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 2016.
Some of the key items identified during the mid-term assessment for review were:
- The consistent unfavourable performance of the Property Rates income of R179,632 million of the mid-term, mainly as a result of the downward adjustment of major market values of properties in the city by the Valuation Appeals Board.
- A underperformance in the services charges revenue budget by R 200,873 million 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 559,950 million (7,47%), mainly due to lower projected Property Rates and municipal services charges revenues by R 167,76 million (18.37%), and R 389,62 million (10,78%)respectively.
- To adjust the non-grant funded expenditure downwards by R 295,714 million (4.76%) as a result of lower revenue projections from the municipal’s own revenue sources. (See above).
- To provide for the allocation of unspent conditional grants at the end of the 2014/15 budget year, and newly allocated grants received R 124, 65 million.