This follows the budget and benchmark engagement between the municipality and National Treasury in April. During the engagement, the budget was assessed in terms of credibility, relevance and sustainability.
Key observations highlighted included the unfunded mandates and increasing salary budget which is putting pressure on the municipality’s finances and negatively impacting its sustainability.
National Treasury pointed out that the municipality would only be in a position to generate positive cash balances if it achieved a minimum collection rate of 85%.
“The budget is assessed as funded for the 2019/20 financial year provided that the municipality improves the collection of outstanding debtors.”