Roll-overs blamed for 25% drop in operating revenue

The Chris Hani District Municipality (CHDM) has decreased its operating revenue by 2% which executive mayor Kholiswa Vimbayo attributed to unapproved roll-overs, affecting funds for service delivery.

In the proposed third budget adjustment for the 2018-19 to 2021 mid-term revenue and expenditure framework (MTRF) report by the mayor, it was indicated that the operating revenue would decrease by R21,8m and other revenue by R64m.

However, Vimbayo said the interest charged on outstanding consumer debts had increased substantially by R26m, the same as the additional revenue realised from water billing.

Interest on external investments had also increased by R674,000. Vimbayo proposed that council approve a R27,365m increase in operating expenditure and a decrease in the capital revenue and expenditure by R41,434m and R82,309m respectively.

UDM councillor Zanemvula Deliwe questioned the decrease in capital revenue and expenditure, indicating it would have a negative impact on service delivery which was already not up to standard.

“Decreasing revenue meant to serve the people, is a bad idea. I want to know how that can be avoided in future,” he asked.

Vimbayo said the first adjustment budget was tabled in August 2018 and was as a result of roll-overs, and a second in November 2018 which was the result of additional grant allocations from government.

An adjustment budget for the Chris Hani District Agency was also tabled, which reflected that the total approved budget was R53,4m and there was a deficit amounting to R1.6m.

Vimbayo said they had received 42% of the total budget and had spent 46%.

“The reason we have spent more is due to roll-overs and other expenditure items which have used up all of the budget in the first two quarters of the financial year.”