THE Chris Hani District Municipal (CHDM) council approved more than R1-billion in operating expenditure in the 2016-2017 to 2018-2019 medium-term revenue expenditure framework in the second budget adjustment on Tuesday.
Presenting the item, executive mayor Kholiswa Vimbayo said the increase in operating revenue was significantly influenced by the movement of municipal infrastructure grant (MIG) capital revenue to the MIG operational revenue.
“The increase in operating expenditure was influenced by the increases in employee-related costs to cover actuaries, water bulk purchases to address expenditure of actual invoices …”
CHDM had an operating deficit of R384.5-million compared with the first adjustment budget deficit of R340.6-million, taking into account non-cash items such as indigent subsidy and depreciation.
“When the capital revenue and expenditure is taken into account [the] total deficit amounts to R505-million,” Vimbayo said, an increase of R9.2-million compared with the first adjustment budget.
The authority had a net increase in operating grants revenue of R18.2-million.
This was an additional transfer from MIG capital expenditure to MIG operating expenditure for VIP toilets of R22.5-million and an additional allocation from the department of economic develop- ment, environmental affairs and tourism of R1.9-million for greening and rehabilitation and a decrease to the municipal systems improvement grant of R1-million.
The grant conditions had changed and decreased by R5.3-million as the funds had not been paid from the department. Employee costs increased by R14-million, water and bulk purchases by R6-million and MIG by R22.5-million.
Council approved R18.2-million increase in operating revenue, R62.4-million in operating expenditure and R40.9-million in capital revenue and expenditure, plus R914-million for operating revenue, R1.299-billion for opera- ting expenditure, R570-million for capital revenue and R691-million for capital expenditure.