Acid test ratio

Municipalities throughout the country recorded the acid test ratio of 0,92:1 and 0,95:1 during the two financial years ended 30 June 2018 and 30 June 2019 respectively.

Current ratio

Municipalities throughout the country recorded the current ratio of 0,97:1 and 1,01:1 in both 2018 and 2019 respectively.

Municipal revenue stream

For the year to 30 June 2019, the largest contributor to municipal revenue of R402 503 million was 'grants and subsidies received' (29,2%), followed by 'electricity sales' (26,2%), 'property rates received' (16,5%), 'other revenue' (11,9%) (which consists of fines, licences and permits, public contributions and donations, etc.), 'water sales' (9,6%), 'sewerage and sanitation charges' (3,8%), and 'refuse removal charges' (2,9%).

 Municipal expenditure patterns

In 2019, the largest contributor to municipal total operating expenditure of R379 554 million was 'employee-related costs' (28,1%), followed by 'electricity purchases' (21,0%), 'depreciation and amortisation' (8,6%), 'bad debts' (8,5%),‘contracted services’ (7,6%), 'other expenditure' (7,3%) (which consists of collection costs, loss on disposal of property, plant and equipment, impairment loss, etc.), 'water purchases' (6,4%), 'general expenditure' (5,1%) (which consists of accommodation, travel and subsistence costs, audit fees, bank charges, consultancy and professional fees, fuel and oil, hiring of equipment, insurance costs, subscriptions and membership fees, telecommunication costs, etc.), 'interest paid' (2,9%), 'repairs and maintenance' (2,0%), 'grants and subsidies paid' (1,5%), and 'remuneration of councillors' (1,1%).