1. The Enock Local Municipality situated in the Eastern Cape Province has approached you to assist in the compilation of their 2020/2021 municipal budget after they learnt that you have attended the module in municipal budgeting by the WBS. The following information has been provided:

1. There are 80850 households and all households are rateable.
2. The municipality’s free basic services policy provides for inter alia that all consumers qualify for free basic water, free basic electricity only.
3. The municipality resolved to levy the following tariffs for the 2019/2020 financial year:
   1. Water
      1. Residential    < 80kl/pm                          R3.15/kl
      2. 80kl and above                                       R5.25/kl
      3. Business                                                R4.15/kl
   2. Refuse removal R82.20 per household and R121.50 per business monthly
   3. Sewage
      1. Basic charge R83.00 per month for household and R105.00 for Commercial per month.
   4. Property rates
4. The valuation roll for all the rateable properties after taking into account all exemptions and rebates is as follows:
   1. Residential                                                       R 6 250 300 000
   2. Business       (12940 businesses)                      R 2 850 300 000
   3. The tariffs are as follows:
      1. Residential                                                        0.0013
      2. Commercial                                                      0.0018
5. The municipality estimates that it will raise the following additional income:
   1. Interest earned on investments                         R151 800 000
   2. Traffic fines                                                      R13 800 000
   3. The average consumption for water per month per household is 99 kilolitres with a 6kl as free basic water; and 3500kl per business with no free basic water.
   4. Equitable share                                                R388 000 000
   5. Finance Management Grant                             R   22 500 000
   6. MIG                                                                 R 485 500 000
6. The estimated CPI for the 2020/2021 financial year is 4.9%
7. You are required to prepare the revenue budget for the Enock Mgijima Local Municipality taking into account all National Treasury guidelines. Please indicate any assumptions you have made in compiling this budget. Utilise the following structure in answering the question showing all calculations:                                                     (20)

Revenue Budget

Property Rates

• Residential

• Commercial/Business

Water

• Residential

• Commercial/Business

Refuse

• Residential

• Commercial/Business

Sewage (Basic Charge)

• Residential

• Commercial/Business

Interest earned on investments

Traffic fines

Equitable share

Finance Management Grant

MIG

TOTAL REVENUE