Provisional financial results for the City of Cape Town for the 2011/12 financial year

The City of Cape Town is pleased to announce the provisional financial results for the previous financial year, which ended on 30 June 2012. These figures are still subject to year-end adjustments. The final results will be available at the end of August 2012 when the Annual Financial Statements are submitted to the Auditor-General.

Capital Expenditure spend was R4,17 billion, comprising 91,4% of the Capital Budget of R4,56 billion. In addition, a further R242 million, comprising a further 5,3% of the budget, has been committed in contracts and will be completed in the next few months. The remaining 3,7% of the budget that was unspent or not committed comprises mainly of savings where the contracts were lower than the budgeted amounts.

This level of expenditure is evidence of this administration's ability to manage large-scale projects that directly benefit the people of Cape Town and is further evidence of our commitment to infrastructure-led growth and to building an Opportunity City.

City of Cape Town: 2011/2012 Capital Budget versus Capital Expenditure

At the same time, the City is driving a major improvement of the public transport system through the MyCiTi roll-out.

In the new financial year, which started on 1 July 2012, the City has adopted a very ambitious Capital Budget of R6 billion, which is a record for the City and is also the highest capital budget of any city in South Africa this year. While it will be a challenge to the City organisation to achieve this target, we continue to push the envelope on delivery to ensure the ongoing economic growth of the city and improved living standards for our citizens.

We are also pleased that we have been able to spend most of the funds allocated to the City through grants, and to fully commit the remaining funding so that the funds will be rolled over and not returned to the national fiscus.

Major grants include:

Public Transport Infrastructure Grant: Budget R924m, Spend R801m, 86,6%

Urban Settlements Development Grant: Budget R800m, Spend R727m, 90,0%

Provincial Housing Development Board: Budget R339m, Spend R316m, 93,3%

Neighbourhood Development Grant: Budget R103m, Spend R89m, 86,3%

All Grants: Budget R2,31 billion, Spend R2.06 billion, 89,0%

As far as the Operating Budget is concerned, provisional results indicate a revenue income of R21,36 billion, against a budget of R21,57 billion. Thus the income was 99% of the budget.

This income includes revenue of R16,72 billion from property rates and service charges.

The collection ratio of payments versus billings was 96,2% overall, with a 99,8% collection on electricity and 99,0% collection of property rates.

Expenditure data is not yet available and will be released later.

Our Capex spend makes this City a leader in terms of service delivery. Unlike many municipalities across South Africa, residents of Cape Town enjoy a city with better roads, working street lights and traffic lights, reliable supplies of water and electricity, and regular collection of refuse.

Whilst more remains to be done, we have taken great strides in terms of redress, of righting Apartheid's wrongs and of making Cape Town a city that truly belongs to all who live here.

Statement issued by Ian Neilson, Executive Deputy Mayor of the City of Cape Town, July 17 2012

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