Page 225 - UGU Dstrct Mun IDP Report '21-22

6.1.4 Operating Expenditure Budget 2018 / 2019 – 2020 / 2021
Table 6.1.4.1 gives a brief overview of the 2018 / 2019 – 2020 / 2021 operating expenditure budget.
Table 6.1.4.1: Operating Expenditure Budget 2018 / 2019 – 2020 / 2021
Description
2018/2019
2019/2020
2020/2021
2021/22
2022/23
2023/2024
Employee Related Costs
R 356 742 873.16
R 375 650 245.44
R 395 559 708.45
R 391 315 705
R412 838 069
R 435 544 162
Remuneration of Councillors
R 11 508 644.67
R 12 118 602.84
R 12 760 888.79
R 10 663 937
R 11 410 413
R 12 209 142
Debt Impairment
R 3 159 000.00
R 3 326 427.00
R 3 502 727.63
R 12 458 000
R 13 080 900
R 13 735 945
Depreciation and Asset Impairment
R 85 462 491.00
R 89 992 003.02
R 94 761 579.18
R220 000 00
R 209 000 000
R 198 550 000
Finance Charges
R 15 654 318.44
R 16 483 997.32
R 17 357 649.18
R 12 458 000
R 13 080 900
R 13 734 945
Bulk Purchases
R 79 000 000.00
R 83 187 000.00
R 87 595 911.00
R 140 322 581
R 147 338 710
R 154 705 645
Other Materials
R 17 427 953.61
R 18 351 635.15
R 19 324 271.81
R 4 732 146.86
R 4 968 754.20
R 5 217 191.91
Contracted Services
R 105 266 947.61
R 110 846 095.83
R 116 720 938.91
R 153 752 612
R 161 440 242.60
R 169 512 254.73
Transfers and Subsidies
R 19 280 430.00
R 20 302 292.79
R 21 378 314.30
R 20 069 649
R 21 073 131
R 22 126 788
Other Expenditure
R 107 717 939.23
R 113 426 990.01
R 119 438 620.48
R 252 480 273.58
R 265 104 287.26
R 278 359 501.62
Total Operating Expenditure
R 801 220 597.72
R 843 685 289.40
R 888 400 609.73
R1 020 252 904.44
R 1 259 335 407.06
R 1 303 695 575.26
Source: Ugu District Municipality Draft Budget, 2021
6.1.4.1 Employee Related Costs (including councillor allowances)
The Salary and Wage Collective Agreement for the period 01 July 2021 to 31 June 2022 is yet to be concluded. The process is under consultation, therefore in the absence of other information from South African Local Government Bargaining Council (SALGBC) communication will be provided at a later stage. However, the municipality must make budget allocation for the increment in 2021 / 2022 financial year.
N.B. Therefore, the salary and wages increment is proposed at 5.5% in 2021 / 2022 financial year. The increment of 5.5% is based on the following:
Table 6.1.9.1: Proposed Salary and Wage Increment
Source: Ugu District Municipality Draft Budget, 2021
The proposed increment of 5.5% is based on both Employees, Section 54/56 Employees and Councillors.
Basis
%
Forecasted CPI per Macroeconomic Performance
4.2%
Assumed Adjusting Factor during negotiation processes
1.3%
Proposed Increment
5.5%
IDP REVIEW 223