IMPROVING LIVES THROUGH DATA ECOSYSTEMS

Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 1,1:1 and 1,2:1 during the financial years ended 30 June 2011 and 30 June 2012 respectively.

Current ratio

The current ratio of municipalities was 1,2:1 for both the financial years ended 30 June 2011 and 30 June 2012.

Municipal revenue stream

For 2012 financial year, the largest contributor to municipal revenue was `Grants and subsidies` with (31,6%), followed by `Electricity and gas sales` (31,2%), `Property rates received` (14,0%), `Other revenue` (8,7%) which, among others, consists of fines, licences and permits, public contributions and donations, etc, `Water sales` (8,4%), `Sewerage and sanitation charges` (3,5%), and `Refuse removal charges` (2,6%).

Municipal expenditure patterns

In 2012, the largest contributor to the municipal total operating expenditure was `Employee related costs` (26,3%), followed by `Purchases electricity and gas` (23,0%), `Depreciation and amortization` (10,1%), `Other expenditure` (9,0%), which consists of, amongst others, collection costs, loss on disposal of property, plant and equipment, impairment loss, etc., `General expenditure` (5,9%), `Bad debts` (5,3%), `Purchases of water` (5,0%), `Repairs and maintenance` (4,9%), `Contracted services` (4,3%), `Interest paid` (2,8%), `Grants and subsidies paid by municipalities` (2,4%), and `Remuneration of councilors` (1,2%).