RICHMOND MUNICIPALITY 2010/2011 BUDGET Prepared by: Richmond Municipality Budget and Treasury Office 1 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT Description Page Annexure No No Table of Contents PART 1 – ANNUAL BUDGET  Mayors report 3-4  Budget related resolutions 5-7  Executive summary 8-13  Annual budget tables 14 A1 – A10 PART 2 – SUPPORTING DOCUMENTATION  Overview of annual budget process 15 B1-B10  Overview of alignment of annual budget with 16-17 Intergrated Development Plan  Measurable performance objectives and indicators 18-19  Overview of budget related policies 20-21 C1-C13  Overview of budget assumptions 22-23 D1-D8  Overview of budget funding 24-25  Expenditure on allocations and grant programmes 26  Allocations and grants made by the municipality 27-28  Councillor allowances and employee benefits 29  Monthly targets for revenue, expenditure and cash 30 flow  Annual budgets and services delivery and budget 31-32 implementation plans-internal departments  Annual budget and services delivery agreements- 33 municipal entities and other external mechanisms  Contracts having future budgetary implications 34  Capital expenditure details 35-36 E1-E3  Legislation compliance status 37 F1-F13  Other supporting documents 38  Annual budgets of municipal entities attached to the 39 municipalities budget  Municipal manager’s quality certification 40-41 2 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT RICHMOND MUNICIPALITY MAYORS REPORT 3 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT Mayors Budget Speech 2010/2011 The Richmond Vision 2015 Through innovation and dedication, the Richmond Municipality will provide its citizens with access to physical, social and economic development opportunities in a safe and secure environment. In his 2010, state of the nation address, the President signalled that government intends to:  Deliver more and better services in a caring and efficient manner  Hold political office bearers and public servants accountable  Shift resources to new priorities  Move from debate to effective implantation and decisive action and  Work in partnership with communities, labour and business to achieve our shared objectives. These objectives are directly relevant to the Richmond Municipality. The challenge however is to do more within its existing resource envelope. Achieving this objective requires a new way of working we have therefore prioritised the budget so that money is allocated to high priority programmes. We remain focused on the effective delivery of core municipal services and this will be achieved by aligning the municipal budget to the integrated development plan. 4 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT RICHMOND MUNICIPALITY BUDGET RELATED RESOLUTIONS 5 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT Budget related resolutions 1. That in terms of section 24 of the Municipal Finance Management Act, 56 of 2003, the annual budget of the Richmond Municipality for the financial year 2010/11; and indicative allocations for the two projected outer years 2011/12 and 2012/13; and the multi-year and single year capital appropriations are approved as set-out in the following tables: 1.1 Budgeted Financial Performance (revenue and expenditure by standard classification): (Table A2 – Supporting Tables A2a, SA1,SA2,SA3) 1.2 Budgeted Financial Performance (revenue and expenditure by municipal vote); (Table A3 – Supporting Table A3a) 1.3 Budgeted Financial Performance (revenue by source and expenditure by type); and (Table A4 ) 1.4 Multi-year and single year capital appropriations by municipal vote and standard classification and associated funding by source. (Table A5 ) 2. That the financial position, cash flow, cash-backed reserve/accumulated surplus, asset management and basic service delivery targets are adopted as set-out in the following tables: 2.1 Budgeted Financial Position; (Table A6 ) 2.2 Budgeted Cash Flows; (Table A7 ) 2.3 Cash backed reserves and accumulated surplus reconciliation; (Table A8 ) 2.4 Asset management; and(Table A9 ) 2.5 Basic service delivery measurement. (Table A10 ) 3. That in terms of section 24(2)©(i) and (ii) of the Municipal Finance Management Act, 56 of 2003 and sections 74 and 75A of the Local Government Municipal System Act, Act 32 of 2000 as amended, the tariffs for the supply of refuse, property rates and other tariffs as set out in Annexure D that was used to prepare the estimates of revenue by source, are approved with effect 1 July 2010. 4. That in terms of section 5 of the Municipal Property Rates Act, 6 of 2004, the rates policy (or amendments to the rates policy) as set out in Annexure C is approved. 6 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT 5. That in terms of section 24(2)©(iii) of the Municipal Finance Management Act, 56 of 2003, the measurable performance objectives for capital and operating expenditure by vote for each year of the medium term revenue and expenditure framework as set out in Supporting Table SA7 are approved. 6. That in terms of section 24(2)©(iv) of the Municipal Finance Management Act, 56 of 2003, the amendments to the integrated development plan as set out in Budget Chapter 17 are approved. 7. That in terms of section 24(2)©(v) of the Municipal Finance Management Act, 56 of 2003, the budget related policies, including any amendments are approved for the budget year 2010/11. 8. That in terms of sections 22(2)(b) of the Municipal Finance Management Act read together with section 23(3) of the Municipal Budget and Reporting Regulations, council approves an application to National Treasury for the roll over of the unspent balances of the 2009/2010 Financial Management Grant, Municipal Systems Improvement Grant and Municipal Infrastructure Grant (MIG). (NB: All unspent 2009/2010 funds are committed) 9. Council notes the Service Delivery and Budget Implementation Plan (SDBIP) with the budget for subsequent approval by the mayor. 7 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT RICHMOND MUNICIPALITY EXECUTIVE SUMMARY 8 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT EXECUTIVE SUMMARY Number Details 1. Employee related costs 2. Remuneration of councillors 3. Operating Appropriation 4. Capital Appropriations 5. Funding 6. Budget summary The budget has been framed in line with the following principles:- 1. Employee related costs An 8.48 percent increase has been provided for all employees. The following additional posts have been provided for:- a) Municipal Manager • 1 x Communications Officer b) Corporate Services • 1 x Secretary for Strategic Managers • 1 x IT Officer •1 x Help Desk Officer 9 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT c) Community Services • 1 x Housing Clerk d) Library Services  1 Assistant Librarian for the Hopewell Library e) Technical Services  1 Tractor Driver  1 Supervisor f) Protection Services (Learners Centre)  1 Senior Examiner  1 Cashier g) Roads  1 Tipper Truck Driver  1 TLB Operator h) Refuse Collection  1 General Assistant 2. Remuneration of Councillors  An 8.5 % increase has been provided for. The final increase is determined by the National Minister of Provincial and Local Government in consultation with the Provincial Minister of Local Government and Traditional Affairs. 3. Operating Appropriations  These costs have been provided by the various heads of departments.  Contract costs have been calculated.  Every effort has been made to limit budget increases 4. Capital Appropriations  The capital budget is informed by the Integrated Development Plan as well as the requests by the various departmental heads. 10 Richmond Municipality Budget 2010/2011 FINAL BUDGET DOCUMENT