A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 4

4.1 The role of councillors in budgeting Councillors have an opportunity to in fl uence beyond their term in council through approval of the IDP, council policy and medium-term budgets. Council needs to monitor implementation and ensure corrective action is taken where necessary. These decisions will impact on future generations and must take the needs of the community into account.

In-year reporting

IDP

Budget

SDBIP

Strategy

Monitoring

Annual plan to implement

Three-year budget

The community and other stakeholders will hold councillors accountable for service delivery.

The role of the mayor The mayor provides political guidance in the budget preparation process and is responsible for planning and co-ordinating the budget process and timetables.

i

The budget is divided into two parts: The operating budget

This part of the budget shows how much money is to be spent on running the administration and delivering the day- to-day services including operating and maintaining existing assets. The capital budget This is the part of the budget that is used for new and replacement infrastructure and other assets.

44

Understanding the Municipal Finance Management Act