

91 817 

116 042 

116 042 

116 042 

127 478 

36 190 


27 March 2018 


43 





























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Explanatory notes to Table A6 - Budgeted Financial Position 

1. Table A6 is consistent with international standards of good financial management 
practice, and improves understandability for councillors, management and other 
users of budget documentation of the impact of the budget on the statement of 
financial position (balance sheet). 

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

3. Table 65 is supported by an extensive table of notes (SA3 which can be found on 
page 142) providing a detailed analysis of the major components of a number of 
items, including: 

• Call investments deposits; 

• Consumer debtors; 

• Property, plant and equipment; 

• Trade and other payables; 

• Provisions non-current; 

• Changes in net assets; and 

• Reserves 

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

5. Any movement on the Budgeted Financial Performance or the Capital Budget will 
inevitably impact on the Budgeted Financial Position. As an example, the collection 
rate assumption will impact on the cash position of the municipality and subsequently 
inform the level of cash and cash equivalents at year end. Similarly, the collection 
rate assumption should inform the budget appropriation for debt impairment which in 
turn would impact on the provision for bad debt. These budget and planning 


27 March 2018 


44 





Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


assumptions form a critical link in determining the applicability and relevance of the 
budget as well as the determination of ratios and financial indicators. In addition the 
funding compliance assessment is informed directly by forecasting the Statement of 
Financial Position. 


Table 23 MBRR Table A6 - Budgeted Financial Position 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenues Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

ASSETS 















Current assets 















Cash 

r 

43 754 

r 

29 395 

r 

9 395 

r 

10 329 

r 

19 934 

¥ 

35 761 

¥ 

56194 

Call investment deposits 

r 

_ 

r 

_ 

r 

_ 

r 

_ 

r 

_ 

r 

_ 

r 

- 

Consumer debtors 

r 

71 620 

r 

57 066 

r 

83 316 

r 

70 949 

r 

63 987 

¥ 

78 938 

¥ 

86 845 

Other debtors 

r 

1 614 

r 

5 488 

r 

4 488 

r 

4 488 

r 

_ 

¥ 

_ 

¥ 

- 

Current portion of long-term receive 

r 

13 

r 

5 

r 

_ 

r 

_ 

r 

_ 

¥ 

_ 

r 

- 

Inventory 

r 

9 648 

r 

4 845 

r 

5 345 

r 

5 345 

r 

5 834 

¥ 

7 834 

r 

7 834 

Total current assets 


126 649 

¥ 

96 800 

¥ 

102 545 

¥ 

91 112 


89 755 

¥ 

122 533 

f 

150 873 

Non current assets 















Investments 

r 


r 


r 

10 550 

r 


r 


¥ 


r 

- 

Investment property 

r 

593 198 

r 

584 341 

r 

593 198 

r 

598 498 

r 

609 148 

¥ 

619 648 

¥ 

630 725 

Property, plant and equipment 

r 

1 804 316 

r 

1 725 542 

r 

1 829 338 

r 

1 825 139 

r 

1 854 784 

¥ 

1 790 589 

r 

1 715102 

Intangible 

r 

3 746 

r 

5167 

r 

3 746 

r 

18 738 

r 

20 328 

¥ 

20 328 

¥ 

20 328 

Other non-current assets 

r 

4 509 

r 


r 


r 

4 509 

r 

4 509 

¥ 

4 509 

r 

4 509 

Total non current assets 


2 405 770 

¥ 

2 315 050 

¥ 

2 436 832 

¥ 

2 446 885 

r 

2 488 769 


2 435 074 

f 

2 370 666 

TOTAL ASSETS 


2 532 418 

¥ 

2 411 850 

¥ 

2 539 376 

¥ 

2 537 998 

f 

2 578 525 

¥ 

2 557 607 

f 

2 521 539 

LIABILITIES 















Current liabilities 

r 


r 


r 

- 



r 

- 


- 


- 

Bank overdraft 

r 


r 

5 000 

r 

2 500 


2 500 

r 

m 


- 


- 

Borrowing 

r 

8 716 

r 

8 912 

r 

10 162 


10 162 

¥ 

10 000 


12 000 


13 000 

Consumer deposits 

r 

10 868 

r 

12 500 

r 

12 650 


12 650 

r 

12 650 


12 650 


12 650 

Trade and other payables 

r 

108 415 

r 

54 552 

r 

54 552 


85 500 

¥ 

95 500 


95 000 


75 000 

Provisions 

r 

53 998 

r 

24 750 

r 

37 250 


37 250 

¥ 

57 250 


57 250 


57 250 

Total current liabilities 


181 997 

r 

105 714 

W 

117114 

148 062 


175 400 

176 900 

157 900 

Non current liabilities 















Borrowing 

r 

104 021 

r 

104 995 

r 

114 995 

r 

102 914 

¥ 

89 077 

¥ 

71 077 

r 

52 077 

Provisions 

r 

262 178 

r 

163 620 

r 

163 620 

r 

274 678 

¥ 

297 178 

¥ 

323 453 

¥ 

351 186 

Total non current liabilities 


366 199 

¥ 

268 615 

¥ 

278 615 

¥ 

377 592 

¥ 

386 255 

■- J 

394 530 

f 

403 263 

TOTAL LIABILITIES 


548 195 

r 

374 329 

¥ 

395 729 

¥ 

525 655 

f 

561 655 

¥ 

571 430 

f 

561 163 

NET ASSETS 

r 

1 984 223 

r 

2 037 521 

r 

2 143 648 

r 

2 012 343 

r 

2 016 870 

¥ 

1 986 178 

¥ 

1 960 375 

COMMUNITY WEALTH/EQUITY 















Accumulated Surplus/(Deficit) 

r 

1 984 223 

r 

2 037 521 

r 

2 143 648 

r 

2 012 343 

¥ 

2 016 870 

¥ 

1 986 178 

r 

1 960 375 

TOTAL COMMUNITY WEALTH/EQUITY 


1 984 223 

r 

2 037 521 

¥ 

2 143 648 

¥ 

2 012 343 

1 

2 016 870 

¥ 

1 986 178 

f 

1 960 375 


27 March 2018 


45 





























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Explanatory notes to Table A7 - Budgeted Cash Flow Statement 

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

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

3. The 2018/2019 MTREF provide for a net increase in cash of R 12.1 million for the 
2018/2019 financial year resulting in an overall projected positive cash position at 
year end. 

4. In addition the municipality has undertaken an extensive debt collection drive 
resulting in cash receipts on arrear debtors. 

5. The 2018/2019 MTREF has been informed by the planning principle of ensuring 
adequate cash reserves over the medium-term. 


27 March 2018 


46 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 24 MBRR Table A7 - 


Budgeted Cash Flow Statement 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year 

+2 2020/21 

CASH FLOW FROM OPERATING ACTIVITIES 















Receipts 















Property rates 


86102 

¥ 

93 773 

¥ 

93 832 

¥ 

81133 

F 

110 424 

¥ 

88 479 

¥ 

104 375 

Service charges 


335 245 

r 

404 227 

¥ 

397 633 

¥ 

397 633 

F 

447 595 

¥ 

474 450 

¥ 

505 290 

Other revenue 


26 924 

¥ 

24 024 

¥ 

28 295 

¥ 

13 238 

F 

24 894 

¥ 

26 011 

¥ 

27 694 

Government-operating 


70 984 

¥ 

89 758 

¥ 

82 646 

¥ 

82 646 

F 

93 221 

¥ 

96 855 

¥ 

104663 

Government-capital 


35 364 

¥ 

48 280 

¥ 

69 457 

¥ 

69 457 

F 

44060 

¥ 

28 874 

¥ 

30433 

Interest 


5 829 

¥ 

6 300 

¥ 

70 550 

¥ 

7 055 

F 

7 350 

¥ 

7 718 

¥ 

8142 

Payments 















Suppliers and employees 


(466 803) 

¥ 

(563 288) 

¥ 

(564 567) 

¥ 

(570 979) 

F 

(589 960) 

¥ 

(656 377) 

¥ 

(713 851) 

Finance charges 


(11 838) 

¥ 

(12 481) 

¥ 

(12 527) 

¥ 

(12 527) 

F 

(12 225) 

¥ 

(12 836) 

¥ 

(13 542) 

Transfers and Grants 


(464) 

¥ 

(610) 

¥ 

(867) 

¥ 

(867) 

F 

(862) 

¥ 

(905) 

¥ 

(955) 

NET CASH FROMZ(USED) OPERATING ACTIVITII 

81342 

f 

89 981 

f 

164 452 

f 

66 789 

¥ 

124 497 

f 

52 268 

f 

52 249 

CASH FLOWS FROM INVESTING ACTIVITIES 















Receipts 















Proceeds on disposal of PPE 

r 

729 

¥ 

13 064 

¥ 

13 000 

¥ 

13 000 

F 

29 086 

¥ 

15 750 

¥ 

16 616 

Decrease (increase) other non-current receiva 

f 

10 

¥ 

5 

¥ 


¥ 

(13) 

F 


¥ 


¥ 

- 

Payments 















Capital assets 

F 

(38 782) 

¥ 

(91 817) 

¥ 

(116 042) 

¥ 

(116 042) 

F 

(127 478) 

¥ 

(36 190) 

¥ 

(30 433) 

NET CASH FROMZ(USED) INVESTING ACT1VIT1E 

(38 042) 

f 

(78 747) 

f 

(103 042) 

f 

(103 055) 

¥ 

(98 392) 

f 

(20 440) 

f 

(13 817) 

CASH FLOWS FROM FINANCING ACTIVITIES 















Receipts 















Borrowing long term/refinancing 

F 

- 


10 000 


10 000 


10 000 


- 


- 


- 

Increase (decrease) in consumer deposits 

F 

(882) 


- 


- 


- 


- 


- 


- 

Payments 















Repayment of borrowing 

r 

(11118) 


(9 660) 


(9 660) 


(9 660) 


(14 000) 


(16 000) 


(18 000) 

NET CASH FROMZ(USED) FINANCING ACTIVITIf 

(11 999) 

340 

340 

340 

(14 000) 

(16 000) 

(18 000) 

NET INCREASE/ (DECREASE) IN CASH HELD 

F 

31301 


11574 


61750 


(35 925) 


12105 


15 827 


20 433 

Cash/cash equivalents at the year begin: 

F 

12 454 


12 821 


12 821 


43 754 


7 829 


19 934 


35 761 

Cash/cash equivalents at the year end: 

F 

43 754 


24 395 


74 572 


7 829 


19 934 


35 761 


56194 


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


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


27 March 2018 


47 






























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


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

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

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

5. The main reason for these “unfunded” projections were a lack of cash due to 
government not honouring their service charges, outstanding debt, moratorium on 
handover of consumer debtors, unspent grants not being cash backed for previous 
financial years, the roll-over of capital projects that is ongoing for more than a year 
which is being funded from external loans and own funds, housing programme claims 
not paid out by provincial government and unfunded mandates for Primary Health 
Care Services, Environmental Services, Library Services, Disaster Management, etc. 
Based on Circular 74 (Unfunded Mandates) the municipality has identified certain 
functions, which is not the core function of the municipality and is jeopardizing our 
financial situation. An item was tabled to Council and discussions and decisions will 
determine these function(s) will dispose or rented out. The municipality will be 
unable to raise external loans until the shortfall on A8 is R 0. Therefore Council has 
approved a Municipal Turn Around Strategy (MTAS) to ensure that our current 
financial situation approves during the MTREF. 

6. Considering the requirements of section 18 of the MFMA, it can be concluded that 
the draft 2018/2019 MTREF was funded. 

7. As part of the budgeting and planning guidelines that informed the compilation of the 
2018/2019 MTREF the end objective of the medium-term framework was to ensure 
the budget is funded aligned to section 18 of the MFMA. 


27 March 2018 


48 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 25 MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus 

Reconciliation 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

Cash and investments available 








Cash/cash equivalents at the year end 

43 754 

24 395 

74 572 

7 829 

19 934 

35 761 

56 194 

Other current investments > 90 days 

- 

- 

(67 676) 

- 

- 

- 

- 

Non current assets ■ Investments 

- 

- 

10 550 

- 

- 

- 

- 

Cash and Investments available: 

43 754 

24 395 

17 445 

7 829 

19 934 

35 761 

56 194 

Application of cash and Investments 








Unspent conditional transfers 

19 144 

- 

- 

- 

- 

- 

- 

Other working capital requirements 

15 724 

(12 041) 

(38 248) 

4 995 

23 736 

13 961 

(14 909) 

Reserves to be backed by cash/investments 

- 

- 

- 

- 

- 

- 

- 

Total Application of cash and investments: 

34 868 

(12 041) 

(38 248) 

10 495 

31 736 

19 961 

(8 909) 

Surplus(shortfall) 

8 887 

36 437 

55 694 

(2 666) 

(11 802) 

15 800 

65103 


Explanatory notes to Table A9 - Asset Management 


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


2. National Treasury has recommended that municipalities should allocate at least 40 
per cent of their capital budget to the renewal of existing assets, and allocations to 
repairs and maintenance should be 8 per cent of PPE. This is however impossible to 
budget for repairs and maintenance of 8% as this would equate to R 145.6 million. 
This expenditure will have to be funded with tariff increases, resulting in tariffs 
increases above 25%. Therefore the implication of the revaluation method of GRAP 
17 is taken into consideration when determining the budgeted amounts for repairs 
and maintenance. 

3. Depreciation and asset impairment costs (off-setting depreciation included) due to 
the implementation of the GRAP Accounting Standards on the carrying values of 
componentised assets makes it virtually unaffordable to maintain the municipality’s 
assets at depreciated replacement cost. 


27 March 2018 


49 




















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 26 MBRR Table A9 - Asset Management 


Description 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

CAPITAL EXPENDITURE 








Total New Assets 

173 360 

72 042 

105 236 

105 236 

50 415 

25 179 

26 737 

Roads Infrastructure 

348 

5 685 

7 222 

7 222 

11 623 

12 734 

12 162 

Storm water Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Electrical Infrastructure 

15 966 

31 561 

38 319 

38 319 

12 494 

4 452 

5 009 

Water Supply Infrastructure 

3 381 

15 066 

23 472 

23 472 

1 843 

- 

- 

Sanitation Infrastructure 

2 341 

5 440 

1 605 

1 605 

15 780 

2 433 

- 

Solid Waste Infrastructure 

147 576 

- 

- 

- 

- 

- 

- 

Infrastructure 

169 613 

57 752 

70 617 

70 617 

41 740 

19 619 

17 171 

Community Facilities 

- 

138 

700 

700 

517 

- 

- 

Sport and Recreation Facilities 

3 187 

5 141 

414 

414 

690 

5 559 

9 566 

Community Assets 

3 187 

5 279 

1 114 

1 114 

1 207 

5 559 

9 566 

Heritage Assets 

- 

- 

- 

- 

- 

- 

- 

Non-revenue Generating 

- 

- 

- 

- 

650 

- 

- 

Investment properties 

- 

- 

- 

- 

650 

- 

- 

Operational Buildings 

70 

4 

875 

875 

2 715 

- 

- 

Other Assets 

70 

4 

875 

875 

2 715 

- 

- 

Biological or Cultivated Assets 

- 

- 

- 

- 

- 

- 

- 

Licences and Rights 

- 

- 

14 993 

14 993 

25 

- 

- 

Intangible Assets 

- 

- 

14 993 

14 993 

25 

- 

- 

Computer Equipment 

238 

58 

3 089 

3 089 

130 

- 

- 

Furniture and Office Equipment 

133 

1 933 

672 

672 

701 

- 

- 

Machinery and Equipment 

118 

707 

662 

662 

3 126 

- 

- 

Transport Assets 

- 

6 310 

13 213 

13 213 

120 

- 

- 

Total Renewal of Existinq Assets 

19 525 

19 774 

10 806 

10 806 

32 202 

10 794 

3 478 

Roads Infrastructure 

11 910 

11 000 

10 000 

10 000 

- 

- 

- 

Electrical Infrastructure 

3 964 

- 

- 

- 

7 869 

3 478 

3 478 

Water Supply Infrastructure 

547 

8 740 

438 

438 

400 

- 

- 

Sanitation Infrastructure 

551 

- 

- 

- 

200 

- 

- 

Infrastructure 

16 973 

19 740 

10 438 

10 438 

8 469 

3 478 

3 478 

Sport and Recreation Facilities 

592 

- 

26 

26 

- 

- 

- 

Community Assets 

592 

- 

26 

26 

- 

- 

- 

Investment properties 

- 

- 

- 

- 

- 

- 

- 

Operational Buildings 

- 

- 

192 

192 

- 

- 

- 

Other Assets 

- 

- 

192 

192 

- 

- 

- 

Licences and Rights 

- 

- 

- 

- 

15 

- 

- 

Intangible Assets 

- 

- 

- 

- 

15 

- 

- 

Computer Equipment 

162 

34 

34 

34 

566 

- 

- 

Furniture and Office Equipment 

164 

- 

93 

93 

32 

- 

- 

Machinery and Equipment 

118 

- 

23 

23 

3 924 

- 

- 

Transport Assets 

1 515 

- 

- 

- 

19 196 

7 316 

- 

Total Upqradinq of Existinq Assets 

- 

- 

- 

- 

44 861 

217 

217 

Electrical Infrastructure 

- 

- 

- 

- 

17 609 

- 

- 

Water Supply Infrastructure 

- 

- 

- 

- 

25 702 

- 

- 

Infrastructure 

- 

- 

- 

- 

43 311 

- 

- 

Community Facilities 

- 

- 

- 

- 

- 

217 

217 

Sport and Recreation Facilities 

- 

- 

- 

- 

- 

- 

- 

Community Assets 

- 

- 

- 

- 

- 

217 

217 

Licences and Rights 

- 

- 

- 

- 

1 550 

- 

- 

Intangible Assets 

- 

- 

- 

- 

1 550 

- 

- 

Total Capital Expenditure 








Roads Infrastructure 

12 258 

16 685 

17 222 

17 222 

11 623 

12 734 

12 162 

Storm water Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Electrical Infrastructure 

19 930 

31 561 

38 319 

38 319 

37 971 

7 930 

8 487 

Water Supply Infrastructure 

3 929 

23 807 

23 910 

23 910 

27 946 

- 

- 

Sanitation Infrastructure 

2 893 

5 440 

1 605 

1 605 

15 980 

2 433 

- 

Solid Waste Infrastructure 

147 576 

- 

- 

- 

- 

- 

- 

Infrastructure 

186 586 

77 492 

81 056 

81 056 

93 520 

23 097 

20 649 

Community Facilities 

- 

138 

700 

700 

517 

217 

217 

Sport and Recreation Facilities 

3 780 

5 141 

440 

440 

690 

5 559 

9 566 

Community Assets 

3 780 

5 279 

1 140 

1 140 

1 207 

5 777 

9 784 

Heritage Assets 

- 

- 

- 

- 

- 

- 

- 

Non-revenue Generating 

- 

- 

- 

- 

650 

- 

- 

Investment properties 

- 

- 

- 

- 

650 

- 

- 

Operational Buildings 

70 

4 

1 067 

1 067 

2 715 

- 

- 

Housing 

- 

- 

- 

- 

- 

- 

- 

Other Assets 

70 

4 

1 067 

1 067 

2 715 

- 

- 

Licences and Rights 

- 

- 

14 993 

14 993 

1 590 

- 

- 

Intangible Assets 

- 

- 

14 993 

14 993 

1 590 

- 

- 

Computer Equipment 

400 

92 

3 123 

3 123 

696 

- 

- 

Furniture and Office Equipment 

297 

1 933 

765 

765 

734 

- 

- 

Machinery and Equipment 

236 

707 

685 

685 

7 050 

- 

- 

Transport Assets 

1 515 

6 310 

13 213 

13 213 

19 316 

7 316 

- 

TOTAL CAPITAL EXPENDITURE - Asset class 

192 885 

91 817 

116 042 

116 042 

127 478 

36 190 

30 433 


27 March 2018 


50 







































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Description 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Budget 

Budget 

Forecast 

2018/19 

+1 2019/20 

+2 2020/21 

ASSET REGISTER SUMMARY - PPE (WDV) 








Roads Infrastructure 

308 790 

495 996 

495 996 

304 832 

296 081 

287 423 

277 016 

Storm water Infrastructure 

200 000 

- 

- 

200 000 

198 086 

196 077 

193 957 

Electrical Infrastructure 

305 808 

322 223 

322 223 

331 406 

355 268 

348 383 

341 239 

Water Supply Infrastructure 

402 356 

423 641 

423 641 

407 860 

419 988 

403 379 

385 856 

Sanitation Infrastructure 

105 210 

128 706 

128 706 

99 033 

109 922 

107 010 

101 372 

Solid Waste Infrastructure 

169120 

24 918 

24 918 

167 736 

149 163 

129 662 

109 088 

Rail Infrastructure 

1 235 

- 

- 

1 235 

121 

(1 059) 

(2 317) 

Information and Communication Infrastructure 

2 467 

- 

- 

2 467 

2 465 

2 463 

2 460 

Infrastructure 

1 494 987 

1 395 483 

1 395 483 

1 514 570 

1 531 095 

1 473 337 

1 408 672 

Community Facilities 

12111 

- 

- 

12 387 

11 269 

9 770 

8176 

Sport and Recreation Facilities 

55 718 

70 763 

70 763 

52 544 

50 035 

52 234 

58 254 

Community Assets 

67 829 

70 763 

70 763 

64 931 

61 304 

62 004 

66 430 

Heritage Assets 

4 509 

4 509 

4 509 

4 509 

4 509 

4 509 

4 509 

Revenue Generating 

593 198 

584 341 

584 341 

598 498 

609 148 

619 648 

630 725 

Non-revenue Generating 

- 



- 

- 

- 

- 

Investment properties 

593 198 

584 341 

584 341 

598 498 

6 09 148 

619 648 

630 725 

Operational Buildings 

Housing 

192 165 

198 503 

198 503 

188 632 

187 167 

182 778 

178 147 

Other Assets 

192 16 5 

198 503 

198 503 

188 632 

187 167 

182 778 

178 147 

Biological or Cultivated Assets 

- 

- 

- 

- 

- 

- 

- 

Servitudes 

- 

- 

- 

- 

- 

- 

- 

Licences and Rights 

3 746 

5167 

5167 

18 738 

20 328 

20 328 

20 328 

Intangible Assets 

3 746 

5167 

5167 

18 738 

20 328 

20 328 

20 328 

Computer Equipment 

3 726 

191 

191 

6 486 

5 964 

4 685 

3 335 

Furniture and Office Equipment 

15 606 

2 322 

2 322 

10 031 

7 369 

3 804 

42 

Machinery and Equipment 

7 358 

47 460 

47 460 

8 044 

14 925 

14 749 

14 562 

Transport Assets 

22 645 

6 310 

6 310 

32 445 

46 959 

49 233 

43 913 

TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 

2 405 770 

2 315 050 

2 315 050 

2 446 885 

2 488 769 

2 435 074 

2 370 666 

EXPENDITURE OTHER ITEMS 








Depreciation 

- 

80 534 

80 538 

80 538 

95 594 

100 385 

105 919 

Repairs and Maintenance bv Asset Class 

11 216 

18 435 

17 985 

17 985 

15 916 

16 712 

17 631 

Roads Infrastructure 

71 

1 245 

1 100 

1 100 

2170 

2 279 

2 404 

Electrical Infrastructure 

1 246 

1 372 

571 

571 

1 578 

1 657 

1 748 

Water Supply Infrastructure 

557 

2 375 

1 095 

1 095 

1 000 

1 050 

1 108 

Sanitation Infrastructure 

498 

1 288 

722 

722 

510 

536 

565 

Solid Waste Infrastructure 

11 

3 

- 

- 

- 

- 


Rail Infrastructure 

- 

650 

- 

- 

- 

- 


Information and Communication Infrastructure 

- 

371 

38 

38 

55 

58 

61 

Infrastructure 

2 383 

7 303 

3 526 

3 526 

5 313 

5 578 

5 885 

Community Facilities 

- 

8 

278 

278 

922 

968 

1 021 

Sport and Recreation Facilities 

56 

599 

343 

343 

666 

699 

738 

Community Assets 

56 

607 

620 

620 

1588 

1667 

1 759 

Investment properties 

- 

- 

- 

- 

- 

- 


Operational Buildings 

679 

2 021 

1 109 

1 109 

1 467 

1 540 

1 625 

Housing 

- 

- 

- 

- 

- 

- 


Other Assets 

679 

2 021 

1 109 

1109 

1467 

1540 

1625 

Licences and Rights 

- 

- 

- 

- 

490 

515 

543 

Intangible Assets 

- 

- 

- 

- 

490 

515 

543 

Computer Equipment 

- 

- 

- 

- 

153 

161 

169 

Furniture and Office Equipment 

- 

- 

- 

- 

537 

563 

594 

Machinery and Equipment 

2 666 

1 529 

7 401 

7 401 

140 

147 

155 

Transport Assets 

5 432 

6 975 

5 329 

5 329 

6 229 

6 540 

6 900 

TOTAL EXPENDITURE OTHER ITEMS 

11 216 

98 969 

98 523 

98 523 

111 509 

117 097 

123 550 


27 March 2018 


51 































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Explanatory notes to Table A10 - Basic Service Delivery Measurement 

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

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

a. The minimum level of water services is available to all households - formal as 
well as informal areas. 

b. Sanitation services backlogs decreases to the projected 1 245 households in 
2020/2021 who receive a service below the minimum service level. 

c. Electricity services backlogs will be reduced to an estimated 2 457 households 
by 2020/2021. 

d. The minimum level of refuse removal services is available to all households - 
formal as well as informal areas. 

3. The changes in the Indigent Subsidy Policy will result in more households to be 
registered as indigent in 2018/2019, and therefore result in fewer households entitled 
to receive Free Basic Services. 

4. It is anticipated that these Free Basic Services will cost the municipality R 27.3 million 
in 2018/2019, stabilise at R 30.9 million by 2020/2021. This is covered by the 
municipality’s equitable share allocation from national government. 


27 March 2018 


52 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 27 MBRR Table A10 - Basic Service Delivery Measurement 


Description 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Household service targets 








Water: 








Piped water inside dwelling 

12 746 

12 746 

12 746 

12 746 

12 746 

12 746 

12 746 

Piped water inside yard (but not in dwelling) 

12 658 

12 658 

12 658 

r 12 658 

12 658 

12 658 

12 658 

Using public tap (at least min.service level) 

3 934 

3 934 

3 934 

3 934 

3 934 

3 934 

3 934 

Other water supply (at least min.service level) 

F 

- 

r 

- 

- 

- 

- 

Minimum Service Level and Above sub-total 

29 338 

29 338 

29 338 

29 338 

29 338 

29 338 

29 338 

Below Minimum Service Level sub-total 

- 

‘ 


- 

- 

- 

‘ 

Total number of households 

29 338 

29 338 

29 338 

29 338 

29 338 

29 338 

29 338 

Sanitation/seweraqe: 








Flush toilet (connected to sewerage) 

19 360 

19 360 

19 360 

19 360 

19 360 

19 360 

19 360 

Flush toilet (with septic tank) 

763 

763 

763 

763 

763 

763 

763 

Chemical toilet 

24 

24 

24 

24 

24 

24 

24 

Pit toilet (ventilated) 

306 

306 

306 

306 

306 

306 

306 

Other toilet provisions (> min.service level) 

2 814 

2 814 

2 814 

2 814 

2 814 

2 814 

2 814 

Minimum Service Level and Above sub-total 

23 267 

23 267 

23 267 

23 267 

23 267 

23 267 

23 267 

Bucket toilet 

1 037 

1 037 

1 037 

1 037 

1 037 

1 037 

1 037 

Other toilet provisions (< min.service level) 

13 

13 

13 

13 

13 

13 

13 

No toilet provisions 

195 

195 

195 

195 

195 

195 

195 

Below Minimum Service Level sub-total 

1 245 

1 245 

1 245 

1 245 

1 245 

1 245 

1 245 

Total number of households 

24 512 

24 512 

24 512 

24 512 

24 512 

24 512 

24 512 

Enerqy: 








Electricity (at least min.service level) 

1637 

r 1637 

r 1637 

r 1637 

r 1 637 

r 1637 

1 637 

Electricity - prepaid (min.service level) 

21 593 

21 593 

21 593 

21 593 

21 593 

21 593 

21 593 

Minimum Service Level and Above sub-total 

23 230 

23 230 

23 230 

23 230 

23 230 

23 230 

23 230 

Electricity (< min.service level) 

- 

- 

- 

- 

- 

- 

- 

Electricity - prepaid (< min. service level) 

- 

- 

- 

- 

- 

- 

- 

Other energy sources 

2 457 

2 457 

2 457 

2 457 

2 457 

2 457 

2 457 

Below Minimum Service Level sub-total 

2 457 

2 457 

2 457 

2 457 

2 457 

2 457 

2 457 

Total number of households 

25 687 

25 687 

25 687 

25 687 

25 687 

25 687 

25 687 

Refuse: 








Removed at least once a week 

20 396 

20 396 

20 396 

20 396 

20 396 

20 396 

20 396 

Minimum Service Level and Above sub-total 

20 396 

20 396 

20 396 

20 396 

20 396 

20 396 

20 396 

Removed less frequently than once a week 

9 255 

9 255 

9 255 

9 255 

9 255 

9 255 

9 255 

Using communal refuse dump 

145 

145 

145 

145 

145 

145 

145 

Using own refuse dump 

765 

765 

765 

765 

765 

765 

765 

Other rubbish disposal 

4 

4 

4 

4 

4 

4 

4 

Below Minimum Service Level sub-total 

10 169 

10 169 

10 169 

10 169 

10 169 

10 169 

10 169 

Total number of households 

30 565 

30 565 

30 565 

30 565 

30 565 

30 565 

30 565 

Households receivinq Free Basic Service 








Water (10 kilolitres per household per month) 

6 162 

6 162 

6 162 

6 162 

6 162 

6 162 

6 162 

Sanitation (free minimum level service) 

6 162 

6 162 

6 162 

6 162 

6 162 

6 162 

6 162 

Electricity/other energy (50kwh per household per 








month) 

4 048 

4 048 

4 048 

4 048 

4 048 

4 048 

4 048 

Refuse (removed at least once a week) 

6 162 

6 162 

6 162 

6 162 

6 162 

6 162 

6 162 

Cost of Free Basic Services provided (R'000) 

r 

- 

- 

- 

- 

- 

- 

Water (10 kilolitres per household per month) 

737 

737 

2 476 

2 476 

4 109 

4 355 

4 638 

Sanitation (free sanitation service) 

8 771 

8 771 

6 873 

6 873 

9 106 

9 653 

10 280 

Electricity/other energy (50kwh per household per 








month) 

4 664 

4 664 

4 099 

4 099 

5 350 

5 671 

6 040 

Refuse (removed once a week) 

9 379 

9 379 

6 670 

6 670 

8 770 

9 296 

9 900 

Indigent Subsidy Totals 

F 

- 

F 

- 

- 

- 


Total cost of FBS provided (minimum social package) 

23 551 

23 551 

20 117 

20 117 

27 335 

28 975 

30 858 

Hiqhest level of free service provided 








Property rates (R value threshold) 

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 

Sanitation (Rand per household per month) 


128 

CO 

CM 

128 

135 

143 

152 

Electricity (kwh per household per month) 

50 

50 

50 

50 

50 

50 

50 

Refuse (R per household per month) 

- 

130 

130 

130 

138 

146 

155 

Revenue cost of free services provided (R'000) 








Property rates (other exemptions, reductions and 








rebates) 

8 224 

10 884 

10 109 

10 109 

10 715 

11 358 

12 096 

Total revenue cost of free services provided (total 








social package) 

8 224 

10 884 

10 109 

10 109 

10 715 

11 358 

12 096 


27 March 2018 


53 





























































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Part 2 - Supporting Documentation 


2.1 Overview of the annual budget process 

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

The Budget Steering Committee consists of the Executive Committee members, the 
Municipal Manager and senior officials of the municipality meeting under the 
chairpersonship of the Mayor. 

The primary aims of the Budget Steering Committee are to ensure: 

• That the process followed to compile the budget complies with legislation and good 
budget practices; 

• That there is proper alignment between the policy and service delivery priorities set 
out in the municipality’s IDP and the budget, taking into account the need to protect 
the financial sustainability of municipality; 

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

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

1.2.1 Budget Process Overview 

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


27 March 2018 


54 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The Mayor tabled in Council the required the IDP and budget process plan with time 

schedule before the 31 st of August 2017. Key dates applicable to the process were: 

• November 2017 - 1 st Budget work session of all councillors and senior 
management. Aim: to review past performance trends of the capital and operating 
budgets, the economic realities and to set the prioritisation criteria for the compilation 
of the 2018/2019 MTREF; 

• January 2018 - Detail departmental budget proposals (capital and operating) 
submitted to the Budget and Treasury Office for consolidation and assessment 
against the financial planning guidelines and the compilation of the 1 st draft MTREF; 

• January 2018 - Review of the financial strategy and key economic and financial 
planning assumptions by the Budget Steering Committee. This included financial 
forecasting and scenario considerations; 

• February 2018 - Multi-year budget proposals are submitted to the Executive 
Committee (2 nd budget work session of all councillors and senior management) for 
endorsement; 

• 28 February 2018 - Council considers the 2017/2018 Mid-year Review and 
Adjustments Budget; 

• 31 March 2018 -Tabling in Council of the draft 2018/2019 IDP, 2018/2019 draft 
SDBIP and 2018/2019 draft MTREF for public consultation; 

• April 2018- May 2018 - Public consultation 

• 13 May 2018 - Closing date for written comments; 

• 28 May 2018 - Finalisation and workshop with Council of the 2018/2019 IDP and 
2018/2019 MTREF, taking into consideration comments received from the public, 
comments from National Treasury, and updated information from the most recent 
Division of Revenue Bill and financial framework; and 


27 March 2018 


55 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


• 31 May 2018 - Tabling of the 2018/2019 MTREF before Council for consideration 
and final approval. 

There were no serious deviations from the key dates set out in the Budget Time Schedule 
tabled in Council. 

1.2.2 IDP and Service Delivery and Budget Implementation Plan 

This is a newly developed IDP for Council after the municipal elections that were held in 
August 2016. 

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

• Registration of community needs; 

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

• Financial planning and budgeting process; 

• Public participation process; 

• Compilation of the SDBIP, and 

• The review of the performance management and monitoring processes. 

The IDP has been taken into a business and financial planning process leading up to the 
2018/2019 MTREF, based on the approved 2017/2018 MTREF, Mid-year Review and 
adjustments budget. The business planning process has subsequently been refined in the 
light of current economic circumstances and the resulting revenue projections. 

With the compilation of the 2018/2019 MTREF, each department / function had to review 
the business planning process, including the setting of priorities and targets after reviewing 
the mid-year and third quarter performance against the 2018/2019 Departmental Service 


27 March 2018 


56 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Delivery and Budget Implementation Plan. Business planning links back to priority needs 
and master planning, and essentially informed the detail operating budget appropriations 
and three-year capital programme. 

1.2.3 Financial Modeling and Key Planning Drivers 

As part of the compilation of the 2018/2019 MTREF; extensive financial modelling were 
undertaken to ensure affordable tariffs and long-term financial sustainability. The following 
key factors and planning strategies have informed the compilation of the 2018/2019 
MTREF: 

• Municipality’s growth; 

• Policy priorities and strategic objectives; 

• Asset maintenance; 

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

• Performance trends; 

• The approved 2017/2018 adjustments budget and performance against the SDBIP; 

• Cash Flow Management Strategy; 

• Debtor payment levels; 

• Loan and investment possibilities; 

• The need for tariff increases vs. The ability of the community to pay for services; and 

• Improved and sustainable service delivery. 

In addition to the above, the strategic guidance given in National Treasury’s MFMA 
Circulars 85 & 86 has been taken into consideration in the planning and prioritisation 
process. 

1.2.4Community Consultation 

The draft 2018/2019 MTREF as tabled before Council on 31 March 2018; and, for 
community consultation was published on the municipality’s website and hard copies were 
made available at customer care offices, municipal notice boards and various libraries. 


27 March 2018 


57 





Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


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

Ward Committees was utilised to facilitate the community consultation process during 
April 2018 - May 2018, and it included a public workshop for all councillors, senior 
management, ward committee members, sector departments, organisational stakeholders 
and any member of the local public. The applicable dates and venue will be published in 
all the local newspapers. 

2.20verview of alignment of annual budget with IDP 

The Constitution mandates local government with the responsibility to exercise local 
developmental and cooperative governance. The eradication of imbalances in South 
African society can only be realised through a credible integrated developmental planning 
process. 

Municipalities in South Africa need to utilise integrated development planning as a method 
to plan future development in their areas and so find the best solutions to achieve sound 
long-term development goals. A municipal IDP provides a five year strategic programme 
of action aimed at setting short, medium and long term strategic and budget priorities to 
create a development platform, which correlates with the term of office of the political 
incumbents. The plan aligns the resources and the capacity of a municipality to its overall 
development aims and guides the municipal budget. An IDP is therefore a key instrument 
which municipalities use to provide vision, leadership and direction to all those that have a 
role to play in the development of a municipal area. The IDP enables municipalities to 
make the best use of scarce resources and speed up service delivery. 

Integrated developmental planning in the South African context is amongst others, an 
approach to planning aimed at involving the municipality and the community to jointly find 
the best solutions towards sustainable development. Furthermore, integrated 
development planning provides a strategic environment for managing and guiding all 
planning, development and decision making in the municipality. 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


It is important that the IDP developed by municipalities correlate with National and 
Provincial intent. It must aim to co-ordinate the work of local and other spheres of 
government in a coherent plan to improve the quality of life for all the people living in that 
area. Applied to the municipality, issues of national and provincial importance should be 
reflected in the IDP of the municipality. A clear understanding of such intent is therefore 
imperative to ensure that the municipality strategically complies with the key national and 
provincial priorities. 

The aim of this newly developed IDP was to develop and coordinate a coherent plan to 
improve the quality of life for all the people living in the area, also reflecting issues of 
national and provincial importance. One of the key objectives is therefore to ensure that 
there exists alignment between national and provincial priorities, policies and strategies 
and the municipality’s response to these requirements. 

The national and provincial priorities, policies and strategies of importance include 
amongst others: 

• Green Paper on National Strategic Planning of 2009; 

• Government Programme of Action; 

• Development Facilitation Act of 1995; 

• Provincial Growth and Development Strategy (GGDS); 

• National and Provincial spatial development perspectives; 

• Relevant sector plans such as transportation, legislation and policy; 

• National Key Performance Indicators (NKPIs); 

• Accelerated and Shared Growth Initiative (ASGISA); 

• National 2014 Vision; 

• National Spatial Development Perspective (NSDP) and 

• The National Priority Outcomes. 

The Constitution requires local government to relate its management, budgeting and 

planning functions to its objectives. This gives a clear indication of the intended purposes 
of municipal integrated development planning. Legislation stipulates clearly that a 
municipality must not only give effect to its IDP, but must also conduct its affairs in a 
manner which is consistent with its IDP. The following table highlights the IDP’s eleven 


27 March 2018 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


strategic objectives for the 2018/2019 MTREF and further planning refinements that have 
directly informed the compilation of the budget: 


Table 28 IDP Strategic Objectives 


Key Performance Area Key Performance 

(KPA) Indicator (KPI) 

Strategic Objective 

KPA 1: Land 

Management 

1. Spatial 

Developme 
nt, Town 
Planning 
and Land- 

use 

Managemen 

t 

Provide the framework and vision required 
for improving the quality of life of the people 
living in Dawid Kruiper 



Manage the development of sustainable land 
use, economic, spatial and environmental 
planning according to predetermined 
acceptable levels 

KPA 2: Service 

Delivery and 
Infrastructur 
e Delivery 

2. Water 

Resources 

and 

Services; 

Develop, manage and maintain essential bulk 
water infrastructure and facilities to 
accommodate the aspirations, needs and 
pressures of present and future industries, 
businesses and dependent communities 

Develop, manage and maintain necessary 
infrastructure and facilities required to 
improve the provision of water services 

3. Sewerage; 

Develop, manage and maintain essential bulk 
sewerage infrastructure and facilities to 
accommodate the aspirations, needs and 
pressures of present and future industries, 
businesses and dependent communities 

Develop, manage and maintain necessary 
infrastructure and facilities required to 
improve the provision of sewerage services 

4. Human 

Settlement 

and 

Housing; 

Eradicate housing backlogs in municipal area 

Provide for sustainable human settlements 
(housing) 

5. Energy and 

Electricity; 

Provide, manage and maintain essential 
infrastructure required to improve electricity 
provision 

6. Roads, 

Develop, manage and maintain necessary 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 



Transport 
and Storm 

Water 

Drainage; 

Road, Transport and Storm water 
infrastructure and facilities required to 
improve transportation in, and aesthetic 
qualities of urban areas 

7. Sanitation, 

Waste 
Managemen 
t and Waste 

Removal 

Regulate and manage waste disposal to 
prevent pollution of the natural environment 
and natural resources 

KPA3: Local 

Economic 

Development 

8 

Economic Growth 

and Job 

Creation 

Promote the development of tourist 
infrastructure that will enhance tourism 

Create an environment that promotes the 
development of a diversified and sustainable 
economy 

KPA4: Financial 
Viability 

9 Community 

Development 

and 

Facilities; 

and 

10 

Administrative 

and 

Institutional 

Capacity 

Provide equal access to sport, park, 
recreational facilities and other public 
amenities to all residents 

Manage and maintain municipal property, 
plant, equipment and vehicle fleet 

KPA 5: Institutional 
Transformati 

on 

Pro-active prevention, mitigation, 
identification and management of 
environmental health, fire and disaster risks 

Provide safety to communities through law 
enforcement services and through legislative 
requirements 

Promote and improve public relations 
through stakeholder participation and good 
customer service. 


Align institutional arrangements to provide 
an effective and efficient 

support service to deliver on 
organizational objectives. 

KPA 6: Good 

Governance 

and 

Customer 

Care 

Enable and improve financial viability and 
management through 

well-structured budget processes, 
financial systems and MFMA 
compliance 

KPA 7: Social 
Services 




In order to ensure integrated and focused service delivery between all spheres of 
government it was important for the municipality to align its budget priorities with that of 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


national and provincial government. All spheres of government place a high priority on 
infrastructure development, economic development and job creation, efficient service 
delivery, poverty alleviation and building sound institutional arrangements. 

Local priorities were identified as part of the IDP review process which is directly aligned to 
that of the national and provincial priorities. The key performance areas can be 
summarised as follows against the five strategic objectives (National KPA’s): 

1. Provision of quality basic services and infrastructure which includes, amongst 
others: 

• Provide electricity; 

• Provide water; 

• Provide sanitation; 

• Provide waste removal; 

• Provide housing; 

• Provide roads and storm water; 

• Provide public transport; 

• Provide city planning services; and 

• Maintaining the infrastructure of the municipality. 

2. Economic growth and development that leads to sustainable job creation by: 

• Ensuring the is a clear structural plan for the municipality; 

• Ensuring planning processes function in accordance with set timeframes; and 

• Facilitating the use of labour intensive approaches in the delivery of services 
and the building of infrastructure. 

3. Fight poverty and build clean, healthy, safe and sustainable communities: 

• Effective implementation of the Indigent Policy; 

• Working with the provincial department of health to provide primary health care 
services; 

• Extending waste removal services and ensuring effective city cleansing; 

• Ensuring all waste water treatment works are operating optimally; 

• Working with strategic partners such as SAPS to address crime; 


27 March 2018 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


• Ensuring save working environments by effective enforcement of building and 
health regulations; 

• Promote viable, sustainable communities through proper zoning; and 

• Promote environmental sustainability by protecting wetlands and key open 
spaces. 

4.Integrated Social Services for empowered and sustainable communities: 

• Work with provincial departments to ensure the development of community 
infrastructure such as schools and clinics is properly co-ordinated with the 
informal settlements upgrade programme. 

5. Foster participatory democracy and Batho Pele principles through a caring, 
accessible and accountable service by: 

• Optimising effective community participation in the ward committee system; and 

• Implementing Batho Pele in the revenue management strategy. 

6. Promote sound governance through: 

• Publishing the outcomes of all tender processes on the municipal website. 

7. Ensure financial sustainability through: 

• Reviewing the use of contracted services; and 

• Continuing to implement the infrastructure renewal strategy and the repairs and 
maintenance plan. 

8. Optimal institutional transformation to ensure capacity to achieve set objectives: 

• Review of the organizational structure to optimize the use of personnel. 

In line with the MSA, the IDP constitutes a single, inclusive strategic plan for the 
municipality. The five-year programme responds to the development challenges and 
opportunities faced by the municipality by identifying the key performance areas to achieve 
the five national strategic objectives mentioned above. 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


In addition to the five-year IDP, the municipality undertakes an extensive planning and 
developmental strategy which primarily focuses on a longer-term horizon; 15 to 20 years. 
This process is aimed at influencing the development path by proposing a substantial 
programme of public-led investment to restructure current patterns of settlement, activity 
and access to resources in the municipality so as to promote greater equity and enhanced 
opportunity. The strategy specifically targets future developmental opportunities in 
traditional dormitory settlements. It provides direction to the municipality’s IDP, associated 
sectorial plans and strategies, and the allocation of resources of the municipality and other 
service delivery partners. 

This development strategy introduces important policy shifts which have further been 
translated into seven strategic focus areas/objectives as outlined below: 

• Developing dormant areas; 

• Enforcing hard development lines - so as to direct private investment; 

• Maintaining existing urban areas; 

• Strengthening key economic clusters; 

• Building social cohesion; 

• Strong developmental initiatives in relation to the municipal institution as a whole; and 

• Sound financial fundamentals. 

Lessons learned with previous IDP revision and planning cycles as well as changing 
environments were taken into consideration in the compilation of the newly developed IDP, 
including: 

• Strengthening the analysis and strategic planning processes of the municipality; 

• Initiating zonally planning processes that involve the communities in the analysis and 
planning processes. More emphasis was placed on area based interventions, within 
the overall holistic framework; 

• Ensuring better co-ordination through a programmatic approach and attempting to 
focus the budgeting process through planning interventions; and 

• Strengthening performance management and monitoring systems in ensuring the 
objectives and deliverables are achieved. 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The 2018/2019 MTREF has therefore been directly informed by the IDP revision process 
and tables 29 - 31 provide a reconciliation between the IDP strategic objectives and 
operating revenue, operating expenditure and capital expenditure. 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 29 MBRR Table SA4 - 

Reconciliation between the IDP strategic objectives and budgeted revenue 


Strategic Objective 

/ R thousand 

Goal 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Original 

Budget 

Adjusted 

Budget 

Full Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

1. Spatial 

Development 

Frameword 

Provide the framework and vision required 
for improving the quality of life of the people 
liv ing in Daw id Kruiper 

4 815 

29 135 

7 894 

28 935 

7 894 

28 935 

6 348 

30 197 

6 728 

32 008 

7 166 

34 089 

2. Basic Service 

Delivery 

Develop, manage and maintain essential bulk 
sewerage infrastructure and facilities to 
accommodate the aspirations, needs and 
pressures of present and future industries, 
businesses and dependent communities. 

Develop, manage and maintain essential bulk 

water infrastructure and facilities to 

accommodate the aspirations, needs and 
pressures of present and future industries, 
businesses and dependent communities 

67 579 

67 570 

67 570 

97 641 

91 858 

97 411 

Develop, manage and maintain necessary 
infrastructure and facilities required to 
improve the provision of sewerage services 

67 

26 

26 

28 

29 

31 

Develop, manage and maintain necessary 
road, transport and storm water infrastructure 
and facilites required to improve 
transportation in and aesthetic qualities of 

urban areas 

5 090 

410 

410 

102 

109 

116 

Provide for sustainable human settlements 

(housing) 

- 

650 

650 

703 

706 

709 

Provide, manage and maintain essential 
infrastructure required to improve electricity 
provision 

278 955 

278 458 

278 458 

333 680 

344 801 

367 260 

Regulate and manage waste disposal to 
prevent pollution of the natural environment 

and natural resources 

34 824 

31 224 

31 224 

37 728 

39 991 

42 591 

3. Local Economic 

Development 

Create an environment that promotes the 
development of a diversified and sustainable 

economy 

518 

149 

149 

15 

16 

17 

Promote the development of tourist 

infrastructure that will enhance tourism 

4 572 

3 378 

3 378 

3 357 

3 558 

3 790 

4. Municipal 

Financial Viability and 
Management 

Enable and improve financial viability and 
management through well-structured budget 
processes, financial systems and MFMA 
Compliance 

235 356 

222 717 

222 717 

188 875 

200 901 

215 693 

5. Municipal 

Transformation and 

Organizational 

Development 

Allign institutional arrangements to provide an 
effective and efficient support service to 
deliver on organisational objectives 

212 

212 

212 

300 

320 

339 

6. Good Governance 

and Public 

Participation 

facilitate the establishment of good 

governance practices 

' 2 

r 0 

p 0 

” 0 

” 0 

' 0 

'Manage and maintain municipal property, 

plant, equipment and vehicle fleet 

16 946 

37 855 

37 855 

44 480 

r 31 590 

33 376 

Pro-active prevention, mitigation, identification 
and management of environmental health, fire 

and disaster risks 

39 



r W 

r 

246 

frovide equal access to sport, park, 

recreational facilities and other public 

amenities to all residents 

10 091 

12 439 

12 439 

11 997 

' 12 741 

13 366 

'total Revenue (excluding capital transfers and contributions) 

688 201 

691 918 

691 918 

755 667 

' 765 587 

816 198 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 30 MBRR Table SA5 - 

Reconciliation between the IDP strategic objectives and budgeted operating 
_ expenditure _ 


Strategic 
Objective / R 

thousand 

Goal 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

r 

1. Spatial 
Development 

Frameword 

’Provide the framework and 
vision required for improving 
the quality of life of the 
people living in Dawid 

Kruiper 

8 265 

8 826 

8 826 

9 099 

9 645 

10 207 

r 

2. Basic Service 

Delivery 

bevelop, manage and 

maintain essential bulk 

sewerage infrastructure and 

facilities to accommodate the 

aspirations, needs and 
pressures of present and 
future industries, businesses 
and dependent communities. 

21 620 

21 620 

21 620 

13010 

13 754 

14 544 

bevelop, manage and 
maintain essential bulk water 

infrastructure and facilities to 

accommodate the 

aspirations, needs and 
pressures of present and 
future industries, businesses 
and dependent communities 

79 598 

79 598 

79 598 

73 416 

77 572 

82 011 

bevelop, manage and 
maintain necessary 

infrastructure and facilities 

required to improve the 
provision of sewerage 

services 

10 214 

10 214 

10 214 

5 765 

6 129 

6 493 

Develop, manage and 
maintain necessary road, 
transport and storm water 

infrastructure and facilites 

required to improve 
transportation in and 
aesthetic qualities of urban 

areas 

47 197 

42 632 

42 632 

39 755 

41 916 

44 291 

Provide for sustainable 

human settlements (housing) 

2 526 

2 526 

2 526 

4 926 

5 236 

5 547 

"Provide, manage and 

maintain essential 

infrastructure required to 
improve electricity provision 

216 353 

216 327 

216 327 

236 184 

248 379 

262 330 

"Regulate and manage waste 
disposal to prevent pollution 

of the natural environment 

and natural resources 

57 522 

49 387 

49 387 

56 167 

59 447 

62 885 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 30 MBRR Table SA5 - 

Reconciliation between the IDP strategic objectives and budgeted operating 
_ expenditure (continue) _ 


Strategic 
Objective / R 

thousand 

Goal 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

r 

3. Local 

Economic 

Development 

'Create an environment that 

promotes the development of 

a diversified and sustainable 

economy 

' 997 “ 

981 

981 

1 352 

1434 

1 519 

r Promote the development of 

tourist infrastructure that will 

enhance tourism 

10 683 

10 683 

10 683 

9 396 

9 981 

10 571 

4. Municipal 
Financial Viability 
and Management 

'Enable and improve financial 

viability and management 
through well-structured 
budget processes, financial 
systems and MFMA 
Compliance 

41 101 

41 101 

41 101 

58 478 

61 881 

65 455 

5. Municipal 

Transformation 

and 

Organizational 

Development 

"Allign institutional 

arrangements to provide an 
effective and efficient support 

service to deliver on 

organisational objectives 

33 756 

46 462 

46 462 

64 191 

70 575 

74 656 

'Create an environment that 

promotes the development of 

a diversified and sustainable 

economy 

1 005 



1 530 

1 630 

1 727 

Provide equal access to 
sport, park, recreational 
facilities and other public 

amenities to all residents 

1 585 



1 589 

1 692 

1 794 

6. Good 

Governance and 

Public 

Particiapation 

Facilitate the establishment of 

good governance practices 

31 558 

34 349 

34 349 

38 837 

41 314 

43 776 

Manage and maintain 
municipal property, plant 
equipment and vehicle fleet 

14 629 

14 629 

14 629 

47 717 

50 329 

53 177 

Pro-active prevention, 
mitigation, identification and 
management of 

environmental health, fire 

and disaster risks 

13 438 

13 438 

13 438 

16 826 

17 908 

18 978 

Promote and improve public 
relations through stakeholder 
participation and good 

customer service 

5 194 

5 194 

5 194 

6 990 

7 387 

7 809 

Provide equal access to 
sport, park, recreational 
facilities and other public 

amenities to all residents 

50 198 

50 224 

50 224 

52 034 

55 293 

58 567 

Prov ide safety to 
communities through law 

enforcement services and 

through legislative 
requirements 

15 608 

15 608 

15 608 

13 879 

14 776 

15 661 

Total Expenditure 

663 046 

663 798 

663 798 

751 140 

796 279 

842 000 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 31 MBRR Table SA6 - 

Reconciliation between the IDP strategic objectives and budgeted capital 
_._ expenditure __ 


Strategic 
Objective / R 

thousand 

Goal 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

1. Spatial 
Development 

Framew ord 

Provide the framework and vision 

required for improving the quality of 
life of the people living in Dawid 

Kruiper 

44 

8 

8 




2. Basic Service 

Deliv ery 

Develop, manage and maintain 
essential bulk sewerage infrastructure 

and facilities to accommodate the 

aspirations, needs and pressures of 
present and future industries, 
businesses and dependent 

communities. 

7 159 

1 362 

1 362 

200 



Develop, manage and maintain 

essential bulk water infrastructure and 

facilities to accommodate the 

aspirations, needs and pressures of 
present and future industries, 
businesses and dependent 

communities 

11 040 

32 071 

32 071 

55 312 

20 727 

21 729 

Develop, manage and maintain 
necessary infrastructure and facilities 
required to improve the provision of 
sewerage services 

21 223 






Develop, manage and maintain 
necessary road, transport and storm 

water infrastructure and facilites 

required to improve transportation in 
and aesthetic qualities of urban areas 

11 680 

25 967 

25 967 




Provide for sustainable human 

settlements (housing) 

“ 

- 

- 


“ 

- 

Provide, manage and maintain 
essential infrastructure required to 
improve electricity provision 

31 630 

33 974 

33 974 

39 742 

7 930 

8 487 

Regulate and manage waste disposal 
to prevent pollution of the natural 

env ironment and natural resources 




104 



3. Local Economic 

Development 

Create an environment that promotes 
the development of a diversified and 
sustainable economy 


26 

26 

500 



Promote the development of tourist 

infrastructure that will enhance 

tourism 


52 

52 




4. Municipal 
Financial Viability 
and Management 

Enable and improve financial viability 
and management through well- 
structured budget processes, financial 
systems and MFMA Compliance 


426 

426 

1 409 



5. Municipal 

Transformation and 

Organizational 

Development 

Allign institutional arrangements to 
provide an effective and efficient 
support service to deliver on 
organisational objectives 


356 

356 

28 



6. Good 

Governance and 

Public 

Particiapation 

Facilitate the establishment of good 
governance practices 

1 524 

227 

227 

596 



Manage and maintain municipal 
property, plant, equipment and 

vehicle fleet 

6 600 

15 750 

15 750 

27 873 

7 316 


Pro-active prevention, mitigation, 
identification and management of 
environmental health, fire and disaster 

risks 

311 

282 

282 

284 



Promote and improve public relations 
through stakeholder participation and 
good customer service 


r 0 

r 0 

26 



'Provide equal access to sport, park, 

recreational facilities and other public 

amenities to all residents 

626 

5 513 

5 513 

1 352 

217 

217 

Provide safety to communities 
through law enforcement serv ices 
and through legislative requirements 


r 27 

" 27 

50 



Total Capital Expenditure 

91 837 

116 042 

116 042 

127 478 

36 190 

30 433 


27 March 2018 


69 
































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.3 Measurable performance objectives and indicators 

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

At any given time within government, information from multiple years is being considered; 
plans and budgets for next year; implementation for the current year; and reporting on last 
year’s performance. Although performance information is reported publicly during the last 
stage, the performance information process begins when policies are being developed, 
and continues through each of the planning, budgeting, implementation and reporting 
stages. The planning, budgeting and reporting cycle can be graphically illustrated as 
follows: 



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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Figure 2 Planning, budgeting and reporting cycle 

The performance of the municipality relates directly to the extent to which it has achieved 
success in realising its goals and objectives, complied with legislative requirements and 
meeting stakeholder expectations. The municipality therefore has adopted one integrated 
performance management system which encompasses: 

• Planning (setting goals, objectives, targets and benchmarks); 

• Monitoring (regular monitoring and checking on the progress against plan); 

• Measurement (indicators of success); 

• Review (identifying areas requiring change and improvement); 

• Reporting (what information, to whom, from whom, how often and for what purpose); 
and 

• Improvement (making changes where necessary). 

The performance information concepts used by the municipality in its integrated 
performance management system are aligned to the Framework of Managing 
Programme Performance Information issued by the National Treasury: 


What we use to do the work? 


The resources that contribute to 
the production and delivery of 
outputs 


The processes or actions that use a 
range of inputs to produce the desired 


What we do? 


outputs and ultimately outcomes 


What we produce or deliver? 


The medium-term results for specific 
beneficiaries that are the consequence of 
achieving specific outputs 


The final products, or goods and 
services produced for delivery 


What we wish to achieve? 


The developmental results of achieving 
specific outcomes 


What we aim to change? 



i 


k 



Plan, budget, 
implement and 
monitor 


Figure 3 Definition of performance information concepts 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


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

Table 32 MBRR Table SA7 - Measurable performance objectives 


Description 


Unit of measurement 


2016/17 


Current Year 2017/18 


2018/19 Medium Term Revenue & 
Expenditure Framework 


1: Municipal Manager _ 

0002: Municipal Council _ 

Execution of National calendar special 
events per quarter 

0011: Office of the Municipal Manager 
Actual Operational expenditure / 

0032: Internal Audit 

3 year Risk based audit rolling plan 


0070: Performance Management 
SDBIP approved 28 days after budget 
approval 


0071: Risk Management 

100% execution of risk assessment annual 
plan activities per quarter 


0083: Municipal Manager 
Project clean audit: to maintain a clean 
103 7: Cultural Festival 

Execution of special events per annum 


103 7: Council Ward Committee 

Ward based sector meeting per ward 


2. Corporate Services 

0001: Administration 

80% of assigned council resolutions executed 
by end of each quarter 


0004: Property Administration 

Updated and reconcile land disposal register 


0008: Communications 

Die Werker - issues 


0009: Human Resource 

The percentage of a municipality's salary 


0038: Director Corporate Service 

The number of people from employment equity 
target groups employed in the three highest 
levels of management in compliance with a 
municipality's approved 

0039: Legal Services 

Report on legal supporting services rendered to 


0043: Commonage 

Updated Commonage Register 


Annual Report 


Percentage 


Plan 


Approval 


Percentage 


Report 

Report 


Minutes 


Percentage 


Report 

Report 


Percentage 


Percentage 


Report 


Register 


Audited 

Outcome 


Original 

Budget 


Adjusted 

Budget 


Full Year 
Forecast 


Budget Year 
2018/19 


Budget Year 
+1 2019/20 


Budget Year 
+2 2020/21 


Annual Report 


Annual Report 


Annual Report 


Annual Report 


Annual Report 


Annual Report 


95 . 0 % 


95 . 0 % 


95 . 0 % 


95 . 0 % 


95 . 0 % 


95 . 0 % 


Plan 


Plan 


Plan 


Plan 


Plan 


Plan 


Plan 


Approval 


Approval 


Approval 


Approval 


Approval 


Approval 


Approval 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Minutes 


Minutes 


Minutes 


Minutes 


Minutes 


Minutes 


Minutes 


83 . 8 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


0 . 1 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


100 . 0 % 


79 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


80 . 0 % 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Register 


Register 


Register 


Register 


Register 


Register 


Register 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Description 


3. Budget & Treasury Office 


0007: Financial Services 


Actual operational expenditure as a % of 


Unit of measurement 


percentage 


Audited 

Outcome 


Current Year 2017/18 


Original 

Budget 


Adjusted 

Budget 


Full Year 
Forecast 


2018/19 Medium Term Revenue & 
Expenditure Framework 


Budget Year 
2018/19 


Budget Year 
+1 2019/20 


Budget Year 
+2 2020/21 


0033: Information Technology 


Maintain information technology equipment, 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


0080: Chief Financial Officer (Office of the 
CFO) 


Debtors administration - Debtors Test = (Gross 


50.21 Days 


66Days 


66 Day s 


66Days 


66 Day s 


0085: Budget and Treasury Office 


Compilation & submission of Annual Financial 


Proof of submission 


0086: Supply Chain Management Unit 


Reviewed and approved Supply Chain 
Management Policy by 31/05/2018 


Updated Policy 


Updated 

Policy 


Updated 

Policy 


Updated 

Policy 


Updated 

Policy 


Updated 

Policy 


Updated 

Policy 


Updated 

Policy 


0088: Asset Management Unit 


Reviewed and approved Asset Management 


Updated Policy 


Updated 


U pdated 


U pdated 


Updated 


Updated 


U pdated 


Updated 


4. Community Service 


0003: Libraries 


Number and percentage of library material 
issued 


0020: Traffic Services 


Number of fines issued. 


0021: Fire Brigade Service 


Percentage of call-outs responded to within the 
required response times 


Percentage 


0024: Security Service 


Render a security service pertaining to 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


0027: Refuse Removal Services 


100% rendering of refuse removal services as 
per service delivery programme per quarter 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


Report 


0050: Parks 


Turf Maintenance Parks : Execution of 
maintenance as per maintenance plan 


0052: Swimmimg Pools 


Swimming Pools : Execution of maintenance 


0055: Sport Grounds 


Conduct Maintenance (Sports grounds) as per 


0057: Cemeteries 


Keeping of cemetery registers as per legislation 
: Updated register per quarter 


Register 


Register 


Register 


Register 


Register 


Register 


Register 


Register 


0084: Electro Mech Services 


0034: Fleet Management 


90% vehicles and equipment serviced within 


Percentage 


0059: Electricity Administration 


New electricity Pre-paid meter connections 


Percentage 


0063: Electicity Planning and Metering 

Prepayment meters for new customers 


Percentage 


Civil Engineering Service 


0026: Sanitation Services 


Rendering of sanitation services as per service 
delivery programme 


Percentage 


0028: Vacuum Tank Services 


Rendering of vacuum tank services on request 


Percentage 


0040: Civil Engineering Services 


80% of assigned council resolutions executed 
by end of each quarter 


Percentage 


0066: Water Production 


Ensure minimum drinking water quality 
standards compliant with SANS 241 : 95% of 
quarterly samples meeting minimum biological 
standards 


Percentage 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The following table sets out the municipalities main performance objectives and 
benchmarks for the 2018/2019 MTREF. 


Table 33 MBRR Table SA8 - Performance indicators and benchmarks 


Description of financial 

Basis of calculation 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

indicator 

Audited Outcome 

Original Budget 

Adjusted Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Borrowinq Management 









Credit Ratina 

Capital Charges to 

Interest & Principal Paid 

3.9% 

3.3% 

3.3% 

3.3% 

3.5% 

3.6% 

3.7% 

Operating Expenditure 

/Operating Expenditure 








Capital Charges to Own 

Finance charges & 

4.9% 

4.0% 

4.1% 

4.2% 

4.2% 

4.5% 

4.6% 

Revenue 

Repay ment of borrow ing 

/Own Revenue 








Borrowed iinding of 

Borrowing/Capital 

0.0% 

23.0% 

21.5% 

37.8% 

0.0% 

0.0% 

0.0% 

'own' capital expenditure 

expenditure ex cl. transfers 
and grants and 

contributions 








Liauiditv 









Current Ratio 

Current assets/current 

0.70 

0.92 

0.88 

0.62 

0.62 

0.51 

0.69 


liabilities 








Current Ratio adjusted for 

Current assets less debtors 

0.70 

0.92 

0.88 

0.62 

0.62 

0.51 

0.69 

aged debtors 

> 90 days/current liabilities 








Liquidity Ratio 

Monetary Assets/Current 

Liabilities 

0.24 

0.28 

0.08 

0.07 

0.07 

0.11 

0.20 

Revenue Management 









Annual Debtors 

Last 12 Mths Receipts/Last 

0.0% 

102.1% 

99.3% 

100.0% 

97.4% 

97.4% 

102.0% 

Collection Rate 

(Payment Level %) 

Current Debtors 

12 Mths Billing 

102.1% 

99.3% 

100.0% 

97.4% 

97.4% 

102.0% 

97.1% 

Collection Rate (Cash 
receipts % of Ratepayer 
& Other rev enue) 
Outstanding Debtors to 

Total Outstanding Debtors 

13.5% 

9.8% 

14.1% 

12.2% 

12.2% 

9.0% 

10.7% 

Revenue 

to Annual Revenue 








Longstanding Debtors 

Debtors > 12 Mths 

102.1% 

99.3% 

100.0% 

97.4% 

102.0% 

97.1% 

98.7% 

Recovered 

Recovered/Total Debtors > 









12 Months Old 








Creditors Management 









Creditors System 

% of Creditors Paid Within 

95.0% 

95.0% 

95.0% 

95.0% 

95.0% 

99.0% 

100.0% 

Efficiency 

Terms (within'MFMA's 
65(e)) 








Creditors to Cash and 


195.8% 

201.1% 

65.8% 

1021.8% 

1021.8% 

438.9% 

248.9% 

Investments 









Other Indicators 









Employee costs 

Employee costs/(Total 
Revenue - capital revenue) 

41% 

41% 

44% 

44% 

44% 

46% 

47% 

Remuneration 

Total remuneration/(Total 
Revenue - capital revenue) 

0% 

42% 

46% 

46% 

0% 

47% 

49% 

Repairs & Maintenance 

R&M/(Total Revenue 
excluding capital revenue) 

2% 

3% 

3% 

3% 

0% 

2% 

2% 

Finance charges & 

FC&D/(Total Revenue - 

19% 

15% 

15% 

15% 

15% 

15% 

15% 

Depreciation 

IDP regulation financial 

capital revenue) 








viabilitv indicators 









i. Debt coverage 

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

29.6 

6.9 

6.9 

6.9 

25.0 

26.1 

24.5 

ii.O/S Service Debtors to 

Total outstanding service 

0.2 

0.1 

0.2 

0.2 

0.2 

0.1 

0.1 

Revenue 

debtors/annual revenue 









receiv ed for serv ices 








iii. Cost coverage 

(Available cash + 
Investments)/monthly fixed 
operational expenditure 

1.2 

0.6 

1.7 

0.2 

0.2 

0.4 

0.7 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.3.1 Performance indicators and benchmarks 

2.3.1.1 Borrowing Management 

Capital expenditure in local government can be funded by capital grants, own-source 
revenue and long term borrowing. The ability of a municipality to raise long term 
borrowing is largely dependent on its creditworthiness and financial position. As with all 
other municipalities, Dawid Kruiper Municipality’s borrowing strategy is primarily informed 
by the affordability of debt repayments. The structure of the municipality’s debt portfolio is 
dominated by annuity loans. The following financial performance indicators have formed 
part of the compilation of the 2018/2019 MTREF: 

• Capital charges to operating expenditure are a measure of the cost of borrowing in 
relation to the operating expenditure. It can be seen that the cost of borrowing has 
steadily increased. This increase can be attributed to the raising of loans to fund 
portions of the capital programme. While borrowing is considered a prudent financial 
instrument in financing capital infrastructure development, this indicator will have to 
be carefully monitored going forward as the municipality has reached its prudential 
borrowing limits. As the municipality has reached it borrowing limits, no external 
loans will be raised from 2018/2019 - 2020/2021. 

• Borrowing funding of own capital expenditure measures the degree to which own 
capital expenditure (excluding grants and contributions) has been funded by way of 
borrowing. 

The municipality’s debt profile provides some interesting insights on the municipality’s 
future borrowing capacity. Firstly, the use of amortising loans leads to high debt service 
costs at the beginning of the loan, which declines steadily towards the end of the loan’s 
term. 


In summary, various financial risks could have a negative impact on the future borrowing 
capacity of the municipality. In particular, the continued ability of the municipality to meet 
its revenue targets and ensure its forecasted cash flow targets are achieved will be critical 
in meeting the repayments of the debt service costs. As part of the compilation of the 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2018/2019 MTREF the potential of smoothing out the debt profile over the longer term will 
be investigated. 

2.3.1.2 Safety of Capital 

The reason for this was that all cash-backed reserves for funding capital expenditure were 
depleted. It stays at 0% until 2020/2021. The medium term strategy is to steadily increase 
the gearing ratio to a level that does not exceed 50% as a prudential limit, hence, the 
municipality will have to find ways and means to get rid of unfunded mandates and to 
service land for resale purposes to build up cash back reserves for capital expenditure 
again. Also should investment in basic services infrastructure in formal and informal areas 
for breaking new ground housing purposes with the municipality’s own reserves be 
recouped from national and provincial housing funding programmes. The municipality 
cannot carry on borrowing funds from external sources. 

2.3.1.3 Liquidity 

• Current ratio is a measure of the current assets divided by the current liabilities and 
as a benchmark the municipality has set a limit of 1, hence at no point in time should 
this ratio be less than 1:1. For the MTREF the current ratio is 0.07 in the 2018/2019 
financial year and 0.11 and 0.20 for the two outer years of the MTREF. Going 
forward it will be necessary to improve these levels to the benchmark limit. 

• The liquidity ratio is a measure of the ability of the municipality to utilise cash and 
cash equivalents to extinguish or retire its current liabilities immediately. Ideally the 
municipality should have the equivalent cash and cash equivalents on hand to meet 
at least the current liabilities, which should translate into a liquidity ratio of 1. 
Anything below 1 indicates a shortage in cash to meet creditor obligations. This 
needs to be considered a pertinent risk for the municipality as any under collection of 
revenue will translate into serious financial challenges for the municipality. As part of 
the longer term financial planning objectives this ratio will have to be set at a 
minimum of 1. 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.3.1.4 Revenue Management 

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

2.3.1.5 Creditors Management 

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

2.3.1.6 Other Indicators 

• Employee costs as a percentage of operating revenue increases and decreases 
depending on factors like the implementation of housing programmes over the past 
and future financial years. Another factor that affects this percentage the high 
increase in bulk purchases which directly increase revenue levels. National Treasury 
has indicated in MFMA Circular No 66 that there is no benchmark to be measured 
against due to all these factors influencing it. 

• Similar to that of employee costs, repairs and maintenance as percentage of 
operating revenue is also decreasing owing directly to cost drivers such as bulk 
purchases increasing far above inflation. In real terms, repairs and maintenance has 
increased as part of the municipality’s strategy to ensure the management of its asset 
base. 


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2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.3.2 Free Basic Services: basic social services package for indigent households 

The social package assists residents that have difficulty paying for services and are 
registered as indigent households in terms of the Indigent Policy of the municipality. With 
the exception of water, only registered indigents qualify for the free basic services. 

In terms of the municipality’s indigent policy registered households are entitled to 6 kf 
“free” water, 50 kWh “free” electricity, “free” sanitation and “free” waste removal services 
once a week, as well as a 100% discount on their property rates. 

Further detail relating to the number of households receiving free basic services, the cost 
of free basic services, highest level of free basic services as well as the revenue cost 
associated with the free basic services is contained in Table 27 MBRR A10 (Basic Service 
Delivery Measurement) on page 53. 

Note that the number of households in informal areas that receive free services and the 
cost of these services (e.g. the provision of water through stand pipes, water tankers, and 
etcetera) are taken into account in the table noted above. 

2.3.3 Providing clean water and managing waste water 

The municipality is the Water Services Authority for the entire municipality in terms of the 
Water Services Act, 1997 and acts as water services provider. The municipality buys its 
raw water from Department of Water Affairs (DWA) by extracting it directly from the 
Orange River to purify it before distributing it to the local community. 

The DWA conducts an annual performance rating of potable and waste water treatment 
works; presenting a Blue Drop or Green Drop award respectively to potable water 
treatment works and waste water treatment works that meet certain criteria of excellence. 

Our purified drinking water is of exceptional quality, free of e-coli although there are some 
management issues that have to be attended to before the municipality can obtain Blue 
Drop status in 2018/2019. 

None of our waste water treatment works were awarded Green Drop status in 2016/2017, 
indicating that these plants will require renewals / upgrading to meet the minimum Green 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Drop certification standards. This has been prioritised as part of the 2018/2019 - 
2020/2021 medium term capital budget. 

The following is briefly the main challenges facing the municipality in this regard: 

• The infrastructure at most of the waste water treatment works is old and insufficient 
to treat the increased volumes of waste water to the necessary compliance standard; 

• Shortage of skilled personnel makes proper operations and maintenance difficult; 
and 

• There is a lack of proper regional catchment management, resulting in storm water 
entering the sewerage system. 

The following are some of the steps that have been taken to address these challenges: 

• Infrastructure shortcomings are being addressed through the capital budget in terms 
of a 5-year upgrade plan; 

• The filling of vacancies has commenced and the Waste Water Division will embark 
on an in-house training programme, especially for operational personnel; and 

• The Division is working in consultation with the Department of Water Affairs to 
address catchment management. 

2.4 Overview of budget related-policies 

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

2.4.1 Review of credit control and debt collection procedures/policies 

The Customer Care, Credit Control, Debt Collection and Indigent Support Policy was 
approved by Council and reviewed in 2017/2018. The revised policy will be finally 
approved during May 2018. 

As most of the indigents within the municipal area are unable to pay for municipal services 
because they are unemployed, the Integrated Indigent Exit Programme aims to link the 
registered indigent households to development, skills and job opportunities. The 
programme also seeks to ensure that all departments as well as external role players are 
actively involved in the reduction of the number of registered indigent households. 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The 2018/2019 MTREF has been prepared on the basis of achieving an average debtors’ 
collection rate of 98% on current billings. The first nine months of the 2017/2018 financial 
year yielded a collection rate of 98% due to government departments honouring their 
commitments. The municipality expects government departments to honour their past and 
future commitments during 2018/2019 to avoid their services being discontinued. In 
addition the collection of debt in excess of 90 days has been prioritised as a pertinent 
strategy in increasing the municipality’s cash levels. In addition, the municipality’s payment 
incentive scheme through its Writing-Off of Irrecoverable Debt Policy seems to be working 
and it is taking the customers out of their spiral debt. The increase in the provision for bad 
debt is due to the revised method used to calculate the provision in terms of GRAP 9. 

2.4.2 Asset Management, Infrastructure Investment and Funding Policy 

A proxy for asset consumption can be considered the level of depreciation each asset 
incurs on an annual basis. Preserving the investment in existing infrastructure needs to be 
considered a significant strategy in ensuring the future sustainability of infrastructure and 
the municipality’s revenue base. Within the framework, the need for asset renewal was 
considered a priority and hence the capital programme, where possible, was determined 
based on renewal of current assets versus new asset construction. 

Further, continued improvements in technology generally allows many assets to be 
renewed at a lesser ‘real’ cost than the original construction cost. Therefore, it is 
considered prudent to allow for a slightly lesser continual level of annual renewal than the 
average annual depreciation. The Asset Management, Infrastructure and Funding Policy is 
therefore considered a strategic guide in ensuring a sustainable approach to asset 
renewal, repairs and maintenance and is utilised as a guide to the selection and 
prioritisation of individual capital projects. In addition the policy prescribes the accounting 
and administrative policies and procedures relating to property, plant and equipment (fixed 
assets). This policy will not be amended. 

2.4.3 Budget Adjustment Policy 

The adjustments budget process is governed by various provisions in the MFMA and is 
aimed at instilling and establishing an increased level of discipline, responsibility and 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


accountability in the financial management practices of municipalities. To ensure that the 
City continues to deliver on its core mandate and achieves its developmental goals, the 
mid-year review and adjustment budget process will be utilised to ensure that 
underperforming functions are identified and funds redirected to performing functions. 

2.4.4Supply Chain Management Policy 

The Supply Chain Management Policy, to allow for legislation changes, was reviewed and 
adopted by Council in May 2017. The policy will be revised and tabled to Council during 
May 2018. 

2.4.5 Budget and Virement Policy 

The Budget and Virement Policy aims to empower senior managers with an efficient 
financial and budgetary amendment and control system to ensure optimum service 
delivery within the legislative framework of the MFMA and the municipality’s system of 
delegations. The revised policy, in terms of MSCOA, will be tabled to Council during May 
2018 for approval. 


2.4.6Cash Management and Investment Policy 

The municipality’s Cash Management and Investment Policy were amended by Council in 
May 2011. The aim of the policy is to ensure that the municipality’s surplus cash and 
investments are adequately managed, especially the funds set aside for the cash backing 
of certain reserves. The policy details the minimum cash and cash equivalents required at 
any point in time and introduce time frames to achieve certain benchmarks. The Cash 
Management and Virement Policy was reviewed and approved by Council in May 2017. 
The policy will be tabled to Council during May 2018. 

2.4.7Tariff Policies 

The municipality’s Tariff Policy provide a broad framework within which the Council can 
determine fair, transparent and affordable charges that also promote sustainable service 


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


delivery. The Tariff Policy, as approved by Council in May 2017, has been reviewed and 
changes to the policy will be approved on the 31 st of May 2018. 

2.4.8 Property Rates Policy 

The municipality’s Property Rates Policy provides a broad framework within which the 
Council can determine property rates levies. The Tariff Policy as approved by Council in 
May 2017 has been reviewed. Changes to the policy will be approved on the 31 st of May 
2018. 


2.4.9 Financial Modelling and Scenario Planning Policy 

The Financial Modelling and Scenario Planning Policy (Financial Plan included as 
Annexure A to the IDP) has directly informed the compilation of the 2018/2019 MTREF 
with the emphasis on affordability and long-term sustainability. The policy dictates the 
approach to longer term financial modelling. The outcomes are then filtered into the 
budget process. The model and scenario planning outcomes are taken to Council every 
November as part of the IDP and then translate into recommendations for the budget 
guidelines that inform the compilation of the next MTREF. One of the salient features of 
the policy is the emphasis on financial sustainability. Amongst others, the following has 
been modelled as part of the financial modelling and scenario planning process: 

• Approved 2017/2018 Adjustments Budget; 

• Cash Flow Management Interventions, Initiatives and Strategies (including the cash 
backing of reserves); 

• Economic climate and trends (i.e. Inflation, household debt levels, indigent factors, 
growth, recessionary implications); 

• Loan and investment possibilities; 

• Performance trends; 

• Tariff Increases; 

• The ability of the community to pay for services (affordability); 

• Policy priorities; 

• Improved and sustainable service delivery; and 

• Debtor payment levels. 


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2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


All the above policies are available on the municipality’s website, as well as the following 
budget related policies: 

• Property Rates Policy; 

• Funding and Reserves Policy; 

• Borrowing Policy; 

• Budget Policy; and 

• Basic Social Services Package (Indigent Policy). 


2.5 Overview of budget assumptions 

2.5.1 External factors 

The Budget Review 2018 notes received from Provincial Treasury states that the South 
African economy has demonstrated resilience despite unsettles international economic 
conditions. Global developments are likely to hold back higher growth over the short-term, 
resulting in gross domestic product (GDP) growth being expected to slow from 1.0% in 
2018 to 2.1% in 2021. 

Owing to the economic slowdown, financial resources are limited due to reduced payment 
levels by consumers. This has resulted in declining cash inflows, which has necessitated 
restrained expenditure to ensure that cash outflows remain within the affordability 
parameters of the municipality’s finances. 

2.5.2General inflation outlook and its impact on the municipal activities 

There are five key factors that have been taken into consideration in the compilation of the 
2018/2019 MTREF: 

• National Government macro-economic targets; 

• The general inflationary outlook and the impact on municipality’s residents and 
businesses; 

• The impact of municipal cost drivers; 

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


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2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


• The increase in the cost of remuneration. Employee related costs comprise 49.6% of 
total operating expenditure, excluding depreciation, in the 2018/2019 MTREF and 
therefore this increase above inflation places a disproportionate upward pressure on 
the expenditure budget. 

2.5.3Credit rating outlook 


Table 34 Credit rating outlook 


Security class 

Currency 

Rating 

Annual rating 
2018/2019 

Previous 

Rating 

Short term 

Rand 

N/A 

N/A 

N/A 

Long-term 

Rand 

N/A 

N/A 

N/A 

Outlook 

Rand 

N/A 

N/A 

N/A 


The municipality has not been rated by a rating agency. 


2.5.4 Interest rates for borrowing and investment of funds 


The MFMA specifies that borrowing can only be utilised to fund capital or refinancing of 
borrowing in certain conditions. The municipality engages in a number of financing 
arrangements to minimise its interest rate costs and risk. However, for simplicity the 
2018/2019 MTREF is based on the assumption that all borrowings are undertaken using 
fixed interest rates for amortisation-style loans requiring both regular principal and interest 
payments. As part of the compilation of the 2018/2019 MTREF the potential of smoothing 
out the debt profile over the long term will be investigated. 


2.5.5Collection rate for revenue services 

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

The rate of revenue collection is currently expressed as a percentage (99%) of annual 
billings. Cash flow is assumed to be 95% of billings, plus an increased collection of arrear 


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debt from the revised collection and credit control policy. The performance of arrear 
collections will only be considered a source of additional cash in-flow once the 
performance has been carefully monitored. 

2.5.6Growth or decline in tax base of the municipality 

Debtors’ revenue is assumed to increase at a rate that is influenced by the consumer 
debtors’ collection rate, tariff/rate pricing, real growth rate of the municipality, household 
formation growth rate and the poor household change rate. 

Household formation is the key factor in measuring municipal revenue and expenditure 
growth, as servicing ‘households’ is a greater municipal service factor than servicing 
individuals. Household formation rates are assumed to convert to household dwellings. 
In addition the change in the number of poor households influences the net revenue 
benefit derived from household formation growth, as it assumes that the same costs 
incurred for servicing the household exist, but that no consumer revenue is derived as the 
‘poor household’ limits consumption to the level of free basic services. 

2.5.7Salary increases 

The percentage increase for regarding salaries / wages for the 2018/2019 are 5.4%, as no 
collective agreement has been met. Over the MTREF the municipality has provided for a 
cost-of-living increase of 5.4% (2018/2019), 6.0% (2019/2020) and 6.0% (2020/2021). 
However the 6.0% does not include notch increases and additional appointments. 

2.5.8 Impact of national, provincial and local policies 

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

• Creating jobs; 

• Enhancing education and skill development; 


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2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


• Improving health services; 

• Rural development and agriculture; and 

• Fighting crime and corruption. 

To achieve these priorities integration mechanisms are in place to ensure integrated 
planning and execution of various development programs. The focus will be to strengthen 
the link between policy priorities and expenditure thereby ensuring the achievement of the 
national, provincial and local objectives. Unfortunately, some of these services come at a 
cost for the municipality since not all activities is 100% funded through funds that follow 
functions (unfunded mandates). 

2.5.9 Ability of the municipality to spend and deliver on the programmes 

It is estimated that a spending rate of at least 95% is achieved on operating expenditure 
and 95% on the capital programme for the 2018/2019 MTREF of which performance has 
been factored into the cash flow budget. The municipality expects to recover 98% of its 
budgeted revenue. 

2.6 Overview of budget funding 

2.6.1 Medium-term outlook: operating revenue 

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


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Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 35 Breakdown of the operating revenue over the medium-term 


Description 

2018/19 Medium Term Revenue & Expenditure Framework 


Budget Year 

2018/19 

% 

Budget Year 

+1 2019/20 

% 

Budget Year 

+2 2020/21 

% 

Property rates 

99 462 

14.0% 

105 429 

14.3% 

112 282 

r 

14.3% 

Service charges 

447 595 

62.9% 

474 450 

64.4% 

505 290 

r 

64.3% 

Interest earned - external investments 

4 350 

0.6% 

4 568 

0.6% 

4 819 

r 

0.6% 

Transfers recognised - operational 

Other own revenue 

93 221 

66 980 

13.1% 

9.4% 

96 855 

55 411 

13.1% 

7.5% 

104 663 

58 711 

13.3% 

7.5% 

Total Operational Revenue (excluding 
capital transfers and contributions 

711 607 

100.0% 

736 713 

100.0% 

785 765 

100.0% 

Total Operational Expenditure 

Surplus/(Deficit) 

751 140 

(39 534) 


796 279 

(59 566) 


842 000 

(56 235) 



The following graph is a breakdown of the operational revenue per main category for the 
2018/2019 financial year. 


2018/2019 OPERATING REVENUE 



■ Property rates 

■ Service charges - electricity 
revenue 

■ Service charges - water 
revenue 

■ Service charges - sanitation 
revenue 

■ Service charges - refuse 
revenue 

■ Service charges - other 

■ Rental of facilities and 
equipment 

■ Interest earned - external 
investments 

■ Interest earned - outstanding 
debtors 

■ Dividends received 


■ Fines, penalties and forfeits 

■ Licences and permits 
Agency services 


Figure 4 Breakdown of operating revenue over the 2018/2019 MTREF 


27 March 2018 


87 


















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


For the medium-term, the funding strategy has been informed directly by ensuring financial 
sustainability and continuity. The MTREF therefore provides for a budgeted surplus 
(excluding non-cash items) of R 122.6 million (2018/2019) and R 96.0 million and R 107.9 
million in the two outer years. This surplus is intended to fully fund capital expenditure 
from own sources as well as ensure adequate cash backing of reserves and funds. 

Tariff setting plays a major role in ensuring desired levels of revenue. Getting tariffs right 
assists in the compilation of a credible and funded budget. The municipality derives most 
of its operational revenue from the provision of goods and services such as water, 
electricity, sanitation and solid waste removal. Property rates, operating and capital grants 
from organs of state and other minor charges (such as building plan fees, licenses and 
permits etc.) completes the revenue base. 

The revenue strategy is a function of key components such as: 

• Growth in the municipality and economic development; 

• Revenue management and enhancement; 

• Achievement of a 98% annual collection rate for consumer revenue; 

• National Treasury guidelines; 

• Electricity tariff increases within the National Electricity Regulator of South Africa 
(NERSA) approval; 

• Achievement of full cost recovery of specific user charges; 

• Determining tariff escalation rate by establishing / calculating revenue requirements; 

• The Property Rates Policy in terms of the Municipal Property Rates Act, 2004 (Act 6 
of 2004) (MPRA), and 

• And the ability to extend new services and obtain cost recovery levels. 

The above principles guide the annual increase in the tariffs charged to the consumers 
and the ratepayers aligned to the economic forecasts. 

The proposed tariff increases for the 2018/2019 MTREF on the different revenue 
categories are: 


27 March 2018 


88 





Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Revenue to be generated from property rates is R 99.5 million in the 2018/2019 financial 
year and increases to R 112.3 million by 2020/2021 which represents 14.0% of the 
operating revenue base of the municipality. It remains relatively constant over the 
medium-term. With the implementation of the Municipal Property Rates Act the basis of 
rating significantly changed. 

The municipality is in a process of further data verification and validation relating to the 
valuation roll. The new valuation roll was implemented from 1 July 2014 and is valid for 4 
years. The valuation is supplemented every year as supplementary valuations are 
performed. As the levying of property rates is considered strategic revenue source a 
further supplementary valuation process will be undertaken as necessary during the 
financial year. The outcome of this initiative will be closely monitored and reported on a 
regular basis as part of the quarterly performance reporting. 

Services charges relating to electricity, water, sanitation and refuse removal constitutes 
the biggest component of the revenue basket of the municipality totalling R 447.6 million 
for the 2018/2019 financial year and increasing to R 505.3 million by 2020/2021. For the 
2018/2019 financial year services charges amount to 62.9% of the total revenue base and 
increase to 64.3% by 2020/2021. This increase can mainly be attributed to the increase in 
the bulk prices of electricity and water. 

Transfers recognised - operating includes the local government equitable share and other 
operating grants from national and provincial government. Operating grants and transfers 
totals R 93.2 million in the 2018/2019 financial year, R 96.9 for 2019/2020 and R 104.7 
million by 2020/2021. Note that the year-on-year growth for the 2018/2019 financial year 
is 12.8% and 3.9% and 8.1% for the outer years. The following table gives a breakdown of 
the proposed tariff increases over the MTREF: 


27 March 2018 


89 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 36 Proposed Tariff increases over the Medium-Term 


Revenue Category 

2018/19 

2019/20 

2020/21 

2018/19 Total 

Proposed Tariff 

Proposed 

Proposed Tariff 

Budgeted 


Increase 

Tariff Increase 

Increase 

Revenue 


% 

% 

% 

R'OOO 

Property Rates 

±6.00% 

±6.00% 

±6.00% 

99 462 

Electricity 

6.84% 

±6.00% 

±6.00% 

316 656 

Water 

±6.00% 

±6.00% 

±6.00% 

62 987 

Sanitation 

±6.00% 

±6.00% 

±6.00% 

34 657 

Refuse Removal 

±10.00% 

±6.00% 

±6.00% 

33 295 

Total 

547 056 


The tables below provide detail investment information and investment particulars by 
maturity. 


Table 37 MBRR SA15 - Detail Investment Information 


Investment type / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Fram ework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Parent municipalitv 

r _ 

r _ 

r 10 550 

r _ 

r _ 

r _ 

r _ 

Deposits ■ Bank 

Municipality sub-total 

- 

- 

10 550 

- 

- 

- 

- 

Entities 









Entities sub-total 

- 

- 

- 

- 

- 

- 

- 

Consolidated total: 

- 

- 

10 550 

- 

- 

- 

- 


Table 38 MBRR SA16 - Investment particu 


Investments by Maturity 

Name of institution & investment ID 

Period of 

Investment 

Type of 

Investment 

Capital 

Guarantee 

(Yes/ No) 

Variable or Fixed 

interest rate 

Monetary value 

Interest to 

be realised 

Yrs/Months 

Rand thousand 

Parent municipalitv 

Not applicable - all investments qualify as 
cash and cash equivalents (Cash) 

Months 

Depositor Plus 

No 

Variable 

- 

- 

Municipality sub-total 





- 

- 

Entities 







Entities sub-total 





_ 

_ 

TOTAL INVESTMENTS AND INTEREST 





_ 

_ 


ars by maturity 


27 March 2018 


90 




















































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.6.2 Medium-term outlook: capital revenue 

The following table is a breakdown of the funding composition of the 2018/2019 to 
2020/2021 medium-term capital programme: 


Table 39 Sources of capital revenue over the MTREF 


Description / R thousand 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure Framework 

Adjusted 

Budget 

% 

Budget Year 

2018/19 

% 

Budget Year 

+1 2019/20 

% 

Budget Year +2 

2020/21 

% 

Funded bv: 









National Government 

64 633 

55.7% 

43 843 

34.4% 

28 657 

79.2% 

30 216 

99.3% 

Provincial Government 

4 904 

4.2% 

217 

0.2% 

217 

0.6% 

217 

0.7% 

Transfers recognised ■ capital 

69 537 

59.9% 

44 060 

34.6 % 

28 874 

79.8% 

30 433 

100.0% 

Borrowing 

10 000 

8.6% 

- 

0.0% 

- 

0.0% 

- 

0.0% 

Internally generated funds 

36 505 

31.5% 

83 417 

65.4% 

7 316 

20.2% 

- 

0.0% 

Total Capital Funding 

116 042 

100.0% 

127 478 

100.0% 

36190 

100.0% 

30 433 

100.0% 


Capital grants and receipts equates to 34.6% of the total funding source which represents 
R 44.1 million for the 2018/2019 financial year and decreases to R 28.9 million (79.8%) for 
2019/2020 before increasing to R 30.4 million or 100.0% by 2020/2021. 

Own funding still remains a significant funding source for the capital programme over the 
medium-term with an estimated R 83.4 million, R 7.3 million and R 0 million to be raised 
for each of the respective financial years.. 


As explained earlier, the borrowing capacity of the municipality has essentially reached its 
limits and therefore no borrowing is being budgeted for from 2018/2019 - 2020/2021 

Figure 5 is graphically represented as follows for the 2018/2019 financial year. 


27 March 2018 


91 



























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Sources of Capital for the 2018/2019 

Budget 


65% 


35% 


0 % 


■ Transfers recognised- 
capital 

■ Borrowing 


■ Internally generated 
funds 


Figure 5 Sources of capital revenue for the 2018/2019 financial year 


The following table is a detailed analysis of the municipality’s borrowing liability. 


Table 40 MBRR Table SA 17 - Detail of borrowings 


Borrowing - Categorised by type / 

R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year+2 

2020/21 

Parent municipality 

r 

104 021 

r 

104 995 

r 

114 995 

r 

114 995 

r 

89 077 

r 

71 077 

r 

52 077 

Long-Term Loans 
(annuity/reducing balance) 

Municipality sub-total 

104 021 

104 995 

114 995 

114 995 

89 077 

71 077 

52 077 

Entities 








Entities sub-total 

- 

- 

- 

- 

- 

- 

- 









Total Borrowing 

104 021 

104 995 

114 995 

114995 

89 077 

71 077 

52 077 


Internally generated funds consist of a mixture between surpluses generated on the 
operating statement of financial performance and cash backed reserves. In determining 
the credibility of this funding source it becomes necessary to review the cash flow budget 
as well as the cash backed reserves and accumulated funds reconciliation, as discussed 
below. 


Table 41 below provides more detail of the capital transfers and grant receipts. 


27 March 2018 


92 

























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 41 MBRR Table SA 18 - Capital transfers and grants receipts 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Capital Transfers and Grants 








National Government: 

35 223 

48 280 

64 553 

64 553 

43 843 

28 657 

30 216 

Municipal Infrastructure Grant (MIG) 

22 927 

21 223 

12 924 

12 924 

20 365 

20 727 

21 729 

Regional Bulk Infrastructure 

- 

- 

- 

- 

- 

- 

- 

C0GHSTA 6667 

- 

- 

1 800 

1 800 

- 

- 

- 

EPWP Incentive 

1 787 

1 018 

1 187 

1 187 

- 

- 

- 

Water Service Infrastructure Grant 

- 

- 

8112 

8112 

8 696 

- 

- 

Energy Efficiency and Demand Managei 

6114 

- 

- 

- 

2 609 

3 478 

3 478 

Municipal Demarcation Transitional Gra 

- 

- 

15 867 

15 867 

- 

- 

- 

Financial Management Grant 

- 

- 

1 241 

1 241 

- 

- 

- 

Integrated National Elekctrification Prog 

4 396 

26 038 

23 422 

23 422 

12174 

4 452 

5 009 

Provincial Government: 

4 000 

- 

4 904 

4 904 

217 

r— 

CM 

r— 

CM 

r Provincial Government: 

4 000 

- 

1 104 

1 104 

- 

- 

- 

Sport and Recreation 

- 

- 

3 800 

3 800 

217 

217 

217 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 

- 

- 

- 

- 

- 

- 

- 

Total Capital Transfers and Grants 

39 223 

48 280 

69 457 

69 457 

44 060 

28 874 

30 433 


2.6.3 Cash Flow Management 

Cash flow management and forecasting is a critical step in determining if the budget is 
funded over the medium-term. The table below is consistent with international standards 
of good financial management practice and also improves understand ability for councillors 
and management. Some specific features include: 

• Clear separation of receipts and payments within each cash flow category; 

• Clear separation of capital and operating receipts from government, which also 
enables cash from ‘ratepayers and other’ to be provided for as cash inflow based on 
actual performance. In other words the actual collection rate of billed revenue; and 

• Separation of borrowing and loan repayments (no set-off), to assist with MFMA 
compliance assessment regarding the use of long term borrowing (debt). 


27 March 2018 


93 





















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 42 MBRR Table A7 - Budget cash flow statement 


Description / R thousand 

2016/17 

Current Year 2017118 

2018119 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year 

+2 2020/21 

CASH FLOW FROM OPERATING ACTIVITIES 

Receipts 








Property rates 

86102 

93 773 

93 832 

81133 

110 424 

88 479 

104 375 

Service charges 

335 245 

r 404 227 

F 397 633 

397 633 

447 595 

474 450 

505 290 

Other revenue 

26 924 

24 024 

28 295 

13 238 

24 894 

26 011 

27 694 

Government-operating 

70 984 

89 758 

82 646 

82 646 

93 221 

r 96 855 

104 663 

Government-capital 

35 364 

48 280 

69 457 

69 457 

44 060 

28 874 

30 433 

Interest 

5 829 

6 300 

70 550 

7 055 

7 350 

7718 

8142 

Payments 








Suppliers and employees 

(466 803) 

(563 288) 

(564 567) 

(570 979) 

(589 960) 

(656 377) 

(713 851) 

Finance charges 

(11 838) 

(12 481) 

(12 527) 

(12 527) 

(12 225) 

(12 836) 

(13 542) 

Transfers and Grants 

(464) 

(610) 

(867) 

(867) 

(862) 

(905) 

(955) 

NET CASH FROMI(USED) OPERATING ACTIVITIES 

81342 

89 981 

164 452 

66 789 

124 497 

52 268 

52 249 

CASH FLOWS FROM INVESTING ACTIVITIES 

Receipts 








Proceeds on disposal of PPE 

729 

13 064 

13 000 

13 000 

29 086 

15 750 

F 16616 

Decrease (increase) other non-current receivables 

10 

' 5 

T 

' (13) 

r 

T 

T 

Payments 








Capital assets 

(38 782) 

(91817) 

(116 042) 

(116 042) 

(127 478) 

(36 190) 

(30 433) 

NET CASH FROMI(USED) INVESTING ACTIVITIES 

(38 042) 

(78 747) 

(103 042) 

(103 055) 

(98 392) 

(20 440) 

(13817) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Receipts 








Borrowing long term/refinancing 

- 

10 000 

10 000 

10 000 

- 

- 

- 

Increase (decrease) in consumer deposits 

(882) 

- 

- 

- 

- 

- 

- 

Payments 








Repayment of borrowing 

(11 118) 

(9 660) 

(9 660) 

(9 660) 

(14 000) 

(16 000) 

(18 000) 

NET CASH FROMZ(USED) FINANCING ACTIVITIES 

(11 999) 

340 

340 

340 

(14 000) 

(16 000) 

(18 000) 

NET INCREASE/ (DECREASE) IN CASH HELD 

31301 

11574 

61750 

(35 925) 

12105 

15 827 

20 433 

Cash/cash equivalents at the year begin: 

12 454 

12 821 

12 821 

43 754 

7 829 

19 934 

35 761 

Cash/cash equivalents at the year end: 

43 754 

24 395 

74 572 

7 829 

19 934 

35 761 

56194 


27 March 2018 


94 





























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.6.4 Cash Backed Reserves/Accumulated Surplus Reconciliation 

This following table meets the requirements of MFMA Circular No 42 which deals with the 
funding of a municipal budget in accordance with sections 18 and 19 of the MFMA. The 
table seeks to answer three key questions regarding the use and availability of cash: 

• What are the predicted cash and investments that are available at the end of the 
budget year? 

• How are those funds used? 

• What is the net funds available or funding shortfall? 

A surplus would indicate the cash-backed accumulated surplus that was / is available. A 
shortfall (cash-backed commitments > cash and investments) is indicative of non- 
compliance with section 18 of the MFMA requirement that the municipality’s budget must 
be ‘funded’. Non-compliance with section 18 is assumed because a shortfall would 
indirectly indicate that the annual budget is not appropriately funded (budgeted spending is 
greater than funds available or to be collected). It is also important to analyse trends to 
understand the consequences, e.g. the budget year might indicate a small surplus 
situation, which in itself is an appropriate outcome, but if in prior years there were much 
larger surpluses then this negative trend may be a concern that requires closer 
examination. 


27 March 2018 


95 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 43 MBRR Table A8 - Cash backed reserves/accumulated surplus 

reconciliation 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Cash and investments available 








Cash/cash equivalents at the year end 

43 754 

24 395 

74 572 

7 829 

19 934 

35 761 

56 194 

Other current investments > 90 days 

- 

0 

(67 676) 

(0) 

0 

(0) 

0 

Non current assets - Investments 

_ 

_ 

10 550 

_ 

_ 

_ 

_ 

Cash and Investments available: 

43 754 

24 395 

17 445 

7 829 

19 934 

35 761 

56 194 

AoDllcation of cash and Investments 








Unspent conditional transfers 

19 144 

- 

- 

- 

- 

- 

- 

Statutory requirements 

- 

- 

- 

5 500 

8 000 

6 000 

6 000 

Other working capital requirements 

15 724 

(12 041) 

(38 248) 

4 995 

23 736 

13 961 

(14 909) 

Reserves to be backed by cash/lnvestme 

- 

- 

- 

- 

- 

- 

- 

Total Application of cash and investments: 

34 868 

(12 041) 

(38 248) 

4 995 

31 736 

19 961 

(8 909) 

Surplus(shortfall) 

8 887 

36 437 

55 694 

2 834 

(11 802) 

15 800 

65 103 


The following is a breakdown of the application of this funding: 

• Unspent conditional transfers (grants) are automatically assumed to be an obligation 
as the municipality has received government transfers in advance of meeting the 
conditions. Ordinarily, unless there are special circumstances, the municipality is 
obligated to return unspent conditional grant funds to the national revenue fund at the 
end of the financial year. In the past these have been allowed to ‘roll-over’ and be 
spent in the ordinary course of business, but this practice has been discontinued. For 
the 2018/2019 financial year the municipality will spend the entire allocation and thus 
no provision was made for unspent grants. 

• There is no unspent borrowing from the previous financial years. In terms of the 
municipality’s Borrowing and Investments Policy, borrowings are only drawn down 
once the expenditure has been incurred against the particular project. Unspent 
borrowing is ring-fenced and reconciled on a monthly basis to ensure no 
unnecessary liabilities are incurred. 

• The main purpose of other working capital is to ensure that sufficient funds are 
available to meet obligations as they fall due. A key challenge is often the mismatch 
between the timing of receipts of funds from debtors and payments due to employees 
and creditors. High levels of debtor non-payment and receipt delays will have a 


27 March 2018 


96 




















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


greater requirement for working capital, as was experienced by the municipality in the 
past resulting in cash flow challenges. For the purpose of the cash backed reserves 
and accumulated surplus reconciliation a provision equivalent to one month’s 
operational expenditure has been provided for. It needs to be noted that although 
this can be considered prudent, the desired cash levels should be 60 days to ensure 
continued liquidity of the municipality. Any underperformance in relation to 
collections could place upward pressure on the ability of the municipality to meet its 
creditor obligations. 

Other provisions (i.e. employee benefits) have been provided for in the operating 
budget but have not been provided for in Table 43. 

The municipality has no long term investments that consist primarily of the sinking 
funds for the repayment of future borrowings. 

Most reserve fund cash-backing is discretionary in nature, but the reserve funds are 
not available to support a budget unless they are cash-backed. The reserve funds as 
well as unspent conditional grants are not fully cash-backed. Government’s 
outstanding debt, unfunded housing projects and unfunded mandates for the past 
three years are increasing on a year-to-year basis. The level of cash-backing is 
directly informed by the municipality’s cash backing policy. Dawid Kruiper 
Municipality has requested in writing support from National Treasury regarding the 
unfunded mandates which can no longer be afforded and funded by our consumers. 
Mr. J Hattingh wrote a letter to Provincial Treasury requesting them to assist us in 
order to address these issues, but no assistance or correspondence was received. 
The municipal manager has requested that the clinic should be taken over by 
Provincial Treasury. This was done during October 2014. Dawid Kruiper 
Municipality is also performing the Fire Brigade Services and Disaster Management 
Services, but the grant is being paid to ZFM. The allocation received from 
Department Sports, Arts and Culture is insufficient to cover the expenditure of the 
libraries resulting in tariff increases above inflation to recover the costs. The same 
principle applies for Department of Housing. For the last 4 year the allocation has not 
increased from R 650 000 per year. 


27 March 2018 


97 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


However, from a practical perspective it would not be possible to eradicate this deficit in 
one financial year hence the phased approach over the MTREF. Nevertheless from a 
pure cash flow perspective (cash out flow versus cash inflow) the budget is funded and is 
therefore credible. The challenge for the municipality will be to ensure that the underlying 
planning and cash flow assumptions are meticulously managed, especially the 
performance against the collection rate. 

2.6.5 Funding compliance measurement 

National Treasury requires that the municipality assess its financial sustainability against 
fourteen different measures that look at various aspects of the financial health of the 
municipality. These measures are contained in the following table. All the information 
comes directly from the annual budgeted statements of financial performance, financial 
position and cash flows. The funding compliance measurement table essentially 
measures the degree to which the proposed budget complies with the funding 
requirements of the MFMA. Each of the measures is discussed below. 


Table 44 MBRR SA1 


0 - Funding compliance measurement 


Description 

MFMA 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

section 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year 

+2 2020/21 

Fundinq measures 

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

18(1)b 

43 754 

24 395 

74 572 

7 829 

19 934 

35 761 

56194 

Cash + investments at the yr end less applications ■ R'000 

18(1)b 

8 887 

36 437 

55 694 

(2 666) 

(11 802) 

15 800 

65103 

Cash year end/monthly employee/supplier payments 

18(1)b 

1.2 

0.6 

1.7 

0.2 

0.4 

0.7 

1.0 

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

18(1) 

(11 813) 

25155 

28120 

22 620 

4 527 

(30 692) 

(25 802) 

Service charge rev % change - macro CPIX target exclusive 

18(1)a,(2) 

-6.0% 

15.5% 

-8.0% 

■6.0% 

5.3% 

0.0% 

0.5% 

Cash receipts % of Ratepayer & Other revenue 

18(1)a,(2) 

95.5% 

97.7% 

99.4% 

95.1% 

99.7% 

95.1% 

96.6% 

Debt impairment expense as a % of total billable revenue 

18(1)a,(2) 

4.5% 

1.0% 

1 . 1 % 

i.i% 

0.0% 

0.0% 

0.0% 

Capital payments % of capital expenditure 

18(1)c;19 

20.1% 

100.0% 

100.0% 

120.9% 

100.0% 

100.0% 

100.0% 

Borrowing receipts % of capital expenditure (excl. transfers) 

18(1)c 

0.0% 

23.0% 

21.5% 

37.8% 

0.0% 

0.0% 

0.0% 

Grants % of Govt, legislated/gazetted allocations 

18(1)a 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

Current consumer debtors % change ■ incr(decr) 

18(1)a 

0.0% 

-14.6% 

40.4% 

■14.1% 

■27.1% 

23.4% 

10.0% 

Long term receivables % change ■ incr(decr) 

18(1)a 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

R&M % of Property Plant & Equipment 

20(1)(vi) 

0.6% 

1.1% 

1.0% 

1.0% 

0.9% 

0.9% 

1.0% 

Asset renewal % of capital budget 

20(1)(vi) 

10.1% 

21.5% 

9.3% 

11.3% 

25.3% 

29.8% 

11.4% 


27 March 2018 


98 



















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.6.5.2 Cash/cash equivalent position 

The municipality’s forecast cash position was discussed as part of the budgeted cash flow 
statement. A ‘positive’ cash position, for each year of the MTREF would generally be a 
minimum requirement, subject to the planned application of these funds such as cash¬ 
backing of reserves and working capital requirements. 

If the municipality’s forecast cash position is positive, for any year of the medium term 
budget, The forecasted cash and cash equivalents for the 2018/2019 MTREF shows 
R 19.9 million, R 35.8 million and R 56.2 million for each respective financial year. 

2.6.5.3 Cash plus investments less application of funds 

The purpose of this measure is to understand how the municipality has applied the 
available cash and investments as identified in the budgeted cash flow statement. The 
detail reconciliation of the cash backed reserves / surpluses are contained in Table 25, on 
page 49. The reconciliation is intended to be a relatively simple methodology for 
understanding the budgeted amount of cash and investments available with any planned 
or required applications to be made. This has been extensively discussed above. 

2.6.5.4 Monthly average payments covered by cash or cash equivalents 

The purpose of this measure is to understand the level of financial risk should the 
municipality be under stress from a collection and cash in-flow perspective. Regardless of 
the annual cash position an evaluation should be made of the ability of the municipality to 
meet monthly payments as and when they fall due. It is especially important to consider 
the position should the municipality be faced with an unexpected disaster that threatens 
revenue collection such as rate boycotts. As part of the 2018/2019 MTREF the 
municipalities improving cash position causes the ratio to move upwards to 0.4 and then 
stabilize on 1.0 by 2020/2021. As indicated above the municipality aims to achieve at 
least one month’s cash coverage in the medium term, and then gradually move towards 
two months coverage. This measure will have to be carefully monitored going forward. 


27 March 2018 


99 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.6.5.5 Surplus/deficit excluding depreciation offsets 

The main purpose of this measure is to understand if the revenue levels are sufficient to 
conclude that the community is making a sufficient contribution for the municipal resources 
consumed each year. An ‘adjusted’ surplus / deficit are achieved by offsetting the amount 
of depreciation related to externally funded assets. Municipalities need to assess the 
result of this calculation taking into consideration its own circumstances and levels of 
backlogs. If the outcome is a deficit, it may indicate that rates and service charges are 
insufficient to ensure that the community is making a sufficient contribution toward the 
economic benefits they are consuming over the medium term. Dawid Kruiper Municipality 
did not use the depreciation method, but the revaluation method with the higher 
Depreciated Replacement Cost values. Therefore the “offsetting” amount cannot be 
deducted in terms of GRAP 17 and a surplus will not be reflected in this statement. Dawid 
Kruiper Municipality has reported this issue several times with both the Auditor General 
and National Treasury. We are still awaiting response. 

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

2.6.5.6 Property Rates/service charge revenue as a percentage increase less macro 
inflation target 

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

The factor is calculated by deducting the maximum macro-economic inflation target 
increase (which is currently 5.3% to 5.5%). The result is intended to be an approximation 
of the real increase in revenue. Considering the lowest percentage tariff increase in 
relation to revenue generated from rates and services charges is 6%, with the increase in 
electricity at 6.84% on average it is to be expected that the increase in revenue will exceed 
the inflation target figures. However, the outcome is lower than it might be due to the 


27 March 2018 


100 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


slowdown in the economy and a reduction in consumption patterns. This trend will have to 
be carefully monitored and managed with the implementation of the budget. 


2.6.5.7 Cash receipts as a percentage of ratepayer and other revenue 

This factor is a macro measure of the rate at which funds are ‘collected’. This measure is 
intended to analyses the underlying assumed collection rate for the MTREF to determine 
the relevance and credibility of the budget assumptions contained in the budget. It can be 
seen that the outcome is at 95% for each of the respective financial years. Given that the 
assumed collection rate was based on a 98% performance target, the cash flow statement 
has been conservatively determined. In addition the risks associated with objections to the 
valuation roll need to be clarified and hence the conservative approach, also taking into 
consideration the cash flow challenges experienced in the current financial year. This 
measure and performance objective will have to be meticulously managed. Should 
performance with the mid-year review and adjustments be positive in relation to actual 
collections of billed revenue, the adjustments budget will have to be amended accordingly. 


2.6.5.8 Debt impairment expense as a percentage of billable revenue 

This factor measures whether the provision for debt impairment is being adequately 
funded and is based on the underlying assumption that the provision for debt impairment 
(doubtful and bad debts) has to be increased to offset under-collection of billed revenues. 
The provision has been appropriated at 0% over the MTREF. Considering the debt 
incentive scheme and the municipality’s revenue management strategy’s objective to 
collect outstanding debtors of 90 days, the provision is well within the accepted leading 
practice. R 5.5 million was budgeted for the write off of bad debt thus the provision of bad 
debt will not increase and therefore no provision was budgeted for. 

2.6.5.9 Capital payments percentage of capital expenditure 

The purpose of this measure is to determine whether the timing of payments has been 
taken into consideration when forecasting the cash position. It can be seen that a 0% 


27 March 2018 


101 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


timing discount has been factored into the cash position forecasted over the entire 
financial year. The municipality aims to keep this as low as possible through strict 
compliance with the legislative requirement that debtors be paid within 30 days and have 
not defaulted over the last five years. 

2.6.5.10 Borrowing as a percentage of capital expenditure (excluding transfers, grants 
and contributions) 

The purpose of this measurement is to determine the proportion of a municipality’s ‘own- 
funded’ capital expenditure budget that is being funded from borrowed funds to confirm 
MFMA compliance. Externally funded expenditure (by transfers/grants and contributions) 
has been excluded. Further details relating to the borrowing strategy of the municipality 
can be found on page 92. 

2.6.5.11 Transfers/grants revenue as a percentage of Government transfers/grants 
available 

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


2.6.5.12 Consumer debtors change (Current and Non-current) 

The purpose of these measures is to ascertain whether budgeted reductions in 
outstanding debtors are realistic. There are two measures shown for this factor; the 
change in current debtors and the change in long term receivables, both from the 
Budgeted Financial Position. Both measures show an increase settling debtor’s accounts 
not being settled within 45 days. 

2.6.5.13 Repairs and maintenance expenditure level 


27 March 2018 


102 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


This measure must be considered important within the context of the funding measures 
criteria because a trend that indicates insufficient funds are being committed to asset 
repair could also indicate that the overall budget is not credible and / or sustainable in the 
medium to long term because the revenue budget is not being protected. Details of the 
municipality’s strategy pertaining to asset management and repairs and maintenance are 
contained in Table 59 MBRR SA34c on page 120. 

2.6.5.14 Asset renewal/rehabilitation expenditure level 

This measure has a similar objective to aforementioned objective relating to repairs and 
maintenance. A requirement of the detailed capital budget (since MFMA Circular 28 which 
was issued in December 2005) is to categorise each capital project as a new asset or a 
renewal / rehabilitation project. The objective is to summarise and understand the 
proportion of budgets being provided for new assets and also asset sustainability. A 
declining or low level of renewal funding may indicate that a budget is not credible and/or 
sustainable and future revenue is not being protected, similar to the justification for ‘repairs 
and maintenance’ budgets. Further details in this regard are contained in Table 58 MBRR 
SA34b on page 118. 


27 March 2018 


103 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.7 Expenditure on grants and reconciliations of unspent funds 


Table 45 MBRR SA19 - Expenditure on transfers and grant programmes 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

EXPENDITURE: 








Ooeratina expenditure of Transfers and Grants 








National Government: 

68 980 

80 679 

73 600 

73 600 

89 858 

93 292 

101 100 

Local Government Equitable Share 

57 989 

' 70 769" 

70 769 

70 769 

77 934 

84 739 

92 253 

Finance Management 

3 623 

4 045 

2 804 

2 804 

4115 

3 000 

3 000 

Energy Efficiency and Demand Management 

886 

1 

26 

r 

r 

26 

26 

391 

r 

522 

522 

Municipal Infrastructure Grant (MIG) 

r 

4 250 

r 

1273 


- 

r 

4 287 

4 363 

4 574 

Integrated National Elekctrification Programme 

604 

r 

- 

- 

1 826 

668 

751 

EPWP 

213 

r 

- 

- 

r 

- 

- 

Water Service Infrastructure Grant 


r 

- 

- 

1 304 

- 

- 

Municipal Demarcation Grant 

1414 

4 565 

- 

- 

r 

- 

- 

Provincial Government: 

1 599 

2 404 

1 950 

1950 

3 363 

3 563 

3 563 

Sport and Recreation 

1460 

2 404 

1 300 

1300 

2 713 

2 913 

2 913 

Housing 


r 

650 

650 

650 

650 

650 

r COGHSTA 

139 

- 

- 

- 

r 

- 

- 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 

405 

6 675 

7 096 

7 096 

- 

- 

- 

VAT on Grants 

r 

6 675 

7 096 

7 096 


w 

f 

r Homestay 

... 

122 

r 

r 

r 

r 

r 

r 









Lotto 

80 







LGSETA 

203 

- 

- 

- 

- 

- 

- 

Total operating expenditure of Transfers and Grants: 

70 984 

89 758 

82 646 

82 646 

93 221 

96 855 

104 663 

Capital expenditure of Transfers and Grants 








National Government: 

35183 

48 280 

64 553 

64 553 

43 843 

28 657 

30 216 

Municipal Infrastructure Grant (MIG) 

21 487 

21 223 

12 924 

12 924 

20 365 

20 727 

21 729 

COGHSTA 6667 

- 

- 

1 801 

1801 

- 

- 

- 

EPWP Incentive 

1 773 

1018 

1 187 

1187 

- 

- 

- 

Water Service Infrastructure Grant 

- 

- 

8112 

8112 

8 696 

- 

- 

Energy Efficiency and Demand Management 

6114 

- 

- 

- 

2 609 

3 478 

3 478 

Integrated National Elekctrification Programme 

4 396 

26 038 

23 422 

23 422 

12174 

4 452 

5 009 

Financial Management Grant 

- 

- 

1 241 

1241 

r 

- 

- 

Municipal Demarcation Transitional Grant 

1414 

- 

15 867 

15 867 


- 

- 

Provincial Government: 

1 003 

- 

3 800 

3 800 

217 

217 

217 

r Provincial Government: 

- 

- 

1 104 

- 


- 

- 

r COGHSTA 

994 

- 

- 

- 

r 

- 

- 

Sport and Recreation 

8 

- 

3 800 

3 800 

217 

217 

217 

District Municipality: 

- 

- 

- 

- 

- 

- 

- 

Other grant providers: 

592 

- 

- 

- 

- 

- 

- 

Lotto 

592 



w 


f 

- 

Total capital expenditure of Transfers and Grants 

36 778 

48 280 

68 354 

68 354 

44 060 

28 874 

30 433 

TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 

107 762 

138 038 

151 000 

151 000 

137 281 

125 729 

135 096 


27 March 2018 


104 











































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 46 MBRR SA20 - Reconciliation between of transfers, grant receipts and 
__ unspent funds __ 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Operatinq transfers and qrants: 

National Government: 








Balance unspent at beginning of the year 

5 360 

- 

- 


- 

- 

- 

Current year receipts 

75 635 

80 679 

73 600 

73 600 

89 858 

93 292 

101 100 

Conditions met • transferred to revenue 

68 980 

80 679 

73 600 

73 600 

89 858 

93 292 

101 100 

Conditions still to be met ■ transferred to liabilities 

12 015 

- 

- 

- 

- 

- 

- 

Provincial Government: 








Balance unspent at beginning of the year 

(521) 

- 

- 

- 

- 

- 

- 

Current year receipts 

3138 

2 404 

1 950 


3 363 

3 563 

3 563 

Conditions met • transferred to revenue 

1 599 

2 404 

1 950 

- 

3 363 

3 563 

3 563 

Conditions still to be met ■ transferred to liabilities 

1 018 

- 

- 

- 

- 

- 

- 

District Municipality: 








Balance unspent at beginning of the year 


- 

- 

- 

- 

- 

- 

Current year receipts 


- 

- 

- 

- 

- 

- 

Conditions met • transferred to revenue 

- 

- 

- 

- 

- 

- 

- 

Conditions still to be met ■ transferred to liabilities 


- 

- 

- 

- 

- 

- 

Other grant providers: 








Balance unspent at beginning of the year 

260 

- 

- 

- 

- 


- 

Current year receipts 

253 

- 

- 

- 

- 

- 

- 

Conditions met • transferred to revenue 

405 

- 

- 

- 

- 

- 

- 

Conditions still to be met ■ transferred to liabilities 

108 

- 

- 

- 

- 

- 

- 

Total operating transfers and grants revenue 

70 984 

83 083 

75 550 

73 600 

93 221 

96 855 

104 663 

Total operating transfers and grants ■ CTBM 

13142 

- 

- 

- 

- 

- 

- 

Capital transfers and arants: 

National Government: 








Balance unspent at beginning of the year 

(1 249) 

- 

- 

- 

- 

- 

- 

Current year receipts 

35 223 

48 280 

64 553 

64 553 

43 843 

28 657 

30 216 

Conditions met ■ transferred to revenue 

33 769 

48 280 

64 553 

64 553 

43 843 

28 657 

30 216 

Conditions still to be met ■ transferred to liabilities 

205 

- 

- 

- 

- 

- 

- 

Provincial Government: 








Balance unspent at beginning of the year 

2 799 

- 

- 

- 

- 

- 

- 

Current year receipts 

4 000 

- 

4 904 

4 904 

217 

217 

217 

Conditions met • transferred to revenue 

1 003 

- 

4 904 

4 904 

217 

217 

217 

Conditions still to be met ■ transferred to liabilities 

5 796 

- 

- 

- 

- 

- 

- 

District Municipality: 








Balance unspent at beginning of the year 


- 

- 

- 

- 

- 

- 

Current year receipts 


- 

- 

- 

- 

- 

- 

Conditions met • transferred to revenue 

- 

- 

- 

- 

- 

- 

- 

Conditions still to be met ■ transferred to liabilities 


- 

- 

- 

- 

- 

- 

Other grant providers: 








Balance unspent at beginning of the year 

593 

- 

- 

- 

- 

- 

- 

Current year receipts 

- 

- 

- 

- 

- 

- 

- 

Conditions met • transferred to revenue 

592 

- 

- 

- 

- 

- 

- 

Conditions still to be met ■ transferred to liabilities 

0 

- 

- 

- 

- 

- 

- 

Total capital transfers and grants revenue 

35 364 

48 280 

69 457 

69 457 

44 060 

28 874 

30 433 

Total capital transfers and grants ■ CTBM 

6 002 

- 

- 

- 

- 

- 

- 

TOTAL TRANSFERS AND GRANTS REVENUE 

106 348 

131 362 

145 007 

143 056 

137 281 

125 729 

135 096 

TOTAL TRANSFERS AND GRANTS•CTBM 

19144 

- 

- 

- 

- 

- 

- 


27 March 2018 


105 







































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.8 Councillors and employee benefits 


Table 47 MBRR SA22 - Summary of councillors and staff benefits 


Summary of Employee and Councillor remuneration 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue 8> Expenditure 

Framework 


Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year+1 

Budget Year +2 


Outcome 

Budget 

Budget 

Forecast 

2018/19 

2019/20 

2020/21 

Councillors (Political Office Bearers plus Other) 








Salary 

7 526 

9 434 

8 952 

8 952 

9 489 

10106 

10 712 

Pension Contributions 

453 

1794 

588 

588 

624 

664 

704 

Medical Aid Contributions 

- 

20 

68 

68 

72 

76 

81 

Travel, Accomodation and Other Allowances 

- 

- 

- 

- 

46 

49 

52 

Cell phone allowance 

534 

- 

1 265 

1265 

1341 

1 428 

1 514 

Housing benefits and allowances 

- 

- 

- 

- 

- 

- 

- 

Other benefits or allowances 

- 

50 

44 

44 

- 

- 

- 

Sub Total ■ Councillors 

8 514 

11298 

10 916 

10 916 

11 571 

12 323 

13 063 

% increase 

0.0% 

0.0% 

-3.4% 

0.0% 

6.0% 

6.5% 

6.0% 

Senior Manaqers of the Municipalitv 








Basic Salaries and Wages 

6 291 

6 359 

7 227 

7 227 

7 381 

7 824 

8 293 

Pension and UIF Contributions 

673 

1246 

579 

579 

215 

228 

241 

Medical Aid Contributions 

- 

138 

152 

152 

161 

171 

181 

Performance Bonus 

1 102 

153 

1 140 

1140 

1082 

1 147 

1216 

Motor Vehicle Allowance 

859 

941 

985 

985 

1226 

1 299 

1 377 

Other benefits and allowances 

- 

0 

2 

2 

2 

2 

2 

Sub Total ■ Senior Managers of Municipality 

8 925 

8 837 

10 085 

10 085 

10 067 

10 671 

11311 

% increase 

0.0% 

0.0% 

14.1% 

0.0% 

■0.2% 

6.0% 

6.0% 

Other Municipal Staff 








Basic Salaries and Wages 

147 925 

176 477 

182 577 

182 577 

208 100 

221 663 

234 963 

Pension and UIF Contributions 

26173 

32 065 

32 872 

32 872 

34 757 

37 018 

39 239 

Medical Aid Contributions 

12 088 

15 546 

13 554 

13 554 

15 040 

16 018 

16 980 

Overtime 

15 812 

12 230 

19 559 

19 559 

19 685 

20 964 

22 222 

Performance Bonus 

- 

833 

- 

- 

- 

5 

6 

Motor Vehicle Allowance 

9 414 

3 082 

3 308 

3 308 

3 542 

3 779 

4 006 

Cellphone Allowance 

- 

- 

42 

42 

89 

95 

101 

Housing Allowances 

1 566 

1937 

824 

824 

850 

905 

960 

Other benefits and allowances 

- 

7 036 

9 449 

9 449 

8 822 

9 395 

9 959 

Payments in lieu of leave 

- 

1715 

1 715 

1715 

2 000 

2100 

2 216 

Long service awards 

- 

106 

40 

40 

42 

44 

47 

Post-retirement benefit obligations 

- 

- 

- 

- 

22 500 

26 275 

27 733 

Sub Total - Other Municipal Staff 

212 977 

251 026 

263 940 

263 940 

315 427 

338 262 

358 429 

% increase 

0.0% 

0.0% 

5.1 % 

0.0% 

19.5% 

7.2% 

6.0% 









Total Parent Municipality 

230 416 

271 162 

284 941 

284 941 

337 065 

361 257 

382 803 

TOTAL SALARY, ALLOWANCES & BENEFITS 









230 416 

271 162 

284 941 

284 941 

337 065 

361 257 

382 803 

% increase 

0.0% 

0.0% 

5.1% 

0.0% 

18.3% 

7.2% 

6.0% 

TOTAL MANAGERS AND STAFF 

221 902 

259 863 

274 025 

274 025 

325 494 

348 933 

369 740 


27 March 2018 


106 





































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 48 MBRR SA23 - Salaries, allowances and benefits 


(Political of 


ice bearers/councillors/ senior managers) 


Disclosure of Salaries, Allowances & Benefits / R per 

annum 

Salary 

Contributions 

Allowances 

Performance 

Bonuses 

In-kind benefits 

Total Package 

Councillors 








r 

f 

f 

r 

r 

r 

Speaker 

700 797 

- 

43 248 

- 

- 

744 045 


r 

W 

r 

r 

r 

r 

Executive Mayor 

745 220 

130 779 

43 248 

- 

- 

919 247 


r 

r 

r 

r 

r 

r 

Executive Committee 

2 009 367 

143 421 

305 817 

- 

- 

2 458 605 


r 

f 

f 

r 

w 

r 

Total for all other councillors 

6 033 450 

421 174 

994 704 

- 

- 

7 449 328 

Total Councillors 

9 488 834 

695 374 

1 387 017 

- 

- 

11 571 225 

Senior Manaoers of the Municloalitv 







Municipal Manager (MM) 

1 274 854 

- 

246 609 

218 000 

- 

1 739 463 

Chief Finance Officer 

996 333 

199 441 

231 592 

144 000 

- 

1 571 366 

Director: Corporate Services 

980 480 

176 486 

227 491 

144 000 

- 

1 528 457 

Director: Development Services 

1 209 862 

- 

235 025 

144 000 

- 

1 588 887 

Director: Electro MechServices 

812 770 

- 

76 598 

144 000 

- 

1 033 368 

Director: Civil Engineering Services 

1 294 098 

- 

134 018 

144 000 

- 

1 572 116 

Director: Development And Planning Services 

812 770 

- 

76 598 

144 000 

- 

1 033 368 

Total Senior Managers of the Municipality 

7 381 167 

375 927 

1 227 931 

1 082 000 


10 067 025 

TOTAL COST OF COUNCILLOR, DIRECTOR and 








16 870 001 

1 071 301 

2 614 948 

1 082 000 

- 

21 638 250 

EXECUTIVE REMUNERATION 








27 March 2018 


107 


























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 49 M 


BRR SA24 - Summary of personnel numbers 


Summary of Personnel Numbers 

2016/17 

Current Year 2017/18 

Budget Year 2018/19 

Number 

Positions 

Permanent 

employees 

Contract 

employees 

Positions 

Permanent 

employees 

Contract 

employees 

Positions 

Permanent 

employees 

Contract 

employees 

Municipal Council and Boards of Municipal Entities 











Councillors (Political Office Bearers plus Other Counci 

27 

- 


27 

27 

- 

27 

27 

- 

27 

Board Members of municipal entities 

- 

- 


- 

- 

- 

- 

- 

- 

- 

Municipal employees 

- 

- 


- 

- 

- 

- 

- 

- 


Municipal Manager and Senior Managers 

7 

6 


- 

7 

6 

1 

7 

7 

7 

Other Managers 

17 

17 


- 

17 

16 

- 

17 

17 

- 

Professionals 

33 

33 


- 

41 

41 

- 

31 

31 

- 

Finance 

16 

16 


- 

14 

14 

- 

14 

14 

- 

Spatial/town planning 

2 

2 


- 

2 

2 

- 

2 

2 

♦ 

Information Technology 

- 

- 


- 

- 

- 

- 

* 

«■ 

* 

Roads 

- 

- 


- 

- 

- 

- 

- 

- 

- 

Electricity 

- 

- 


- 

- 

- 

- 

- 

» 

- 

Water 

- 

- 


- 

- 

- 

- 

- 

- 

- 

Sanitation 

- 

- 


- 

- 

- 

- 

1 

- 

- 

Refuse 

- 

- 


- 

- 

- 

- 

- 

- 

- 

Other 

15 

15 


- 

25 

25 

- 

15 

15 

- 

Technicians 

80 

80 


- 

92 

92 

- 

84 

84 

- 

Finance 

- 

- 


- 

- 

- 

- 

- 

- 

- 

Spatial/town planning 

4 

4 


- 

4 

4 

- 

4 

4 

- 

Information Technology 

6 

6 


- 

7 

7 

- 

6 

6 

- 

Roads 

6 

6 


- 

11 

11 

- 

7 

7 

- 

Electricity 

11 

11 


- 

11 

11 

- 

14 

14 

- 

Water 

14 

14 


- 

10 

10 

- 

- 

- 

- 

Sanitation 

- 

- 


- 

3 

3 

- 

- 

- 

- 

Refuse 

1 

1 


- 

3 

3 

- 

1 

1 

- 

Other 

38 

38 


- 

43 

43 

- 

52 

- 

- 

Clerks (Clerical and administrative) 

190 

190 


- 

170 

170 

- 

192 

192 

- 

Service and sales workers 

98 

98 


- 

120 

120 

- 

97 

97 

- 

Skilled agricultural and fishery workers 

- 

- 


- 

4 

4 

- 

- 

- 

- 

Craft and related trades 

- 

- 


- 

3 

3 

- 

* : 

- 

- 

Plant and Machine Operators 

90 

90 


- 

52 

52 

- 

88 

88 

- 

Elementary Occupations 

404 

404 


- 

459 

459 

- 

413 

413 

- 

TOTAL PERSONNEL NUMBERS 

950 

918 

31 

996 

963 

32 

960 

877 

38 


27 March 2018 


108 





























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.9 Monthly targets for revenue, expenditure and cash flow 


Table 50 MBRR SA25 - Budgeted monthly revenue and expenditure 


Description / R thousand 

Budget Year 2018/19 

Medium Term Revenue and Expenditure 

Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Revenue By Source 






























Property rates 

8 841 

r 

6 752 

r 

5 593 

r 

7 547 

r 

8 586 

r 

8 877 

r 

8 877 

¥ 

8 877 

¥ 

8 878 

r 

8 877 

¥ 

8 878 

¥ 

8 878 


99 462 


105 429 


112 282 

Service charges - electricity revenue 

25 238 

r 

24 699 

r 

23 749 

r 

25 522 

¥ 

28 182 

r 

29 766 

r 

29 449 

¥ 

28 499 

¥ 

29 322 

¥ 

23 591 

¥ 

24 256 

¥ 

24 383 


316 656 


335 656 


357 473 

Service charges - water revenue 

3 688 

r 

3 918 

r 

4 985 

r 

6 189 

r 

6 475 

r 

7 032 

r 

7 074 

¥ 

6 385 

¥ 

5 422 

¥ 

4 785 

¥ 

3 771 

¥ 

3 262 


62 987 


66 766 


71 106 

Service charges - sanitation revenue 

2 888 

r 

2 886 

r 

2 891 

r 

2 886 

r 

2 891 

r 

2 886 

r 

2 889 

¥ 

2 886 

¥ 

2 888 

r 

2 888 

¥ 

2 891 

¥ 

2 887 


34 657 


36 736 


39 124 

Service charges - refuse revenue 

2 775 

r 

2 775 

w 

2 775 

r 

2 775 

r 

2 775 

r 

2 775 

¥ 

2 775 

¥ 

2 775 

¥ 

2 775 

¥ 

2 775 

¥ 

2 775 

¥ 

2 775 


33 295 


35 292 


37 586 

Service charges - other 


r 


r 


r 


r 


r 


r 


¥ 


¥ 


¥ 


¥ 


¥ 

- 


- 


- 


- 

Rental of facilities and equipment 

493 

r 

472 

r 

933 

r 

553 

r 

529 

r 

1 046 

r 

644 

¥ 

582 

¥ 

925 

¥ 

523 

¥ 

424 

r 

862 


7 987 


8 466 


9 015 

Interest earned - external investments 

363 

r 

363 

r 

363 

r 

363 

r 

363 

r 

363 

r 

363 

¥ 

363 

¥ 

363 

¥ 

363 

¥ 

363 

¥ 

363 


4 350 


4 568 


4 819 

Interest earned - outstanding debtors 

250 

r 

250 

r 

250 

r 

250 

r 

250 

r 

250 

r 

250 

¥ 

250 

¥ 

250 

¥ 

250 

¥ 

250 

¥ 

250 


3 000 


3 150 


3 323 

Dividends received 

_ 

r 


r 


r 


r 


r 


r 


¥ 


¥ 


r 


¥ 


¥ 

- 


- 


- 


- 

Fines, penalties and forfeits 

466 

r 

463 

r 

460 

r 

580 

V 

474 

r 

456 

¥ 

464 

¥ 

475 

¥ 

483 

¥ 

461 

¥ 

468 

¥ 

452 


5 702 


6 043 


6 434 

Licences and permits 

157 

w 

176 

r 

144 

r 

169 

r 

187 

r 

120 

¥ 

158 

¥ 

157 

¥ 

187 

¥ 

185 

¥ 

175 

¥ 

171 


1 986 


2 105 


2 242 

Agency services 

_ 

r 


r 


r 


r 


r 


¥ 


¥ 


¥ 


r 


¥ 


¥ 

- 


- 


- 


- 

Transfers and subsidies 

26 434 

r 

579 

r 

1 694 

r 

1 424 

r 

28 272 

r 

579 

¥ 

2 116 

¥ 

1 014 

¥ 

1 015 

¥ 

27 257 

¥ 

1 292 

¥ 

1 544 


93 221 


96 855 


104 663 

Other revenue 

666 

r 

420 

r 

728 

r 

1 248 

r 

594 

r 

1 195 

¥ 

847 

¥ 

1 078 

¥ 

527 

¥ 

662 

¥ 

501 

¥ 

10 754 


19 220 


19 897 


21 080 

Gains on disposal of PPE 

3 300 

r 

1 610 

r 

5 000 

r 

700 

r 

1 350 

r 

8 000 

¥ 

1 730 

¥ 

3 800 

¥ 

895 

r 

700 

¥ 

2 000 

¥ 

- 


29 086 


15 750 


16 616 

Total Revenue (excluding capital transfers 






























and contributions) 

75 558 


45 364 


49 565 


50 205 


80 927 


63 344 


57 635 


57 140 


53 929 


73 317 


48 043 


56 580 


711 607 


736 713 


785 765 

Expenditure By Type 






























Employee related costs 

r 23 789 


23 785 


23 789 


23 784 


38 398 


23 789 


23 785 


23 787 


23 784 


24 727 


23 789 


48 289 


325 494 


348 933 


369 740 

Remuneration of councillors 

964 


964 


964 


964 


964 


964 


964 


964 


964 


964 


964 


964 


11 571 


12 323 


13 063 

Debt impairment 

- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 

Depreciation & asset impairment 

7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


7 966 


95 594 


100 385 


105 919 

Finance charges 

700 


694 


693 


682 


681 


2 828 


664 


657 


654 


644 


638 


2 689 


12 225 


12 836 


13 542 

Bulk purchases 

14 756 


14 506 


13 939 


14 981 


16 544 


17 468 


17 470 


16 892 


17 239 


13 934 


14 256 


14 306 


186 291 


195 606 


206 364 

Contracted services 

1 771 


1 225 


1 630 


1 636 


2 336 


1 434 


2 279 


1 430 


2 787 


1 411 


1 768 


2 645 


22 352 


23 469 


24 760 

Transfers and subsidies 

153 


28 


34 


30 


72 


21 


53 


94 


261 


13 


89 


13 


862 


905 


955 

Other expenditure 

5 698 


4 967 


5 010 


5 956 


7 452 


6 367 


5 059 


5 234 


4 994 


7 101 


4 420 


4 245 


66 504 


70 061 


74 150 

Loss on disposal of PPE 

- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 

Total Expenditure 

59 636 

56 861 

55 757 

57 810 

r 77 636 

62 301 

60 440 

F 60 722 

61 293 

58 941 

56 879 

82 865 


751 140 


796 279 


842 000 































Surplus/(Deficit) 

15 922 


(11 497) 


(6 192) 


(7 605) 


3 292 


1 043 


(2 804) 


(3 582) 


(7 364) 


14 376 


(8 836) 


(26 285) 

¥ 

(39 534) 

r 

(59 566) 

r 

(56 235) 

Transfers recognised - capital 

18 


18 


6 018 


5 052 


4 262 


998 


8 786 


7 717 


7 617 


1 518 


1 018 


1 039 


44 060 


28 874 


30 433 

Surplus/(Deficit) after capital transfers & 






























contributions 

15 940 


(11 479) 


(174) 


(2 553) 


7 553 


2 041 


5 982 


4 134 


253 


15 894 


(7 818) 


(25 246) 


4 527 


(30 692) 


(25 802) 

Surplus/(Deficit) 

15 940 

(11 479) 

(174) 

(2 553) 

7 553 

2 041 

5 982 

4 134 

253 

15 894 

(7 818) 

(25 246) 


4 527 


(30 692) 


(25 802) 


27 March 2018 


109 











































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 51 MBRR SA26 - Budgeted monthly revenue and expenditure (municipal vote) 


Description / R thousand 






Budget Year 2018/19 






Medium Term Revenue and Expenditure Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Revenue bv Vote 

Vote 1 ■ Municipal Manager 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Vote 2 ■ Corporate Services 

3 630 

1900 

5 963 

1072 

1634 

8 841 

2115 

4136 

1564 

1010 

2 263 

10 650 

44780 

31910 

33 715 

Vote 3 ■ Budget & Treasury Office 

35 774 

7710 

6 548 

8 504 

35 520 

9 833 

9 833 

9 837 

9 834 

35 812 

9 836 

9 833 

188 875 

200 901 

215 693 

Vote 4-Community Services 

3 603 

3713 

3 657 

3813 

3 906 

4 030 

4 022 

3 803 

3 804 

3 727 

3 725 

3 706 

45 509 

48 264 

51198 

Vote 5-Technical Director 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 6 ■ Electro Mech Services 

25 239 

24701 

30 651 

31124 

31684 

29 767 

30453 

r 28 502 

29 324 

23 593 

24258 

24385 

333 680 

344 801 

367 260 

Vote 7 ■ Civil Engineering Services 

6 585 

6815 

7 883 

9 082 

9 376 

9 925 

13 309 

12612 

11651 

7 683 

6 670 

6157 

107 748 

103 613 

110 348 

Vote 8 ■ Planning and Development 

Services 

746 

543 

880 

1661 

3 068 

1945 

6 689 

5 967 

5 368 

3 011 

2 309 

2 887 

35 075 

36 099 

37 984 

Total Revenue by Vote 

75 576 

45 382 

55 583 

55 257 

85189 

64 342 

66 422 

64 857 

61545 

74 835 

49 061 

57 618 

755 667 

765 587 

816198 

Expenditure bv Vote to be aoDrooriated 

Vote 1 - Municipal Manager 

3613 

3 647 

3 642 

3 667 

4396 

3 884 

3 647 

3 601 

3 877 

3 846 

3 601 

28106 

69 528 

76 291 

80 726 

Vote 2 ■ Corporate Services 

3 597 

3 530 

3 636 

3 346 

5453 

3 294 

3 879 

3 686 

3 208 

3 829 

3 564 

3 300 

44324 

46 962 

49 695 

Vote 3 ■ Budget & Treasury Office 

4 942 

4591 

4 935 

5514 

8 897 

6 023 

4 442 

4355 

5 277 

7 217 

4356 

5198 

65 746 

69 576 

73 596 

Vote 4-Community Services 

10 720 

11027 

10 004 

r 10133 

15 961 

9 848 

9 960 

11026 

9 931 

9 950 

r 10 800 

9 736 

129 096 

136 994 

145 042 

Vote 5-Technical Director 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Vote 6 ■ Electro Mech Services 

21889 

r 20 987 

19 913 

21016 

24532 

24 971 

24 074 

23 758 

23 955 

20 669 

20 714 

21854 

268 333 

282 281 

298 149 

Vote 7 ■ Civil Engineering Services 

12 571 

11015 

11319 

11784 

15 078 

12164 

11929 

12113 

12165 

11327 

11311 

12 024 

144799 

153 044 

161 827 

Vote 8 ■ Planning and Development 

Services 

2 303 

2 065 

2 308 

2 350 

3318 

2117 

2 509 

2182 

2 879 

2103 

2 534 

2 646 

29 314 

31130 

32 967 

Total Expenditure by Vote 

59 636 

56 861 

55 757 

57 810 

77 636 

62 301 

60 440 

60 722 

61293 

58 941 

56 879 

82 865 

751 140 

796 279 

842 000 

Surplus/(Deficit) before assoc. 

15 940 

(11 479) 

(174) 

(2 553) 

7 553 

2 041 

5 982 

4134 

253 

15 894 

(7818) 

(25 246) 

4527 

(30 692) 

(25 802) 

Surplusf(Deficit) 

15 940 

(11 479) 

(174) 

(2 553) 

7 553 

2 041 

5 982 

4134 

253 

15 894 

(7818) 

(25 246) 

4527 

(30 692) 

(25 802) 


27 March 2018 


110 



























































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 52 MBRR SA27 - Budgeted monthly revenue and expenditure (standard classification) 


Description / R thousand 






Budget Year 2018/19 






Medium Term Revenue and Expenditure 

Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Revenue - Standard 
















Governance and administration 

39 404 

9 610 

12 511 

9 577 

37155 

18 674 

11 948 

13 973 

11 398 

36 822 

12 099 

20 484 

233 655 

232 810 

249 408 

Finance and administration 

39 404 

9 610 

12 511 

9 577 

37155 

18 674 

11 948 

13 973 

11 398 

36 822 

12 099 

20 484 

233 655 

232 810 

249 408 

Community and public safety 

454 

513 

530 

712 

754 

1 111 

1 682 

743 

645 

604 

516 

519 

8 783 

9 295 

9 653 

Community and social services 

152 

275 

275 

275 

275 

274 

275 

276 

276 

276 

275 

275 

3179 

3 393 

3 411 

Sport and recreation 

244 

218 

243 

427 

468 

816 

742 

457 

349 

307 

206 

207 

4 684 

4 965 

5 288 

Public safety 

54 

15 

7 

6 

7 

16 

10 

6 

16 

17 

31 

33 

218 

231 

246 

Housing 

4 

4 

4 

4 

4 

4 

654 

4 

4 

4 

4 

4 

703 

706 

709 

Economic and environmental services 

1 128 

979 

1 240 

1 995 

3 455 

2 097 

6 268 

6 259 

5 760 

3 368 

2 751 

3 307 

38 608 

39 884 

42 058 

Planning and development 

507 

335 

638 

1 350 

2 790 

1 522 

5 645 

5 631 

5 090 

2 721 

2104 

2 682 

31 015 

31 834 

33 486 

Road transport 

621 

644 

602 

644 

665 

575 

624 

628 

670 

647 

647 

624 

7 594 

8 049 

8 573 

Trading services 

34 591 

34 281 

41 301 

42 974 

43 824 

42 460 

46 524 

43 881 

43 742 

34 041 

33 694 

33 309 

474 621 

483 598 

515 079 

Energy sources 

25 239 

24 701 

30 651 

31 124 

31 684 

29 767 

30 453 

28 502 

29 324 

23 593 

24 258 

24 385 

333 680 

344 801 

367 260 

Water management 

3 689 

3 918 

4 985 

6189 

6 475 

7 032 

10 407 

9 719 

8 755 

4 785 

3 771 

3 262 

72 989 

66 768 

71 108 

Waste water management 

2 888 

2 886 

2 891 

2 886 

2 891 

2 886 

2 889 

2 886 

2 888 

2 888 

2 891 

2 887 

34 657 

36 736 

39124 

Waste management 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

33 295 

35 292 

37 586 

Other 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Revenue ■ Standard 

75 576 

45 382 

55 583 

55 257 

85189 

64 342 

66 422 

64 857 

61 545 

74 835 

49 061 

57 618 

755 667 

765 587 

816198 

Expenditure - Standard 
















Governance and administration 

17 810 

16 993 

16 942 

17 290 

25 593 

18126 

17 047 

16 957 

17 476 

20 816 

16 729 

41 870 

243 650 

260 660 

275 783 

Executive and council 

3 956 

3 938 

3 971 

4 004 

4 475 

4 207 

3 979 

3 924 

4179 

4 870 

3 935 

28 436 

73 874 

80 923 

85 637 

Finance and administration 

13 654 

12 824 

12 765 

13 073 

20 731 

13 722 

12 870 

12 811 

13 067 

15 714 

12 593 

13 218 

167 043 

176 830 

187 066 

Internal audit 

200 

231 

206 

213 

386 

197 

198 

222 

231 

233 

201 

216 

2 733 

2 907 

3 080 

Community and public safety 

5 895 

5 224 

5 018 

5 052 

8 059 

4 957 

5 270 

5 238 

5179 

4 840 

5149 

4 806 

64 686 

68 735 

72 805 

Community and social services 

1 131 

967 

957 

942 

1 545 

941 

1 028 

1 017 

971 

915 

994 

910 

12 319 

13 089 

13 863 

Sport and recreation 

3193 

2 601 

2 542 

2 580 

4 074 

2 518 

2 490 

2 575 

2 503 

2 421 

2 510 

2 394 

32 401 

34 403 

36 431 

Public safety 

1 223 

1 307 

1 176 

1 181 

1 851 

1 157 

1 207 

1 299 

1 162 

1 157 

1 157 

1 159 

15 039 

16 007 

16 964 

Housing 

347 

349 

343 

348 

589 

340 

545 

346 

543 

346 

487 

343 

4 926 

5 236 

5 547 

Health 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Economic and environmental services 

5 316 

5182 

5 566 

5 748 

7 373 

5 809 

5 689 

5 997 

6 020 

5 270 

5 448 

6 243 

69 662 

73 698 

77 956 

Planning and development 

869 

898 

1 180 

1 170 

1 452 

987 

1 179 

959 

1 499 

973 

1 160 

1 518 

13 843 

14 691 

15 555 

Road transport 

4 448 

4 283 

4 386 

4 579 

5 921 

4 821 

4 510 

5 038 

4 522 

4 297 

4 289 

4 725 

55 819 

59 007 

62 401 

Trading services 

30 399 

29 250 

28 029 

29 520 

36 246 

33 211 

32 232 

32 331 

32 398 

27 816 

29 352 

29 741 

370 524 

390 398 

412 502 

Energy sources 

18 949 

18169 

17 614 

18 774 

21 289 

22 475 

21 368 

20 866 

21 244 

17 457 

17 926 

19 020 

235 150 

247 278 

261 164 

Water management 

5 680 

4 657 

4 908 

4 836 

6 500 

5 268 

5411 

5 036 

5 639 

4 825 

4 931 

5 251 

62 943 

66 460 

70 247 

Waste water management 

2 534 

2 369 

2 363 

2 749 

3 396 

2 405 

2 369 

2 354 

2 366 

2 368 

2 439 

2 327 

30 039 

31 863 

33 730 

Waste management 

3 236 

4 056 

3144 

3161 

5 061 

3 063 

3 084 

4 075 

3149 

3165 

4 056 

3143 

42 392 

44 796 

47 361 

Other 

216 

213 

202 

199 

364 

199 

202 

199 

219 

199 

201 

204 

2 619 

2 788 

2 954 

Total Expenditure - Standard 

59 636 

56 861 

55 757 

57 810 

77 636 

62 301 

60 440 

60 722 

61 293 

58 941 

56 879 

82 865 

751 140 

796 279 

842 000 

Surplus/(Deficit) before assoc. 

15 940 

(11 479) 

(174) 

(2 553) 

7 553 

2 041 

5 982 

4134 

253 

15 894 

(7 818) 

(25 246) 

4 527 

(30 692) 

(25 802) 

Surplus/(Deficit) 

15 940 

(11 479) 

(174) 

(2 553) 

7 553 

2 041 

5 982 

4134 

253 

15 894 

(7 818) 

(25 246) 

4 527 

(30 692) 

(25 802) 


27 March 2018 


111 





























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 53 MBRR SA28 - Budgeted monthly capital expenditure (municipal vote) 


Description / R thousand 

Budget Year 2018/19 

Medium Term Revenue and Expenditure 

Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Multi-vear expenditure to be appropriated 

















Vote 1 ■ Municipal Manager 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 


- 

- 

Vote 2 ■ Corporate Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 


- 

- 

Vote 3 ■ Budget & Treasury Office 

- 

- 

- 

- 

- 

- 

500 

500 

- 

- 

- 

- 

1 000 


- 

- 

Vote 4 ■ Community Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

* 


- 

- 

Vote5-Technical Director 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 


- 

- 

Vote 6 - Electro Mech Services 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 


- 

- 

Vote 7 - Civil Engineering Services 

- 

- 

1 377 

1 377 

1 377 

1 377 

2 754 

2 754 

2 754 

- 

- 

- 

13 769 


- 

- 

Services 

1 716 

3 244 

3 495 

491 

270 

445 

61 

252 

2 280 

3 091 

4 078 

878 

20 301 


20 727 

21 729 

Capital multi-year expenditure sub-total 

1 716 

3 244 

4 872 

1 868 

1647 

1 822 

3 315 

3 506 

5 033 

3 091 

4 078 

878 

35 070 

20 727 

21 729 

Sinale-vear expenditure to be appropriated 

















Vote 1 - Municipal Manager 

- 

10 

27 

- 

- 

- 

- 

- 

- 

- 

- 

- 

36 


- 

- 

Vote 2 ■ Corporate Services 

73 

16 

103 

752 

192 

120 

512 

445 

15 

29 

27 

8 

2 292 


- 

- 

Vote 3 ■ Budget & Treasury Office 

46 

155 

553 

642 

1 678 

2 700 

1 160 

- 

66 

350 

50 

- 

7 400 


- 

- 

Vote 4 - Community Services 

169 

72 

160 

339 

454 

33 

23 

385 

6 

39 

13 

(0) 

1 691 


217 

217 

Vote5-Technical Director 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

~ 


- 

- 

Vote 6 - Electro Mech Services 

218 

171 

6128 

6106 

18 898 

963 

8 730 

7 566 

4 619 

618 

5 404 

21 

59 440 


15 246 

8 487 

Vote 7 - Civil Engineering Services 

277 

- 

60 

884 

895 

825 

208 

2 505 

4126 

4183 

4165 

3 351 

21 479 


- 

- 

Vote 8 - Planning and Development 

















Services 

7 

15 

49 

- 

- 

- 

- 

- 

- 

- 

- 

- 

70 


- 

- 

Capital single-year expenditure sub-total 

789 

438 

7 080 

8 722 

22117 

4 640 

10 633 

10 901 

8 832 

5 219 

9 658 

3 380 

92 408 


15 464 

8 704 

Total Capital Expenditure 

2 505 

3 682 

11 951 

10 590 

23 764 

6 462 

13 947 

14 406 

13 865 

8 310 

13 736 

4 258 

127 478 

F 

36190 

30 433 


27 March 2018 


112 











































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 54 MBRR SA29 - Budgeted monthly capital expenditure (standard classification) 








Budget Year 2018/19 






Medium Term Revenue and Expenditure 

Framework 

Description! R thousand 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year+2 

2020/21 

Capital Expenditure - Standard 

Governance and administration 

178 

292 

765 

1574 

16218 

2 729 

2180 

599 

90 

390 

4953 

8 

29 976 

7316 


Executive and council 

- 

3 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

3 

- 

- 

Finance and administration 

178 

289 

765 

1574 

16218 

2 729 

2180 

599 

90 

390 

4953 

8 

29 973 

7316 

- 

Community and public safety 

131 

44 

110 

350 

454 

146 

5 

737 

- 

30 

- 

(0) 

2 008 

5 777 

9 784 

Community and social services 

100 

14 

- 

100 

154 

146 

- 

487 

- 

30 

- 

(0) 

1032 

217 

217 

Sport and recreation 

16 

30 

110 

250 

300 

- 

- 

- 

- 

- 

- 

- 

706 

5 559 

9 566 

Public safety 

15 

- 

- 

- 

- 

- 

5 

250 

- 

- 

- 

- 

270 

- 

- 

Economic and environmental serv 

41 

173 

179 

79 

270 

451 

78 

260 

2 285 

3100 

4091 

878 

11885 

15167 

12162 

Planning and development 

7 

15 

49 

- 

- 

- 

- 

- 

- 

- 

- 

- 

70 

- 

- 

Road transport 

34 

158 

130 

79 

270 

451 

78 

260 

2 285 

3100 

4091 

878 

11815 

15167 

12162 

Trading services 

2156 

3172 

10 898 

8 588 

6 822 

3136 

11684 

12810 

11490 

4790 

4692 

3 372 

83 609 

7 930 

8 487 

Energy sources 

159 

60 

6 096 

5 906 

4 549 

934 

8 722 

7 551 

4610 

607 

528 

21 

39 742 

7 930 

8 487 

Water management 

636 

465 

2 261 

2 356 

2 272 

2 202 

2 862 

5 259 

6 880 

4183 

4165 

3 351 

36 891 

- 

- 

Waste water management 

1358 

2 647 

2 540 

326 

- 

- 

100 

- 

- 

- 

- 

- 

6 971 

- 

- 

Total Capital Expenditure ■ Standard 

2 505 

3 682 

11951 

10 590 

23 764 

6 462 

13 947 

14406 

13 865 

8310 

13 736 

4 258 

127 478 

36190 

30 433 


27 March 2018 


113 
























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 55 MBRR SA30 - Budgeted monthly cash flow 


Description / R thousand 

Budget Year 2018/19 

Medium Term Revenue and Expenditure Framework 

July 

August 

Sept. 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year +2 

2020/21 

Cash Receipts Bv Source 
















Property rates 

8 841 

6 752 

5 593 

7 547 

8 586 

8 877 

8 877 

8 877 

8 878 

8 877 

8 878 

19 840 

110 424 

88 479 

104 375 

Service charges ■ electricity revenue 

25 238 

24 699 

23 749 

25 522 

28182 

29 766 

29 449 

28 499 

29 322 

23 591 

24 256 

24 383 

316 656 

335 656 

357 473 

Service charges ■ water revenue 

3 688 

3 918 

4 985 

6189 

6 475 

7 032 

7 074 

6 385 

5 422 

4 785 

3 771 

3 262 

62 987 

66 766 

71 106 

Service charges ■ sanitation revenue 

2 888 

2 886 

2 891 

2 886 

2 891 

2 886 

2 889 

2 886 

2 888 

2 888 

2 891 

2 887 

34 657 

36 736 

39124 

Service charges - refuse revenue 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

2 775 

33 295 

35 292 

37 586 

Rental of facilities and equipment 

493 

472 

933 

553 

529 

1 046 

644 

582 

925 

523 

424 

862 

7 987 

8 466 

9 015 

Interest earned - external investments 

363 

363 

363 

363 

363 

363 

363 

363 

363 

363 

363 

363 

4 350 

4 568 

4 819 

Interest earned - outstanding debtors 

250 

250 

250 

250 

250 

250 

250 

250 

250 

250 

250 

250 

3 000 

3150 

3 323 

Fines, penalties and forfeits 

466 

463 

460 

580 

474 

456 

464 

475 

483 

461 

468 

452 

5 702 

6 043 

6 434 

Licences and permits 

157 

176 

144 

169 

187 

120 

158 

157 

187 

185 

175 

171 

1 986 

2105 

2 242 

Transfer receipts - operational 

26 434 

579 

1 694 

1 424 

28 272 

579 

2116 

1 014 

1 015 

27 257 

1 292 

1 544 

93 221 

96 855 

104 663 

Other revenue 

666 

420 

728 

1 248 

594 

1 195 

847 

1 078 

527 

662 

501 

754 

9 220 

9 397 

10 003 

Cash Receipts by Source 

72 258 

43 754 

44 565 

49 505 

79 577 

55 344 

55 905 

53 340 

53 033 

72 617 

46 043 

57 542 

683 483 

693 512 

750 164 

Other Cash Flows by Source 
















Transfer receipts - capital 

18 

18 

6 018 

5 052 

4 262 

998 

8 786 

7 717 

7 617 

1 518 

1 018 

1 039 

44 060 

28 874 

30 433 

Proceeds on disposal of PPE 

3 300 

1 610 

5 000 

700 

1 350 

8 000 

1 730 

3 800 

895 

700 

2 000 

- 

29 086 

15 750 

16 616 

Total Cash Receipts by Source 

75 576 

45 382 

55 583 

55 257 

85189 

64 342 

66 422 

64 857 

61 545 

74 835 

49 061 

58 580 

756 629 

738 136 

797 213 

Cash Payments bv Type 
















Employee related costs 

23 789 

23 785 

23 789 

23 784 

38 398 

23 789 

23 785 

23 787 

23 784 

24 727 

23 789 

25 789 

302 994 

322 658 

342 007 

Remuneration of councillors 

964 

964 

964 

964 

964 

964 

964 

964 

964 

964 

964 

964 

11 571 

12 323 

13 063 

Finance charges 

700 

694 

693 

682 

681 

2 828 

664 

657 

654 

644 

638 

2 689 

12 225 

12 836 

13 542 

Bulk purchases - Electricity 

14 226 

13 923 

13 388 

14 387 

15 887 

16 779 

16 601 

16 065 

16 529 

13 298 

13 673 

13 745 

178 500 

187 425 

197 733 

Bulk purchases - Water & Sewer 

530 

583 

551 

594 

657 

689 

869 

827 

710 

636 

583 

562 

7 791 

r 8181 

8 630 

Other materials 

3 838 

2 724 

1 732 

1 810 

3 223 

1 464 

2 200 

3 698 

2 642 

2180 

2 989 

1 747 

30 247 

31 760 

33 506 

Contracted services 

1 771 

1 225 

1 630 

1 636 

2 336 

1 434 

2 279 

1 430 

2 787 

1 411 

1 768 

2 645 

22 352 

23 469 

24 760 

Transfers and grants ■ other 

153 

28 

34 

30 

72 

21 

53 

94 

261 

13 

89 

13 

862 

905 

955 

Other expenditure 

5 698 

4 967 

5 010 

5 956 

7 452 

r 6 367 

5 059 

5 234 

4 994 

7101 

4 420 

(25 755) 

36 504 

70 561 

94150 

Cash Payments by Type 

54 676 

53 077 

60 242 

60 934 

93 934 

65 297 

66 921 

67 663 

67 691 

59 785 

63149 

31 156 

744 524 

722 309 

776 780 

Other Cash Flows/Payments by Type 
















Capital assets 

2 505 

3 682 

11 951 

10 590 

23 764 

6 462 

13 947 

r 14 406 

13 865 

8 310 

13 736 

4 258 

127 478 

F 36190 

30 433 

Repayment of borrowing 

500 

500 

500 

500 

500 

4 500 

500 

500 

500 

500 

500 

4 500 

14 000 

16 000 

18 000 

Other Cash Flows/Payments 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 




Total Cash Payments by Type 

54 676 

53 077 

60 242 

60 934 

93 934 

65 297 

66 921 

67 663 

67 691 

59 785 

63149 

31 156 

744 524 

722 309 

776 780 

NET INCREASE/(DECREASE) IN CASH HELD 

20 901 

(7 695) 

(4 659) 

(5 677) 

(8 745) 

(955) 

(499) 

(2 806) 

(6 146) 

15 050 

(14 088) 

27 424 

12105 

15 827 

20 433 

Cash/cash equivalents at the month/year begin: 

7 829 

28 730 

21 035 

16 376 

10 700 

1 954 

999 

500 

(2 306) 

(8 452) 

6 598 

(7 490) 

7 829 

19 934 

35 761 

Cash/cash equivalents at the month/year end: 

28 730 

21 035 

16 376 

10 700 

1 954 

999 

500 

(2 306) 

(8 452) 

6 598 

(7 490) 

19 934 

19 934 

35 761 

56194 


27 March 2018 


114 











































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.10 Annual budgets and SDBIPs - internal departments 


2.10.1 Water Services Department - Vote 5 


The department is primarily responsible for the distribution of potable water within the 
municipal boundary, which includes the purification of raw water, maintenance of the 
reticulation network and implementation of the departmental capital programme. 


Table 56 Water Services Department - 

Operating revenue by source, expenditure by type and total capital expenditure 


Description / R thousand 

2018/19 Medium Term Revenue & Expenditure Framework 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

Revenue Bv Source 




Service charges - water revenue 

62 987 

66 766 

71 106 

Operational Grants - Transferred to 




Revenue 

1 304 

- 

- 

Other Revenue 

2 

2 

2 

Total Revenue (excluding capital transfers 

64 293 

66 768 

71 108 

and contributions) 




Expenditure Bv Tvoe 




Employee related costs 

24 700 

26 305 

27 884 

Depreciation & asset impairment 

16 015 

16 816 

17 741 

Finance charges 

3 650 

3 833 

4 044 

Bulk purchases 

7 791 

8 181 

8 630 

Other Materials 

3 535 

3 712 

3 916 

Contracted services 

1 650 

1 733 

1 828 

Other expenditure 

5 601 

5 881 

6 205 

Total Expenditure 

62 943 

66 460 

70 247 

Surplus/(Deficit) 

1 350 

308 

861 

Capital Grants - Transferred to Revenue 

8 696 

- 

- 

Surplus/(Deficit) for the year 

10 046 

308 

861 


Table 57 Water Services Department - Performance objectives and indicators 


Key Performance Element 

Key Performance Indicator (KPI) 

Annual Target 

Quarter 1 - 

T arget 

Quarter 2 - 

Target 

Quarter 3 - 

Target 

Quarter 4 - 

Target 

Strategic Objective: Basic Service Delivery 

Water Distribution 

New meter connections - % of requests executed 

100% 

100% 

100% 

100% 

100% 

Attend to leaks, bursts and queries - % of requests 

attended to 

95% 

95% 

95% 

95% 

95% 

Prepaid Meters installed - % of requests executed 

100% 

100% 

100% 

100% 

100% 

Meter replacements - % of faulty meters replaced 

100% 

100% 

100% 

100% 

100% 

Water Purification 

Purify raw water compliant with blue drop status 

95% 

N/A 

N/A 

N/A 

95% 


27 March 2018 


115 




































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Water services consist of 2 divisions within the sub-directorate; civil engineering services. 
As part of the performance objectives for the 2018/2019 financial year, the expansion of 
the functional water distribution unit will, in terms of the management of the pre-paid 
meters, require the subsequent filling of vacancies. 

Significant capital projects to be undertaken over the medium term includes, amongst 
others: 

• Kameelmond RBIG Counter Funding - R 13.8 million 

The total needs are far greater than the available financial resources. 

The departmental strategy is ensuring the economic value and useful life of the water 
reticulation network and infrastructure is maintained. To this end, the medium-term 
expenditure framework provides for operational repairs and maintenance of R 1.0 million, 
R 1.1 million and R 1.2 million in each of the respective financial years of the MTREF. 

The departmental revenue base is primarily informed by the sale of water of which budget 
appropriation for the 2018/2019 financial year is R 63.0 million and increases to R71.1 
million by 2020/2021 and has been informed by a collection rate of 95.0% and distribution 
losses of over 46%. The reduction of distribution losses is considered a priority and hence 
the departmental objectives and targets provide for an efficiency gain per annum. 

2.11 Contracts having future budgetary implications 

In terms of the municipality’s Supply Chain Management Policy, no contracts are awarded 
beyond the medium-term revenue and expenditure framework (three years). In ensuring 
adherence to this contractual time frame limitation, all reports submitted to either the Bid 
Evaluation and Adjudication Committees must obtain formal financial comments from the 
Financial Management Division of the Treasury Department. 

2.12 Capital expenditure details 


27 March 2018 


116 



Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


The following four tables present details of the municipality’s capital expenditure 
programme, firstly on new assets, then the renewal of assets, upgrading of assets and 
finally on the repair and maintenance of assets. 


Table 58 MBRR SA34a - Capital expenditure on new assets by asset class 


Description / R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year 

+2 2020/21 

Capital expenditure on new assets bv 








Asset Class/Sub-class 








Infrastructure 

169 613 

57 752 

70 617 

70 617 

41 740 

19 619 

17 171 

Roads Infrastructure 

348 

5 685 

7 222 

7 222 

11 623 

12 734 

12 162 

Roads 

348 

5 035 

7 132 

7 132 

- 

- 

- 

Road Structures 

- 

650 

40 

40 

11 523 

12 734 

12 162 

Road Furniture 

- 

- 

50 

50 

100 

- 

- 

Electrical Infrastructure 

15 966 

31 561 

38 319 

38 319 

12 494 

4 452 

5 009 

MV Substations 

- 

300 

304 

304 

- 

- 

- 

MV Networks 

- 

2 340 

3 917 

3 917 

- 

- 

- 

LV Networks 

15 966 

28 921 

34 098 

34 098 

12 494 

4 452 

5 009 

Water Supply Infrastructure 

3 381 

15 066 

23 472 

23 472 

1 843 

- 

- 

Reservoirs 

- 

2 300 

2 091 

2 091 

- 

- 

- 

Water Treatment Works 

3 381 

4 233 

5 780 

5 780 

- 

- 

- 

Bulk Mains 

- 

- 

5 231 

5 231 

1 843 

- 

- 

Distribution 

- 

5 607 

6 634 

6 634 

- 

- 

- 

Distribution Points 

- 

2 926 

3 736 

3 736 

- 

- 

- 

Sanitation Infrastructure 

2 341 

5 440 

1 605 

1 605 

15 780 

2 433 

- 

Pump Station 

- 

- 

244 

244 

8 696 

- 

- 

Reticulation 

- 

4 466 

186 

186 

- 

- 

- 

Waste Water Treatment Works 

2 341 

973 

1 175 

1 175 

7 084 

2 433 

- 

Capital Spares 

- 

- 

- 

- 



- 

Solid Waste Infrastructure 

147 576 

- 

- 

- 

- 

- 

- 

Landfill Sites 

147 576 

- 

- 

- 

- 

- 

- 

Community Assets 

3 187 

5 279 

1 114 

1 114 

1 207 

5 559 

9 566 

Community Facilities 

- 

138 

700 

700 

517 

- 

- 

Halls 

- 

- 

42 

42 

- 

- 

- 

Libraries 

- 

138 

658 

658 

217 

- 

- 

Cemeteries/Crematoria 

- 

- 

- 

- 

300 

- 

- 

Sport and Recreation Facilities 

3 187 

5 141 

414 

414 

690 

5 559 

9 566 

Outdoor Facilities 

3 187 

5 141 

414 

414 

690 

5 559 

9 566 

Investment properties 

- 

- 

- 

- 

650 

- 

- 

Non-revenue Generating 

- 

- 

- 

- 

650 

- 

- 

Unimproved Property 



- 

- 

650 

- 

- 

Other assets 

70 

4 

875 

875 

2 715 

- 

- 

Operational Buildings 

70 

4 

875 

875 

2 715 

- 

- 

Municipal Offices 

70 

4 

320 

320 

405 

- 

- 

Workshops 

- 

- 

32 

32 

- 

- 

- 

Yards 

- 

- 

523 

523 

960 

- 

- 

Intangible Assets 

- 

- 

14 993 

14 993 

25 

- 

- 

Licences and Rights 

- 

- 

14 993 

14 993 

25 

- 

- 

Computer Software and Applications 

- 

- 

14 993 

14 993 

25 

- 

- 

Computer Equipment 

238 

58 

3 089 

3 089 

130 

- 

- 

Computer Equipment 

238 

58 

3 089 

3 089 

130 

- 

- 

Furniture and Office Equipment 

133 

1 933 

672 

672 

701 

- 

- 

Furniture and Office Equipment 

133 

1 933 

672 

672 

701 

- 

- 

Machinery and Equipment 

118 

707 

662 

662 

3 126 

- 

- 

Machinery and Equipment 

118 

707 

662 

662 

3 126 



Transport Assets 

- 

6 310 

13 213 

13 213 

120 

- 

- 

Transport Assets 

- 

6 310 

13 213 

13 213 

120 

- 

- 

Total Capital Expenditure on new assets 

173 360 

72 042 

105 236 

105 236 

50 415 

25 179 

26 737 


27 March 2018 


117 



















































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 58 MBRR SA34b - Capital expenditure on renewal assets by asset class 


Description 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Original 

Adjusted 

Full Year 

Budget Year 

Budget Year 

Budget Year 

Outcome 

Budget 

Budget 

Forecast 

2018/19 

+1 2019/20 

+2 2020/21 

Capital expenditure on renewal of existing assets bv 








Asset Class/Sub-class 








Infrastructure 

16 973 

19 740 

10 438 

10 438 

8 469 

3 478 

3 478 

Roads Infrastructure 

11 910 

11 000 

10 000 

10 000 

- 

- 

- 

Roads 

11 910 

10 000 

10 000 

10 000 

- 

- 

- 

Road Structures 

- 

1 000 

- 

- 

- 

- 

- 

Storm water Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Electrical Infrastructure 

3 964 

- 

- 

- 

7 869 

3 478 

3 478 

MV Networks 

- 

- 

- 

- 

5 000 

- 

- 

LV Networks 

3 964 

- 

- 

- 

2 869 

3 478 

3 478 

Water Supply Infrastructure 

547 

8 740 

438 

438 

400 

- 

- 

Reservoirs 

- 

5 500 

- 

- 

- 

- 

- 

Pump Stations 

- 

2 240 

206 

206 

200 

- 

- 

Distribution 

547 

- 

- 

- 

200 

- 

- 

Distribution Points 

- 

1 000 

233 

233 

- 

- 

- 

Sanitation Infrastructure 

551 

- 

- 

- 

200 

- 

- 

Pump Station 

- 

- 

- 

- 

200 

- 

- 

Waste Water Treatment Works 

551 

- 

- 

- 

- 

- 

- 

Solid Waste Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Rail Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Coastal Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Information and Communication Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Comm unitv Assets 

592 

- 

26 

26 

_ 

_ 

_ 

Community Facilities 

- 

- 

- 

- 

- 

- 

- 

Sport and Recreation Facilities 

592 

- 

26 

26 

- 

- 

- 

Outdoor Facilities 

592 

- 

26 

26 

- 

- 

- 

Heritaqe assets 








Investment properties 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Revenue Generating 

- 

- 

- 

- 

- 

- 

- 

Non-revenue Generating 

- 

- 

- 

- 

- 

- 

- 

Other assets 

- 

- 

192 

192 

- 

- 

- 

Operational Buildings 

- 

- 

192 

192 

- 

- 

- 

Municipal Offices 

- 

- 

192 

192 

- 

- 

- 

Housing 

- 

- 

- 

- 

- 

- 

- 

Biological or Cultivated Assets 

- 

- 

- 

- 

- 

- 

- 









Intangible Assets 

- 

- 

- 

- 

15 

- 

- 

Licences and Rights 

- 

- 

- 

- 

15 

- 

- 

Computer Software and Applications 

- 

- 

- 

- 

15 

- 

- 

Computer Equipment 

162 

34 

34 

34 

566 

- 

- 

Computer Equipment 

162 

34 

34 

34 

566 

- 

- 

Furniture and Office Equipment 

164 

- 

93 

93 

32 

- 

- 

Furniture and Office Equipment 

164 

- 

93 

93 

32 

- 

- 

Machinerv and Equipment 

118 

- 

23 

23 

3 924 

- 

- 

Machinery and Equipment 

118 

- 

23 

23 

3 924 



Transport Assets 

1 515 

- 

- 

- 

19 196 

7 316 

- 

Transport Assets 

1 515 

- 

- 

- 

19 196 

7 316 

- 

Libraries 

- 

- 

- 

- 

- 

- 

- 

Libraries 

- 

- 

- 

- 

- 

- 

- 

Zoo's, Marine and Non-bioloqical Animals 

- 

- 

- 

- 

- 

- 

- 

Zoo's, Marine and Non-biological Animals 

- 

- 

- 

- 

- 

- 

- 

Total Capital Expenditure on renewal of existing 








assets 

19 525 

19 774 

10 806 

10 806 

32 202 

10 794 

3 478 


27 March 2018 


118 





















































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 58 MBRR SA34e - Capital expenditure on upgraded assets by asset class 


Description 

R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+12019/20 

Budget Year 

+2 2020/21 

Capital expenditure on upqradinq of existinq assets 








bv Asset Class/Sub-class 








Infrastructure 

- 

- 

- 

- 

43 311 

- 

- 

Roads Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Storm water Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Electrical Infrastructure 

- 

- 

- 

- 

17 609 

- 

- 

LV Networks 

- 

- 

- 

- 

17 609 

- 

- 

Capital Spares 








Water Supply Infrastructure 

- 

- 

- 

- 

25 702 

- 

- 

Water Treatment Works 

- 

- 

- 

- 

13 769 

- 

- 

Distribution 

- 

- 

- 

- 

11933 

- 

- 

Communitv Assets 

- 

- 

- 

- 

- 

217 

217 

Community Facilities 

- 

- 

- 

- 

- 

217 

217 

Libraries 

- 

- 

- 

- 

- 

217 

217 

Sport and Recreation Facilities 

- 

- 

- 

- 

- 

- 

- 

Heritaqe assets 

- 

- 

- 

- 

- 

- 

- 









Investment properties 

- 

- 

- 

- 

- 

- 

- 

Revenue GeneraSng 

- 

- 

- 

- 

- 

- 

- 

Non-revenue Generating 

- 

- 

- 

- 

- 

- 

- 

Other assets 

- 

- 

- 

- 

- 

- 

- 









Bioloqical or Cultivated Assets 

- 

- 

- 

- 

- 

- 

- 









Intanqible Assets 

- 

- 

- 

- 

1550 

- 

- 

Licences and Rights 

- 

- 

- 

- 

1550 

- 

- 

Computer Software and Applications 

- 

- 


- 

1550 

- 

- 

Total Capital Expenditure on upgrading of existing 








assets 

- 

- 

- 

- 

44861 

217 

217 


27 March 2018 


119 






































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 59 MBRR SA34c - Repairs and Maintenance on assets by asset class 


Description 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Repairs and maintenance expenditure bv 

Asset Class/Sub-class 








Infrastructure 

2 383 

7 303 

3 526 

3 526 

5 313 

5 578 

5 885 

Roads Infrastructure 

71 

1 245 

1 100 

1 100 

2 170 

2 279 

2 404 

Roads 

71 

838 

950 

950 

2 010 

2 111 

2 227 

Road Furniture 

- 

407 

150 

150 

160 

168 

177 

Capital Spares 

- 

- 

- 

- 

- 

- 

- 

Storm water Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Electrical Infrastructure 

1 246 

1 372 

571 

571 

1 578 

1 657 

1 748 

MV Substations 

- 

7 

- 

- 

23 

24 

25 

MV Networks 

1 246 

138 

- 

- 

- 

- 

- 

LV Networks 

- 

1 228 

571 

571 

1 555 

1 633 

1 723 

Water Supply Infrastructure 

557 

2 375 

1 095 

1 095 

1 000 

1 050 

1 108 

Reservoirs 

- 

96 

- 

- 

- 

- 

- 

Pump Stations 

- 

10 

- 

- 

- 

- 

- 

Water Treatment Works 

553 

748 

60 

60 

- 

- 

- 

Distribution 

4 

894 

825 

825 

1 000 

1 050 

1 108 

Distribution Points 

- 

626 

210 

210 

- 

- 

- 

Sanitation Infrastructure 

498 

1 288 

722 

722 

510 

536 

565 

Reticulation 

- 

1 040 

510 

510 

380 

399 

421 

Waste Water Treatment Works 

498 

36 

- 

- 

- 

- 

- 

Toilet Facilities 

- 

212 

212 

212 

130 

137 

144 

Solid Waste Infrastructure 

11 

3 

- 

- 

- 

- 

- 

Waste Processing Facilities 

11 

- 

- 

- 

- 

- 

- 

Waste Drop-off Points 

- 

3 

- 

- 

- 

- 

- 

Rail Infrastructure 

- 

650 

- 

- 

- 

- 

- 

Rail Lines 

- 

650 

- 

- 

- 

- 

- 

Coastal Infrastructure 

- 

- 

- 

- 

- 

- 

- 

Information and Communication Infrastructure 

- 

371 

38 

38 

55 

58 

61 

Data Centres 

- 

221 

- 

- 

- 

- 

- 

Distribution Layers 

- 

150 

38 

38 

55 

58 

61 

Capital Spares 

- 


- 

- 

- 

- 

- 

Communitv Assets 

56 

607 

620 

620 

1 588 

1 667 

1 759 

Community Facilities 

- 

8 

278 

278 

922 

968 

1 021 

Halls 

- 

- 

8 

8 

705 

740 

781 

Fire/Ambulance Stations 

- 

- 

- 

- 

32 

33 

35 

Libraries 

- 

- 

250 

250 

10 

11 

11 

Cemeteries/Crematoria 

- 

8 

20 

20 

- 

- 

- 

Parks 

- 

- 

- 

- 

175 

184 

194 

Sport and Recreation Facilities 

56 

599 

343 

343 

666 

699 

738 

Indoor Facilities 


224 

- 

- 

- 

- 

- 

Outdoor Facilities 

56 

376 

343 

343 

666 

699 

738 

Other assets 

679 

2 021 

1 109 

1 109 

1 467 

1 540 

1 625 

Operational Buildings 

679 

2 021 

1 109 

1 109 

1 467 

1 540 

1 625 

Municipal Offices 

679 

1 800 

1 109 

1 109 

1 467 

1 540 

1 625 

Workshops 

- 

1 

- 

- 

- 

- 

- 

Yards 

- 

220 

- 

- 

- 

- 

- 

Intanqible Assets 

- 

- 

- 

- 

490 

515 

543 

Licences and Rights 

- 

- 

- 

- 

490 

515 

543 

Computer Software and Applications 

- 

- 

- 

- 

490 

515 

543 

Computer Eauipment 

- 

- 

- 

- 

153 

161 

169 

Computer Equipment 

- 

- 

- 

- 

153 

161 

169 

Furniture and Office Equipment 

- 

- 

- 

- 

537 

563 

594 

Furniture and Office Equipment 

- 

- 

- 

- 

537 

563 

594 

Machinery and Equipment 

2 666 

1 529 

7 401 

7 401 

140 

147 

155 

Machinery and Equipment 

2 666 

1 529 

7 401 

7 401 

140 

147 

155 

Transport Assets 

5 432 

6 975 

5 329 

5 329 

6 229 

6 540 

6 900 

Transport Assets 

5 432 

6 975 

5 329 

5 329 

6 229 

6 540 

6 900 

Total Repairs and Maintenance Expenditure 

11 216 

18 435 

17 985 

17 985 

15 916 

16 712 

17 631 


27 March 2018 


120 









































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 60 MBRR SA34d - Supporting Table SA34d Depreciation by asset class 


Description 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Deoreciation bv Asset Class/Sub-class 







Infrastructure 

61 472 

61 472 

61 472 

76 995 

80 856 

85 315 

Roads Infrastructure 

21 180 

21 180 

21 180 

20 374 

21 393 

22 569 

Roads 

20 859 

20 859 

20 859 

20 374 

21 393 

22 569 

Road Furniture 

320 

320 

320 

- 

- 

- 

Storm water Infrastructure 

- 

- 

- 

1 914 

2 009 

2 120 

Drainage Collection 

- 

- 

- 

1 914 

2 009 

2 120 

Electrical Infrastructure 

12 721 

12 721 

12 721 

14 110 

14 815 

15 630 

HV Transmission Conductors 

7 

7 

7 

- 

- 

- 

MV Networks 

30 

30 

30 

5 308 

5 574 

5 880 

LV Networks 

12 684 

12 684 

12 684 

8 802 

9 242 

9 750 

Water Supply Infrastructure 

18 406 

18 406 

18 406 

15 818 

16 609 

17 523 

Water Treatment Works 

15 518 

15 518 

15 518 

15 818 

16 609 

17 523 

Distribution 

2 888 

2 888 

2 888 

- 

- 

- 

Sanitation Infrastructure 

7 782 

7 782 

7 782 

5 090 

5 345 

5 639 

Reticulation 

7 782 

7 782 

7 782 

5 090 

5 345 

5 639 

Solid Waste Infrastructure 

1 383 

1 383 

1 383 

18 573 

19 501 

20 574 

Waste Processing Facilities 

1 383 

1 383 

1 383 

18 573 

19 501 

20 574 

Rail Infrastructure 

- 

- 

- 

1 114 

1 181 

1 258 

Rail Structures 

- 

- 

- 

1 114 

1 181 

1 258 

Coastal Infrastructure 

- 

- 

- 

- 

- 

- 

Information and Communication Infrastruct 

- 

- 

- 

2 

2 

2 

Distribution Layers 

- 

- 

- 

2 

2 

2 

Comm unitv Assets 

4 038 

4 038 

4 038 

4 834 

5 077 

5 357 

Community Facilities 

424 

424 

424 

1 635 

1 717 

1 811 

Hails 

- 

- 

- 

630 

662 

698 

Libraries 

- 

- 

- 

26 

27 

28 

Cem eteries/Crem atoria 

424 

424 

424 

400 

420 

444 

Parks 

- 

- 

- 

579 

608 

641 

Sport and Recreation Facilities 

3 614 

3 614 

3 614 

3 199 

3 360 

3 546 

Outdoor Facilities 

3 614 

3 614 

3 614 

3 199 

3 360 

3 546 

Heritaae assets 

- 

- 

- 

- 

- 

- 

Investment orooerties 

- 

- 

- 

- 

- 

- 

Revenue Generating 


- 

- 

- 

- 

- 

Non-revenue Generating 


- 

- 

- 

- 

- 

Other assets 

4 911 

4 911 

4911 

4 180 

4 389 

4 630 

Operational Buildings 

4 911 

4 911 

4911 

4 180 

4 389 

4 630 

Municipal Offices 

4 891 

4 891 

4 891 

4 180 

4 389 

4 630 

Workshops 

19 

19 

19 

- 

- 

- 

Computer Eauioment 

363 

363 

363 

1 218 

1 279 

1 349 

Computer Equipment 

363 

363 

363 

1 218 

1 279 

1 349 

Furniture and Office Eauioment 

6 336 

6 340 

6 340 

3 396 

3 565 

3 762 

Furniture and Office Equipment 

6 336 

6 340 

6 340 

3 396 

3 565 

3 762 

Machinery and Eauioment 

- 

- 

- 

168 

177 

186 

Machinery and Equipment 


- 

- 

168 

177 

186 

Transport Assets 

3 413 

3 413 

3 413 

4 802 

5 042 

5 320 

Transport Assets 

3 413 

3 413 

3 413 

4 802 

5 042 

5 320 

Total Depreciation 

80 534 

80 538 

80 538 

95 594 

100 385 

105 919 


27 March 2018 


121 















































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 61 MBRR SA35 - Future financial implications of the capital budget 


Description / R thousand 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Forecasts 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Forecast 

2021/22 

Forecast 

2022/23 

Forecast 

2023/24 

Present 

value 

Capital expenditure 








Vote 1 - Municipal Manager 

36 

- 

- 





Vote 2 - Corporate Services 

2 292 

- 

- 





Vote 3 - Budget & Treasury Office 

8 400 

- 

- 





Vote 4 - Community Services 

1 691 

217 

217 





Vote 5 - Technical Director 

- 

- 

- 





Vote 6 - Electro Mech Services 

59 440 

15 246 

8 487 





Vote 7 - Civil Engineering Services 

35 248 

- 

- 





Vote 8 - Planning and Development 








Services 

20 371 

20 727 

21 729 





Total Capital Expenditure 

127 478 

36190 

30 433 

- 

- 

- 

- 

Future operational costs bv vote 








Total future operational costs 

- 

- 

- 

- 

- 

- 

- 

Future revenue bv source 








Total future revenue 

- 

- 

- 

- 

- 

- 

- 

Net Financial Implications 

127 478 

36190 

30 433 

- 

- 

- 

- 


27 March 2018 


122 























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36 - Detailed capital budgei 


per municipal vote 


Municipal Vote/Capital project 


Asset Class 

Asset Sub-Class 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Program/Project description 

3 

3 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Parent municipality: 

0001: ADM IN 1ST AT ION 

DESK (ARCHIVE) 

Furniture and Equipment 

Furniture and Equipment 

4 


4 



0001: ADM IN ISTATION 

FILLING CABINETS 

Furniture and Equipment 

Furniture and Equipment 

500 

- 

500 

- 

- 

0001: ADM IN ISTATION 

HEAVY DUTY SHREDDER 

Furniture and Equipment 

Furniture and Equipment 

50 

- 

50 

- 

- 

0002: MUNICIPAL COUNCIL 

5725: DESKTOP COMPUTER & SCREEN - ADMIN OFFICER WAR 

Computer Equipment 

Computer Equipment 

- 

- 

- 

- 

- 

0002: MUNICIPAL COUNCIL 

5726: DESKTOP COMPUTER & SCREEN - CHIEF CLERK COUNC 

Computer Equipment 

Computer Equipment 

- 

- 

- 

- 

- 

0002: MUNICIPAL COUNCIL 

6005: WYK 04:VOLTOOIING VAN WYKSRAADSLID KANTOOR 

Operational Buildings 

Municipal Offices 

60 

60 

- 

- 

- 

0002: MUNICIPAL COUNCIL 

6006: WYK 13:VOLTOOIING VAN WYKSRAADSLID KANTOOR 

Operational Buildings 

Municipal Offices 

87 

87 

- 

- 

- 

0002: MUNICIPAL COUNCIL 

6007: WYK 01:ADDISIONELE GEBOU BY ND SWARTZ GEBOU 

Operational Buildings 

Municipal Offices 

50 

50 

- 

- 

- 

0002: MUNICIPAL COUNCIL 

6008: WYK 11:BOU KANTOOR WYKSRAADSLID-BETAALKANTOO 

Operational Buildings 

Municipal Offices 

30 

30 

- 

- 

- 

0002: MUNICIPAL COUNCIL 

CHAIR - KEDIBONE 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0002: MUNICIPAL COUNCIL 

CHAIR - MAGDALENE 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

5988: BUILDING IMPROVEMENTS 

Operational Buildings 

Municipal Offices 

80 

80 

- 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

6009: STOELE VIR SALE (ROLL-OVER) 

Furniture and Equipment 

Furniture and Equipment 

125 

125 

- 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

LUGVERSORGER (SPEAKER) 

Operational Buildings 

Municipal Offices 

16 

16 

- 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

LUGVERSORGERS 

Operational Buildings 

Municipal Offices 

105 

105 

- 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

6181: LUGVERSORGER (BEHUISING) 

Operational Buildings 

Municipal Offices 

9 

9 

- 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

AIRCONDITIONERS - OFFICES 

Operational Buildings 

Municipal Offices 

120 

- 

120 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

BUILDING IMPROVEMENTS 

Operational Buildings 

Municipal Offices 

250 

- 

250 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

150 TABELS 

Machinery & Equipment 

Machinery & Equipment 

70 

- 

70 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

500 CHAIRS 

Machinery & Equipment 

Machinery & Equipment 

70 

- 

70 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

LADDER 

Machinery & Equipment 

Machinery & Equipment 

7 

- 

7 

- 

- 

0004: ADMINISTRATION - PROPERTIES 

MOBILE SCAFHOLDING 

Machinery & Equipment 

Machinery & Equipment 

18 

- 

18 

- 

- 

0007: FINANCIAL SERVICES 

5909: CLEAR VIEW FENCE 

Operational Buildings 

Yards 

394 

394 

- 

- 

- 

0007: FINANCIAL SERVICES 

6012: FUEL TANKS & EQUIPMENT FOR STORES (UNALLOCAT 

Operational Buildings 

Workshop 

32 

32 

- 

- 

- 

0007: FINANCIAL SERVICES 

6183: INVERTER FOR CAR (PREPAID WATER) 

Machinery & Equipment 

Machinery & Equipment 

1 

1 

- 

- 

- 

0007: FINANCIAL SERVICES 

CHAIR - ASSISTANT ACCOUNTANT CONTRACT MANAGEMENT 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0007: FINANCIAL SERVICES 

FILING SYSTEM - SAFE 

Furniture and Equipment 

Furniture and Equipment 

10 

- 

10 

- 

- 

0007: FINANCIAL SERVICES 

MICRON METER 

Machinery & Equipment 

Machinery & Equipment 

6 

- 

6 

- 

- 

0007: FINANCIAL SERVICES 

MONEY COUNTERS - CASHIERS 

Machinery & Equipment 

Machinery & Equipment 

12 

- 

12 

- 

- 

0007: FINANCIAL SERVICES 

TV 

Machinery & Equipment 

Machinery & Equipment 

6 

- 

6 

- 

- 

0007: FINANCIAL SERVICES 

ASSETS: CHAIR (ASSISTANT ACCOUNTANT MOVABLE ASSETS) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0007: FINANCIAL SERVICES 

ASSETS: CHAIR (MANAGER: ASSET MANAGEMENT) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0007: FINANCIAL SERVICES 

TV 

Furniture and Equipment 

Furniture and Equipment 

6 

- 

6 

- 

- 

0007: FINANCIAL SERVICES 

PAVING 

Operational Buildings 

Stores 

350 

- 

350 

- 

- 

0007: FINANCIAL SERVICES 

STORE - ELECTRICAL EQUIPMENT 

Operational Buildings 

Stores 

1 000 

- 

1 000 

- 

- 

0007: FINANCIAL SERVICES 

CHAIR - BUYERS 

Furniture and Equipment 

Furniture and Equipment 

3 

- 

3 

- 

- 

0007: FINANCIAL SERVICES 

CHAIR: ASS ACCOUNTANT 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0007: FINANCIAL SERVICES 

CHAIR: CLERK: INFORMAL SETTLEMENTS 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0007: FINANCIAL SERVICES 

CHAIR: DEBT COLLECTION 

Furniture and Equipment 

Furniture and Equipment 

3 

- 

3 

- 

- 

0007: FINANCIAL SERVICES 

HEAVY DUTY CHAIR: ACCOUNTANT INDIGENT 

Furniture and Equipment 

Furniture and Equipment 

4 

- 

4 

- 

- 

0007: FINANCIAL SERVICES 

VISITOR CHAIR: DEBT COLLECTION 

Furniture and Equipment 

Furniture and Equipment 

1 

- 

1 

- 

- 

0007: FINANCIAL SERVICES 

SALARY OFFICE: CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0008: COMMUNICATIONS SERVICES 

6242: DSTV DECODER 

Furniture and Equipment 

Furniture and Equipment 

0 

0 

- 

- 

- 

0008: COMMUNICATIONS SERVICES 

DIGITAL CAMERA (COMMUNICATION) 

Machinery & Equipment 

Machinery & Equipment 

12 

- 

12 

- 

- 

0008: COMMUNICATIONS SERVICES 

VIDEO CAMERA (COMMUNICATION) 

Machinery & Equipment 

Machinery & Equipment 

12 

- 

12 

- 

- 

0008: COMMUNICATIONS SERVICES 

CHAIR - HIGHBACK (COMMUNICATION) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0009: HUMAN RESOURCES 

6180: SCHREDDER 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0009: HUMAN RESOURCES 

: KANTOOR STOEL 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0009: HUMAN RESOURCES 

CHAIR: HIGH BACK 

Furniture and Equipment 

Furniture and Equipment 

5 

- 

5 

- 

- 


27 March 2018 


123 



















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR 36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 


Asset Class 

Asset Sub-Class 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

R thousand 

Program/Project description 

3 

3 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0009: HUMAN RESOURCES 

CHAIR: HIGH BACK (HEAVY DUTY) 

Furniture and Equipment 

Furniture and Equipment 

4 

- 

4 

- 

- 

0009: HUMAN RESOURCES 

DESK 

Furniture and Equipment 

Furniture and Equipment 

11 

- 

11 

- 

- 

0011: OFFICE OF THE MUNICIPAL MANAGER 

5728: UNALLOCATED ASSETS 

Furniture and Equipment 

Furniture and Equipment 

250 

250 

- 

- 

- 

0011: OFFICE OF THE MUNICIPAL MANAGER 

5991: KABINET (MB KANTOOR) 

Furniture and Equipment 

Furniture and Equipment 

89 

89 

- 

- 

- 

0011: OFFICE OF THE MUNICIPAL MANAGER 

6148: YSKAS (MB) 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0011: OFFICE OF THE MUNICIPAL MANAGER 

6163: LUGVERSORGER (G.BESSELSEN) 

Operational Buildings 

Municipal Offices 

9 

9 

- 

- 

- 

0019: IDP 

CHAIR: SENIOR IDP CLERK (MATHYS) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0019: IDP 

CHAIR: SENIOR IDP OFFICER (MAKIBI) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0019: IDP 

DESK: SENIOR IDP CLERK (MATHYS) 

Furniture and Equipment 

Furniture and Equipment 

4 

- 

4 

- 

- 

0020: TRAFFIC SERVICES 

6013: PADTEKENS (VERSKEIE GEBIEDE)(ROLL-OVER) 

Road Infrastructure 

Road Furniture 

50 

50 

- 

- 

- 

0020: TRAFFIC SERVICES 

ALARM SYSTEM & CAMERA 

Operational Buildings 

Municipal Offices 

20 

- 

20 

- 

- 

0020: TRAFFIC SERVICES 

ROAD FURNITURE - SIGNAGE 

Road Infrastructure 

Road Furniture 

100 

- 

100 

- 

- 

0020: TRAFFIC SERVICES 

CHAIR (CASHIER) X 6 

Furniture and Equipment 

Furniture and Equipment 

9 

- 

9 

- 

- 

0021: FIRE SERVICES 

5729: F LOOT ABLE PUMP 

Machinery & Equipment 

Machinery & Equipment 

25 

25 

- 

- 

- 

0021: FIRE SERVICES 

5730: TOHATSU PUMP 

Machinery & Equipment 

Machinery & Equipment 

180 

180 

- 

- 

- 

0021: FIRE SERVICES 

5731: IX BA SETS 

Machinery & Equipment 

Machinery & Equipment 

20 

20 

- 

- 

- 

0021: FIRE SERVICES 

5732: IX BA SETS 

Machinery & Equipment 

Machinery & Equipment 

20 

20 

- 

- 

- 

0021: FIRE SERVICES 

5733: RADIO 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0021: FIRE SERVICES 

5734: RADIO 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0021: FIRE SERVICES 

5735: RADIO 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0021: FIRE SERVICES 

5736: RADIO 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0021: FIRE SERVICES 

5737: RADIO 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0021: FIRE SERVICES 

5738: AIRCONDITIONER 

Operational Buildings 

Municipal Offices 

- 

- 

- 

- 

- 

0021: FIRE SERVICES 

5739: AIRCONDITIONER 

Operational Buildings 

Municipal Offices 

10 

10 

- 

- 

- 

0021: FIRE SERVICES 

5742: OFFICE FURNITURE 

Furniture and Equipment 

Furniture and Equipment 

10 

10 

- 

- 

- 

0021: FIRE SERVICES 

5930: CANON KAMERA 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0021: FIRE SERVICES 

PORTABLE BA REFULE COMPRESSOR 

Machinery and Equipment 

Machinery and Equipment 

250 

- 

250 

- 

- 

0021: FIRE SERVICES 

TRAINING OFFICE 

Furniture and Equipment 

Furniture and Equipment 

5 

- 

5 

- 

- 

0021: FIRE SERVICES 

FIRE ALARM SYSTEM 

Operational Buildings 

Municipal Offices 

15 

- 

15 

- 

- 

0023: DISASTER MANAGEMENT 

BANDNEMER 

Machinery and Equipment 

Machinery and Equipment 

2 

- 

2 

- 

- 

0023: DISASTER MANAGEMENT 

GAZEBO 

Machinery and Equipment 

Machinery and Equipment 

4 

- 

4 

- 

- 

0023: DISASTER MANAGEMENT 

CHAIR 

Furniture and Equipment 

Furniture and Equipment 

1 

- 

1 

- 

- 

0023: DISASTER MANAGEMENT 

OFFICE FURNITURE 

Furniture and Equipment 

Furniture and Equipment 

5 

- 

5 

- 

- 

0023: DISASTER MANAGEMENT 

VISITOR CHAIRS X 4 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0024: SECURITY SERVICES 

6211: 6-STEP LADDER 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6212: DRILL HAMMER 

Machinery & Equipment 

Machinery & Equipment 

1 

1 

- 

- 

- 

0024: SECURITY SERVICES 

6213: GREINER 

Machinery & Equipment 

Machinery & Equipment 

1 

1 

- 

- 

- 

0024: SECURITY SERVICES 

6214: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6215: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6216: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6217: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6218: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6219: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6220: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6221: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6222: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

6223: HANDRADIO 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0024: SECURITY SERVICES 

MONEY TRUNK 

Machinery and Equipment 

Machinery and Equipment 

50 

- 

50 

- 

- 

0027: REFUSE REMOVAL SERVICES 

CHAIR (HIGHBACK) (SENIOR REINIGING - JOHAN) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0027: REFUSE REMOVAL SERVICES 

CHAIR (SECRETARY) (CLERK) 

Furniture and Equipment 

Furniture and Equipment 

1 

. - . 

1 

. - . 

- 


27 March 2018 


124 


















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0027 

REFUSE REMOVAL SERVICES 

CHAIR (HIGHBACK) (SENIOR ADMIN - CECILIA) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

5743: OFFICE FURNITURE 

Furniture and Equipment 

Furniture and Equipment 

- 

- 

- 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

6186: CHAIR S4000 H/B TYPIST & ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

6187: CHAIR S3000 GA SYNCRO GAS ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

6188: CHAIR S3000 GA SYNCRO GAS ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

6189: CHAIR S3000 GA SYNCRO GAS ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

6250: CHAIR HEAVY DUTY 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

0030 

TOWN PLANNING A& BUILDING CONTROL 

6190: CHAIR C3 WITH ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0031 

LOCAL ECONOMIC DEVELOPMENT 

6243: LUGVERSORGER 18000BTU 

Operational Buildings 

Municipal Offices 

11 

11 

- 

- 

- 

0031 

LOCAL ECONOMIC DEVELOPMENT 

6244: LUGVERSORGER 9000BTU 

Operational Buildings 

Municipal Offices 

5 

5 

- 

- 

- 

0031 

LOCAL ECONOMIC DEVELOPMENT 

6245: LUGVERSORGER 9000BTU 

Operational Buildings 

Municipal Offices 

5 

5 

- 

- 

- 

0031 

LOCAL ECONOMIC DEVELOPMENT 

6246: LUGVERSORGER 9000BTU 

Operational Buildings 

Municipal Offices 

5 

5 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5727: LAPTOP - ADMIN ASSISTANT OFFICE OF THE MM 

Computer Equipment 

Computer Equipment 

- 

- 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5740: LAPTOP - FENNIE 

Computer Equipment 

Computer Equipment 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5741: COMPUTER - DESKTOP 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5744: LAPTOP - SENIOR MANAGER: TOWN PLANNING 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5745: LAPTOP - MANAGER: LANDUSE MANAGEMENT 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5746: DESKTOP - BUILDING CONTROL OFFICER 

Computer Equipment 

Computer Equipment 

7 

7 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5747: DESKTOP - SENIOR BUILDING INSPECTOR 

Computer Equipment 

Computer Equipment 

7 

7 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5908: LAPTOP - MUNICIPAL MANAGER 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5927: LAPTOP - SIVIEL 

Computer Equipment 

Computer Equipment 

14 

14 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5928: PRINTER - TEKENAAR 

Computer Equipment 

Computer Equipment 

18 

18 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5929: PRINTER - SIVIEL 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5981: PRINTER - DIREKTEUR NEWMAN 

Computer Equipment 

Computer Equipment 

6 

6 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5986: PRINTER - REINIGING 

Computer Equipment 

Computer Equipment 

1 

1 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5992: PROJEKTOR (MB) 

Computer Equipment 

Computer Equipment 

6 

6 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6014: 4-IN-ONE PRINTER - TOURISM (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6015: 4-IN-ONE PRINTER - EILAND (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6016: PRINTER - LED (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6017: REKENAAR - TOURISM (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6018: REKENAAR - LED (INFORMAL TRADERS)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6019: DATA PROJECTOR - LED (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6020: LAPTOP (BEHUISING)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6021: LAPTOP (BEHUISING)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6022: LAPTOP (INTERNE OUDIT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6023: LAPTOP (INTERNE OUDIT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6024: LAPTOP (INTERNE OUDIT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6025: LAPTOP (INTERNE OUDIT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6026: LAPTOP (INTERNE OUDIT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6027: LAPTOP (FMG GRANT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

7 

7 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6028: LAPTOP (FMG GRANT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

7 

7 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6029: LAPTOP (FMG GRANT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

7 

7 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6030: LAPTOP (FMG GRANT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6031: LAPTOP (FMG GRANT)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

8 

8 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

UPGRADE - BIQ SYSTEM TO MSCOA 

Licences and Rights 

Computer Software 

1 000 

1 000 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

UPGRADE - ONTEC SYSTEM 

Licences and Rights 

Computer Software 

144 

144 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

UPGRADE - CASHFLOW SYSTEM 

Licences and Rights 

Computer Software 

59 

59 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6032: LAPTOP - SNR SOCIO ECONOMICAL OFFICIAL(ROLL-0 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6033: LAPTOP - SNR LED OFFICIAL (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

10 

10 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6034: INSTALLATION OF CLEARVUE OMHEINING (VAN RIEB 

Operational Buildings 

Yards 

94 

94 

- 

- 

- 


27 March 2018 


125 
















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Estimate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0033 

INFORMATION TECHNOLOGY 

6035: PRINTER (SALARISKANTOOR)(ROLL-OVER) 

Computer Equipment 

Computer Equipment 

4 

4 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6037: REKEN AAR MIG (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

12 

12 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6136: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6137: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6138: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6139: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6140: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6141: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6142: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6143: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6144: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6145: DRAAGBARE WATERVERKOOP TOESTEL 

Computer Equipment 

Computer Equipment 

31 

31 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6146: PRINTER (ELEKTRIES) 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6147: PRINTER (EILAND) 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6149: LAPTOP - ADMIN ASSISTANT OFFICE OF THE MM 

Computer Equipment 

Computer Equipment 

7 

7 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6150: PRINTER - SEC MM 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6151: PRINTER - MM 

Computer Equipment 

Computer Equipment 

6 

6 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6165: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6166: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6167: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6168: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6169: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6170: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6171: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6172: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6173: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6174: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6175: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6176: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6177: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6178: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6179: TOUCHPORT VIR VOORAFBETAALDE WATERVERKOPE 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6185: SECURITY FIREWALL 

Computer Equipment 

Computer Equipment 

70 

70 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6192: ALUMINIUM LEER 

Machinery & Equipment 

Machinery & Equipment 

1 

1 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6193: BOOR GBH 

Machinery & Equipment 

Machinery & Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6194: TOOLKIT 

Machinery & Equipment 

Machinery & Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6226: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6227: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6228: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6229: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6230: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6231: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6232: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6233: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6234: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6235: CASHFLOW LICENCE 

Licences and Rights 

Computer Software 

13 

13 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6247: PRINTER (SCM - BUYERS) 

Computer Equipment 

Computer Equipment 

2 

2 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

5752: LASERJET PRINTER 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6248: LAPTOP VIR TEKENAAR 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

0033 

INFORMATION TECHNOLOGY 

6249: LAPTOP VIR TEKENAAR 

Computer Equipment 

Computer Equipment 

15 

15 

- 

. - . 



27 March 2018 


126 
















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0033: INFORMATION TECHNOLOGY 

6260: LAPTOP VIR G.O.D 

Computer Equipment 

Computer Equipment 

9 

9 

- 

- 

- 

0033: INFORMATION TECHNOLOGY 

6254: A3 PRINTER VIR TEKENAARS 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033: INFORMATION TECHNOLOGY 

6255: A3 PRINTER VIR TEKENAARS 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033: INFORMATION TECHNOLOGY 

6256: A3 PRINTER VIR TEKENAARS 

Computer Equipment 

Computer Equipment 

3 

3 

- 

- 

- 

0033: INFORMATION TECHNOLOGY 

DESKTOP - NEW 

Computer Equipment 

Computer Equipment 

40 

- 

40 

- 

- 

0033: INFORMATION TECHNOLOGY 

LAPTOP - NEW 

Computer Equipment 

Computer Equipment 

50 

- 

50 

- 

- 

0033: INFORMATION TECHNOLOGY 

PRINTERS - NEW 

Computer Equipment 

Computer Equipment 

25 

- 

25 

- 

- 

0033: INFORMATION TECHNOLOGY 

DISASTER RECOVERY CENTRE 

Machinery and Equipment 

Machinery and Equipment 

1 500 

- 

1 500 

- 

- 

0033: INFORMATION TECHNOLOGY 

VENDOR EQUIPMENT 

Machinery and Equipment 

Machinery and Equipment 

130 

- 

130 

- 

- 

0033: INFORMATION TECHNOLOGY 

IT TRAINING CENTRE 

Furniture and Equipment 

Furniture and Equipment 

10 

- 

10 

- 

- 

0033: INFORMATION TECHNOLOGY 

DESKTOP - RENEWALS 

Computer Equipment 

Computer Equipment 

350 

- 

350 

- 

- 

0033: INFORMATION TECHNOLOGY 

LAPTOP - RENEWALS 

Computer Equipment 

Computer Equipment 

150 

- 

150 

- 

- 

0033: INFORMATION TECHNOLOGY 

PRINTER - RENEWALS 

Computer Equipment 

Computer Equipment 

66 

- 

66 

- 

- 

0033: INFORMATION TECHNOLOGY 

NETWORK SWITCHES 

Machinery and Equipment 

Machinery and Equipment 

270 

- 

270 

- 

- 

0033: INFORMATION TECHNOLOGY 

TELEPHONE SYSTEM 

Machinery and Equipment 

Machinery and Equipment 

2 300 

- 

2 300 

- 

- 

0033: INFORMATION TECHNOLOGY 

UPS BATTERIES - COMPUTERS 

Machinery and Equipment 

Machinery and Equipment 

250 

- 

250 

- 

- 

0033: INFORMATION TECHNOLOGY 

UPS BATTERIES - SERVER 

Machinery and Equipment 

Machinery and Equipment 

300 

- 

300 

- 

- 

0033: INFORMATION TECHNOLOGY 

MS OFFICE 2018 UPGRADE 

Licences and Rights 

Computer Software and Applications 

1 550 

- 

1 550 

- 

- 

0033: INFORMATION TECHNOLOGY 

OFFICE DESK 

Furniture and Equipment 

Furniture and Equipment 

4 

- 

4 

- 

- 

0033: INFORMATION TECHNOLOGY 

OFFICE PEDESTAL 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0033: INFORMATION TECHNOLOGY 

VISITOR CHAIR X 1 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0033: INFORMATION TECHNOLOGY 

OFFICE CHAIRS X 1 (HIGH BACK SWIVEL) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0033: INFORMATION TECHNOLOGY 

OFFICE CHAIRS X 1 (HIGH BACK) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0038: Corporate Services 

: KANTOOR STOEL 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5910: KANTOOR STOEL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5911: CADDIE PROFESSIONAL LICENSE 

Licences and Rights 

Computer Software 

27 

27 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5912: CADDIE PROFESSIONAL LICENSE 

Licences and Rights 

Computer Software 

27 

27 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5913: CADDIE PROFESSIONAL LICENSE 

Licences and Rights 

Computer Software 

27 

27 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5914: CLUSTER UNIT 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5915: CLUSTER UNIT 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5916: CLUSTER UNIT 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5917: CLUSTER UNIT 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5918: 3 DRAW PEDESTAL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5919: 3 DRAW PEDESTAL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5920: 3 DRAW PEDESTAL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5921: 3 DRAW PEDESTAL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5922: PAULA HIGHBACK CHAIR 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5923: PAULA HIGHBACK CHAIR 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5924: PAULA HIGHBACK CHAIR 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5925: CHAIR GAS ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

5926: CHAIR GAS ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0040: CIVIL ENGINEERING SERVICES 

6262: OFFICE EQUIPMENT - DIRECTOR 

Furniture and Equipment 

Furniture and Equipment 

15 

15 

- 

- 

- 

0041: STREETS & STORMWATER DRAINAGE 

5748: REHABILITATION OF ROADS 

Road Infrastructure 

Road 

10 000 

10 000 

- 

- 

- 

0041: STREETS & STORMWATER DRAINAGE 

6251: SUPPLY AND DELIVERY OF TOOLS & EQUIPMENT 

Machinery & Equipment 

Machinery & Equipment 

30 

30 

- 

- 

- 

0041: STREETS & STORMWATER DRAINAGE 

6258: SPEEDBUMPS 

Road Infrastructure 

Road Structure 

40 

40 

- 

- 

- 

0041: STREETS & STORMWATER DRAINAGE 

5751: REED-CUTTERS 

Machinery & Equipment 

Machinery & Equipment 

30 

30 

- 

- 

- 

0042: WORKSHOP 

5755: PORTA PACK GASWELDING SET 

Machinery & Equipment 

Machinery & Equipment 

18 

18 

- 

- 

- 

0042: WORKSHOP 

115MM ANGLE GRINDER 

Machinery and Equipment 

Machinery and Equipment 

2 

- 

2 

- 

- 

0042: WORKSHOP 

2 XGREASE GUN, 15L, PNEUMATIC, 3M HOSE 

Machinery and Equipment 

Machinery and Equipment 

13 

- 

13 

- 

- 

0042: WORKSHOP 

230MM ANGLE GRINDER 

Machinery and Equipment 

Machinery and Equipment 

3 

. - _ 

3 

- 



27 March 2018 


127 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0042: WORKSHOP 

3 X 6 AMP BATTERY CHARGER 

Machinery and Equipment 

Machinery and Equipment 

6 

- 

6 

- 

- 

0042: WORKSHOP 

3 X ENGINE SUPPORT 500KG 

Machinery and Equipment 

Machinery and Equipment 

5 

- 

5 

- 

- 

0042: WORKSHOP 

3 X HOSE REEL OIL 15M HOSE 

Machinery and Equipment 

Machinery and Equipment 

22 

- 

22 

- 

- 

0042: WORKSHOP 

3 X OIL CONTROL GUN, FLEXIBLE NOZZLE 

Machinery and Equipment 

Machinery and Equipment 

12 

- 

12 

- 

- 

0042: WORKSHOP 

3 X TROLLEY 200L DRUM 

Machinery and Equipment 

Machinery and Equipment 

11 

- 

11 

- 

- 

0042: WORKSHOP 

4 X CAR DOLLY 450KG 

Machinery and Equipment 

Machinery and Equipment 

9 

- 

9 

- 

- 

0042: WORKSHOP 

4 X LEADLIGHTS 30 M 

Machinery and Equipment 

Machinery and Equipment 

6 

- 

6 

- 

- 

0042: WORKSHOP 

4 X RETRACTABLE HOSE REEL 

Machinery and Equipment 

Machinery and Equipment 

7 

- 

7 

- 

- 

0042: WORKSHOP 

8 X HEAVY DUTY CREEPERS 

Machinery and Equipment 

Machinery and Equipment 

6 

- 

6 

- 

- 

0042: WORKSHOP 

8 X LEAD LIGHTS LED 

Machinery and Equipment 

Machinery and Equipment 

8 

- 

8 

- 

- 

0042: WORKSHOP 

AUXILLARY JACK, 2 TON , FOR PIT 

Machinery and Equipment 

Machinery and Equipment 

7 

- 

7 

- 

- 

0042: WORKSHOP 

BAR FRIDGE 

Machinery and Equipment 

Machinery and Equipment 

2 

- 

2 

- 

- 

0042: WORKSHOP 

BATTERY CHARGER TROLLEY 

Machinery and Equipment 

Machinery and Equipment 

7 

- 

7 

- 

- 

0042: WORKSHOP 

BATTERY TESTER 500AMP 

Machinery and Equipment 

Machinery and Equipment 

3 

- 

3 

- 

- 

0042: WORKSHOP 

BOOSTER PACK 12V/24V4000A 

Machinery and Equipment 

Machinery and Equipment 

7 

- 

7 

- 

- 

0042: WORKSHOP 

BUILDING IMPROVEMENT - WATER COOLER SYSTEM 

Machinery and Equipment 

Machinery and Equipment 

50 

- 

50 

- 

- 

0042: WORKSHOP 

CARRIER TRAILER 

Machinery and Equipment 

Machinery and Equipment 

44 

- 

44 

- 

- 

0042: WORKSHOP 

CATERPILLAR OIL PRESSURE GAUGE SET 

Machinery and Equipment 

Machinery and Equipment 

23 

- 

23 

- 

- 

0042: WORKSHOP 

DRILL 

Machinery and Equipment 

Machinery and Equipment 

5 

- 

5 

- 

- 

0042: WORKSHOP 

FILTER WRENCH CUP SET 

Machinery and Equipment 

Machinery and Equipment 

4 

- 

4 

- 

- 

0042: WORKSHOP 

GEAR OIL LUBRICATOR, HAND OPERTATE, 15L 

Machinery and Equipment 

Machinery and Equipment 

8 

- 

8 

- 

- 

0042: WORKSHOP 

HIPRESSURE CLEANER 

Machinery and Equipment 

Machinery and Equipment 

25 

- 

25 

- 

- 

0042: WORKSHOP 

INVERTER WELDER 200AM P 

Machinery and Equipment 

Machinery and Equipment 

3 

- 

3 

- 

- 

0042: WORKSHOP 

OIL DRAIN AND EXCAVATOR IN ONE 

Machinery and Equipment 

Machinery and Equipment 

10 

- 

10 

- 

- 

0042: WORKSHOP 

OIL DRAIN FLOOR TROLLEY TYPE, 60L 

Machinery and Equipment 

Machinery and Equipment 

3 

- 

3 

- 

- 

0042: WORKSHOP 

OIL FILTER WRENCH CP SET 

Machinery and Equipment 

Machinery and Equipment 

4 

- 

4 

- 

- 

0042: WORKSHOP 

OIL PUMP, PNEUMATIC, 14L/MIN, 

Machinery and Equipment 

Machinery and Equipment 

6 

- 

6 

- 

- 

0042: WORKSHOP 

PETROL COMPRESSION TESTER 

Machinery and Equipment 

Machinery and Equipment 

3 

- 

3 

- 

- 

0042: WORKSHOP 

PORTA PACK GAS WELDING SET 

Machinery and Equipment 

Machinery and Equipment 

18 

- 

18 

- 

- 

0042: WORKSHOP 

ROTARY DRUM PUMP, OIL HEAVY DUTY 

Machinery and Equipment 

Machinery and Equipment 

6 

- 

6 

- 

- 

0042: WORKSHOP 

STEP LADDER 

Machinery and Equipment 

Machinery and Equipment 

2 

- 

2 

- 

- 

0042: WORKSHOP 

TRUCK WHEELNUT MULTIPLIER, 1:56 

Machinery and Equipment 

Machinery and Equipment 

6 

- 

6 

- 

- 

0042: WORKSHOP 

WAP - HIGH PRESSURE 

Machinery and Equipment 

Machinery and Equipment 

150 

- 

150 

- 

- 

0043: COMMONAGE 

MOBIELE KRAAL 

Machinery and Equipment 

Machinery and Equipment 

20 

- 

20 

- 

- 

0043: COMMONAGE 

SKUT 

Machinery and Equipment 

Machinery and Equipment 

360 

- 

360 

- 

- 

0043: COMMONAGE 

TRAILER MET LAAIBANK (MEENT) 

Transport Assets 

Transport Assets 

120 

- 

120 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

5984: REPLACEMENT OF WORN-OUT PUMPS, VALVES,(SEWERA 

Sanitation Infrastructure 

Pump Stations 

244 

244 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6038: UPGRADING OF KAMEELMOND WWTW(ROLL-OVER) 

Sanitation Infrastructure 

Waste Water Treatment Works 

1 000 

1 000 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6155: OMHEINING (SANITASIE) 

Operational Buildings 

Yards 

24 

24 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6157: WASMASHIEN(SANITASIE) 

Machinery & Equipment 

Machinery & Equipment 

11 

11 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6158: WASMASHIEN(SANITASIE) 

Machinery & Equipment 

Machinery & Equipment 

11 

11 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6159: WASMASHIEN 

Machinery & Equipment 

Machinery & Equipment 

11 

11 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6160: WASMASHIEN 

Machinery & Equipment 

Machinery & Equipment 

11 

11 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6161: YSKAS 

Furniture and Equipment 

Furniture and Equipment 

7 

7 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6162: YSKAS 

Furniture and Equipment 

Furniture and Equipment 

7 

7 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6184: BLINDS 

Furniture and Equipment 

Furniture and Equipment 

10 

10 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6261: KANTOORTOERUSTING 

Furniture and Equipment 

Furniture and Equipment 

10 

10 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6224: AFDAK 

Operational Buildings 

Yards 

11 

11 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

6261: OFFICE EQUIPMENT - SEWERAGE 

Furniture and Equipment 

Furniture and Equipment 

5 

5 

- 

- 

- 

0045: SEWERAGE PURIFICATION PLANT 

REPLACEMENT OF WORN-OUT PUMPS, VALVES - HQ 

Sanitation Infrastructure 

Pump Station 

100 

- 

100 

- 

- 


27 March 2018 


128 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0045: SEWERAGE PURIFICATION PLANT 

REPLACEMENT OF WORN-OUT PUMPS, VALVES - SATELLITE 

Sanitation Infrastructure 

Pump Station 

100 

_ 

100 

_ 

_ 

0046: TRANSPORT 

5796: FRONT END LOADER (GOD) 

Transport Assets 

Transport Assets 

1 450 

1 450 

- 

- 

- 

0046: TRANSPORT 

5797: TIPPER 6 CUB (STREETS AND STORMWATER) 

Transport Assets 

Transport Assets 

- 

- 

- 

- 

- 

0046: TRANSPORT 

5798: 1000 KG LDV WITH TOOLBOX CANOPY (WORKSHOP) 

Transport Assets 

Transport Assets 

- 

- 

- 

- 

- 

0046: TRANSPORT 

5799: 1000 KG 4X4 LDV (MEENT) 

Transport Assets 

Transport Assets 

300 

300 

- 

- 

- 

0046: TRANSPORT 

5800: 12000 LITER VACUUM TANKER 

Transport Assets 

Transport Assets 

- 

- 

- 

- 

- 

0046: TRANSPORT 

5801: COMPACTOR TRUCK 17 CUB 

Transport Assets 

Transport Assets 

- 

- 

- 

- 

- 

0046: TRANSPORT 

5802: 76S ROLLER (STREETS & STORMWATER) 

Transport Assets 

Transport Assets 

180 

180 

- 

- 

- 

0046: TRANSPORT 

5803: SUV 

Transport Assets 

Transport Assets 

898 

898 

- 

- 

- 

0046: TRANSPORT 

6003: 1 TON ARMOURED RESPONSE VEHICLE (ROLL-OVER) 

Transport Assets 

Transport Assets 

615 

615 

- 

- 

- 

0046: TRANSPORT 

6040: 1.6 500KG LAW (ROLL-OVER) 

Transport Assets 

Transport Assets 

165 

165 

- 

- 

- 

0046: TRANSPORT 

6047: 2. 1000KG LAW (ROLL-OVER) (ELECTRICITY) 

Transport Assets 

Transport Assets 

270 

270 

- 

- 

- 

0046: TRANSPORT 

6048: 9000 LITER VACUUM TANKER (ROLL-OVER) 

Transport Assets 

Transport Assets 

1 030 

1 030 

- 

- 

- 

0046: TRANSPORT 

6049: BELL COMPACTOR (FUNKSIE 27)(ROLL-OVER) 

Transport Assets 

Transport Assets 

3 346 

3 346 

- 

- 

- 

0046: TRANSPORT 

6052: JACKHAMMER BREAKER (ROLL-OVER) 

Machinery & Equipment 

Machinery & Equipment 

21 

21 

- 

- 

- 

0046: TRANSPORT 

6053: JACKHAMMER BREAKER (ROLL-OVER) 

Machinery & Equipment 

Machinery & Equipment 

21 

21 

- 

- 

- 

0046: TRANSPORT 

6054: JACKHAMMER BREAKER (ROLL-OVER) 

Machinery & Equipment 

Machinery & Equipment 

21 

21 

- 

- 

- 

0046: TRANSPORT 

6055: JACKHAMMER BREAKER (ROLL-OVER) 

Machinery & Equipment 

Machinery & Equipment 

21 

21 

- 

- 

- 

0046: TRANSPORT 

6063: SAN IT AS IE TROK(ROLL-OVER) 

Transport Assets 

Transport Assets 

1 030 

1 030 

- 

- 

- 

0046: TRANSPORT 

6080: JACKHAMMER BREAKER (ROADS &STORMWATER)(ROLL-0 

Machinery & Equipment 

Machinery & Equipment 

21 

21 

- 

- 

- 

0046: TRANSPORT 

6081: FIRE TRUCK (ROLL-OVER) 

Transport Assets 

Transport Assets 

3 800 

3 800 

- 

- 

- 

0046: TRANSPORT 

140 G PADSKRAPPER X1 

Transport Assets 

Transport Assets 

3 500 

- 

3 500 

- 

- 

0046: TRANSPORT 

BAKKIE 4X4 DC BAKKIE X 1 

Transport Assets 

Transport Assets 

450 

- 

450 

- 

- 

0046: TRANSPORT 

BAKKIE 1.6/1.4 500KG X 4 

Transport Assets 

Transport Assets 

1 440 

- 

720 

720 

- 

0046: TRANSPORT 

BAKKIE 1000 KG BAKKIE X 4 

Transport Assets 

Transport Assets 

1 000 

- 

1 000 

- 

- 

0046: TRANSPORT 

BAKKIE 1000 KG LDV WITH TOOLBOX CANOPY X 2 

Transport Assets 

Transport Assets 

600 

- 

600 

- 

- 

0046: TRANSPORT 

BAKKIE 1000KG LAW MET VOLLE DEUR KAPPIE (SANITASIE) X 2 

Transport Assets 

Transport Assets 

560 

- 

560 

- 

- 

0046: TRANSPORT 

CAR- 1.6 LUIKRUG X 2 

Transport Assets 

Transport Assets 

400 

- 

400 

- 

- 

0046: TRANSPORT 

CAR- 1.6 SEDAN X 2 

Transport Assets 

Transport Assets 

500 

- 

500 

- 

- 

0046: TRANSPORT 

CHERRY PICKER 4TON X 1 

Transport Assets 

Transport Assets 

1 000 

- 

- 

1 000 

- 

0046: TRANSPORT 

COMPACTOR TRUCK 17 CUB X2 

Transport Assets 

Transport Assets 

3 000 

- 

1 500 

1 500 

- 

0046: TRANSPORT 

CREW CAB TROK MET DRARAK (2 TON) X 2 

Transport Assets 

Transport Assets 

650 

- 

650 

- 

- 

0046: TRANSPORT 

DIESEL TRAILER X 1 

Transport Assets 

Transport Assets 

120 

- 

120 

- 

- 

0046: TRANSPORT 

ELEKTRIES BOOR-ELEKTRIESE DIENSTE X 1 

Transport Assets 

Transport Assets 

1 450 

- 

- 

1 450 

- 

0046: TRANSPORT 

FRONT END LOADER X 1 

Transport Assets 

Transport Assets 

1 600 

- 

1 600 

- 

- 

0046: TRANSPORT 

GRASSNYERS ZERO TURN X2 

Transport Assets 

Transport Assets 

600 

- 

400 

200 

- 

0046: TRANSPORT 

KANTSLANERS X 20 

Transport Assets 

Transport Assets 

200 

- 

200 

- 

- 

0046: TRANSPORT 

KETTINGSAAG X 10 

Transport Assets 

Transport Assets 

90 

- 

90 

- 

- 

0046: TRANSPORT 

KOMBI: 14-SITPLEK X 1 

Transport Assets 

Transport Assets 

400 

- 

400 

- 

- 

0046: TRANSPORT 

MOBIELE WATERPUMP X 1 

Transport Assets 

Transport Assets 

26 

- 

26 

- 

- 

0046: TRANSPORT 

MPV- 7-SITPLEK X 1 

Transport Assets 

Transport Assets 

246 

- 

- 

246 

- 

0046: TRANSPORT 

RIETSLANERS X 10 

Transport Assets 

Transport Assets 

90 

- 

90 

- 

- 

0046: TRANSPORT 

ROLLER (BOMAG TIPE) X 1 

Transport Assets 

Transport Assets 

200 

- 

200 

- 

- 

0046: TRANSPORT 

SANITASIE TROK X 2 

Transport Assets 

Transport Assets 

3 000 

- 

3 000 

- 

- 

0046: TRANSPORT 

SNOEISAAG (PRUNER) X 10 

Transport Assets 

Transport Assets 

90 

- 

90 

- 

- 

0046: TRANSPORT 

STRAAT VEER X 1 

Transport Assets 

Transport Assets 

300 

- 

300 

- 

- 

0046: TRANSPORT 

TIPPER 6 CUB X 2 

Transport Assets 

Transport Assets 

2 200 

- 

1 100 

1 100 

- 

0046: TRANSPORT 

TLB X 1 

Transport Assets 

Transport Assets 

1 100 

- 

- 

1 100 

- 

0046: TRANSPORT 

VACUUM TANKER 6000 LITER X 1 

Transport Assets 

Transport Assets 

1 700 

- 

1 700 

- 

- 

0050: PARKS 

GRINDER 

Machinery and Equipment 

Machinery and Equipment 

6 


6 

. - 

- 


27 March 2018 


129 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0051: ISLAND HOLIDAY RESORT 

6164: CHLORINATOR 

Sport & Recreation Facilities 

Outdoor Facilities 

26 

26 

- 

- 

- 

0051: ISLAND HOLIDAY RESORT 

6236: GEYSER 

Operational Buildings 

Municipal Offices 

2 

2 

- 

- 

- 

0051: ISLAND HOLIDAY RESORT 

6237: GEYSER 

Operational Buildings 

Municipal Offices 

2 

2 

- 

- 

- 

0051: ISLAND HOLIDAY RESORT 

6239: LUGVERSORGER (CHALET 19) 

Operational Buildings 

Municipal Offices 

8 

8 

- 

- 

- 

0051: ISLAND HOLIDAY RESORT 

6240: LUGVERSORGER (CHALET 34) 

Operational Buildings 

Municipal Offices 

8 

8 

- 

- 

- 

0051: ISLAND HOLIDAY RESORT 

6241: LUGVERSORGER (CHALET 50) 

Operational Buildings 

Municipal Offices 

8 

8 

- 

- 

- 

0052: SWIMMING POOLS 

CHAIRS 

Machinery and Equipment 

Machinery and Equipment 

5 

- 

5 

- 

- 

0052: SWIMMING POOLS 

TABLES 

Machinery and Equipment 

Machinery and Equipment 

5 

- 

5 

- 

- 

0052: SWIMMING POOLS 

CHLORINATOR 

Sport and Recreation Facilities 

Outdoor Facilities 

30 

- 

30 

- 

- 

0052: SWIMMING POOLS 

SWIMMING POOL PUMP 

Sport and Recreation Facilities 

Outdoor Facilities 

60 

- 

60 

- 

- 

0055: SPORT STADIUMS 

FENCING - MD JACOBS STADIUM 

Sport and Recreation Facilities 

Outdoor Facilities 

550 

- 

550 

- 

- 

0055: SPORT STADIUMS 

LIGHTS 

Sport and Recreation Facilities 

Outdoor Facilities 

50 

- 

50 

- 

- 

0057: CEMETRIES 

UPGRADE - CEMETERIES 

Community Facilities 

Cemeteries/Crematoria 

300 

- 

300 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

5805: ELECTRIFICATION OF 1000 HOUSES PAB&DAKOTA(IN 

Electrical Infrastructure 

LV Networks 

14 912 

14 912 

- 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

5806: ELECTRIFICATION OF 1000 HOUSES PAB&DAKOTA(CR 

Electrical Infrastructure 

LV Networks 

10 357 

10 357 

- 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

5807: EQUIPMENT FOR MONITORING OF SUPPLY QUALITY 

Electrical Infrastructure 

MV Networks 

500 

500 

- 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

6082: ELECTRIFICATION OF NEW DEVELOPMENTS:DAKOTA R 

Electrical Infrastructure 

LV Networks 

4 150 

4 150 

- 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

6083: INSTALLATION OF HIGH MAST LIGHTING (ROLL-OVER 

Electrical Infrastructure 

MV Networks 

242 

242 

- 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

INEP - ELECTRIFICATION OF HOUSES 

Electn'cal Infrastructure 

LV Networks 

9 461 

- 

- 

4 452 

5 009 

0059: ELECTRICITY-ADMINISTRATION 

INEP - ELECTRIFICATION OF HOUSES IN LOUISVALE 

Electrical Infrastructure 

LV Networks 

12 174 

- 

12 174 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

LOGGER 

Machinery and Equipment 

Machinery and Equipment 

80 

- 

80 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

AUTO-CAD 

Licences and Rights 

Computer Software and Applications 

15 

- 

15 

- 

- 

0059: ELECTRICITY-ADMINISTRATION 

INEP - COUNTERFUNDING 

Electrical Infrastructure 

LV Networks 

14 609 

- 

14 609 

- 

- 

0061: ELECTRICITY - MAINTENANCE 

LED STREETLIGHTS 

Electrical Infrastructure 

LV Networks 

150 

- 

150 

- 

- 

0061: ELECTRICITY - MAINTENANCE 

NEW STREETLIGHTS (VARIOUS AREAS) 

Electrical Infrastructure 

LV Networks 

120 

- 

120 

- 

- 

0061: ELECTRICITY - MAINTENANCE 

REPLACE STREETLIGHTS 

Electrical Infrastructure 

LV Networks 

100 

- 

100 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5931: VERVANG VAN STRAATLIGTE 

Electn'cal Infrastructure 

LV Networks 

70 

70 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5813: WORKING EARTH KITS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

9 

9 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5814: WORKING EARTH KITS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

9 

9 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5815: WORKING EARTH KITS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

9 

9 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5816: WORKING EARTH KITS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

9 

9 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5822: EXTENTION LADDERS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

8 

8 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5823: EXTENTION LADDERS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

8 

8 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5824: EXTENTION LADDERS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

9 

9 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5825: EXTENTION LADDERS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

9 

9 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5826: TELESCOPIC LINKSTICKS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

11 

11 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5827: TELESCOPIC LINKSTICKS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

11 

11 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5828: TELESCOPIC LINKSTICKS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

12 

12 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5829: TELESCOPIC LINKSTICKS FOR ELECTRICIANS 

Machinery & Equipment 

Machinery & Equipment 

12 

12 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5830: SUBSTATION "CLEARVIEW' FENCING: BS SUBSTATION 

Electn'cal Infrastructure 

MV Substations 

93 

93 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5831: SUBSTATION "CLEARVIEW FENCING.: BS3 SUBSTATI 

Electrical Infrastructure 

MV Substations 

92 

92 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5832: SUBSTATION "CLEARVIEW FENCING: BS6 SUBSTATIO 

Electn'cal Infrastructure 

MV Substations 

119 

119 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

5833: CABLE FAULT LOCATING EQUIPMENT 

Electrical Infrastructure 

MV Networks 

70 

70 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

6084: HERSTELWERKE - ELEKTRISITEIT INFRASTRUKTUUR 

Electrical Infrastructure 

MV Networks 

1 215 

1 215 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

6085: ELECTRICAL SERVICES - INDUSTRIAL ERVENS 

Electn'cal Infrastructure 

MV Networks 

1 740 

1 740 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

6156: VERVANGING VAN UITGEDIENDE KIOSKS EN TRANSFOR 

Electrical Infrastructure 

MV Networks 

150 

150 

- 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

NEW PRE-PAID METERS 

Electrical Infrastructure 

LV Networks 

25 

- 

25 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

PRE-PAID METERS (INDIGENT) 

Electrical Infrastructure 

LV Networks 

25 

- 

25 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

CHAIR 

Furniture and Equipment 

Furniture and Equipment 

5 

- 

5 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

DESK 

Furniture and Equipment 

Furniture and Equipment 

3 

. - . 

3 

- 

- 


27 March 2018 


130 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0062: ELECTRICITY - DISTRIBUTION 

CLEARVU FENCING - ALPHA 

Operational Buildings 

Municipal Offices 

960 

- 

960 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

VERVANGING VAN KIOSK, TRANSFORMERS 

Electn'cal Infrastructure 

LV Networks 

160 

- 

160 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

CABLE FAULT LOCATING EQUIPMENT 

Machinery and Equipment 

Machinery and Equipment 

500 

- 

500 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

PETROL SAW 

Machinery and Equipment 

Machinery and Equipment 

24 

- 

24 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

BATTERIES - DELTA 

Machinery and Equipment 

Machinery and Equipment 

180 

- 

180 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

FRIDGE 

Furniture and Equipment 

Furniture and Equipment 

4 

- 

4 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

SUBSTATIONS - MARKET PLAIN 

Electn'cal Infrastructure 

MV Substations 

5 000 

- 

5 000 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

UPGRADE ON ELECTRICAL NETWORK 

Electn'cal Infrastructure 

MV Substations 

1 500 

- 

1 500 

- 

- 

0062: ELECTRICITY - DISTRIBUTION 

UPGRADE ON MINI-SUBSTATIONS X 5 

Electn'cal Infrastructure 

MV Substations 

1 500 

- 

1 500 

- 

- 

0063: ELECTRICITY - PLANNING & METERING 

5839: PRE-PAID ELECTRICITY METERS FOR INDIGENTS 

Electrical Infrastructure 

LV Networks 

25 

25 

- 

- 

- 

0063: ELECTRICITY - PLANNING & METERING 

nuut NEW METERS (Through recovery) 

Electrical Infrastructure 

LV Networks 

100 

100 

- 

- 

- 

0063: ELECTRICITY - PLANNING & METERING 

5840: NEW PRE-PAID ELECTRICITY METERS 

Electn'cal Infrastructure 

LV Networks 

25 

25 

- 

- 

- 

0066: WATER PRODUCTION 

5841: WSIG: AUGMENTATION OF NOENIEPUT WATER SUPPLY 

Water Supply Infrastructure 

Water Treatment Works 

3 452 

3 452 

- 

- 

- 

0066: WATER PRODUCTION 

5842: WSIG: AUGMENTATION OF WELKOM WATER SUPPLYPLY 

Water Supply Infrastructure 

Water Treatment Works 

781 

781 

- 

- 

- 

0066: WATER PRODUCTION 

5843: CONDITIONAL ASSESSMENT&REMEDIAL WORKS AT RESE 

Water Supply Infrastructure 

Reservoirs 

600 

600 

- 

- 

- 

0066: WATER PRODUCTION 

5844: AHS WTW RAW WATER PUMP 

Water Supply Infrastructure 

Reservoirs 

1 600 

1 600 

- 

- 

- 

0066: WATER PRODUCTION 

5846: REPLACEMENT OF WORN-OUT PUMPS, VALVES,(WATER_ 

Water Supply Infrastructure 

Pump Stations 

206 

206 

- 

- 

- 

0066: WATER PRODUCTION 

5935: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5936: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5937: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5938: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5939: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5940: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5941: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5942: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5943: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5944: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5945: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5946: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5947: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5948: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5949: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5950: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5951: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5952: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5953: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5954: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5955: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5956: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5957: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5958: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5959: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5960: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5961: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5962: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5963: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5964: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5965: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5966: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5967: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 


27 March 2018 


131 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0066: WATER PRODUCTION 

5968: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

_ 

_ 

0066: WATER PRODUCTION 

5969: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5970: CHAIR NO ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5972: CHAIR WITH ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5973: CHAIR WITH ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5974: CHAIR WITH ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5975: CHAIR WITH ARMS 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5976: PAULA HIGHBACK CHAIR 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

5977: PAULA HIGHBACK CHAIR 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6087: TURBICHECK INFRA RED METER (ROLL-OVER) 

Water Supply Infrastructure 

Water Treatment Works 

10 

10 

- 

- 

- 

0066: WATER PRODUCTION 

: TURBICHECK INFRA RED METER (ROLL-OVER) 

Water Supply Infrastructure 

Water Treatment Works 

10 

10 

- 

- 

- 

0066: WATER PRODUCTION 

6088: CHLORINE PHOTOMETER (ROLL-OVER) 

Water Supply Infrastructure 

Water Treatment Works 

7 

7 

- 

- 

- 

0066: WATER PRODUCTION 

: CHLORINE PHOTOMETER (ROLL-OVER) 

Water Supply Infrastructure 

Water Treatment Works 

7 

7 

- 

- 

- 

0066: WATER PRODUCTION 

6089: RAW WATER PUMP FOR ABRAHAM HOLBORS WTW 

Water Supply Infrastructure 

Water Treatment Works 

1 478 

1 478 

- 

- 

- 

0066: WATER PRODUCTION 

6195: HACH TUBIDITY METER 2100Q 

Water Supply Infrastructure 

Water Treatment Works 

26 

26 

- 

- 

- 

0066: WATER PRODUCTION 

6196: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6197: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6198: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6199: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6200: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6201: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6202: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6203: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6204: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6205: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6206: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6207: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6208: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6209: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6210: LOCKERS: FTL LOCKER FEET - GREY 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0066: WATER PRODUCTION 

6238: OPRIG VAN VEILIGHEIDSHEK 

Operational Buildings 

Municipal Offices 

3 

3 

- 

- 

- 

0066: WATER PRODUCTION 

WSIG: CONSTRUCTION OF NEWLOUISVALE RAOD SEWAGE PUMP STATION WITH 

Sanitation Infrastructure 

Waste Water Treatment Works 

8 696 

- 

8 696 

- 

- 

0066: WATER PRODUCTION 

CONSTRUCTION OF SPEEDBUMPS AND ROUND-ABOUTS 

Roads Infrastructure 

Roads 

150 

- 

150 

- 

- 

0066: WATER PRODUCTION 

REPLACEMENT OF WORN-OUT PUMPS, VALVES, SWITCHGEAR AND METERS - HQ 

Water Supply Infrastructure 

Water Treatment Works 

100 

- 

100 

- 

- 

0066: WATER PRODUCTION 

REPLACEMENT OF WORN-OUT PUMPS, VALVES, SWITCHGEAR AND METERS - SAT 

Water Supply Infrastructure 

Water Treatment Works 

100 

- 

100 

- 

- 

0066: WATER PRODUCTION 

CONSTRUCT NEW/UPGRADED BULK OUTFALL SEWER - BLK_KM_001 (ITEM KM_025 

Sanitation Infrastructure 

Waste Water Treatment Works 

926 

- 

926 

- 

- 

0066: WATER PRODUCTION 

CONSTRUCT NEW/UPGRADED BULK OUTFALL SEWER - BLK_KM_001 (ITEM KM_025 

Sanitation Infrastructure 

Waste Water Treatment Works 

10 016 

- 

10 016 

- 

- 

0066: WATER PRODUCTION 

CONSTRUCT NEW/UPGRADED BULK OUTFALL SEWER - BLK_KM_001 (ITEM KM_025 

Sanitation Infrastructure 

Waste Water Treatment Works 

992 

- 

992 

- 

- 

0066: WATER PRODUCTION 

KAMEELMOND WWTW - RBIG (COUNTER) 

Sanitation Infrastructure 

Waste Water Treatment Works 

13 769 

- 

13 769 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

5848: WSIG: INSTALLATION OF COMMUNAL STANDPIPES 

Water Supply Infrastructure 

Distribution Points 

1 907 

1 907 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

5849: EPWP: INSTALLATION OF PRE-PAID WATERMETERS Ml 

Water Supply Infrastructure 

Distribution Points 

22 

22 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

5850: EPWP: INSTALLATION OF COMMUNAL STANDPIPES WEST 

Water Supply Infrastructure 

Distribution Points 

1 063 

1 063 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

: INSTALLATION OF COMMUNAL STANDPIPES (OWN FUNDS - WSIG Project) 

Water Supply Infrastructure 

Distribution Points 

372 

372 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

: INSTALLATION OF COMMUNAL STANDPIPESWEST (OWN FUNDS - EPWP Project) 

Water Supply Infrastructure 

Distribution Points 

103 

103 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

5851: REPLACEMENT OF WORN-OUT PRE-PAID WATERMETERS 

Water Supply Infrastructure 

Distribution Points 

64 

64 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

5852: REPLACEMENT OF GATEVALVES 

Water Supply Infrastructure 

Pump Stations 

- 

- 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

5853: REPLACEMENT OF WORN-OUT CONVENTIONAL WATERMET 

Water Supply Infrastructure 

Distribution Points 

166 

166 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6090: SUPPLY AND DELIVERY OF 5000L WATER TANKS 

Water Supply Infrastructure 

Distribution Points 

42 

42 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6091: CIVIL SERVICES - INDUSTRIAL ERVENS (ROLL-OVER 

Water Supply Infrastructure 

Bulk Mains 

3 450 

3 450 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6092: VERVANG UITGEDIENDE KLEPPE EN METERS (ROLL-OV 

Water Supply Infrastructure 

Distribution Points 

2 

2 

- 

- 

- 


27 March 2018 


132 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

0067: WATER DISTRIBUTION NETWORKS 

6093: INSTALLERING VAN VOORAFBETAALDE WATERMETERS 

Water Supply Infrastructure 

Distribution Points 

18 

18 

_ 

- 

_ 

0067: WATER DISTRIBUTION NETWORKS 

6094: STANDPIPES AND VALVES AT VERGENOEG(ROSEDALE) 

Water Supply Infrastructure 

Distribution Points 

130 

130 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6096: SIVIELE DIENSTE - 6667 ERWE (VERSKEIE AREAS) 

Water Supply Infrastructure 

Bulk Mains 

1 681 

1 681 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6253: SUPPLY AND DELIVERY OF 5000L WATER TANKS 

Water Supply Infrastructure 

Distribution Points 

40 

40 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6252: SUPPLY AND DELIVERY OF TOOLS AND EQUIPMENT 

Machinery & Equipment 

Machinery & Equipment 

50 

50 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6257: INSTALLATION OF WATERMETERS 

Water Supply Infrastructure 

Distribution Points 

40 

40 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6259: OFFICE EQUIPMENT - WATER DIST 

Furniture and Equipment 

Furniture and Equipment 

5 

5 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

6182: DESIGN OF INTERNAL CIVIL SERVICES FOR MELKSTR 

Water Supply Infrastructure 

Bulk Mains 

200 

200 

- 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

REPLACEMENT OF WORN-OUT CONVENTIONAL WATERMETERS 

Water Supply Infrastructure 

Water Treatment Works 

100 

- 

100 

- 

- 

0067: WATER DISTRIBUTION NETWORKS 

REPLACEMENT OF WORN-OUT PRE-PAID WATERMETERS 

Water Supply Infrastructure 

Water Treatment Works 

100 

- 

100 

- 

- 

0071: RISK MANAGEMENT 

OFFICE CHAIR: MPAC OFFICER (HIGH BACK SWIVEL) 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0071: RISK MANAGEMENT 

OFFICE DESK: MPAC OFFICER 

Furniture and Equipment 

Furniture and Equipment 

4 

- 

4 

- 

- 

0071: RISK MANAGEMENT 

OFFICE PEDESTAL: MPAC OFFICER 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0071: RISK MANAGEMENT 

VISITOR CHAIR X 1: MPAC OFFICER 

Furniture and Equipment 

Furniture and Equipment 

2 

- 

2 

- 

- 

0071: RISK MANAGEMENT 

TEAMRISK - RISK MANAGEMENT 

Licences and Rights 

Computer Software and Applications 

25 

- 

25 

- 

- 

0077: COMMUNITY AND OVERTIME 

SUPPLY AND DELIVERY OF 5000L MOBILE WATER TANKS 

Machinery and Equipment 

Machinery and Equipment 

100 

- 

100 

- 

- 

0078: PMU 

COMPUTER EQUIPMENT 

Computer Equipment 

Computer Equipment 

15 

- 

15 

- 

- 

0078: PMU 

OFFICE FURNITURE AND EQUIPMENT 

Furniture and Equipment 

Furniture and Equipment 

49 

- 

49 

- 

- 

0078: PMU 

1165: KLEIN MIER: UPGRADING OF GRAVEL ROADS TO PAVED ROADS PHASE 3 

Roads Infrastructure 

Roads 

5 424 

- 

1 961 

3 463 

- 

0078: PMU 

1362:MIER: ASKHAM/KAMEELDUIN INTERNAL STREETS PHASE 3 

Roads Infrastructure 

Roads 

261 

- 

261 

- 

- 

0078: PMU 

PAVING OF STREET - LOUISVALE ROAD 

Roads Infrastructure 

Roads 

9 396 

- 

8 890 

505 

- 

0078: PMU 

PAVING OF STREET - ROSEDALE 

Roads Infrastructure 

Roads 

16 592 

- 

- 

8 766 

7 826 

0078: PMU 

UPGRADING STREETS IN LOUBOS AND MIER 

Roads Infrastructure 

Roads 

4 597 

- 

261 

- 

4 336 

0078: PMU 

1116:LOUBOS: CONSTRUCTION OF NEW OXIDATION PONDS 

Sanitation Infrastructure 

Waste Water Treatment Works 

2 746 

- 

313 

2 433 

- 

0078: PMU 

1369:MELKSTROOM: BULK SEWER PROVISION 

Sanitation Infrastructure 

Waste Water Treatment Works 

6 771 

- 

6 771 

- 

- 

0078: PMU 

VARIOUS SPORT GROUNDS 

Sport and Recreation Facilities 

Outdoor Facilities 

15 126 

- 

- 

5 559 

9 566 

0078: PMU 

1372:MELKSTROOM: BULK WATER PROVISION 

Water Supply Infrastructure 

Bulk Mains 

1 843 

- 

1 843 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

MELKSTROOM - BULK WATER (250MM) 

Water Supply Infrastructure 

Distribution 

1 903 

1 903 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5854: MUNICIPAL AREAS DEVELOPMENT OF NEW SPORT 

Sport & Recreation Facilities 

Outdoor Facilities 

198 

198 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5855: MELKSTROOM: BULK SEWER PROVISION 

Sanitation Infrastructure 

Reticulation 

186 

186 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5856: MELKSTROOM: BULK WATER PROVISION 

Water Supply Infrastructure 

Distribution 

4 730 

4 730 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5857: LOUBOS: CONSTRUCTION OF NEW OXIDATION PONDS 

Sanitation Infrastructure 

Waste Water Treatment Works 

175 

175 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5858: MIER/LOUBOS: INTERNAL STREETS 

Road Infrastructure 

Road 

2 702 

2 702 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5859: KLEIN MIER UPGRADING OF GRAVEL ROADS TO PAVE 

Road Infrastructure 

Road 

225 

225 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

5860: MIER: ASKHAM/KAMEELDUIN INTERNAL STREETS PHAS 

Road Infrastructure 

Road 

3 376 

3 376 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

6132: ESTABLISHMENT OF PARKS (2017-2018) 

Sport & Recreation Facilities 

Outdoor Facilities 

216 

216 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

6133: PAVINGS STREET - PABELLELO 

Road Infrastructure 

Road 

387 

387 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

6153: KANTOORSTOEL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

6154: KANTOORSTOEL 

Furniture and Equipment 

Furniture and Equipment 

1 

1 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

New: LOUISVALE ROAD 

Road Infrastructure 

Road 

442 

442 

- 

- 

- 

0078: PROJECT MANAGEMENT UNIT 

6225: WELKOM GEMEENSKAPSAAL 

community Facilities 

Halls 

42 

42 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5861: HOOF - AIR CONDITIONER IN OFFICE 

Community Facilities 

Libraries 

7 

7 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5864: HOOF - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

7 

7 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5865: FORUM - AIR CONDITIONERS 

Community Facilities 

Libraries 

20 

20 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5866: FORUM - AIR CONDITIONERS 

Community Facilities 

Libraries 

20 

20 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5867: FORUM - BLINDS 

Furniture and Equipment 

Furniture and Equipment 

10 

10 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5868: FORUM - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

7 

7 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5869: FORUM - UPGRADE POWER SUPPLY TO LIBRARY 

Electrical Infrastructure 

LV Networks 

99 

99 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5870: PABALLELO - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

7 

7 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5871: ROSEDALE - NEW ENTRANCE DOOR 

Community Facilities 

Libraries 

5 

5 

- 

. - . 

- 


27 March 2018 


133 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Esti m ate 

Prior year 

outcomes 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Current Year 

2017/18 Full 

Year Forecast 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

1004: MASINCEDANE LIBRARY PROJECT 

5872: ROSEDALE - BURGLAR DOOR 

Community Facilities 

Libraries 

6 

6 

_ 

_ 

_ 

1004: MASINCEDANE LIBRARY PROJECT 

5873: ROSEDALE - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

7 

7 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5874: ROSEDALE - FRIDGE 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5875: RIETFONTEIN - AIRCON 

Community Facilities 

Libraries 

20 

20 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5876: RIETFONTEIN - DESK 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5877: RIETFONTEIN - SECRETARY CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5878: RIETFONTEIN - CABINET WITH DRAWERS 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5879: RIETFONTEIN - CURTAINS 

Furniture and Equipment 

Furniture and Equipment 

15 

15 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5880: RIETFONTEIN - CARPET (3X3) 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5881: RIETFONTEIN - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

11 

11 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5882: LOU BOS - CABINET WITH DRAWERS 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5883: LOU BOS - DESK 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5884: LOUBOS - SECRETARY CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5885: LOUBOS - CARPET (3X3) 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5886: LOUBOS - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

11 

11 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5887: KLEIN MIER - AIRCON 

Community Facilities 

Libraries 

20 

20 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5888: KLEIN MIER - DESK 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5889: KLEIN MIER - SECRETARY CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5890: KLEIN MIER - CABINET WITH DRAWERS 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5891: KLEIN MIER - CARPET ( 3X3) 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5892: KLEIN MIER - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

11 

11 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5893: PHILANDERSBRON - AIRCON 

Community Facilities 

Libraries 

20 

20 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5894: PHILANDERSBRON - DESK 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5895: PHILANDERSBRON - SECRETARY CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5896: PHILANDERSBRON - CABINET WITH DRAWERS 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5897: PHILANDERSBRON - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

11 

11 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5898: PHILANDERSBRON - CARPET (3X3) 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5899: WELKOM - AIRCON 

Community Facilities 

Libraries 

20 

20 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5900: WELKOM - DESK 

Furniture and Equipment 

Furniture and Equipment 

3 

3 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5901: WELKOM - SECRETARY CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5902: WELKOM - CABINET WITH DRAWERS 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5903: WELKOM - CARPET (3X3) 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5904: WELKOM - NAME-PLATE 

Furniture and Equipment 

Furniture and Equipment 

11 

11 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5905: WELKOM - CABINET WITH DRAWERS 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

5906: WELKOM - SECRETARY CHAIR 

Furniture and Equipment 

Furniture and Equipment 

2 

2 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6098: LAPTOP (SENIOR BIBLIOTEKARIS) (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6099: LAPTOP (BIBLIOTEKARIS - PABALLELO) (ROLL-OVER 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6100: LAPTOP (BIBLIOTEKARIS - FORUM) (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6101: LAPTOP (BIBLIOTEEK ASSISTENT) (ROLL-OVER) 

Computer Equipment 

Computer Equipment 

15 

15 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6102: VOERTUIG (LIGTE BAKKIE) VIR RIETFONTEIN 

Transport Assets 

Transport Assets 

130 

130 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6103: VERSKUIF INGANG VAN BIBLIOTEEK PHILANDERSBRON 

Community Facilities 

Libraries 

9 

9 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6104: ALARMSTELSEL VIR 7 BIBLIOTEKE (ROLL-OVER) 

Community Facilities 

Libraries 

70 

70 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6105: VEILIGHEIDSDEURE EN VENSTERS BY BIBLIOTEKE 

Community Facilities 

Libraries 

45 

45 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6106: 7 TAFELS EN35 STOELE VIR BIBLIOTEKE (ROLL-OV 

Community Facilities 

Libraries 

21 

21 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6107: INSTALLEER VAN 16 RAKKE SWARTKOPSDAM EN NOEN 

Community Facilities 

Libraries 

48 

48 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6108: LUGVERSORGING VIR GROOT MIER EN LOUBOS 

Community Facilities 

Libraries 

15 

15 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6109: KR AGAAN SLU IT IN G (KRAGBOKS) VIR NUWE BIB GEB 

Community Facilities 

Libraries 

4 

4 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6110: OMHEINING VAN NUWE BIBLIOTEEKGEBOUE (ROLL-OVE 

Community Facilities 

Libraries 

71 

71 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6111: INST ALLLEER VAN SONKRAG NOENIEPUT EN SWARTKO 

Community Facilities 

Libraries 

35 

35 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6112: TEELS VIR KINDERAFDELING HOOF BIBLIOTEEK UPIN 

Community Facilities 

Libraries 

26 

26 

- 

. - . 



27 March 2018 


134 















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 62 MBRR SA36: Detailed capital budget per municipal vote (continued) 


Municipal Vote/Capital project 

R thousand 

Program/Project description 

Asset Class 

3 

Asset Sub-Class 

3 

Total Project 

Estimate 

Prior year outcomes 

2018/19 Medium Term Revenue & Expenditure 

Framework 

Current Year 2017/18 

Full Year Forecast 

Budget Year 

2018/19 

Budget Year +1 

2019/20 

Budget Year +2 

2020/21 

1004: MASINCEDANE LIBRARY PROJECT 

6113: 4 AIRCONS BY HOOFBIB IN UPINGTON (ROLL-OVER) 

Community Facilities 

Libraries 

80 

80 

_ 

_ 

_ 

1004: MASINCEDANE LIBRARY PROJECT 

6114: 2 AIRCONS BY FORUMBIBLIOTEEK (ROLL-OVER) 

Community Facilities 

Libraries 

40 

40 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6115: TEELS VIR STUDIE AREAS PABALLELO BIBLIOTEEK 

Community Facilities 

Libraries 

25 

25 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6116: BESPROEIINGSTELSEL TUIN PABALLELOBIBLIOTEEK 

Community Facilities 

Libraries 

11 

11 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6117: STOELE VIR VERSKEIE BIBLIOTEKE (ROLL-OVER) 

Community Facilities 

Libraries 

8 

8 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6118: LIFE TIME TABLE RIETFONTEIN (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6119: LIFE TIME TABLE RIETFONTEIN (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6120: LIFE TIME TABLE RIETFONTEIN (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6121: MAINSTAY TABLE RIETFONTEIN (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6122: LIFE TIME TABLE KLEIN MIER (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6123: LIFE TIME TABLE KLEIN MIER (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6124: LIFE TIME TABLE KLEIN MIER (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6125: LIFE TIME TABLE LOUBOS (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6126: LIFE TIME TABLE LOUBOS (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6127: LIFE TIME TABLE PHILANDERSBRON (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6128: LIFE TIME TABLE PHILANDERSBRON (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6129: LIFE TIME TABLE WELKOM (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6130: LIFE TIME TABLE WELKOM (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

6131: LIFE TIME TABLE WELKOM (ROLL-OVER) 

Community Facilities 

Libraries 

1 

1 

- 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

BLINDS MAIN LIBRARY 

Community Facilities 

Libraries 

26 

- 

26 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

BURGLAR BARS MIER LIBRARIES 

Community Facilities 

Libraries 

104 

- 

104 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

PALLISADE (LOUBOS) 

Community Facilities 

Libraries 

87 

- 

87 

- 

- 

1004: MASINCEDANE LIBRARY PROJECT 

LIBRARY UPGRADES 

Community Facilities 

Libraries 

435 

- 

- 

217 

217 

1005: MUNICIPAL DEMARCATION TRANSITION GRA 

UPGRADE - IMIS SYSTEM 

Licences and Rights 

Computer Software 

2 300 

2 300 

- 

- 

- 

1005: MUNICIPAL DEMARCATION TRANSITION GRA 

UPGRADE-IMIS SCANNER 

Licences and Rights 

Computer Software 

59 

59 

- 

- 

- 

1005: MUNICIPAL DEMARCATION TRANSITION GRA 

UPGRADE - IMIS SERVER 

Licences and Rights 

Computer Software 

188 

188 

- 

- 

- 

1005: MUNICIPAL DEMARCATION TRANSITION GRA 

UPGRADE - NETWORK UPGRADE 

Licences and Rights 

Computer Software 

11 031 

11 031 

- 

- 

- 

1005: MUNICIPAL DEMARCATION TRANSITION GRA 

UPGRADE - COMPUTER EQUIPMENT 

Computer Equipment 

Computer Equipment 

2 288 

2 288 

- 

- 

- 

1022: EEDSM 

EEDSM 2018/2019 

Electrical Infrastructure 

LV Networks 

9 565 

- 

2 609 

3 478 

3 478 

1022: EEDSM 

PURCHASE OF ERF 702 

Non-revenue Generating 

Unimproved Property 

650 

- 

650 

- 

- 

1022: ENERGY EFFICIENCY & DEMAND SIDE 

5907: EEDSM GRANT 2017-2018 

Electrical Infrastructure 

LV Networks 

4 360 

4 360 




Parent Capital expenditure 






127 478 

36190 

30 433 

Entities: 









Entity Capital expenditure 





- 

- 

- 

- 

Total Capital expenditure 





116 242 

127 478 

36190 

30 433 


27 March 2018 


135 




















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.13 Legislation compliance status 

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

1. In year reporting 

Reporting to National Treasury in electronic format was fully complied with on a 
monthly basis. Section 71 reporting to the Mayor (within 10 working days) has 
progressively improved. 

2. Internship programme 

The municipality is participating in the Municipal Financial Management Internship 
programme and has employed five interns undergoing training in various divisions 
of the Financial Services Department. Since the introduction of the Internship 
programme the municipality has successfully employed and trained four other 
interns through this programme and all of them were appointed in the municipality. 

3. Budget and Treasury Office 

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

4. Audit Committee 

An Audit Committee has been established and is fully functional. 

5. Service Delivery and Implementation Plan 

The detail SDBIP document is at a draft stage and will be tabled to Council on the 
27 th of March 2018. The SDBIP is directly aligned and informed by the 2018/2019 
MTREF. 

6. Annual Report 

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


27 March 2018 


136 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


7. MFMA Training 

The MFMA training module in electronic format is presented at the municipality’s 
internal centres and training is on-going. 

8. Policies 

An amendment of the Municipal Property Rates Regulations as published in 
Government Notice 363 of 27 March 2009 was announced in Government Gazette 
33016 on 12 March 2010. The ratios as prescribed in the Regulations have been 
complied with. 


27 March 2018 


137 




Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.14 Other supporting documents 


Table 63 MBRR Table SA1 - Supporting detail to budgeted financial performance 


Description 

R thousand 

2016/17 


Current Year 2017/18 


2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

REVENUE ITEMS: 

Property rates 









Total Property Rates 

83 630 

108 133 

103 940 

103 940 

103 940 

110 177 

116 788 

124 379 

less Revenue Foregone (exemptions, reductions and 
rebates and impermissable values in excess of 









section 17 of MPRA) 

8 224 

10 884 

10 109 

10 109 

10 109 

10 715 

11 358 

12 096 

Net Property Rates 

75 406 

97 249 

93 832 

93 832 

93 832 

99 462 

105 429 

112 282 

Service charqes - electricity revenue 









Total Service charges - electricity revenue 

246 332 

278 289 

282 858 

282 858 

282 858 

322 006 

341 327 

363 513 

less Revenue Foregone (in excess of 50 kwh per 

indigent household per month) 

less Cost of Free Basis Services (50 kwh per 









indigent household per month) 

4 085 

4 176 

4 707 

4 707 

4 707 

5 350 

5 671 

6 040 

Net Service charges - electricity revenue 

242 247 

274 113 

278 151 

278 151 

278 151 

316 656 

335 656 

357 473 

Service charqes - water revenue 









Total Service charges - water revenue 

50 258 

68 702 

61 871 

61 871 

61 871 

67 095 

71 121 

75 744 

less Revenue Foregone (in excess of 6 kilolitres per 

indigent household per month) 

less Cost of Free Basis Services (6 kilolitres per 









indigent household per month) 

2 673 

2 476 

2 413 

2 413 

2 413 

4 109 

4 355 

4 638 

Net Service charges - water revenue 

47 585 

66 226 

59 458 

59 458 

59 458 

62 987 

66 766 

71 106 

Service charqes - sanitation revenue 









Total Service charges - sanitation revenue 

33 826 

41 520 

41 319 

41 319 

41 319 

43 763 

46 389 

49 405 

less Revenue Foregone (in excess of free sanitation 

service to indigent households) 

less Cost of Free Basis Services (free sanitation 









service to indigent households) 

6 562 

7 285 

7 920 

7 920 

7 920 

9 106 

9 653 

10 280 

Net Service charges - sanitation revenue 

27 264 

34 235 

33 399 

33 399 

33 399 

34 657 

36 736 

39 124 

Service charqes - refuse revenue 









Total refuse removal revenue 

26 504 

37 958 

34 213 

34 213 

34 213 

42 065 

44 588 

47 487 

Total landfill revenue 

less Revenue Foregone (in excess of one removal a 

week to indigent households) 

less Cost of Free Basis Services (removed once a 









week to indigent households) 

6 241 

8 305 

7 587 

7 587 

7 587 

8 770 

9 296 

9 900 

Net Service charges - refuse revenue 

20 263 

29 653 

26 626 

26 626 

26 626 

33 295 

35 292 

37 586 

Other Revenue bv source 









Other Revenue 

3 830 

4 019 

4 206 

4 206 

4 206 

1 201 

896 

950 

Commission 

484 

- 

- 

- 

- 

- 

- 

- 

Skills Development Levy Refund 

- 

212 

212 

212 

212 

300 

320 

339 

Building Plan Approlval 

698 

765 

870 

870 

870 

900 

954 

1 016 

Advertising 

- 

500 

- 

- 

- 

- 

- 

- 

Capital Contribution 

- 

562 

2 000 

2 000 

2 000 

- 

- 

- 

Insurance Claims 

140 

212 

500 

500 

500 

- 

- 

- 

Administrative Handling Fees 

258 

325 

325 

325 

325 

26 

28 

29 

Recovery Commission 

- 

959 

844 

844 

844 

- 

- 

- 

Vehicle Testing 

- 

393 

300 

300 

300 

- 

- 

- 

Entrance Fees 

- 

265 

300 

300 

300 

1 288 

1 365 

1 454 

Cemetry and Burial 

- 

201 

200 

200 

200 

212 

225 

239 

Fair Value Gains on Investments 

22 523 

5 300 

5 300 

5 300 

5 300 

10 000 

10 500 

11 078 

Actuarial Gain 

4 011 

- 

- 

- 

- 

- 

- 

- 

Employee Housing 

- 

0 

- 

- 

- 

- 

- 

- 

Town Planning and Servitutes 

2 599 

- 

- 

- 

- 

3 000 

3 180 

3 387 

Sub-Division and Consolidation Fees 

259 

- 

- 

- 

- 

2 000 

2 120 

2 258 

Encroachment Fees 

- 

- 

- 

- 

- 

10 

11 

11 

Camping Fees 


- 

- 

- 

- 

265 

281 

299 

Application Fees for Land Usuage 

- 

- 

- 

- 

- 

18 

19 

20 

Side Line Recoupment 

77 


- 


_ 

- 

- 

- 

Total 'Other' Revenue 

34 879 

13 714 

15 056 

9 556 

9 556 

19 220 

19 897 

21 080 


27 March 2018 


138 




























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 63 MBRR Table SA1 - Supporting detail to budgeted financial performance 

(continue) 


Description 

R thousand 

2016/17 


Current Year 2017/18 


2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

EXPENDITURE ITEMS: 

Employee related costs 









Basic Salaries and Wages 

155 593 

183 629 

190 329 

190 329 

190 329 

215 481 

229 487 

243 256 

Pension and UIF Contributions 

38 934 

33 312 

33 451 

33 451 

33 451 

34 972 

37 245 

39 480 

Medical Aid Contributions 

- 

15 683 

13 706 

13 706 

13 706 

15 201 

16 189 

17 161 

Overtime 

15 812 

12 230 

19 559 

19 559 

19 559 

19 685 

20 964 

22 222 

Performance Bonus 

984 

986 

1 140 

1 140 

1 140 

1 082 

1 152 

1 221 

Motor Vehicle Allowance 

10 272 

4 023 

4 293 

4 293 

4 293 

4 768 

5 078 

5 383 

Cellphone Allowance 

- 

- 

42 

42 

42 

89 

95 

101 

Housing Allowances 

1 566 

1 937 

824 

824 

824 

850 

905 

960 

Other benefits and allowances 

- 

7 036 

9 451 

9 451 

9 451 

8 824 

9 397 

9 961 

Payments in lieu of leave 

- 

1 715 

1 715 

1 715 

1 715 

2 000 

2 100 

2 216 

Long service awards 

- 

106 

40 

40 

40 

42 

44 

47 

Post-retirement benefit obligations 

- 

- 

- 

- 

- 

22 500 

26 275 

27 733 

sub-total 

223 162 

260 658 

274 550 

274 550 

274 550 

325 494 

348 933 

369 740 

Less: Emolovees costs caDitalised to PPE 

1 260 

1 008 

525 

525 

525 

- 

- 

- 

Total Employee related costs 

221 902 

259 650 

274 025 

274 025 

274 025 

325 494 

348 933 

369 740 

Contributions recoqnised - capital 

Depreciation & asset impairment 









Depreciation of Property, Plant & Equipment 

93 761 

80 534 

80 538 

80 538 

80 538 

95 594 

100 385 

105 919 

Lease amortisation 

Capital asset impairment 

Depreciation resulting from revaluation of PPE 









Total Depreciation & asset impairment 

93 761 

80 534 

80 538 

80 538 

80 538 

95 594 

100 385 

105 919 

Bulk purchases 









Electricity Bulk Purchases 

153 934 

165 476 

170 000 

170 000 

170 000 

178 500 

187 425 

197 733 

Water Bulk Purchases 

5 326 

12 500 

13 085 

13 085 

13 085 

7 791 

8 181 

8 630 

Total bulk purchases 

159 260 

177 976 

183 085 

183 085 

183 085 

186 291 

195 606 

206 364 

Transfers and qrants 









Cash transfers and grants 

464 

610 

867 

867 

867 

862 

905 

955 

Non-cash transfers and grants 

- 

- 

- 

- 

- 

- 

- 

- 

Total transfers and grants 

464 

610 

867 

867 

867 

862 

905 

955 

Contracted services 









Contractual Costs 

- 

1 880 

10 

10 

10 

- 

- 

- 

Audit Committee 

- 

5 534 

164 

164 

164 

171 

179 

189 

Legal Advice and Litigation 

646 

1 300 

1 700 

1 700 

1 700 

1 263 

1 326 

1 399 

Commission 

2 339 

- 

- 

- 

- 

- 

- 

- 

Security Services 

- 

100 

400 

400 

400 

474 

498 

525 

Professional Fees 

4 159 

9 862 

5 397 

5 397 

5 397 

- 

- 

- 

Maintenance - Equipment 

- 

- 

30 

30 

30 

140 

147 

155 

Maintenance - Other Assets 

- 

- 

358 

358 

358 

1 224 

1 286 

1 356 

Maintenance - Infrastructure 

- 

- 

3 206 

3 206 

3 206 

2 600 

2 730 

2 880 

Maintenance - Buildings 

- 

- 

775 

775 

775 

846 

888 

937 

Tracking Agents and Debt Collectors 

- 

64 

127 

127 

127 

133 

140 

148 

Masterplans 

- 

750 

- 

- 

- 

- 

- 

- 

Contractors - Functions 

- 

- 

84 

84 

84 

- 

- 

- 

Contractors - Catering 

- 

- 

164 

164 

164 

244 

256 

270 

Contractors - Sound 

- 

- 

168 

168 

168 

- 

- 

- 

Contractors - Valuers 

- 

- 

250 

250 

250 

- 

- 

- 

Contractors - Medical 

- 

- 

200 

200 

200 

- 

- 

- 

Contractors - Assets 

- 

— 

748 

748 

748 

- 

- 

— 

Contractors -Surveys 

- 

- 

836 

836 

836 

- 

- 

- 

Contractors - Removal Services 

- 

- 

801 

801 

801 

- 

- 

- 

Contractors - water 

- 

- 

928 

928 

928 

- 

- 

- 

Contractors - Vehicles 

- 

- 

900 

900 

900 

- 

- 

- 

Financial Systems 

116 

- 

- 

- 

- 

- 

- 

- 

Gijima 

51 

- 

- 

- 

- 

- 

- 

- 

IMIS 

184 

- 

- 

- 

- 

- 

- 

- 

Repairs and Maintenance 

5 784 

- 

- 

- 

- 

- 

- 

- 

Maintenance of Community Assets 

- 

- 

- 

- 

- 

593 

622 

657 

Upgrading of Guest House for Homestay Project 

122 

- 

- 

- 

- 

- 

- 

- 

Vehicle Tracking System 

111 

- 

- 

- 

- 

- 

- 

- 

Other 

1 740 

- 

- 

- 

- 

- 

- 

- 

Valuer and Assessors 

- 

- 

- 

- 

- 

2 227 

2 339 

2 467 

Maintenance of Intangible Assets 

- 

- 

- 

- 

- 

490 

515 

543 

Litter Picking and Street Cleaning 

- 

- 

- 

- 

- 

300 

315 

332 

Refuse Removal Contractors 

- 

- 

- 

- 

- 

500 

525 

554 

Water Laboratory Services 

- 

- 

- 

- 

- 

1 228 

1 289 

1 360 

Plants, Flowers and Other Decorations 

- 

- 

- 

- 

- 

7 

8 

8 

Alien Vegetation Conttrol 

- 

- 

- 

- 

- 

55 

58 

61 

Pest Control and Fumegation 

- 

- 

- 

- 

- 

11 

12 

12 

Research and Advisory 

- 

- 

- 

- 

- 

480 

504 

532 

Auctioneers 

- 

- 

- 

- 

- 

7 

7 

8 

Fire Protection Services 

- 

- 

- 

- 

- 

64 

67 

70 

Cleaning and Grass Cutting 

- 

- 

- 

- 

- 

50 

53 

55 

Sewerage Services 

- 

- 

- 

- 

- 

450 

473 

498 

Roads Laboratory Services 

- 

- 

- 

- 

- 

6 

6 

6 

Business and Financial Managemetn 

- 

- 

- 

- 

- 

3 399 

3 569 

3 765 

Stage and Sound 

- 

- 

- 

- 

- 

160 

168 

177 

Audio-Visual Services 

- 

- 

- 

- 

- 

25 

26 

28 

Artists and Performers 

- 

- 

- 

- 

- 

52 

55 

58 

Hygiene Services 

- 

- 

- 

- 

- 

6 

6 

7 

Medical Examinations 

- 

- 

- 

- 

- 

250 

263 

277 

First Aid Contractors 

- 

- 

- 

- 

- 

11 

11 

12 

Employee Wellness Contractors 

- 

- 

- 

- 

- 

200 

210 

222 

Qualification Verification 

- 

- 

- 

- 

- 

30 

32 

33 

Civil Engineering 

- 

- 

- 

- 

- 

95 

100 

105 

Organ is ational 

- 

- 

- 

- 

- 

1 830 

1 922 

2 027 

Cleaning Services 

- 

- 

- 

- 

- 

1 

1 

1 

Land and Quantity Surveyors 

- 

- 

- 

- 

- 

1 707 

1 792 

1 891 

Town Planners 

- 

- 

- 

- 

- 

546 

573 

605 

Geo-detic Control and Surveys 

- 

- 

- 

- 

- 

137 

143 

151 

Geo-lnformatic Services (EIA) 

- 

- 

- 

- 

- 

341 

358 

378 

sub-total 

15 252 

19 490 

17 247 

17 247 

17 247 

22 352 

23 469 

24 760 

Allocations to organs of state: 









Total contracted services 

15 252 

19 490 

17 247 

17 247 

17 247 

22 352 

23 469 

24 760 


27 March 2018 


139 

































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 63 MBRR Table SA1 - Supporting detail to budgeted financial performance 

(continue) 


Description 

R thousand 

2016/17 

Current Year 2017/18 

2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

Other Expenditure By Type 









Collection costs 









Contributions to 'other' provisions 

15150 

12 500 

12 500 

12 500 

12 500 

- 

- 

- 

Consultant fees 

- 

- 

- 

- 

- 

- 

- 

- 

Audit fees 

6 970 

- 

5 626 

5 626 

5 626 

5 626 

5 907 

6 232 

General expenses 

2 666 

15 280 

5 208 

5 208 

5 208 

3149 

3 307 

3489 

Telephone and Postage 

4113 

4 445 

3 275 

3 275 

3 275 

3 570 

3 749 

3 955 

Black Plastic Bags 

1 645 

- 

- 

- 

- 

- 

- 

- 

Chemicals and Fertilizers 

2 205 

- 

- 

- 

- 

- 

- 

- 

Cleaning Material 

446 

- 

- 

- 

- 

- 

- 

- 

Entertainment Costs 

148 

- 

- 

- 

- 

- 

- 

- 

Insurance Cost 

1 139 

- 

- 

- 

- 

- 

- 

- 

Laboratory Analysis 

731 

- 

- 

- 

- 

- 

- 

- 

Operating Costs PMU 

2 523 

- 

- 

- 

- 

- 

- 

- 

Printing and Stationary 

1 332 

- 

- 

- 

- 

- 

- 

- 

Seminars 

377 

92 

653 

653 

653 

154 

162 

171 

Hire Charges 

85 

- 

527 

527 

527 

745 

783 

826 

Insurance 

- 

1453 

- 

- 

- 

1940 

2 037 

2149 

Professional Bodies 

- 

- 

2183 

2183 

2183 

2 766 

2 905 

3 065 

Ward Councillors 

- 

- 

960 

960 

960 

960 

1022 

1084 

Travel and Subsistence 

2181 

2 065 

2 476 

2476 

2 476 

2 988 

3137 

3 310 

System Charges 

- 

- 

734 

734 

734 

767 

806 

850 

Fuel & Oil 

7 649 

9 000 

9 000 

9 000 

9 000 

- 

- 

- 

Bank Charges 

1 604 

1635 

1470 

1470 

1470 

1485 

1 559 

1645 

Commission 

1 136 

4 042 

3 995 

3 995 

3 995 

4 307 

4 522 

4 771 

Bad Debt Written Off 

- 

- 


- 

- 

5 500 

5 775 

6 093 

Licences Expenditure 

- 

2 033 

1489 

1489 

1489 

- 

- 

- 

Printing, Publications and Books 

- 

- 

862 

862 

862 

217 

228 

240 

Amalgamation Expenditure 

- 

4 565 

- 

- 

- 

- 

- 

- 

Vehicle Tracking 

- 

- 

350 

350 

350 

350 

368 

388 

Indigent Relief 

- 

- 

- 

- 

- 

- 

- 

- 

Ward Committee 

- 

960 

- 

- 

- 

- 

- 

- 

Consumable Items 

5 432 

6 372 

- 

- 

- 

- 

- 

- 

Membership Fees 

1 175 

2 248 

2 

2 

2 

- 

- 

- 

Actuarial 

- 

10 000 

10 000 

10 000 

10 000 

- 

- 

- 

Training 

- 

551 

- 

- 

- 

- 

- 

- 

Assets less than Capitalisation Threshold 

- 

- 

- 

- 

- 

230 

242 

255 

Advertising 

257 

- 

- 

- 

- 

417 

438 

462 

Uniform and Protective Clothing 

704 

- 

- 

- 

- 

1470 

1 543 

1628 

Software Licences 

1 608 

- 

- 

- 

- 

1369 

1438 

1517 

Radio and TV licences 

- 

- 

- 

- 

- 

105 

110 

116 

Supplier and Development Programme 

- 

- 

- 

- 

- 

58 

61 

64 

Postage, Stamps anf Franking Machines 

- 

- 

- 

- 

- 

1055 

1 108 

1 169 

Municipal Consumption 

264 

261 

- 

- 

- 

27 275 

28 856 

30 674 

Total 'Other' Expenditure 

61 541 

77 501 

61309 

61 309 

61 309 

66 504 

70 061 

74150 



Repairs and Maintenance 









Other materials 

11216 

18435 

17 985 

17 985 

17 985 

10 023 

10 524 

11103 

Contracted Services 

- 

- 

- 


- 

5 893 

6188 

6 528 

Total Repairs and Maintenance Expenditure 

11216 

18435 

17 985 

17 985 

17 985 

15916 

16 712 

17 631 


27 March 2018 


140 



























Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 64 MBRR Table SA2 - Matrix financial performance budget 
_ (Revenue source / expenditure type and department) _ 


Description 

Rthousand 

Vote 1 - 

Municipal 

Manager 

Vote 2- 

Corporate 

Services 

Vote 3 ■ Budget 
& Treasury 

Office 

Vote 4 - 

Community 

Services 

Vote 5 ■ 

Technical 

Director 

Vote 6 ■ Electro 

Mech Services 

Vote 7 ■ Civil 

Engineering 

Services 

Vote 8- 

Planning and 
Development 

Services 

Total 

Revenue Bv Source 










Property rates 

- 

- 

99462 

- 

- 

- 

- 

- 

99462 

Service charges-electricity revenue 

- 

- 

- 

- 

- 

316656 

- 

- 

316656 

Service charges-water revenue 

- 

- 

- 

- 

- 

- 

62 987 

- 

62 987 

Service charges - sanitation revenue 

- 

- 

- 

- 

- 

- 

34657 

- 

34657 

Service charges - reitise revenue 

- 

- 

- 

33 295 

- 

- 

- 

- 

33 295 

Rental of facilities and equipment 

- 

4545 

- 

118 

- 

- 

- 

3324 

7 987 

Interest earned - external investments 

- 

- 

4 350 

- 

- 

- 

- 

- 

4350 

Interest earned-outstanding debtors 

- 

- 

3000 

- 

- 

- 

- 

- 

3 000 

Fines, penalties and forfeits 

- 

110 

- 

5 442 

- 

- 

- 

150 

5702 

Licences and permits 

- 

- 

- 

1971 

- 

- 

- 

15 

1986 

Other revenue 

- 

11039 

14 

1754 

- 

24 

104 

6 284 

19 220 

Transfers and subsidies 

- 

- 

82 049 

2713 

- 

2217 

1304 

4937 

93 221 

Gains on disposal of PPE 

- 

29086 

- 

- 

- 

- 

- 

- 

29 086 

Total Revenue (excluding capital transfers 










and contributions) 

- 

44780 

188 875 

45 292 

- 

318 898 

99 052 

14710 

711 607 

Expenditure Bv Tvoe 










Employee related costs 

54 402 

28157 

36191 

96 254 

- 

2 0 947 

66170 

23373 

325494 

Remuneration of councillors 

11571 

- 

- 

- 

- 

- 

- 

- 

11571 

Depreciations, asset impairment 

121 

5497 

1292 

23 622 

- 

19 569 

44 709 

785 

95594 

Finance charges 

- 

- 

5 

- 

- 

5216 

7 003 

- 

12 225 

Bulk purchases 

- 

- 


- 

- 

178 500 

7791 

- 

186 291 

Other materials 

96 

1223 

330 

5 744 

- 

15658 

6466 

730 

30 247 

Contracted services 

611 

3559 

5598 

1464 

- 

1917 

5765 

3438 

22 352 

Transfers and subsidies 

446 

- 

- 

166 

- 

250 

- 

- 

862 

Other expenditure 

2 281 

5889 

22 330 

1846 

- 

26275 

6896 

988 

66504 

Loss on disposal of PPE 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total Expenditure 

69 528 

44324 

65746 

129 096 

- 

268 333 

144799 

29 314 

751 140 

Surplus/(Deficit) 

(69 528) 

456 

123129 

(83 804) 

- 

50 564 

(45747) 

(14604) 

(39 534) 

i ransiers ana suDsiaies ■ cape (monetary 










allocations) (Natonal / Provincial and District) 

- 

- 

- 

217 

- 

14783 

8 696 

20 365 

44 060 

Surplus/(Deficit) after capital transfers & 

(69 528) 

456 

123129 

(83 587) 

- 

65347 

(37 051) 

5761 

4527 

contributions 











27 March 2018 


141 






















Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 65 MBRR Table SA3 - Supporting detail to Statement of Financial Position 


Description 

R thousand 

2016/17 


Current Year 2017/18 


2018/19 Medium Term Revenue & 

Expenditure Framework 

Audited 

Outcome 

Original 

Budget 

Adjusted 

Budget 

Full Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2018/19 

Budget Year 

+1 2019/20 

Budget Year 

+2 2020/21 

ASSETS 

Call investment deposits 









Total Call investment deposits 

- 

- 

- 

- 

- 

- 

- 

- 

Consumer debtors 









Consumer debtors 

109 699 

67 690 

93 940 

81 574 

81 574 

80112 

100 838 

114 838 

Less: Provision for debt imoairment 

(38 079) 

(10 625) 

(10 625) 

(10 625) 

(10 625) 

(16 125) 

(21 900) 

(27 992) 

Total Consumer debtors 

71 620 

57 066 

83 316 

70 949 

70 949 

63 987 

78 938 

86 845 

Debt impairment provision 









Balance at the beginning of the year 

(28 343) 

(10 625) 

(10 625) 

(10 625) 

(10 625) 

(10 625) 

(16 125) 

(21 900) 

Contributions to the provision 

(18 409) 

5 000 

5 300 

5 300 

5 300 

- 

- 

- 

Bad debts w ritten off 

8 673 

(5000) 

(5 300) 

(5300) 

(5 300) 

(5 500) 

(5 775) 

(6 093) 

Balance at end of year 

(38 079) 

(10 625) 

(10 625) 

(10 625) 

(10 625) 

(16 125) 

(21 900) 

(27 992) 

Propertv, plant and equipment (PPE) 









PPE at cost/valuation (excl. finance leases) 

2 561 303 

2 559 350 

2 666 862 

2 663 256 

2 663 256 

2 788 494 

2 824 684 

2 855 117 

Leases recognised as PPE 









Less: Accumulated depreciation 

756 987 

833 808 

837 524 

838 117 

838 117 

933 710 

1 034 096 

1 140 015 

Total Property, plant and equipment (PPE) 

1 804 316 

1 725 542 

1 829 338 

1 825 139 

1 825 139 

1 854 784 

1 790 589 

1715102 

LIABILITIES 

Current liabilities ■ Borrowinq 









Current portion of long-term liabilities 

8 716 

8912 

10162 

10162 

10162 

10 000 

12 000 

13 000 

Total Current liabilities - Borrowing 

8 716 

8 912 

10162 

10162 

10162 

10 000 

12 000 

13 000 

Trade and other pavables 









Trade and other creditors 

85 691 

49 052 

49 052 

80 000 

80 000 

87 500 

89 000 

69 000 

Unspent conditional transfers 

19144 

- 

- 

- 

- 

- 

- 

- 

VAT 

3 580 

5500 

5 500 

5500 

5 500 

8 000 

6 000 

6 000 

Total Trade and other payables 

108 415 

54 552 

54 552 

85 500 

85 500 

95 500 

95 000 

75 000 

Non current liabilities - Borrowina 









Borrowing 

104 021 

104 995 

114 995 

102 914 

102 914 

89 077 

71 077 

52 077 

Total Non current liabilities - Borrowing 

104 021 

104 995 

114 995 

102 914 

102 914 

89 077 

71 077 

52 077 

Provisions ■ non-current 









Retirement benefits 

104 253 

115 328 

115 328 

116 753 

116 753 

139 253 

165 528 

193 261 

List other major provision items 









Refuse landfill site rehabilitation 

157 925 

16 426 

16 426 

157 925 

157 925 

157 925 

157 925 

157 925 

Other 

- 

31 866 

31 866 

- 

- 

- 

- 

- 

Total Provisions ■ non-current 

262 178 

163 620 

163 620 

274 678 

274 678 

297 178 

323 453 

351 186 

CHANGES IN NET ASSETS 

Accumulated Surolus/tDeficit) 









Accumulated Surplus/(Deficit) - opening balance 

1 996 037 

2 012 366 

2 012 366 

1 984 223 

1 984 223 

2 012 343 

2 016 870 

1 986 178 

Restated balance 

1 996 037 

2 012 366 

2 012 366 

1 984 223 

1 984 223 

2 012 343 

2 016 870 

1 986 178 

Surplus/(Deficit) 

(11 813) 

25155 

28120 

28120 

28120 

4 527 

(30 692) 

(25 802) 

Other adjustments 

- 

- 

103162 

- 

- 

- 

- 

- 

Accumulated Surplus/(Deficit) 

1 984 223 

2 037 521 

2 143 648 

2 012 343 

2 012 343 

2 016 870 

1 986 178 

1 960 375 

Reserves 









Total Reserves 

- 

- 

- 

- 

- 

- 

- 

- 

TOTAL COMMUNITY WEALTH/EQUITY 

1 984 223 

2 037 521 

2 143 648 

2 012 343 

2 012 343 

2 016 870 

1 986 178 

1 960 375 


27 March 2018 


142 








































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 66 MBRR Table SA9 - Social, economic and demographic statistics and 
_ assumptions _ 


Description of economic indicator 

Basis of calculation 

2001 Census 

2007 Survey 

2011 Census 

2014115 

2015/16 

2016117 

Current Year 

2017118 

2018119 Medium Term Revenue & 

Expenditure Framework 

Outcome 

Outcome 

Outcome 

Original 

Budget 

Outcome 

Outcome 

Outcome 

Demographics 











Population 

The 80-20 Report on Local Government 

100 

93 

93 

93 

93 

93 

93 

Females aged 5-14 

The 80-20 Report on Local Government 








Males aged 5-14 

The 80-20 Report on Local Government 

Infcrmafon 

Infcrmafon 

Infcrmafon 

Information 

Infcrmafon 

Infcrmafon 

Infcrmafon 

Females aged 15-34 

The 80-20 Report on Local Government 

not available 

not available 

not available 

not available 

not available 

not available 

not available 

Males aged 15-34 

The 80-20 Report on Local Government 








Unemployment 

The 80-20 Report on Local Government 








Monthly Household income (no. of households! 











None 

The 80-20 Report on Local Government 

Infcrmafon not available 

2278 

2278 

2278 

2278 

R1-R1600 

The 80-20 Report on Local Government 

Infcrmafon not available 

5439 

5439 

5439 

5439 

R1601-R3 200 

The 80-20 Report on Local Government 

Infcrmafon not available 

4 579 

4579 

4579 

4579 

R3 201 - R6 400 

The 80-20 Report on Local Government 

Infcrmafon not available 

3 766 

3766 

3766 

3766 

R6 401 - R12 800 

The 80-20 Report on Local Government 

Infcrmafon not available 

3 347 

3 347 

3 347 

3 347 

R12 801 - R25 600 

The 80-20 Report on Local Government 

Infcrmafon not available 

2278 

2278 

2278 

2278 

R25 601 - R51200 

The 80-20 Report on Local Government 

Infcrmafon not available 

1093 

1093 

1093 

1093 

R52 201 - R102 400 

The 80-20 Report on Local Government 

Infcrmafon not available 

302 

302 

302 

302 

R102 401 - R204 800 

The 80-20 Report on Local Government 

Infcrmafon not available 

116 

116 

116 

116 

R204 801 - R409 600 

The 80-20 Report on Local Government 

Infcrmafon not available 





R409 601 - R819 200 

The 80-20 Report on Local Government 

Infcrmafon not available 

70 

70 

70 

70 

> R819 200 

The 80-20 Report on Local Government 

Infcrmafon not available 





Poverty profiles Ino. of households! 











< R2 060 per household per monlti 

The 80-20 Report on Local Government 

Infcrmafon not available 

8554 

8 554 

8554 

8 554 

Insert description 











Household/demographics (0001 











Number of people in municipal area 




Infcrmafon not available 

93 

93 

93 

93 

Number of poor people in municipal area 

The 80-20 Report on Local Government 

Infcrmafon not available 

- 


- 

- 

Number of households in municipal area 




Infcrmafon not available 

23 

23 

23 

23 

Number of poor households in municipal area 




Infcrmafon not available 

9 

9 

9 

9 

Deinifon of poor household (R per month) 

The 80-20 Report on Local Government 

Infcrmafon not available 

< than R 

< than R 

<than R 

<than R 

Housing statistics 











Formal 

The 80-20 Report on Local Government 



Infcrmafon not available 



Informal 











Total number of households 




- 1 - 1 - 1 - 1 

Dwellings provided by municipality 











Dwellings provided by province/s 











Dwellings provided by private sector 











Total new housing dwellings 











Economic 











Inlaion/inHafon outlook (CPIX) 




0.0% 

0.0% 

0.0% 

5.6% 

4.8% 

5.9% 

5.6% 

Interest rate-borrowing 




0.0% 

0.0% 

0.0% 

Fixed Rates 

Fixed Rates 

Fixed Rates 

Fixed Rates 

Interest rate - investment 




0.0% 

0.0% 

0.0% 

5.5% 

5.5% 

5.5% 

5.5% 

Remuneraion increases 




0.0% 

0.0% 

6.8% 

6.8% 

7.0% 

7.0% 

7.0% 

Consumption growth (electricity) 




0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

Consumption growth (water) 




0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

0.0% 

Collection rates 











Property lax/service charges 




% 

98.0% 

98.0% 

98.0% 

98.0% 

98.0% 

98.0% 

98.0% 

Rental of tales & equipment 




% 

98.0% 

98.0% 

98.0% 

98.0% 

98.0% 

98.0% 

98.0% 

Interest-external investments 




% 

Quotation 

Quotation 

Quotation 

Quotalon 

Quotation 

Quotalon 

Quotalon 

Interest-debtors 




% 

10.0% 

10.0% 

10.0% 

10.0% 

10.0% 

10.0% 

10.0% 

Revenue from agency services 




% 

12.0% 

12.0% 

12.0% 

12.0% 

12.0% 

12.0% 

12.0% 


27 March 2018 


143 













































Dawid Kruiper Municipality 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


Table 68 MBRR 

SA32- 

List of external mechanisms 


External mechanism 

Yrs / 

Mths 

Period of 

agreement 1. 

Service provided 

Expiry date of 
service delivery 
agreement or 

Monetary 

value of 

agreement 2. 

Name of organisation 


Number 


contract 

R thousand 

BIQ 

Yrs 

Ongoing 

Information System - Financial System 

Ongoing 

250 

IMIS 

Yrs 

Ongoing 

Information System - Financial System 

Ongoing 

Ongoing-30 Days 

400 

Alltech Netstar Fleet Solutions 

Mths 

Ongoing 

Satellite Tracking System for Vehicles 

Notice Period 

348 

Team Mate 

Yrs 

Ongoing 

Information System - Financial System 

Rental of Offices for Councillors and Ward 

Ongoing 

18 

Help U Agencies 

Yrs 

4 

Committee Members 

Ongoing 

5 

RWT Trading 

Yrs 

2 

Rental of Offices for Councillors and Ward Committe 

Ongoing 

5 


27 March 2018 


144 




















Dawid Kruiper Municipalit' 


2018/2019 to 2020/2021 Draft Annual Budget and MTREF 


2.15 Municipal manager’s quality certificate 

I _, Municipal Manager of Dawid Kruiper 

Municipality, hereby certify that the annual budget and supporting documentation have 
been prepared in accordance with the Municipal Finance Management Act and the 
regulations made under the Act, and that the annual budget and supporting documents 
are consistent with the Integrated Development Plan of the municipality. 

ELIAS NTOBA 

Municipal Manager of Dawid Kruiper Municipality (NC087) 

27 March 2018 


27 March 2018 


145