Page 163 - UGU Dstrct Mun IDP Report '21-22

3.8.5 Municipal Consumer Debt Position
The Municipality bills for the water, sanitation, environmental health services and other miscellaneous services. Major services are provided to households. The consumer debt has been in a constant increase since as reflected in Table 3.13.5.1 and 3.13.5.2. Debt management is closely linked with revenue management and thus has been addressed as part of the Revenue Enhancement Strategy. A debt reduction strategy has also been developed and that it is currently being implemented and that it covers extensively credit control and debt management issues.
Table 3.13.5.1: Ugu District Outstanding Debt
Source: Ugu Treasury, 2020
Table 3.13.5.2: Ugu District Consumer Debt Age Analysis
Source: Ugu Treasury, 2020
3.8.6 Grants and Borrowings
The municipality currently has 4 long-term debt commitments in the form of three DBSA loans and one ABSA loan as reflected in Table 3.13.6.1. The servicing of existing loan commitments from generated revenues has delayed the process of cash backing of the depleted reserves which had supplemented capital investment when the municipality was in a cash crisis.
Table 3.13.6.1: Ugu District Consumer Debt Age Analysis
Source: Ugu Treasury, 2021
3.8.7 Municipal Infrastructure Assets and Maintenance
The asset management unit which comprises of technical and financial sections are in place and is currently addressing historic asset management challenges and bringing about a reform in the municipality. In the 2020 /2021 financial year, the municipality received a qualified audit report with a few asset management matters as emphasis. The municipality has put plan in place to ensure that the asset management challenges are addressed. The municipality is committed to:
• Ensure management, accounting and information system that accounts for the assets, long term liabilities, investments and leases;
• Ensure that assets, liabilities, investments and leases are valued in accordance with standards of Generally Recognized
Description
2016/2017
2017/2018
2018/2019
2019/2020
2020/21
Households
R260 077 613.69
R 349 507 474.61
R 422 520699.76
R523 741 291.53
R543 436 730
Business
R 52 331 216.93
R 90 455 116.48
R 85 090 025.81
R109 294 999.17
R117 691 230
Government
R 16 765 083.50
R 23 683 128.57
R 37 353 151.27
R42 766 098.03
R40 863 289
Total Debt
R 329 173 914.12
R 463 635 719.66
R 544 963 876.84
R675 802 388.73
701 991 249
% growth
-1.49%
40.85%
14.92%
19.36%
3.88%
Days
R. Value
%
0-30
R 67 096 575.74
9.9
31-60
R 25 729 193.31
3.8
61-90
R 9 266 604.73
1.37
91-120
R 21 834 534.12
3.23
121-180
R 41 955 056.00
6.2
Over 180
R 509 920 424.82
75.5
Start Date
End Date
Amount
Institution
Purpose
04/09/2007
31/03/2022
R 25,000,000
DBSA
Provision of Infrastructure
23/12/2008
30/06/2023
R 25,000,000
DBSA
Provision of Infrastructure
30/10/2009
30/06/2029
R 62,000,000
DBSA
Provision of Infrastructure
Total
R 112,000,000
IDP REVIEW 161