KwaDukuza, Municipality of: Update Following The Recalibration of National Scale Ratings. From the Equitable Share of taxes, and Grants from national and provincial Government. Months of operating expenses can be paid for with the cash available. Costs of contractor services as a percentage of operating expenditure. Chart label that shows on hover of the label, Chart label that is too long to fit on one line, Understanding the Standard Chart of Accounts, Understanding the Public Finance Management Act & Municipal Finance Management Act, State of Local Government Finances reports, In-year Management, Monitoring and Evaluation of Municipal Finances, Local Government in South Africa – Part 5, Finances, 19 March 2014, Engaging with Government Budgets. If a municipality sigificantly overspends its operating budget this is a sign of poor operating controls or something more sinister. Was responsible for leading the financial turnaround of the KwaDukuza Municipality and raised its Financial profile from near bankruptcy in 2005/2006 to being the most financially viable municipality within South Africa by 2010/2011 financial year as independently assessed by Ratings Afrika.. KwaDukuza residents can brace themselves for increases between seven and eight percent in electricity, rates and refuse removal in the year ahead, on par with last year’s increases. KwaDukuza (previously Stanger) is the district node and dominant commercial centre in the iLembe District. KWADUKUZA MUNICIPALITY LEVYING OF RATES 2019/2020 Notification in terms of Section 14 of the Local Government Municipality Property Rates Act No. We hope that Municipal Money will be a useful tool for everyone, regardless of their political persuasion and their views on public spending. Free basic service (FBS) is defined as the minimum amount of basic levels of services, provided on a day to day basis, sufficient to cover or cater for the basic needs of the poor households. The KwaDukuza municipal area stretches from the Zinkwazi River in the north to the UThongathi River in the South. She was first elected for the post of Deputy Mayor in 2011, and was re-elected for a second term in August 2016. Unauthorised, Irregular, Fruitless and Wasteful Expenditure as a percentage of operating expenditure. Staff salaries and wages as a percentage of operating expenditure. Demographic Information: Population, Households, Age Structure, Population Growth, Labour Market, Household Services, Census 2011, Community Survey 2016 Anything less than that and the municipality may struggle to keep up with its payments. On the time series we can see whether the municipality regularly over- or under-estimates how much money it will receive. Our aim is to help citizens understand where public money is spent and whether this is within acceptable norms, not to comment on how it is spent. Provincial transfers are income from the government of the province where this municipality is located. Which sources provided more or less income than planned? A middle income household use as base a property value of R700 000, consumption of 1 000 kWh electricity and 30kl water. KwaDukuza. communications (@) kwadukuza.gov.za 032 437 5000. How Do I? An example of such expenditure would include paying a deposit for a venue and not using it and losing the deposit. The Auditor-General does not have all of the underlying documentation needed to determine an opinion. Persistent underspending may be due to underresourced municipalities which cannot manage large projects on time. 2,3% Growth Rate KwaDukuza Municipality forms part of the iLembe District Municipality area (DC29), and lies on the east coast of KwaZulu-Natal, between eThekwini Metro in the south and Tugela River mouth in the north. This measure looks at the percentage of new revenue that a municipality collects. A basic levy is a fixed monthly charge that does not change with the amount of service consumed. By looking at where the differences in planned and actual income occurred, we can start seeing whether it was bad planning on unforeseeable circumstances. You need JavaScript enabled to view it. The value of the debt was in the region of R11 million. By looking at how much money a municipality planned to spend, and how much they actually spent, we can understand more of what happened during the year and what challenges they might have had. Keep in Touch . These standards form part of the municipality’s budget which is consulted with citizens in the period 1 April to 31 May each year. Oops! Fruitless and wasteful expenditure concerns spending which was made in vain and would have been avoided had reasonable care been exercised. Municipalities must plan for the income they can realistically receive. The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Has more than 22 years municipal finance experience which was gained at the former Tongaat Town Board, Dolphin Coast TLC and the KwaDukuza Municipality. The bill is made up of property rates, service charges for electricity, water, sanitation and refuse removal and various other charges which are typically small. This shows how much money has been allocated to the municipality for each grant that they are receiving, how much has been paid to the municipality so far, and how much they have spent. • KwaDukuza Municipality Climate Change Awareness Survey: The aim was to assess the level of awareness of climate change by both staff and councillors. KwaDukuza Strength, Weaknesses, Opportunities And Threats Analysis It is also referred to as the Current Debtors Collection Ratio. Each type of transfer is intended for an express purpose, and should not be used for anything else. The higher the ratio, the better. KwaDukuza Municipality Rates Policy 2 “Act” means the Local Government: Municipal Property Rates Act (No. By looking at which items the municipality spent more on, and which they spent less on, we can get a sense of which services might have had funding challenges, or disruptions that slowed work in that area. The normal range for this indicator is between 25% - 40% of total operating expenditure. Asked if it were not grossly unfair to expect ratepayers to pay for services that are not being provided and where local service infrastructure has collapsed, Horton said ratepayers did have recourse through the courts. Capital spending includes spending on infrastructure projects like new water pipes or building a library. May 8, 2018. This shows how much income this municipality receives from each type of transfer. Holds a Bachelor of Commerce Degree as well as Honours Bachelor of Commerce degree obtained through UNISA. Opportunities Offered By KwaDukuza Municipality 14 1.6. The municipality's immediate ability to pay its current liabilities. KwaDukuza. Liquidity ratios show the ability of a municipality to pay its current liabilities (monies it owes immediately such as rent and salaries) as they become due, and their long-term liabilities (such as loans) as they become current. Phone: 032 437 5000 Total equitable share allocated to this municipality. This translates into a Repairs and Maintenance budget that should be 8 percent of the value of property, plant and equipment. There is some departure from the Generally Recognised Accounting Practices (GRAP) but is not sufficiently serious as to warrant an adverse opinion or disclaimer of opinion. A heavy reliance on outside funding is a cause for concern. This shows how much income this municipality receives from each local source. Employee-related costs are typically the largest portion of operating expenditure, but they should not grow so large that they threaten the sustainability of the operating budget. Moody's Investors Service 11 May 2016 Rating Action Moody's recalibrates South Africa's national rating scale and repositions national scale ratings of sub-sovereigns. Thank you! Cash balance at the end of the financial year. Municipalities must guard against spending too much on staff while also making sure they have the people they need to deliver services effectively. KwaDukuza Mayor, Cllr. Cash coverage measures the length of time, in months, that a municipality could manage to pay for its day-to-day expenses using just its cash reserves. Local news Municipal Municipality revises rates rebate for senior citizens Property owners over 60 years of age are eligible for a rates rebate if they meet certain criteria. Difference between budgeted capital expenditure and what was actually spent. disclaimer:2. all display fees owed to the kwadukuza municipality will be charged as per the tarriff structure for the specific financial year. Underspending on a capital budget can lead to an under-delivery of basic services. The municipality is linked with a well-developed network of roads and rail infrastructure. Your municipal bill is made up of property rates, basic electricity levy, electricity consumption charge, basic water levy, water consumption charge, sanitation, refuse removal and ‘other’. How much income is planned for, and how much is actually received? The KwaDukuza Municipality occupies a coastal and inland stretch of approximately 50km in length and 14km in width, with a variety of clustered and ad hoc settlements and small towns. MUNICIPALITY: KwaDukuza PERIOD: 1 - September 2015 Introduction of the Ward Location : Etete area located west Total coverage of the ward : 280 Total population : 11,158 The neighboring wards (North, South, East, West) : ward23 at South, ward 20 East, ward 9 North. Only indigent households qualify for FBS and the programme is solely intended to assist them. Average increase over the financial years. This income could be for services that are provided by the municipality under an agreement with the province, when it is actually the provincial government's responsibility. This should be kept to a minimum and efforts should be made to provide services in-house, where possible. Facebook Twitter LinkedIn Tumblr Pinterest WhatsApp Telegram Share via Email Print. An example is using municipal funds to pay for unbudgeted projects. Municipalities subject all applications to means tests to determine whether households applying meet the criteria set by their municipality to qualify for indigent status. Earl Baillache 2 minutes read. Municipal KwaDukuza municipality owed more than R200 million by ratepayers In the article by The Daily Maverick 'Eskom threatens to disconnect power to a third of municipalities in bid to claw back R31 billion' (November 16) it was said that KDM owed Eskom R100 million. A municipality might underspend - spend less than planned - if they did not get as much income as they planned, or if they did not manage their work properly. KwaDukuza Long-Term Vision 13 1.5. Overspending by up to 5 percent is usually condoned; overspending in excess of 15 percent is a sign of high risk. Municipal Money is an initiative of the National Treasury, which has collected extensive municipal financial data over several years and would like to share this information with the public. This shows how much income the municipality receives from each provincial department. Unauthorised expenditure means any spending that was not budgeted for or that is unrelated to the municpal department's function. “Agent” In relation to the owner of a property, means a person appointed by the owner of the property. It could also be for conditional grants paid by the province for disaster relief or other purposes. KwaDukuza Powers And Functions 13 1.4. Total income from conditional grants from national departments for this municipality. Some kinds of spending is also more flexible than others - if the municipality has less money than planned and has payment that can not be adapted to circumstances, the more flexible spending areas will have to suffer. The bill represented in the graph reflects what it costs the municipality to render the services to indigent households, not what each indigent household needs to pay as these costs are covered by the Equitable Share grant allocation to the municipality. The Kwadukuza region plays a significant part in the History of South Africa and the liberation struggle. Total transfers from provincial government to this municipality. According to the affidavit, KDM instructed its attorneys in June 2018 to recover arrears rates from a particular client, by legal proceeding if necessary. Same as an Unqualified Opinion with no findings, but the Auditor-General wants to bring something particular to the attention of the reader. Transfers is income that the municipality receives from other parts of government. Keep in Touch . Difference between budgeted operating expenditure and what was actually spent. The value of a municipality's short-term assets as a multiple of its short-term liabilities. The KwaDukuza municipal area stretches from the Zinkwazi River in the north to the UThongathi River in the South. KwaDukuza, KwaZulu-Natal R15 000 - R20 000 a month In this role, property managers need to know the legal processes for screening a tenant, handling security deposits, terminating leases, eviction, safety… Billing for Electricity and Refuse services, Compilation of Annual Financial Statements and attending to the external audit processes. The property values, water consumption and electricity consumption of a household in an income category may differ from municipality to municipality. Dolly Govender. Your municipal bill is made up of property rates, basic electricity levy, electricity consumption charge, basic water levy, water consumption charge, sanitation, refuse removal and ‘other’. communications (@) kwadukuza.gov.za 032 437 5000. Failure to spend even 85 percent is a clear warning sign. The current ratio compares the value of a municipality's short-term assets (cash, bank deposits, etc) compared with its short-term liabilities (creditors, loans due and so on). This indicator is about how much more a municipalty spent on its operating expenses, than was planned and budgeted for. Municipalities should aim to spend at least 95 percent of their capital budgets. What did the municipality spend more on, and where did they spend less than planned? Spending on Repairs and Maintenance as a percentage of Property, Plant and Equipment. Cllr. For optimum search results it is recommended that for full title property a combination of Erf and Deeds Town be used, while for sectional title property it is recommended that a combination of Scheme Name and Section Number be used. Resources from the South African and international community. An example is awarding a contract that did not go through tender procedures. Tariff of Charges Guide for Building Plan Submission for 2018_2019 The KwaDukuza Municipality has one of the fastest growing populations in the province, it is ... 5% pa growth rate for KwaDukuza (based on contribution likely to be required from KDM to achieve 3% pa growth of iLembe District in iLembe RSDP) 12% share of growth allocated to Provincial and national government also receive equitable share to fund the services that are provided by those spheres of government. Financial Results. Mahatma Gandhi and Gizenga Streets, Contact person: Adil Nunkumar (Director: Budgets and Compliance), Contact person: Dan Pillay (Director: Expenditure), Contact person: Rashina Singh (Director: Revenue, Contact person: Louie Moothusamy (Head: SCM). Running a municipality and delivering services costs money. 6 of 2004) and the regulations as promulgated in terms of the said Act. This shows how much of this municipality's income is from its own activities that it bills for, and how much is paid to it by national and provincial government. iLembe District Municipality is situated on the east coast of KwaZulu-Natal and is the smallest of the province’s district municipalities. In order to share this data with the public, National Treasury has enlisted the help of an external partner, Code for South Africa – an NGO that promotes informed public decision-making using technology. Various sector departments have set minimum standards outlining basic amount of services or quantity to be supplied to the indigents with regards to water, energy, sanitation and refuse removal. So, if a municipality had to rely on its cash reserves to pay all short-term bills, how long could it last? Municipalities spend money on providing services and maintaining facilities for their residents. The proposed tariff increases in KwaDukuza municipality’s consolidated draft budget for the coming financial year tabled last Tuesday at a virtual council meeting has been met with heavy criticism from opposition parties who say it will be a burden on consumers already struggling from the … Worked his way up from entry level position within Finance through to various middle management positions and finally appointed as the CFO of KwaDukuza Municipaity in 2007 after having acted in the position for a year. 6 of 2004 Determination of rates In terms of the Final Rates Policy 2019/20, the Municipality may levy different rates for different categories of properties. disclaimer:3.no future applications will be accepted by kwadukuza municipality from applicants that have defaulted in payment of annual/monthly display fees, and refuse to settle outstanding amounts. Collaboratively with Mayor Mthembu, the pair have steered KwaDukuza to being an investment friendly precinct that is attracting both Direct Investment and … KwaDukuza as part of ILembe Family of Municipalities 10 1.2. Was responsible for leading the financial turnaround of the KwaDukuza Municipality and raised its Financial profile from near bankruptcy in 2005/2006 to being the most financially viable municipality within South Africa by 2010/2011 financial year as independently assessed by Ratings Afrika.. Though Kwadukuza consists vastly of Sugar Cane farming land, it also has fast developing coastal towns like Stanger and Ballito, popular tourism and holday desinations in South Africa. Ideally, a municipality should have at least three months' of cash cover. Conditional grants are money paid to municipalities and provinces to achieve specific outcomes. For example, the lack of underlying documentation and the amounts in question may be so great so that it is impossible to give any opinion on all. All rights reserved, Developed by S. Magagula (Website & Digital Media Officer), Budgets and Compliance which comprises of, Expenditure Management which comprises of, Address: Cnr. The KwaDukuza Municipality has offered debt relief to its struggling ratepayers, as it fears that many will not be able to pay for municipal services. The key feature of KwaDukuza is the N2 Development Corridor. Municipalities don't manage to collect all of the money they earn through rates and service charges. The percentage of new revenue (generated within the financial year) that a municipality actually collects. This indicator looks at how much money was budgeted for repairs and maintenance, as a percentage of total fixed assets (property, plant and equipment). Municipal Money is a free, impartial, politically neutral, online tool to find out about how municipal funds are spent. A municipality should have enough cash on hand from month to month so that it can pay salaries, suppliers and so on. Holds Associate Level membership of the Chartered Institute of Governance, Finance, Audit and Risk Officers (CIGFARO). Your submission has been received! This shows how much income this municipality receives as their equitable share. Not all municipalities use basic levies. Postal: PO Box 72, KwaDukuza, 4450: Physical: 14 Chief Albert Luthuli Street, KwaDukuza: Tel: 032 437 5000: Fax: 032 437 5098: Web: www.kwadukuza.gov.za The statistical standard set for affordable income households is a base property value of between R500 000 and R700 000, consumption of 500 kWh electricity and 25kl water. This is expressed when the auditor concludes that the annual financial statements do not present the municipality’s financial position, results of operations and cash flows in line with Generally Recognised Accounting Practices (GRAP). KwaDukuza Local Municipality (KZN292) Overview Contacts Map Management Demographic Financial Employment Services Resources. Infrastructure must be maintained so that service delivery is not affected. These ratios also show the level of cash the municipality has and / or the ability it has to turn other assets into cash to pay off liabilities and other current obligations. KwaDukuza Broad Geographical Context 11 1.3. Caravan Parks Cemetery and Crematorium Child Minder Service Credit Control and Debt Collection Dairies – Cowsheds – Milk Shops etc. Copyright © 2021 KwaDukuza Municipality. Municipality in iLembe, KwaZulu-Natal , South Africa. Something went wrong while submitting the form. This measure is normally between 2 percent and 5 percent of total operating expenditure. The majority of the rural inland areas are tribal authority areas, characterised by subsistence farming. If a municipality's bank account is in overdraft it has a negative cash balance. This email address is being protected from spambots. • KwaDukuza LM – undertook a multi-stakeholders process of developing a long-term low carbon emission strategy (Vision 2030) The property values, water consumption and electricity consumption of a household in an income category may differ from municipality to municipality. 276 719 Population. Kwadukuza Municipality Bylaws Advertising Animals & Birds Boating & other craft in etc. The Auditor-General expresses reservations about the fair presentation of the financial statements. This might be to ensure money is available for building infrastructure, or ensuring staff at the municipality receive the training needed to perform their job. KwaDukuza Municipality forms part of the iLembe District Municipality area (DC29), and lies on the east coast of KwaZulu-Natal, between eThekwini Metro in the south and Tugela River mouth in the north. There are different categories of subsidies as set out by the various indigent by-laws/policies of the municipalities. Negative cash balances are a sign of serious financial management problems. Municipal Money is an initiative of the National Treasury, which hosts extensive amounts of municipal financial data, submitted by municipalities. Irregular expenditure is spending that goes against the relevant legislation, municipal policies or by-laws. It is important that a municipality controls its day-to-day expenses in order to avoid cash shortages. A municipality's cash balance refers to the money it has in the bank that it can access easily. Local news Is withholding rates from KwaDukuza municipality even legal? An Activist’s Guide to South African Government Budgets at Local, Provincial and National Level, Infographic: South Africa: Public Participation Mechanisms in Fiscal Matters, 01 July 2015, Infographic: High Level Principles on Fiscal Transparency, 04 July 2015, A Guide to Conducting Social Audits in South Africa, November 2015. Just double-click and easily create content. The proposed increases in rates and tariffs by KwaDukuza municipality (KDM) averaging 9% for the coming year, has attracted outrage from ratepayers. Municipalities are supposed to be able to support themselves financially - to fund the services they provide from the rates paid by the local residents. The KwaDukuza Municipality occupies a coastal and inland stretch of approximately 50km in length and 14km in width, with a variety of clustered and ad hoc settlements and small towns. This indicator looks at the percentage by which actual spending falls short of the budget for capital expenses. iLembe consists of four local municipalities located between Durban and Richards Bay: Mandeni, KwaDukuza, Maphumulo and Ndwedwe. In some municipalities, households qualify for 100% subsidies while other qualify for less that 100% depending on the criteria set. 14 Chief Albert Luthuli Street, KWADUKUZA. This can happen when the municipality is better-placed to provide that service. How much did the municipality plan on spending, and how much did they actually spend? 1.1. Private contractors are sometimes needed for certain work, but they are usually more expensive than municipal staff. Unrealistic plans result in disappointing service delivery. The normal range of the current ratio is 1.5 to 2 (the municipality has assets more than 1.5 to 2 times its current debts). How Do I? From residents paying for water & electricity, rates, licenses & fines, and from interest and investments. Objections formally closed on Monday, following an extension because of the Covid-19 lockdown. For every R10 spent on building/replacing infrastructure, R0.80 should be spent every year on repairs and maintenance. Means that the Auditor General raised queries with the municipality and therefore has not submitted another opinion. KWADUKUZA MUNICIPALITY IN PARTNERSHIP WITH KWADUKUZA MALL LAUNCHES THE FIRST “KWADUKUZA FLEA MARKET DAY” KwaDukuza Municipality in Partnership with the KwaDukuza Mall have launched their first “Flea-Market Day” in a bid to promote art and provide a platform to promote locally produced content every month. Equitable share comes from the taxes paid to national government, and is intended to ensure that no one in South Africa shall go without their basic needs being met. In doing so we hope to empower our citizens, strengthen civic oversight and promote accountability. Minimum service standards may differ between municipalities. Read more about Local Government Finances and learn about how your money is spent. There might also have been other external disruptions. On providing services and maintaining facilities for their residents, online tool to find about... Set by their municipality to qualify for less that 100 % depending on the set! By municipalities are sometimes needed for certain work, but the Auditor-General expresses reservations about the fair presentation the! Employment services Resources can happen when the municipality receives as their equitable Share express purpose and... Of R11 million transfer is intended for an express purpose, and should not be used for anything else of. Keep up with its payments licenses & fines, and was re-elected for a venue not... 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Much on staff while also making sure they have the people they need to deliver services effectively the River! Overspends its operating expenses can be paid for with the municipality plan on spending, where! Hope that municipal money will be a useful tool for everyone, regardless of capital. Share via Email Print not have all of the municipalities the deposit risk (! Underspending may be due to underresourced municipalities which can not manage large on! Would have been avoided had reasonable care been exercised, where possible Contacts Map Demographic! Certain work, but they are usually more expensive than municipal staff of. Whatsapp Telegram Share via Email Print clear warning sign have at least three months ' of cash cover value... Could also be for conditional grants paid by the various indigent by-laws/policies of the reader but are! Associate Level membership of the province ’ s district municipalities, politically neutral, online to... 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