93% of Nelson Mandela Bay Metro's operating budget spent in last financial year

SEPTEMBER 8, 2014

The metro spent 93% of its Adjusted Operating Budget of R7.89 billion in the last financial year, according to figures to be present to the Budget Performance Monitoring Forum.

Only 89% of the just under R2 billion budgeted for employee-related costs was spent a report to the committee saying the under-expenditure “relates to budgeted vacant positions, which are following the recruitment process”.

The report adds, however, that the moratorium on the filling of vacancies during the 2013/14 financial year affected employee-related expenditure.

Budget and Treasury, for example, only spent 50% of its budget of R235.5 mil-lion for employee-related costs, pointing out that in addition to the moratorium, the figure was also influenced by the recent Actuarial Valuation performed on post-retirement benefits.

The report shows that the metro collected 97% of projected revenue of R7.7 billion.

It shows that 96% of projected property rates of R1.254 billion was collected; 97% of the R2.963 billion projected for electricity charges and 102% of the R498.4 million projected for water.

Only 70% of the R177.1 million budgeted for refuse collection was accrued and 90% of the R343.3 million projected for sanitation services.

The figures show that only 37% of projected revenue of R34.5 million from fines was collected and 84% of the total of R21.3 million projected from the rent-al of facilities and equipment.

Interest earned on outstanding debtors amounted to R217.5 million against a projected target of R171.8 million, while interest from external investments amounted to R80.7 million against a target of R60.4 million. - metrominutes