A Guide for Councillors

Understanding the Municipal Finance Management Act

Introduction

What is the role of councillors in Municipal Financial Management?

Three important aspects of the mandate of all councillors are to: act as a representative of the community that they serve provide a leadership role in council act as custodians or guardians of the municipality’s fi nances. This requires all councillors to: • • •

participate in determining the strategic direction of the municipality

make decisions on policy

pass by-laws

pass the municipal budget

approve the setting of rates and other taxes

approve loans where necessary

ensure that they represent to council the needs of their ward

ensure that they comply with all aspects of the MFMA to safeguard the municipality’s resources.

Councillors must be in a position to analyse the needs of their community and gauge the strategic impact of decisions taken by the council to support the community in different ways.

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The Role of Councillors in Municipal Finance Management