The Mangaung Metropolitan Municipal Council considered and approved the Mid-year Budget and Performance Assessment Report (Section 72 (1) (a)), at a special meeting held on 29 January 2014.
Some of the key items identified during the mid-term assessment for review were:
- The consistent unfavourable performance of the Property Rates income of 18% (of) mid-term, mainly as a result of the downward adjustment of major market values of commercial properties in the city.
- A reduction in the services charges revenue budget by R 368,3 million (16.7%) as a result of:
- Electricity Revenue that is unlikely to be realised based on the current level of performance.
- Sanitation fees revenue due to the lower market valuation of major commercial properties within the city.
- Refuse removal revenue that is unlikely to be realised, based on the current level of performance.
- To adjust the projected revenue per service and by vote downwards by R 511,98 million (7,24%), mainly due to lower projected Property Rates and municipal services charges revenues by R 181,33 million (16,7%), and R 368,31 million respectively.
- To adjust the non-grant funded expenditure downwards by R 378,82 million (6.39%) as a result of lower revenue projections from the municipal’s own revenue sources. (See (a) above).
- To provide for unforeseen and unavoidable expenditure amounting to R 105,88 million. To provide for the allocation of unspent conditional grants at the end of the 2013/14 budget year, and newly allocated grants received R 72,14 million.