Council at its monthly meeting on 28 February 2013 approved a total adjustments budget of R843 349 469 for the 2012/2013 financial year. The budget is comprised of a capital budget of R130 153 047 and an operational budget of R713 196 422.
The budget was adjusted as a result of adjustments to revenue and expenditure projections for the remaining part of the financial year as well as adjustments to the national and provincial grants to the Municipality. It was the second adjustments budget for the financial year. The first adjustments budget was done in August 2012 when national and provincial grants for the 2011/2012 financial year were rolled over to the current financial year. The total budget increased by R19,1 million at that stage. The original budget for 2012/2013 amoun-ted to R818 002 667.
The latest adjusted operational budget, which amounts to 84,6 per cent of the total budget, includes departmental and non-cash transactions. If these are not taken into account, the adjusted operational cash budget amounts to R613 433 601, and the total adjusted cash budget to R743 586 648.
The increase in the operational expenditure to R713 196 422 can be attributed mainly to an increase in the depreciation budget (from R48,7 million to R56,9 million), and an increase of R1,5 million in the town cleaning project (from R6 million to R7,5 million).
The salaries budget was decreased by R1,5 million while the budget for bulk purchases of electri-city and water was reduced by R4,2 million. The increase in the depreciation budget is due to se-veral capital expenditure projects that were completed in the 2011/2012 financial year, including the seawater desalination plant, which has an asset value of R127 million in die Municipality’s books. The operational revenue budget was adjusted from the original budget of R732 562 582 and the first adjustments budget of R751 689 551 to R755 747 419.
Although the estimated income from investments, traffic fines and land sales will be less, it is estimated that electricity sales will be R6,2 million more, in line with higher consumer demand trends.
This has also resulted in increased purchases from Eskom.
Although the adjusted budget reflects a surplus of R42 550 997 it includes non-cash transactions of R42 546 498. The actual surplus is therefore just R4 499.