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EXECUTIVE SUMMARYINTRODUCTION AND BACKGROUNDThe purpose of the 2012/13 MTREF budget is to comply with the MFMA (No 56 of 2003). The MTREFis a financial plan to enable the municipality to achieve its vision and mission through the IDP Strategywhich is informed by the development agenda and community/stakeholder inputs.The draft budget serves to bring to light the current council developmental priorities as outlined below.• Poverty reduction, job creation , rural and economic development• Financial sustainability• Spatial development and the built environment• Eradication of bucket system, VIP toilets in Mangaung, Botshabelo and Thaba Nchu, roads,ageing infrastructure, focus on the basics• Human settlements• Public transport• Environment management and climate change• Social and community services• Good governanceThe tabling of the draft budget is the start of a journey towards the final budget approval later in May2013. It serves to initiate many processes both politically and administratively, amongst others,consultations with communities throughout the municipal area.2.1 PAST AND CURRENT PERFORMANCE, ACHIEVEMENTS AND CHALLENGES (BUDGETIMPLEMENTATION)2.1.1 PAST PERFORMANCE AND SPENDING LEVELS1. Performance: Budget vs. Actual - Capital ExpenditureFinancialActual% Spent% SpentApproved Budget Adjusted BudgetYearExpenditure App Budget Adj BudgetR R R % %2007/08 673,559,930 771,609,378 554,186,629 82.28 71.822008/09 727,433,917 880,865,907 586,465,952 80.62 66.582009/10 841,738,170 928,321,425 702,491,263 83.46 75.672010/11 373,255,940 797,710,869 458,735,235 122.90 57.512011/12 824,147,005 821,546,339 587,464,376 71.28 71.51The municipality has maintained an actual spending level of 88.11% against the approved budget overthe past five (5) years. The average spending in terms of the adjustment budget has been 68.62%there is thus a need to improve the level of performance on the Adjustment Budget projects.2. Source of FundingThe Capital Budget projects of the municipality have been funded as follows over the years:Funding Source 2007/08 2008/09 2009/10 2010/11 2011/12R R R R RMunicipal Infrastructure Grant 163,645,812 98,135,428 53,442,457 142,758,205 63,045,527Department of Mineral & Energy Grant 3,305,263 27,575,935 2,535,935 2,368,980 13,079,863Capital Replacement Reserves 216,745,012 173,268,045 253,195,698 160,386,881 73,858,508Public Contributions & Donations 20,768,284 11,856,906 12,562,390 13,195,438 15,249,817External Loans - - - - 80,439,672Other Grants and Subsidies 147,195,772 264,347,019 354,548,228 113,983,127 341,790,988Revenue / Surplus 2,529,486 11,282,619 26,226,989 - -TOTAL 554,186,629 586,465,952 702,491,263 458,735,235 587,464,3763