Here's a breakdown of the relevant legal architecture:
1. Constitution of the Republic of South Africa, 1996
• Section 152 & 153: Municipalities are tasked with providing services in a sustainable manner and promoting social and economic development.
• Section 156(1): Municipalities may only administer functions assigned to them by national or provincial legislation.
• Implication: If a function is not constitutionally or legislatively assigned to a municipality, it cannot be funded through municipal budgets—i.e., ratepayer money.
2. Municipal Finance Management Act (MFMA), Act 56 of 2003
• Section 15: Municipal funds may only be spent on approved budgeted items.
• Section 17(2): Budgets must reflect only legally mandated functions.
• Section 19 & 33: Capital projects and long-term contracts must be aligned with municipal functions and undergo feasibility and affordability checks.
• Implication: Spending on non-municipal functions is unlawful unless explicitly authorized and budgeted through proper channels.
3. Local Government: Municipal Systems Act, Act 32 of 2000
• Section 8 & 11: Municipalities may only perform functions assigned by law.
• Section 76–80: Service delivery mechanisms include partnerships, but must be legally compliant and transparent.
• Implication: External partnerships (e.g., with NGOs or private entities) may be used for functions outside municipal scope, but not funded by ratepayer money unless the function is legally assigned.
4. Public Finance Management Act (PFMA), Act 1 of 1999 & Treasury Regulations
• Treasury Regulation 16: Governs Public-Private Partnerships (PPPs).
• Implication: PPPs must follow strict feasibility, approval, and procurement processes. They are often used for functions not directly assigned to municipalities.
💡 Practical Interpretation
If a community wants to support a function that is not legally assigned to the municipality—say, a provincial health initiative or national policing support—it cannot be funded through municipal rates. Instead, it must be:
• Funded through donations, grants, or external partnerships.
• Administered via legally compliant agreements, such as PPPs or service-level agreements.
• Excluded from the municipal budget unless formally delegated by higher government.