Municipal Timeline Help

Practical guide to challenging a municipal budget

Posted on by CAN Team

When your local municipality releases its draft budget, you have the right to provide input during the public participation process. However, much of the budget is technical. This guide will help you focus on the 10 key areas where residents can effectively challenge the budget and demand accountability.

1. Increases in Rates, Tariffs, and Service Charges

  • What to Look For: Excessive increases in property rates, electricity, water, waste removal, and other services.
  • Where to Find It: Table A4 in the budget documents (Revenue section).
  • What to Ask: Why are increases above inflation? Are efficiency improvements being considered instead of raising costs?

2. Salaries and Wages (Employee Costs)

  • What to Look For: Unjustified growth in staff costs, especially for senior managers and councillors.
  • Where to Find It: Table A4 (Expenditure section) under “Employee-related costs” and “Remuneration of Councillors”.
  • What to Ask: Are salary increases aligned with inflation and performance? How does staff spending compare to service delivery spending?

3. Irregular, Fruitless, and Wasteful Expenditure

  • What to Look For: History of financial mismanagement or wasteful spending.
  • Where to Find It: Table SA34a and SA34b in supporting documents (Irregular and Fruitless Expenditure).
  • What to Ask: What steps are being taken to prevent this from happening again?

4. Use of Consultants

  • What to Look For: Overuse of consultants instead of developing internal capacity.
  • Where to Find It: Table SA34c (Consultants Disclosure).
  • What to Ask: Why is the municipality relying on external consultants? Is this cost-effective?

5. Capital Projects (Infrastructure)

  • What to Look For: Delayed, abandoned, or unclear infrastructure projects.
  • Where to Find It: Table A5 (Capital Expenditure) and Table SA36 (Detailed Capital Projects).
  • What to Ask: Are there clear timelines and plans for each project? How will the community benefit?

6. Maintenance and Repairs Budget

  • What to Look For: Insufficient funding for maintaining roads, water pipes, and other infrastructure.
  • Where to Find It: Table A4 (Expenditure section under “Repairs and Maintenance”).
  • What to Ask: Is the municipality investing enough to prevent breakdowns and future costly repairs?

7. Transfers and Grants to External Entities

  • What to Look For: Large payments to organisations without clear outputs or agreements.
  • Where to Find It: Table SA21 (Transfers and Grants Analysis).
  • What to Ask: Who is receiving these funds, and how is their performance being monitored?

8. Surplus or Deficit (Cash Flow Health)

  • What to Look For: Ongoing deficits or cash shortages.
  • Where to Find It: Table A7 (Cash Flow Statement).
  • What to Ask: Does the municipality have enough cash to pay its bills? What is the plan to improve cash flow?

9. Debt Levels and Borrowings

  • What to Look For: High debt levels or unnecessary borrowing.
  • Where to Find It: Table A6 (Financial Position under “Borrowings”).
  • What to Ask: Is the municipality borrowing for essential services or luxury projects? How will this debt be repaid?

10. Indigent Policy and Support for the Poor

  • What to Look For: Insufficient support for low-income households (free basic services).
  • Where to Find It: Table SA9 (Social Package Expenditure).
  • What to Ask: Are enough funds allocated to support the most vulnerable?

How to Access These Budget Documents

Municipalities must publish their draft budgets online and make hard copies available. Look for the “A1 Schedule” and supporting tables (SA tables) on your municipality’s website or the MFMA portal: MFMA Treasury

What You Can Do

  1. Review the Draft Budget: Use the 10 areas in this guide as your checklist.
  2. Submit Written Comments: Highlight your concerns and refer to the exact tables (e.g., “Table A4 shows excessive staff costs”).
  3. Attend Public Meetings: Raise these issues with councillors and municipal officials.
  4. Demand Accountability: Request quarterly performance updates on key spending areas.

By focusing on these 10 areas, residents can effectively influence their municipality’s budget and ensure public funds are spent responsibly.

CAN Team