Acid test ratio
Municipalities throughout the country recorded the acid test ratio of 0,93:1 and 0,88:1 during for two financial years ended 30 June 2019 and 30 June 2020 respectively.
Municipalities throughout the country recorded the current ratio of 0,99:1 and 0,93:1 in 2019 and 2020 respectively.
Municipal revenue stream
For the year to 30 June 2020, the largest contributor to total municipal revenue of R421 406 million (total revenue less deficit and rebates) was 'grants and subsidies received' (28,8%). That was followed by 'electricity sales' (27,0%), 'property rates received' (16,8%), 'other revenue' (10,8%) (which consists of fines, licences and permits, public contributions and donations, etc.). The smallest contributors were 'water sales' (9,9%), 'sewerage and sanitation charges' (4,0%), and 'refuse removal charges' (2,8%).
Municipal expenditure patterns
In 2020, the largest contributors to municipal total operating expenditure of R412 296 million (total expenditure less surplus and rebates) were 'employee-related costs' (28,4%) and 'electricity purchases' (21,4%). The smallest contributors were 'general expenditure' (4,7%) (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' (1,6%), 'grants and subsidies paid' (1,4%), and 'remuneration of councillors (1,2%).