Acid test ratio
Municipalities throughout the country recorded the acid test ratio of 0,9:1 during the two financial years ended 30 June 2017 and 30 June 2018.
Municipalities throughout the country recorded the current ratio of 1,0:1 in both 2017 and 2018.
Municipal revenue stream
For the year to 30 June 2018, the largest contributor to municipal revenue of R370 324 million was 'grants and subsidies received' (29,9%), followed by 'electricity sales' (26,9%), 'property rates received' (15,8%), 'other revenue' (11,6%) (which consists of fines, licences and permits, public contributions and donations, etc.), 'water sales' (9,3%), 'sewerage and sanitation charges' (3,7%), and 'refuse removal charges' (2,8%).
Municipal expenditure patterns
In 2018, the largest contributor to municipal total operating expenditure of R346 655 million was 'employee-related costs' (28,0%), followed by 'electricity purchases' (21,4%), 'depreciation and amortisation' (8,9%), 'other expenditure' (8,1%) (which consists of collection costs, loss on disposal of property, plant and equipment, impairment loss, etc.), 'contracted services' (8,0%), 'bad debts' (6,8%), 'water purchases' (5,9%) 'general expenditure' (5,0%) (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' (3,0%), 'repairs and maintenance' (2,1%), 'grants and subsidies paid' (1,8%), and 'remuneration of councillors' (1,2%).