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FETAKGOMO MUNICIPALITY

FETAKGOMO MUNICIPALITY. REVENUE MANAGEMENT PRESENTATION IN RURAL AREA / ESKOM AREA. CONTENTS. 1 BACKGROUND 2 REVENUE MANAGEMENT AND SOURCES 3 PRACTICAL CREDIT CONTROL STRATEGIES 4 CURRENT CHALLENGES 5 ALTERNATIVE REVENUE SOURCES 6 CONCLUSION. BACKGROUND.

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FETAKGOMO MUNICIPALITY

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  1. FETAKGOMO MUNICIPALITY REVENUE MANAGEMENT PRESENTATION IN RURAL AREA / ESKOM AREA

  2. CONTENTS 1 BACKGROUND 2 REVENUE MANAGEMENT AND SOURCES 3 PRACTICAL CREDIT CONTROL STRATEGIES 4 CURRENT CHALLENGES 5 ALTERNATIVE REVENUE SOURCES 6 CONCLUSION

  3. BACKGROUND • Section 229 of the Constitution empowers municipalities to impose taxes and surcharges as along as the imposition of the taxes and surcharges does not conflict with the national legislation. It is against this background that FTM developed the revenue enhancement strategy with an intention of providing practical solution to the concept of revenue management.

  4. CREDIT CONTROL STRATEGIES AND MEASURES • Using council as the champion of revenue management • Prioritising top 100 debtors. • Mapping of debtors in terms of weight. • Alignment of indigent management policy with the credit control policies. • Using SCM processes as the key credit control measures. • Timeous delivery of bills • Improved data integrity • Hand over debtors above 90 days to debt collectors

  5. CURRENT REVENUE SOURCES THAT ARE BEING IMPLEMENTED • Property Rates; • Refuse Removal; • Traffic related revenue sources e.g. learner licences, traffic fines, renewal etc; • Rental of council facilities; • Sundry income

  6. CURRENT CHALLENGES • Rural nature of the municipality • Lack of buy in by key some of the stakeholders (Government departments not showing interest to pay for the property rates etc. • Lack of understand by the community on how municipality function. • Poor culture of payment of services by the residence.

  7. ALTERNATIVE REVENUE SOURCES • Identifying new revenue sources in line with municipal fiscal powers and functions Act.

  8. CONCLUSION • Failure for municipality to collect monies due undermines the provision of key services to the society and payment of services by residents is a good indication of democratic accountability.

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