IMPROVING LIVES THROUGH DATA ECOSYSTEMS

Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 0,84:1 and 0,85:1 during for two financial years ended 30 June 2020 and 30 June 2021 respectively.

Current ratio

Municipalities throughout the country recorded the current ratio of 0,89:1 and 0,90:1 in 2020 and 2021 respectively.

Municipal revenue stream

For the year to 30 June 2021, the largest contributor to total municipal revenue of R453 653 million (total revenue less deficit: see tables in Part 3) for the year ended 30 June 2021 was 'government transfers and subsidies' (30,7%), followed by 'electricity sales' (26,0%), 'property rates received' (16,6%), 'water sales' (10,2%), and 'other revenue' (9,7%) (which consists of fines, penalties and forfeits, licences and permits, other transfers and subsidies, etc.). 'Sewerage and sanitation charges' (3,9%) and 'refuse removal charges' (2,8%) were the smallest contributors. 

Municipal expenditure patterns

In 2021, the largest contributor to municipal total operating expenditure of R437 984 million (total expenditure less surplus: see tables in Part 3) was 'employee-related costs' (29,0%), followed by 'electricity purchases' (21,7%), 'debt impairment’ (9,3%)', ‘contracted services (8,8%), 'depreciation, amortisation and impairment' (8,5%), 'operational costs (7,5%) (which consists of  travel and subsistence, external audit fees, bank charges and card fees, communication, wet fuel, hire charges, insurance underwriting, etc.), and 'water purchases' (6,2%). The smallest contributors were 'transfers and subsidies' (0,8%), 'remuneration of councillors' (1,0%), 'inventory consumed' (1,3%), 'finance costs' (2,5%), and 'other expenditure' (3,4%) ('other expenditure' consists of loss on disposal of assets, operating leases, etc.).