Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)

Notices

Upper Limits of Total Remuneration Packages Payable to Municipal Managers and Managers directly accountable to Municipal Managers

6. Change of categorisation of municipality
Purchase cart Previous page Return to chapter overview Next page

 

(1) If the categorisation of a municipality determined in terms of this Notice, is higher than the categorisation for the previous financial year, the municipal council, in consultation with the MEC for local government in the province and approval by the Minister, may implement such new categorisation.

 

(2) Notwithstanding sub-item (1), the Minister must—
(a) confirm the actual values and points scored by the municipality in relation to the factors in items 2, 3 and 4 of the Notice;
(b) determine the—
(i) sustainability of the driving factors that led to the higher categorisation of the municipality compared to the categorisation of the previous financial year;
(ii) affordability of the higher categorisation of the municipality using the following ratios:
(aa) municipality's liquidity ratio;
(bb) creditor's payment period;
(cc) debtor's collection rate;
(dd)remuneration ration; and
(iii) any other risks as may be identified.

 

(3) After confirmation of the actual values and points scored by the municipality in relation to the total municipal income, population and municipal equitable share, including the driving factors that led to a higher categorisation as well as affordability (using the ratios: liquidity ratio, creditor's payment period and debtor's collection rate) and approval by the Minister, the municipal council may implement such new categorisation including adjusting the total remuneration package of municipal manager and managers directly accountable to municipal manager to the higher category.

 

(4) If the categorisation of a municipality determined in terms of this Notice, is lower than the categorisation of the previous financial year, the municipality must retain the categorisation of the previous financial year.