A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 4

Multi-year budgeting Municipalities need to know what to expect in the medium-term. They work out three- year budgets to help them identify problems in good time. These budgets must be clearly linked to the IDP of the municipality. This means that the council budgets for as many of the issues that were prioritised by the community as possible.

Councillors play different roles in monitoring, reporting and preparing budgets.

AS COUNCILLORS WE MUST ALSO KEEP THE VISION IN MIND. EVEN WHEN YOU PLAN FOR THE NEXT YEAR YOU MUST ALSO KNOW WHAT TO EXPECT IN TWO OR EVEN THREE YEARS TIME.

WE NEED TO KEEP AN EYE ON HOW WELL WE ARE DOING THIS YEAR BY CHECKING MONTHLY AND QUARTERLY FINANCIAL AND SERVICE DELIVERY REPORTS.

WE NEED TO LOOK AT HOW WELL WE DID LAST YEAR. IT HELPS US TO BE ACCOUNTABLE TO OUR COMMUNITIES AND TO LEARN FROM OUR MISTAKES.

Three budgets operate at the same time in a municipal council: previous year ‛ s budget, current year ‛ s budget, and the forthcoming medium-term budget.

ALSO WE NEED TO PLAN FOR THE NEXT MEDIUM-TERM BUDGET, THE SOONER WE START CONSULTING WITH OUR COMMUNITIES AND PUBLISHING OUR PLANS FOR COMMENT, THE BETTER.

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Understanding the Municipal Finance Management Act