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andrewpaul9005
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Journal for andrewpaul9005Journal for andrewpaul9005
Oct
2
Happy
In case you are not aware, South African municipalities are made up of a series of often small but densely populated local municipalities which are situated across the country. Each local municipality is led and controlled by a elected local governing council, which meets at least once every week. As well as having an elected government the municipalities also elect or appoint some members to the governing body from their community. The number of members each local municipality may have also fluctuates. Although there are no written regulations regarding the election of South African municipalities, the ones that exist in place limit the number of members each governing body may have and the number of seats each member of the governing body may be entitled to.

Since South African municipalities are comprised of a number of small units, one can say that they have \'varieties\' when it comes to how their municipal funding model operates. Within South Africa there are two types of financing mechanisms that are used to finance the different aspects of the day to day operations of South African local municipalities: the District Planning System (DPS) and the Local Government Accounting Systems ( LGAS). The DPS was established in 1981 and is currently the most widely used funding mechanism in South Africa. It requires yearly contributions from inhabitants to ensure that there are adequate funds available for the different expenses that are faced by the South African local government.

LGAS on the other hand, was created by the National Government as a way to distribute revenues generated within the municipalities amongst the citizens of south africa. LGAS is funded through the tax rates on property and the goods that are produced within the nation. When it comes to South African municipalities the LGAS method is considered the more appropriate since it taxes property and goods differently that DPS does. The distribution of the revenue from LGAS is centralized, unlike the decentralized system of distribution used by the DPS.

South Africa has a rather unique way of collecting its surpluses. Since the South African municipalities generate large amount of revenue during the year, the government has to set aside a reserve fund of this kind. This reserve is meant to cater for the expenses that the South African municipalities will have to face. The expenses that are incurred by the South African municipality include: capital expenses that are incurred when setting up the municipality; maintenance costs that are incurred when it is holding normal offices and departments; and even for providing services to the residents of south africa. All these expenses are incurred in order to ensure that the municipalities have a steady source of income from which they can spend.

In order to make up for the expenditure that the South African municipalities have to make to keep their normal functions going, the national government introduced a Municipal Electricity System (MES). The MES was introduced to help the municipalities with the cost of providing their services and maintain their lights. The MES system is fed by the revenue surpluses that the South African governments has to release for the maintenance and upkeep of the municipal electricity systems. These surpluses are used by the MES for the purposes of:

Although the MES was introduced as a supplement to the regular budget, it has helped the municipalities a great deal in maintaining their lights and other essential facilities. With the help of this supplement, the South African municipalities can use their surpluses to build better roads, housing estates, hospitals and other essential public facilities. Because the South African governments have not allowed private players in the electricity sector, they have not allowed the private players to siphon off the surplus from the national electricity grid. The municipalities therefore are left with no other option but to rely on the national government to release the surplus of their surpluses. This ensures that the South African municipalities can continue providing services and other essential public utilities without receiving any kind of assistance from the private sector.
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