A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 5

THE MUNICIPAL MANAGER HAS SUGGESTED THAT WE OUT-SOURCE REFUSE REMOVAL. THE COMPARATIVE COSTS ARE PROVIDED. THEY SUGGEST THAT THE COSTS ARE SIMILAR TO IF WE OFFER THE SERVICE OURSELVES. THE BENEFITS WOULD BE THAT WE DON ‛ T NEED TO BE RESPONSIBLE FOR DAY-TO- DAY MANAGEMENT OF THE SERVICE.

THE COUNCIL HAS REFUSE TRUCKS AND THE RESIDENTS WERE ISSUED WITH NEW BINS ONLY A FEW YEARS AGO. ARE WE GOING TO SELL THESE THINGS?

WILL THIS MEAN WE CUT OUR STAFF NUMBERS? HAS THE UNION BEEN CONSULTED?

i I NEED TO TALK TO MY WARD COMMITTEE. WE MUST ALSO FIND OUT WHAT THE COMMUNITY FEELS ABOUT THIS.

Generally, a municipality may not dispose of an asset that is needed to deliver basic services even if that service has been outsourced.

Before using an external service delivery mechanism to provide a service, councillors must consider: the costs against the bene fi ts the views of the community the views of organised labour the impact of the decision on staff the assets and liabilities of the municipality other organs of state the capacity of the municipality to monitor the contract. • • • • • • •

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Understanding the Municipal Finance Management Act