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

1. Definitions

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In this Schedule, unless the context indicates otherwise, a word or phrase to which a meaning has been assigned in the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000) (hereafter referred to as "the Act") and the Local Government: Regulations on Appointment and Conditions of Employment of Senior Managers issued in terms of Government Notice No. 21 as published under Government Gazette No. 37245 of 17 January 2014 (hereinafter referred to as "the Regulations") has that meaning, and—

 

"categorisation"

means a system of classification of municipalities as determined in terms of item 5 of the Notice;

 

"non-pensionable cash gratuity"

means an income that is not subject to a compulsory contribution towards a pension or provident fund;

 

"remote allowance"

means a non-pensionable allowance, determined through the remoteness index, payable by a municipality to attract and retain suitably qualified and competent municipal managers and managers directly accountable to municipal managers to a geographically remote area where the approved pay scales are not sufficient to attract such managers;

 

"remoteness index"

means the directory of all municipalities within the Republic providing a relative weight in terms of the remoteness of each municipality in relation to another as measured in terms of access to a range of public and private services, including livelihood opportunities;

 

"total municipal equitable share"

means the equitable share of revenue that is provided to a metropolitan, district or local municipality for the 2022/23 financial year in terms of section 227(1) of the Constitution of the Republic of South Africa, 1996, to enable the municipality to provide basic services and perform the functions allocated to it, but excludes the regional services council replacement grant for district municipalities;

 

"total municipal income"

means the gross income in respect of a metropolitan, district or local municipality based on actual income as stated in the audited financial statements of that municipality for the 2022/23 financial year. For the purpose of this meaning—

(a)The gross income for a municipality includes the following:
(i)rates on property;
(ii)fees for services rendered by the municipality or on its behalf by a municipal entity;
(iii)surcharges;
(iv)other authorised taxes;
(v)levies and duties;
(vi)income from fines for traffic offences and contravention of municipal by-laws or legislation assigned to the local sphere of government;
(vii)regional services council replacement grant for district municipalities;
(viii)interest earned on invested funds other than national and provincial conditional grants;
(ix)rental for the use of municipal movable or immovable property; and
(x)amounts received as agent for other spheres of government.
(b)The gross income excludes:
(i)transfers and I or grants from the national fiscus and provincial fiscus, with the exception of the regional services council replacement grant for district municipalities; and
(ii)all value added tax (VAT) refunds.

 

"total population"

means the official statistics of the population residing in the area of jurisdiction of a metropolitan, district or local municipality, as determined by the Statistician-General for the 2022 Census, in terms of section 14(7) of the Statistics Act, 1999 (Act No. 6 of 1999);

 

"upper limits"

means the applicable total remuneration package values as contained in the Notice.