Nkomazi Local Municipality 20 - Co-operative Governance and ...

SECTION F20. Revenue generationIt should be noted that Nkomazi is a rural municipality which does not generate much revenue as services are only paid forin the urban areas whereas rural communities are getting free services and are in the majority. Out of the total Nkomaziarea the Municipality is able to generate revenue in about 25% of the entire population.Debt CollectionDebtors have increased due to our incorrect evaluation roll that resulted debtors appealing, thus not paying for propertyrates disputed. (To be resolved after appointment of new evaluators)Billings are also done on RDP`s that are not registered in the Deeds Office, which resulted in accounts being opened as“Republic of SA” all these is not recoverable as we held no sufficient information to recover the Debts (needs to be writtenoff)Budget AssumptionsThe selected key assumptions relating to this budget are as follows: Government’s grants for years 2012/2013 are as per the Division of Revenue Act. The inflation rate has been estimated at 5.7% per annum. Growth in the salary wage bill has been provided for in the budget at 12% Provision has been made for tariffs increases relating to rates and services at an average rate of 6 % per annum.NKLM Integrated Development Plan 2012_2013 130