CDM Municipality
In compliance with the Municipal Finance Management Act and relevant Treasury regulations, CDM Executive Mayor present to council a proposed budget for the financial year 2018/19.
We are therefore proposing a total budget of R949m, which represents an increase of 1% from 2017/18 financial year total budget of R942m. The overall budget includes the R858m of grants plus the revenue from water sales, the interest on investment and the other income from sale of tenders. The budget is 90% of grant funded.
Operating Revenue
Apart from revenue from grants, there is an increase of 6% on the interest on investments, totalling to R25,7m and an increase of about 5.3% on the water sales, totalling to R64,1m.
Capital budget
Capital Budget is R 251 224 000 and consists of:
§ Projects funded by equitable share and Municipal Infrastructure Grant (MIG).
§ Operations and maintenance of R 10 000 000
§ Most of the Capital budget is channelled to water and sanitation and O&M projects. About 87% of the capital budget is allocated to water and sanitation and Operations and Maintenance.
§ The corporate services has a budget of R17,7m for administrative expenses
Budget Related Policies
The following budget related policies have been reviewed with no changes:
§ Credit Control and Debt Collection Policy;
§ Cash and Investment Policy;
§ Tariff Policy;
§ Virement Policy;
§ Petty Cash Policy;
§ Supply Chain Management Policy;
§ Asset management Policy;
§ Delegations of Financial Powers;
§ Indigent Policy; and
§ Bad Debts Provision and Write off Policy.
The following changes were made, and are therefore recommended in respect of the Tariffs Structure: The tariff for 2018/19, 2019/20 and 2020/21 were increased by 5.3%, 5.4% and 5.5% respectively as per the guidance in the budget circular issued by Treasury.