LGL3702 EXAM PACK 2025

LGL3702 EXAM PACK 2025 Question 1 In order to realign local government with the Constitution, a number of new local government law principles were created. “Non-racial democratic government” is an example of a new local government law principle. Name and briefly describe another five new local government law principles. [10] • Local government within a system of cooperative government √ - Local government forms part of the general government system. √ • New boundaries for municipalities √ - The whole of South Africa must be divided into municipal jurisdictions. Municipal boundaries have a direct impact on the effectiveness of municipal institutions. √ • Constitutional supremacy √ - The Constitution is the supreme law and the constitutional provisions bind local government. The municipalities (local government) are closely linked to the people of South Africa and must therefore ensure, on a first-hand basis that the values of the Constitution are given effect to. √ • New functions of municipal government √ - The modern internal procedures and functioning of local government are complex since the municipal administration must operate efficiently under political leadership. √ • Municipal service delivery: striving for sustainability √ - The municipalities must strive to deliver municipal services in a sustainable manner. This is a key objective since all South African citizens are dependent on these services, although some households’ basic needs must be provided by local government. Service delivery must be affordable, accessible and simple in its aims. √ • Municipal financial/fiscal management √- The accurate and effective financial management of municipalities is essential for local government functions. √ • Municipal development planning and public participation √- Aspects of local planning have been decentralised to municipal government. Government accountability and public participation in municipal decision-making are constitutional principles that must be given effect to. √ • New municipal autonomy √ - Local governments are interdependent, autonomous spheres of government. √ • Objects of local government √ - to ensure sustainable provision of services; to promote social and economic development; to promote a safe and healthy environment; to encourage public involvement in municipal affairs. √ • Municipal boundaries √ clear boundaries – Municipal demarcation board √ Question 2 When municipalities are deciding on the particular delivery options for their areas, they should be guided by certain basic principles and approaches, such as sustainability, among others. Name and (briefly) describe another five principles and or approaches. [10] Suggested answer (any 5 below 10 marks max): • Accessibility – communities should have access to the minimum level of service • Simplicity – municipal services should be simple and easy to use • Affordability – services should be as affordable as possible • Quality – services should be suitable for their purpose, provided on time and safe • Accountability – municipal government must be accountable for all its activities, including the provision of quality services • Integration – municipalities must adopt an integrated approach with respect to planning and must ensure that municipal services are provided in a sustainable manner • Value for money – municipalities should provide value-for-money services • Promotion of competitiveness – sufficient transparency is needed in the sense that all investors in a given municipal area must be aware of the costs involved in doing business in that area • Promotion of the new constitutional values – municipalities must aim to give effect to the values enshrined in the new constitutional dispensation Question 1 Which one of the following is NOT a feature of the pre-1994 local government? • Municipalities were described as “creatures of statute”. • Municipalities’ powers derived directly from national and provincial government. • Even though the municipalities could enact bylaws, these bylaws were reviewable by the courts and could be declared invalid. • Local government was the highest tier of government. Question 2 The establishment of a municipality takes place by the publication of a notice in the Provincial Gazette and … of the Structures Act prescribes certain requirements in order for such an establishment to be effective. • section 12 • section 14 • section 15 • section 35 Question 3 Municipalities have executive and legislative powers with regard to matters listed in … of the Constitution. • Part A of Regulation 5 and 6 • Part B of Addendum 4 and 5 • Part A of Schedule 4 and 5 • Part B of Schedule 4 and 5 Question 4 Which one of the following operational services generally falls outside the municipality’s domain? • Trading regulations • National tourism • Cleansing services • Markets Question 5 A municipality that has exclusive municipal executive and legislative authority in its area is known as a … . • category A municipality • plenary municipality • district municipality • category D municipality Question 6 Municipal capacity building has a number of advantages. Which one of the following is NOT one of the advantages? • services are delivered according to legal requirements • financial sustainability for the municipal council • better investment opportunities can be created • powers can be delegated to the municipal level Question 7 The Systems Act 32 of 2000 describes a municipality as a composite organ of state, consisting of three elements. Which one of the following is NOT one of those elements? • The municipal council as the elected political structure. • The municipal administration. • The Public Protector. • The community of the municipality. Question 8 A municipality may enter into a public-private partnership if the agreement… • satisfies section 130 of the System’s Act. • is preapproved by the MEC. • will provide value for money to the municipality. • is put into writing and signed by the municipal council. Question 9 When may a municipality incur debt? • The MEC preapproved it. • The auditor-general preapproved it. • A resolution of the municipal council, signed by the auditor-general, is approved. • A resolution of the municipal council, signed by the mayor, is approved. Question 10 Section 15 of the MPRA allows for the exemption of the payment of rates for the following category of persons: • black owners • white owners • indigent owners • low-income owners Question 1 1.1 Explain the features of pre-1994 local government with reference to CDA Boerdery (Edms) Bpk and Others v The Nelson Mandela Municipality and Others 2007 (4) SA 276 (SCA). (15) Municipalities were described as “creatures of statute” since their powers were expressly stipulated in legislation. These powers derived directly from national and provincial government, which effectively meant that the higher spheres of government ruled and overpowered municipal government. CDA Boerdery (Edms) Bpk and Others v The Nelson Mandela Municipality and Others 2007 (4) SA 276 (SCA) Even though the municipalities could enact bylaws, these bylaws were reviewable by the courts and could be declared invalid. Government functioned in terms of a hierarchical structure and local government was the lowest tier of government – its functions and decisions were therefore subordinate to higher government spheres, namely provincial and national government. Fedsure Life Assurance Ltd and Others v Greater Johannesburg Transitional Metropolitan Council and Others 1998 (12) BCLR 1458 (CC): The provinces established four types of local authorities, namely city councils for large urban areas; town councils; village councils; and health committees. In addition to these authorities, there were also local authorities for coloured, Indian and black communities in urban areas. The outcome was that there were numerous local authorities in relatively small areas. Each authority was responsible for its specific tasks and the group of persons it had to provide services for. This arrangement led to a fragmented local government. As a result of the political goal of racial segregation, the municipalities’ operations at the time could have been described as disjointed. Consequently, the quality and extent of services provided to different households were unequal since the provision of services was racially influenced. “White” areas had successful business districts; valuable rateable properties and good infrastructure, while “black” areas were undeveloped, poor and often denied municipal services. 1.2. There are a number of new local government law principles. List any five (5) new local government law principles and explain each. (10) (Any 5 of the below – max 10 marks) Non-racial democratic government - People of all races must have equal rights and opportunities and all persons must have the right to vote for their political representatives. Local government within a system of cooperative government - Local government forms part of the general government system. New boundaries for municipalities - The whole of South Africa must be divided into municipal jurisdictions. Municipal boundaries have a direct impact on the effectiveness of municipal institutions. Constitutional supremacy - The Constitution is the supreme law and the constitutional provisions bind local government. The municipalities (local government) are closely linked to the people of South Africa and must therefore ensure, on a first-hand basis that the values of the Constitution are given effect to. New functions of municipal governments - The modern internal procedures and functioning of local government are complex since the municipal administration must operate efficiently under political leadership. Municipal service delivery: striving for sustainability - The municipalities must strive to deliver municipal services in a sustainable manner. This is a key objective since all South African citizens are dependent on these services, although some households’ basic needs must be provided by local government. Service delivery must be affordable, accessible and simple in its aims. Municipal financial/fiscal management - The accurate and effective financial management of municipalities is essential for local government functions. Municipal development planning and public participation - Aspects of local planning have been de centralised to municipal government. Government accountability and public participation in municipal decision-making are constitutional principles that must be given effect to. New municipal autonomy - Local governments are interdependent, autonomous spheres of government. Objects of local government to provide for democratic and accountable local government • to ensure sustainable provision of services namely: • to promote social and economic development • to promote a safe and healthy environment • to encourage public involvement in municipal affairs [25] Question 2 • Answer the following questions. Each question is provided with a number of options as possible answers. Only one option or statement in each question is correct. You must, therefore, identify the correct option and write down the option (a,b,c or d) that you have identified next to the question number. (5) • Municipalities have executive and legislative powers with regard to matters listed in … of the Constitution. • Part B of Schedule 4 and 5 • Part A of Schedule 4 and 5 • Part B of Addendum 4 and 5 • Part A of Regulation 5 and 6 • “Developmental local government” is a principle that refers to … . • the municipal obligation to adhere to the Bill of Rights • the municipal objective to improve infrastructure • local government that gives effect to its fiscal responsibilities • local government that works with the members of the community in order to meet the basic needs of all South Africans • Local government consists of three bodies. Which one of the following is NOT one of these three bodies? • The municipal council • The municipal auditor • The municipal administration • The community 2.1.4. A number of factors influence municipal services. Which one of the following is NOT one of these factors? • Public participation • Training and municipal planning • Judicial analysis • Financial resources 2.1.5 The Systems Act states that a municipality …. prepare a performance report for each financial year. • may • can • must • should sometimes • What is an “establishment notice” and what information must it contain? Describe in full. (10) The establishment of a municipality takes place by the publication of a notice in the Provincial Gazette. Section 12 of the Structures Act prescribes certain requirements in order for such an establishment to be effective. The municipality will be formally established at the first election of the council of the given municipality and the so-called “section 12 notice” must be published by the MEC for Local Government. The establishment notice is the founding document for all municipalities. It binds all relevant parties and can usually not be easily amended. In order to commence with the establishment of a municipality, the MEC for Local Government must notify organised local government in the province and other affected municipalities of the intended establishment. Once these parties have been notified and consulted, section 12(1) of the Structures Act provides that the notice must be published for public comment. Section 12(3) provides that the notice must contain at least the following: • the category of municipality that is established; • the type of municipality that is established; • the boundaries of the municipal area; • the name of the municipality; • in the case of a metropolitan or local municipality, the number of wards in the municipality; • the number of councillors; • which councillors of the municipality (if any) may be designated as full-time; • any provisions of this Act from which the municipality has been exempted; • and other relevant detail. • Are all meetings of an executive committee open to the public? Discuss. (5) • In general the meetings of the EC are open to the public, however, • EC may close any or some of its meetings • If it is reasonable to do so in light of nature of the meeting. • If certain topics are discussed then the EC may not exclude members of the public: • Following topics – a by-law, the budget, an amendment to IDP, performance management system or the service delivery agreement. • What are the objectives of municipal councils as per section 19 of the Structures Act 117 of 1998 ( 5 ) • A municipal council must strive within its capacity to achieve the objectives set out in section 152 of the Constitution. • A municipal council must annually review • the needs of the community; • its priorities to meet those needs; • its processes for involving the community; • its organisational and delivery mechanisms for meeting the needs of the community; and • its overall performance in achieving the objectives referred to in subsection (1). • A municipal council must develop mechanisms to consult the community and community organisations in performing its functions and exercising its powers. • Can a municipal council delegate all its functions? Motivate your answer be referring to section 160(2) of the Constitution? (5) Apart from s 238 a further constitutional provision re the delegation of powers and functions of local government sphere is found in s 160(2). It states that notwithstanding the provisions of s 238, certain functions may not be delegated by a municipal council namely: • The passing of by-laws • The approval of budgets • The imposition of rates and other taxes, levies and duties • The raising of loans [30] Question 3 • Section 32 of the Municipal Finance Management Act 56 of 2003 (MFMA) regulates unauthorised, irregular or wasteful expenditure (UIWE). Within the context of a municipality, who can be held accountable and liable for UIWE? Describe briefly. (3) The MFMA provides for personal accountability and liability on the part of both political office- bearers and officials within the municipality, the intention being to recover unauthorised expenditures. It includes the accounting officer. • Section 120(4) of the Local Government: Municipal Finance Management Act 56 of 2003 states that, before a public-private partnership is concluded, the municipality must conduct a feasibility study. Explain what the feasibility study entails. (6) The municipality must conduct a feasibility study that: • Explains the strategic and operational benefits of the public-private partnership for the municipality in terms of its objectives; • Describes in specific terms: (i) the nature of the private party’s role in the public-private partnership; (the extent to which this role, both legally and by nature, cab be performed by a private party; and (iii) how the proposed agreement will: • Provide value for money to the municipality; • Be affordable for the municipality; • Transfer appropriate technical, operational and financial risks to the private party; and • Impact on the municipality’s revenue flows and its current and future budgets; • Takes into account all relevant information; and • Explains the capacity of the municipality to effective monitor, manage and enforce the agreement. • When municipalities are deciding on the particular delivery options for their areas, they should be guided by certain basic principles and approaches, such as sustainability, among others. Name and (briefly) describe another five principles and or approaches. (10) • Accessibility – communities should have access to the minimum level of service • Simplicity – municipal services should be simple and easy to use • Affordability – services should be as affordable as possible • Quality – services should be suitable for their purpose, provided on time and safe • Accountability – municipal government must be accountable for all its activities, including the provision of quality services • Integration – municipalities must adopt an integrated approach with respect to planning and must ensure that municipal services are provided in a sustainable manner • Value for money – municipalities should provide value-for-money services • Promotion of competitiveness – sufficient transparency is needed in the sense that all investors in a given municipal area must be aware of the costs involved in doing business in that area • Promotion of the new constitutional values – municipalities must aim to give effect to the values enshrined in the new constitutional dispensation • Municipal services can be divided into two categories, namely support services and operational services. Briefly explain both these services and list four support services. (6) Support services are important for the effective operation of the municipality, while operational services refer to services that a municipality renders to its local community. Examples: (Max 4 below) • legal services • financial services • personnel services • repair and maintenance services • information and technology services • supply services [25] Question 4 • Section 7 of the MFMA requires that every municipality must open and maintain at least one bank account in the name of the municipality. Section 8 requires that a municipality must have a primary bank account. What moneys must be paid into the primary bank account? (8) • all allocations to the municipality, including those made to the municipality for transmission to a municipal entity or other external mechanism assisting the municipality in the performance of its functions;(max 3 marks) • all income received by the municipality on its investments • all income received by the municipality in connection with its interest in any municipal entity, including dividends (max 2 marks) • all money collected by a municipal entity or other external mechanism on behalf of the municipality • any other moneys as may be prescribed. • Explain the procedure that a municipality must follow before it can adopt its rates policy. (6) • Section 3(3) of the MPRA provides that a rates policy must: • treat persons liable for rates equitably; • determine the criteria to be applied by the municipality • determine, or provide criteria for the determination of categories of properties • determine how the municipality’s powers in terms of section must be exercised in relation to properties used for multiple purposes; • identify and provide reasons for exemptions, rebates and reductions • take into account the effect of rates on the poor and include appropriate measures to alleviate the rates burden on them; • take into account the effect of rates on organisations conducting specified public benefit activities and registered in terms of the Income Tax Act for tax exemptions because of those activities, • take into account the effect of rates on public service infrastructure; • allow the municipality to promote local, social and economic development; • identify, all rateable properties in the municipality that are not rated in terms of section 7(2)(a). • Section 15 of the MPRA regulates exemptions, reductions and rebates. Name the categories of owners that may qualify for exemptions, reductions and rebates. (6) • Indigent owners • Owners dependent on pensions or social grants for their livelihood • Owners temporarily without income • Owners of property situated within an area affected by a disaster, as defined by the Disaster management Act 57 of 2002 (2 marks) • Owners of residential property with a market value lower than an amount determined by the municipality • Owners of agriculture properties who are bona fide farmers. [20] Question 1 Can a municipal council delegate all its functions? Motivate your answer be referring to section 160(2) of the Constitution? [5] Suggested answer Section 160(2)2.The following functions may not be delegated by a Municipal Council: • The passing of by-laws; • the approval of budgets; • the imposition of rates and other taxes, levies and duties; and • the raising of loans. Question 2 When municipalities decide on the particular delivery options for their areas, they should be guided by certain basic principles and approaches, such as sustainability, among others. Name and (briefly) describe another five principles and/or approaches. [10] Suggested answer Municipalities should be guided by the following principles when choosing an appropriate service delivery system: • Accessibility – communities should have access to the minimum level of service • Simplicity – municipal services should be simple and easy to use • Affordability – services should be as affordable as possible • Quality – services should be suitable for their purpose, provided on time and safe • Accountability – municipal government must be accountable for all its activities, including the provision of quality services • Integration – municipalities must adopt an integrated approach with respect to planning and must ensure that municipal services are provided in a sustainable manner • Sustainability – service provision is an ongoing obligation and process and requires properly managed municipal institutions • Value for money – municipalities should provide value-for-money services • Promotion of competitiveness – sufficient transparency is needed in the sense that all investors in a given municipal area must be aware of the costs involved in doing business in that area • Promotion of the new constitutional values – municipalities must aim to give effect to the values enshrined in the new constitutional dispensation Question 3 Municipal services can be divided into two categories, namely support services and operational services. Briefly explain both these services and list two support services. [5] Suggested answer Municipal services can be divided into two broad categories, namely support services and operational services. Support services are important for the effective operation of the municipality, while operational services refer to services that a municipality renders to its local community. Memorise this distinction. Any two of the below: • legal services • financial services • personnel services • repair and maintenance services • information and technology services • supply services Question 1 In the pre-1994 era, municipalities were described as … since their powers were expressly stipulated in legislation • creatures of statute • sovereign • the highest tier of government • federal states Question 2 “Developmental local government” is a principle that refers to … . • local government that gives effect to its fiscal responsibilities • local government that works with the members of the community in order to meet the basic needs of all South Africans • the municipal objective to improve infrastructure • the municipal obligation to adhere to the Bill of Rights Question 3 The following is NOT an objective of local government: • to promote social and economic development • to promote capital and fiscal growth in the financial market • to provide democratic and accountable government for local communities • to ensure the provision of services to communities in a sustainable manner Question 4 Which one of the following operational services generally falls outside the municipality’s domain? • Markets Trading regulations • Cleansing services • National tourism • Trading regulations Question 5 In the … system the municipal council will elect an executive committee amongst the members of the council and delegate responsibilities to that committee which will then be able to take decisions regarding executive matters. • plenary • parliamentary • mayoral executive • collective Question 6 Municipal capacity building has a number of advantages. Which one of the following is NOT one of the advantages? • Better investment opportunities can be created • Financial sustainability for the municipal council • Powers can be delegated to the municipal level • Services are delivered according to legal requirements Question 7 The Local Government: Municipal Systems Act, 32 of 2000 states that a municipality …. prepare a performance report for each financial year. • should sometimes • must • may • ca