Cape Town | Thursday
CAPE Town’s finances are in a healthy state and the payment of arrears has improved dramatically, the city’s executive committee member for finance, George Mellet, said on Thursday.
In a report tabled in the executive committee, he reported sound financial results for the six months to December 31, 2001.
”Total cash flow amounted to R714,6-million compared to the budgeted R648,8 million,” Mellet said.
”Under-expenditure on capital projects and loan repayments accounted for the positive balance of R65,8-million.”
He said total cash and investments amounted to about R926-million.
Repayment on external loans of R35,8-million had reduced the month-end figure of long-term debt — owed to the capital market and the Development Bank of Southern Africa — to R1,7-bn.
”What is even more heartening is that the 12-month running total for payments versus billings increased from 98,5% to 99,4%,” Mellet said.
This means that 99,4% of the total of municipal accounts sent out was being paid.
Mellett said this covered current expenditure. To make inroads into arrears owed to the council required payment of more than 100% of billings.
As far as municipal arrears were concerned, the trend analysis showed that the actual figure was some R200-million lower than expected. In mid-December, the arrears reduced from R2,1-billion to R2,093-billion.
”The cumulative operating income is almost 100% on par with budget with a total of R3,56-billion against a projected budget of R3,58-billion,” Mellet said.
He said total operating expenditure was about six percent below budget with a total of R3,36-billion against a projected budget of R3,58-billion, while general expenditure was about 21% below budget. – Sapa