District municipality details spending of more funds

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.