Rates increases the South African Law

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In South African law, municipalities are legally required to provide budgetary context when proposing rates increases, and public participation must be meaningful—not symbolic. Here's a breakdown of the key legislation, regulations, and principles that govern this:

📜 Key Laws and Regulations

1. Constitution of the Republic of South Africa, 1996
• Section 152(1)(e): Mandates municipalities to encourage the involvement of communities in matters of local governance.
• Section 195(1)(e): Public administration must be transparent and provide timely, accessible information.

2. Local Government: Municipal Systems Act 32 of 2000
• Section 16 & 17: Requires municipalities to develop a culture of public participation and establish mechanisms for it.
• Section 25–29: Public participation is required in the Integrated Development Plan (IDP), which must align with budget and rates decisions.
• Section 42: Community participation must be facilitated in the performance management system, which includes financial planning.

3. Local Government: Municipal Finance Management Act (MFMA) 56 of 2003
• Section 22: Municipalities must publish the annual budget and invite public comment at least 90 days before the start of the financial year.
• Section 23: Requires consideration of public inputs before finalizing the budget.
• Section 24: The council must approve the budget before the start of the financial year.
• Section 15 & 16: No expenditure may be incurred unless it is in terms of an approved budget.

4. Municipal Property Rates Act 6 of 2004
• Section 4(1): Municipalities may levy rates only by resolution of the council.
• Section 5: Requires public consultation before adopting a rates policy.
• Section 6 & 7: Rates must be levied in accordance with the approved budget and rates policy.
• Section 17: Public notice must be given of the council's intention to levy rates, including the amount and purpose.

5. Promotion of Administrative Justice Act (PAJA) 3 of 2000
• Section 3: Requires fair administrative action, including adequate notice and reasons for decisions—such as rates increases.

⚖️ Implications for Municipal Practice
• A municipality cannot legally conduct public participation on rates increases without presenting the supporting budgetary rationale.
• Public participation must be informed, meaning residents must have access to the proposed budget, rates policy, and explanatory documents.
• Failure to provide this information may render the process procedurally unfair and open to legal challenge under PAJA.

Email from the Director of Corporate Services, Mossel Bay Municipality, regarding the September 2025 public participation session on the IDP and the 2026/27 budget and rate increases.

Good day Mr Smit,

Your correspondence has been referred to me. Before it can be forwarded to the relevant departments for input, I would like to confirm the financial year to which your letter pertains.

Currently, there is no draft budget or proposed tariffs available for the 2026/2027 financial year. In September 2025, the Municipality provided the community with an opportunity to submit input regarding the 2026/2027 budget. These submissions are currently being processed and will be presented to the Executive Directorate for consideration in terms of feasibility and prioritisation. Recommendations will then be submitted to the Budget Management Committee, which is expected to convene in February 2026.

The draft budget and proposed tariffs for 2026/2027 will thereafter be published for public comment. Although legislation requires municipalities to facilitate public participation at least 14 days before the Council meeting, Mossel Bay Municipality typically initiates this process two months in advance. The final budget for 2026/2027 will be approved and published by the Council by 30 May 2026.

Once there is clarity regarding the year you are referring to, an appropriate response can be provided.

Kind regards,
Anette Potgieter
Director of Corporate Services

Original e-mail Smit - Annette Potgieter Budget in Afrikaans.pdf

Statement Regarding Public Participation and Information Disclosure in Mossel Bay Walk-In Meetings

The Walk-In meetings convened by the Mossel Bay Municipality since the 2021–2022 financial year have consistently failed to meet the standards of meaningful public engagement as envisioned in the Municipal Systems Act (Act 32 of 2000) and related participatory frameworks. The seven-page document distributed at these meetings lacks sufficient detail and fails to provide the necessary context, data, and proposals required for informed community participation.

In terms of section 16 of the Municipal Systems Act, municipalities are obligated to promote community involvement in decision-making processes. This includes providing adequate notice and access to relevant documentation. The absence of a comprehensive and detailed agenda or supporting documents at least 14 days prior to the meeting—as required for effective consultation—constitutes a procedural deficiency and undermines the principles of transparency and accountability.

For public participation to be substantive rather than symbolic, the community must be afforded reasonable time and access to information to prepare, engage, and respond. The failure to provide such documentation in advance renders these engagements ineffective and contrary to the spirit of cooperative governance.

Seven page document provided at the meeting