Dis­trict mu­nic­i­pal­ity de­tails spend­ing of more funds

The Rep - - NEWS - By Zo­lile Men­zelwa

THE Chris Hani Dis­trict Mu­nic­i­pal­ity ap­proved the spend­ing of mil­lions of Rand of ad­di­tional fund­ing from pro­vin­cial and na­tional gov­ern­ment in its sec­ond bud­get ad­just­ment for the 2014/15 fi­nan­cial year dur­ing an or­di­nary coun­cil meet­ing on Wed­nes­day.

The agenda item in­di­cated the op­er­at­ing rev­enue had in­creased by R24.4-mil­lion, the op­er­at­ing ex­pen­di­ture by R41.7-mil­lion and cap­i­tal ex­pen­di­ture by R61-mil­lion.

The ad­di­tional al­lo­ca­tion from the mu­nic­i­pal in­fra­struc­ture grant (MIG) is R39.9-mil­lion and R1.3-mil­lion is to come from the ac­cel­er­ated in­fra­struc­ture pro­gramme fund. Coun­cil also ap­proved an ad­vance of R20-mil­lion to fund the MIG ex­pen­di­ture. CHDM has, in re­cent years, won pro­vin­cial awards for com­pletely spend­ing the MIG on its in­tended pur­pose.

The mu­nic­i­pal­ity has in­ter­nally gen­er­ated R18.1-mil­lion through value added tax. The pro­vin­cial health depart­ment funded the dis­trict au­thor­ity to the tune of R5.5-mil­lion. The to­tal op­er­at­ing rev­enue de­creased by 22% com­pared with the orig­i­nal bud­get and in­creased by 3% when com­pared with the first ad­just­ment bud­get. Salaries and al­lowances are at R26.6-mil­lion while coun­cil­lors’ al­lowances are at R200 000 and re­pairs and main­te­nance are R1.8-mil­lion.

Trans­fers and grants are at R16-mil­lion, bulk pur­chases have been set at R2.3-mil­lion and con­tracted ser­vices at R3-mil­lion.

The over­all in­crease in ex­pen­di­ture, when com­pared with the first ad­just­ment bud­get, is R41.6-mil­lion. “The in­crease in op­er­at­ing rev­enue and ex­pen­di­ture has re­sulted in an op­er­at­ing deficit of R73 000 af­ter tak­ing into ac­count the R100-m that has been re­cov­ered from the MIG (as a re­fund on an ad­vance from coun­cil),” the agenda item stated.

The cap­i­tal grants amount to R754.3-mil­lion and the MIG of R20-mil­lion re­quested from coun­cil is to be used to con­tinue with the projects. A por­tion of the money is ex­pected to be paid out by the fi­nan­cial year-end on June 30.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.