IMPROVING LIVES THROUGH DATA ECOSYSTEMS

Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 0,84:1 and 0,77:1 for two financial years ended 30 June 2021 and 30 June 2022 respectively.

Current ratio

Municipalities throughout the country recorded the current ratio of 0,89:1 and 0,82:1 in 2021 and 2022 respectively.

Debt-to-income ratio

Municipalities on average, had debt-to-income ratios of 0,67:1 and 0,69:1 for the financial years ended 30 June 2021 and 30 June 2022 respectively.

Debt ratio

For the financial years ended 30 June 2021 and 30 June 2022, the municipal debt ratios were 0,32 and 0,33 respectively.

Municipal revenue stream

For the municipal year to 30 June 2022, largest contributor to total municipal revenue of R473 431 million (total revenue less deficit: see tables in Part 3) was 'government transfers and subsidies received' (28,1%), followed by 'electricity sales' (27,6%), 'property rates received' (16,9%), 'water sales' (10,4%), and 'other revenue' (10,1%) (which consists of fines, penalties and forfeits, licences and permits, other transfers and subsidies, etc.). 'Sewerage and sanitation charges' (4,2%) and 'refuse removal charges' (2,8%) were the smallest contributors. 

Municipal expenditure patterns

In 2022, the largest contributor to municipal total operating expenditure of R472 120 million (total expenditure less surplus: see tables in Part 3) was 'employee-related costs' (27,1%), followed by 'electricity purchases' (23,6%), 'operational costs’ (9,7%) (which consists of  travel and subsistence, external audit fees, bank charges and card fees, communication, wet fuel, hire charges, insurance underwriting, etc.), 'debt impairment’ (9,3%), ‘contracted services (8,4%), 'depreciation, amortisation and impairment' (8,3%), and 'water purchases' (5,3%). The smallest contributors were 'transfers and subsidies paid' (0,8%), 'remuneration of councillors' (0,9%), 'other expenditure' (1,6%) (which consists of loss on disposal of assets, operating leases, etc.), 'inventory consumed' (1,9%), and 'finance costs' (3,0%).