Final Adopted IDP - KZN Development Planning

For the 2012 / 2013 financial year the Municipality is to receive an amount of R 1.5
million in respect of the FMG and R 800 000 for the MSIG. Funding in terms of the
equitable share allocation for the 2012 / 2013 financial year amounts to R 78 231 000.
Capital Grant Funding
One of the greatest challenges faced by the Municipality is limited and even stagnant
financial resources available to meet an ever increasing demand. As a consequence
development within the Municipality is possible with external capital grant funding only.
All capital grant funding is in respect of specific projects and the Municipality has no
discretion in the manner in which these funds are used
The primary source of capital grant funding is the Municipal Infrastructure Grant
(MIG); however, there are other sources such as the Department of Energy which
provides funding for the electrification programme within the Municipality. For each
capital grant made available to the Municipality a separate bank account into which the
proceeds of the grant are paid must be maintained. A monthly report reflecting
expenditure incurred on the MIG and the INEG in the month under review is submitted
to the National Treasury. For the 2012 / 2013 financial year MIG funding will comprise
an amount of R 26 700 000 while R 8 million will be made available from the INEG to
fund the electrification of 500 houses during the ensuing financial year.
REVENUE MANAGEMENT
It is imperative that the Municipality seeks ways in which to enhance and expand its
revenue base. The following strategies have been devised to date to increase own
revenue:
• The Municipality is in the process of replacing all of the conventional electricity
meters as well as the old prepaid electricity meters with prepaid meters that
feature a more advanced technology. This reduces the opportunity for meter
tampering and has two significant advantages for the Municipality – a reduction in
electricity distribution loss which lowers the Eskom bill and by selling electricity
on a prepaid basis provides a cash inflow boost.
• The development of the Driving Licence Testing Centre has increased the
potential revenue by adding to the learners‟ licence testing facility the capability
to test for drivers‟ licences and undertake vehicle testing. There are five
examiners who test drivers and vehicles – three are responsible for the
conducting of drivers‟ license tests while the other two are responsible for the
testing of vehicles – one of these examiners can test both light and heavy duty
vehicles while the other is qualified to test light vehicles only. The Centre which
107