Entire Document - Chris Hani District Municipality

The Capital Replacement Reserve replaces the previous statutory funds, like theCapital Development Fund, and is a cash-backed reserve established to enable themunicipality to finance future capital expenditure. Cash contributions, depending onthe availability of cash, is made annually to the reserve.The Government Grants Reserves are utilised to offset the cost of depreciation ofassets funded from Government Grants over the lifespan of such assets. Amountsequal to the cost of assets acquired from Government Grants are transferred to thereserve annually.The municipality, in conjunction with its own capital requirements and externalfunds (external loans and grants) is able to finance its annual infrastructure capitalprogramme.Refer to Note 20 and the Statement of Change in Net Assets for more detail.7. LONG-TERM LIABILITIESChapter 4The outstanding amount of Long-term Liabilities as at 30 June 2012 was R4 424076 (30 June 2011: R5 553 707).Refer to Note 17 to the Annual Financial Statements for more detail.8. RETIREMENT BENEFIT LIABILITIESThe outstanding amount of Retirement Benefit Liabilities as at 30 June 2012 wasR25 147 550 (30 June 2011: R21 070 779).This liability is in respect of continued Healh Care Benefits for employees ofthe municipality after retirement being members of schemes providing for suchbenefits. This liability is unfunded.Refer to Note 18 for more detail.9. NON-CURRENT PROVISIONSNon-current Provisions amounted R3 326 322 as at 30 June 2012 (30 June 2011:R2 866 650) and is made up as follows:Provision for Long-term Service3 326 3223 326 322These provisions are made in order to enable the municipality to be in aposition to fulfil its known legal obligations when they become due and payable.99