TAMARA HOPE REDDY

10462392

Local Government Law

LGL3702
Question 1

1.1. 1Financial constraints- The number of people for whom each municipal
authority must provide services has greatly expanded as a result of the new
local government structure, and more especially, the increasing obligations of
local government. The dismal financial situation of local government is put
under even more pressure by the current slowing of national economic growth
as well as inhabitants' rising demands for service delivery.

2Administrative challenges- Significant administrative changes have been

brought about by the inclusion of local government as a significant area of
government and as one that has a high degree of decision-making autonomy.
Despite this constitutional need, local government still has a number of
operational challenges.

3Legislative complication- In order to implement the Constitution in the domain

of local government, several new legislations were enacted. However, many
laws from the previous regime continue to be in effect and coexist with the
recently passed local government laws.

1.2. 4Municipal valuers must carry out the following tasks:

• value all properties in the municipality

• prepare a valuation roll of all properties in the municipality
• sign and certify the valuation roll
• submit the valuation roll to the municipal manager within a prescribed period
• consider and decide on objections to the valuation roll
• attend every meeting of an appeal board when that appeal board hears an
appeal against a decision of that valuer; or reviews a decision of that valuer
• prepare a supplementary valuation roll whenever this becomes necessary
• assist the municipality in the collection of postal addresses of owners where
such addresses are reasonably determinable by the valuer when valuing
properties
• generally, provide the municipality with appropriate administrative support
incidental to the valuation roll.

1.3. 5A unique interaction between politics and administrative bodies is embodied

by public administration. Politicians are concerned with how power is used;
administration is concerned with how political decisions are really put into

1
Prof S. Mass, Local Government Law study guide, p33
2
1, p33
3
1, 34
4
1,p240
5
Benkink, Principles of South African Local Government Law, page 472
 practice. Additionally, while the administration is characterized by steadiness
and routine, the political aspect is dynamic.

For local towns all around South Africa, providing amenities like access to
clean water, decent sanitation, electricity, and medical facilities has remained
a significant challenge.

Question 2

2.1. 6By publishing an announcement in the Provincial Gazette, a municipality is

established. For such an establishment to function, certain conditions are outlined in
Section 12 of the Structures Act. In order to officially establish a municipality, the
MEC for Local Government must publish the so-called "section 12 notice" prior to the
municipality's first council election. For all municipalities, the founding document is
the establishment notice. It is legally binding on all parties involved and is typically
difficult to change. The MEC for Local Government must inform organized local
government in the province and other concerned municipalities of the anticipated
establishment before work on establishing a municipality can begin.
7Section 12(1) of the Structures Act states that the notice must be published for
public comment after these parties have been informed and contacted. According to
Section 12(3), the notice must include at least the following information:
• The category of municipality that is established.
• The type of municipality that is established.
• The boundaries of the municipal area.
• The name of the municipality.
• In the case of a metropolitan or local municipality, the number of wards in the
Municipality.
• The number of councillors.
• Which councillors of the municipality may be designated as full-time.
• Any provisions of this Act from which the municipality has been exempted.
• And other relevant detail.

2.2. 8Municipalities have the option to create Multi-jurisdictional Service Utilities in

accordance with section 87 of the Systems Act. The Minister may ask two or more

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1, page 40
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1, page 40
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1, page 145
municipalities to create a multi-jurisdictional service utility in order to comply with the
requirements of national legislation that are relevant to the provision of a particular
municipal service, in the interest of the country and after consulting with the Cabinet
member in charge of the relevant functional area. According to section 88 of the
Systems Act, municipalities must decide whether to grant a request made under to
paragraph (1) within two months of receiving it and must inform the Minister of their
choice.
9Inorder to establish a multi-jurisdictional service utility, an agreement must specify
the duties, rights, and obligations of the parent towns.
(a) establish the multijurisdictional service utility's boundaries for the designated
area;
(b) specify the municipal service or other duty to be performed in accordance with
the contract;
(c) establish financial and budgetary plans for carrying out the agreement;
(d) provide for
(i) a board of directors for the multi-jurisdictional service utility, (among others)
10(e) provide for
(i) the acquisition of infrastructure, goods, services, supplies or equipment by the
multi-jurisdictional service utility, or the transfer of infrastructure, goods, services,
supplies or equipment to the multi-jurisdictional service utility;
(ii) the appointment of staff by the multi-jurisdictional service utility, or the transfer
or secondment of staff to the multi-jurisdictional service utility in accordance with
applicable labour legislation; and
(iii) the terms and conditions on which any acquisition, transfer, appointment or
secondment is made;
f) ascertain the prerequisites and repercussions for a parent municipality's
withdrawal from the agreement;
(g) identify the circumstances and outcomes of the agreement's termination, such as
(i) the process and timetable for shutting down the multijurisdictional service utility's
activities;
(ii) The distribution of the proceeds;
(iii) The division of any assets and liabilities among the parent municipalities;
(h) provide for

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1, page 145
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1, page 146
(i) the governing of the multi-jurisdictional service utility; (among others)

11A multi-jurisdictional service utility is a municipal organization that is jointly

governed by the parent municipality and a juristic person. A multi-jurisdictional
service utility must limit its operations to the purposes for which it was created and is
ineligible to carry out any tasks that fall outside of those responsibilities. A parent
municipality has the right to request that the multi-jurisdictional service utility provide
it with information about its operations and performance in the form of regular written
reports about its activities and performance.

Question 3

3.1. Red-
This is a Category A municipality as it has exclusive municipal executive and
legislative authority in its area. A category A municipality serves as the region's sole
municipal council and is independent and is also known as a Metropolitan
Municipality. To have a category A municipality:
12If that area can reasonably be regarded as
(a) a conurbation
(i) areas of high population density;
(ii) an intense movement of people, goods, and services;
(iii) extensive development; and
(iv) multiple business districts and industrial areas;
(b) a centre of economic activity with a complex and diverse economy;
(c) a single area for which integrated development planning is desirable; and
(d) having strong interdependent social and economic linkages between its
constituent units.
Blue-
They are a Category B municipality that shares municipal executive and legislative
authority in its area with a category C municipality within whose area it falls. A
category B municipality is also known as a Local Municipality. According to Section
3 of the Structures Act, an area must have both a category B and category C
municipality if it does not meet the requirements of Section 2.

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1, page 146
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1, page 46
Green-
This is a Category C municipality that has municipal executive and legislative
authority in an area that includes more than one municipality, it is also known as a
District Municipality and is referred to as secondary municipalities. 13When a portion
of a region is designated as a district management area pursuant to subsection (2),
that portion lacks the category B municipality required by section 3 of that region.
3.2. Red-
14They are a part of the sub-council participatory system, which permits sub-councils
established for particular areas of the municipality to exercise delegated powers. In
big urban regions is where the sub-council participation system is typically used. This
method promotes decentralized local governance and increases democratic
involvement.
The mayoral executive system, which permits the exercise of executive authority
through an executive mayor in whom the executive leadership of the municipality is
vested and who is assisted by a mayoral committee. The municipal council chooses
the mayor to serve as a member of the body. The council typically elects a deputy
executive mayor once the MEC of the province has authorized the mayor.
Blue-
15They are subject to the Plenary executive system, which restricts the local council's
ability to wield executive power. Like the mayoral system, the municipal council must
choose its own chairperson. The chairperson is also known as the mayor. Plenary
processes frequently work well in more intimate municipal settings. The municipal
council has executive authority under this system, and the entire council must vote
on all decisions. As a result, the local council is unable to assign anybody or
individual its executive duties.
Green-
16A collective executive system enables the use of an executive committee, in which
the executive leadership of the municipality is jointly invested, to exercise executive
authority. The municipal council will select an executive committee from among its
members under the collective system, and it will be given responsibilities.
Additionally, there is a Ward Participatory System that enables committees formed
for each ward to handle issues that are local to that ward. The committees have
provisions for citizen involvement, and the local councils have granted them all of
their authority and responsibilities. Each ward committee consists of a councillor and
a maximum of ten people drawn from that specific ward.

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1, page 48
14
1, page 50
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1, page 50
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1, page 50
Question 4
17When situations of non-performance are reported, the provinces are given specific
responsibility for oversight and intervention powers into the affairs of municipalities.
However, such interventions should be carried out with objectivity and should be
founded on correct diagnostic findings. when involvement is permitted based on
arbitrary criteria or without sufficient explanation. It should be emphasized that the
ultimate goal of intervention is to ensure that citizens receive the fundamental
services that are promised under the new constitutional framework rather than to
establish a hierarchy of one area of government over another.
18The types of provincial interventions are covered by Section 136 of the
Constitution. If the provincial MEC for local government learns that a municipality is
experiencing serious financial difficulties, the MEC must speak with the mayor of the
municipality as soon as possible to establish the facts, evaluate the seriousness of
the situation and the municipality's response to it, and decide whether the situation
justifies or necessitates an intervention under section 139 of the Constitution, which
deals with provincial intervention in local government.
19137. Discretionary provincial interventions.
(1) If the conditions for a provincial intervention in a municipality in terms of section
139(1) of the Constitution are met and the provincial executive decides in terms of
section 136(2) of this Act to intervene in the municipality, the provincial executive
may take any appropriate steps referred to in section 139(1) of the Constitution,
including
(a) assessing the seriousness of the financial problem in the municipality;
(b) seeking solutions to resolve the financial problem in a way that would be
sustainable and would build the municipality’s capacity to manage its own financial
affairs;
(c) determining whether the financial problem, singly or in combination with other
problems, is sufficiently serious or sustained that the municipality would benefit
from a financial recovery plan and, if so, requesting any suitably qualified person
(i) to prepare an appropriate financial recovery plan for the municipality;
(ii) to recommend appropriate changes to the municipality’s budget and revenue
raising measures that will give effect to the recovery plan; and
(iii) to submit the recovery plan and any recommendations referred to in
subparagraphs (i) and (ii) to the MEC for local government in the province within a
period determined by the MEC; and

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5, page 490
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1, page 208
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1, page 209
(d) consulting the mayor of the municipality to obtain the municipality’s co-operation
in resolving the financial problem, and if applicable, implementing the financial
recovery plan.
(2) The MEC must submit any assessment in terms of subsection (1)(a), any
determination
in terms of subsection (1)(c) and a copy of any request in terms of subsection (1)(c),
to the municipality and the Cabinet member responsible for local government.
(3) This section does not apply to a provincial intervention, which is unrelated to a
financial problem in a municipality.

20The criteria for determining the seriousness or persistent material breach of

financial commitments are outlined in Section 140. It specifies that all pertinent
circumstances must be taken into account when deciding whether the requirements
for a required intervention as described in section 139 are met. A municipality may
be in significant material breach of its duties to fulfil its financial commitments if any
of the following conditions exist:
21•
the municipality has failed to make any payment to a lender or investor as and
when due
• the municipality has failed to meet a contractual obligation, which provides security
• the municipality has failed to make any other payment as and when due, which
individually or in the aggregate is more than an amount as may be prescribed or, if
none is prescribed, more than two per cent of the municipality’s budgeted operating
expenditure
• the municipality’s failure to meet its financial commitments has had an impact on, or
is likely to have an impact on, the availability or price of credit to other municipalities.

If the above criteria is meet she may seek the provincial government’s intervention
because her municipality is not exercising its functions.

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1, page 211
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1, page 211