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LGL3702 Exam

The document discusses the role of valuers in property valuation, emphasizing their importance in determining market value based on various factors. It outlines principles of municipal service delivery, public participation, and the responsibilities of accounting officers in local government finance management. Additionally, it categorizes municipalities into three types: Category A (Metropolitan), Category B (Local), and Category C (District), detailing their respective authorities and functions.

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Amelda Brits
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0% found this document useful (0 votes)
72 views4 pages

LGL3702 Exam

The document discusses the role of valuers in property valuation, emphasizing their importance in determining market value based on various factors. It outlines principles of municipal service delivery, public participation, and the responsibilities of accounting officers in local government finance management. Additionally, it categorizes municipalities into three types: Category A (Metropolitan), Category B (Local), and Category C (District), detailing their respective authorities and functions.

Uploaded by

Amelda Brits
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Amelda Brits

12315133
LGL3702
Question 1

1.1

As stated in the case of The City of Johannesburg Metropolitan Municipality v The


Chairman of the Valuation Appeal Board for the City of Johannesburg, 2014, the role
of a valuer during the property valuation process is of importance.
Valuers should have regard to various factors to determine what a notional willing
buyer would pay to a willing seller in the open market such as restrictions on the use
of the property, the improvements of on the land, potential uses and the income that
may be derived from the property. Valuers are this skilled to do this and this is
beneficial to prospective buyers, they can express their opinion on the market value
in monetary terms.
Valuers according to the case function as estimators of value.
1.2

• Accessible – access to minimum level of service


• Simple – services should be simple and easy to use
• Affordable – services should be as affordable as possible
• Quality – it should be suitable for their purpose and provided timely and be
safe
• Accountability – municipal government must be accountable for all its
activities
• Integration – this must be done with respect to planning and to ensure that
municipal services are provided in a sustainable manner
• Sustainable – service provision is an ongoing obligation and process –
requires proper management
• Value for money – services that are provided by municipalities should be
value-for-money
• Promotion of competitiveness – all investors must be aware of the costs
involved in doing business in that area
• Promotion of the new constitutional values – the aim for municipalities is to
give effect to the values enshrined in the new constitutional dispensation

Question 2

2.1

Public participation entails communities and individuals to have a say in the


decisions that will have an impact on their lives.

2.2
An accounting officer of a municipality must act with fidelity, honesty, integrity and in
the best interests of the municipality in managing all financial matters. The
accounting officer must disclose all facts to the municipal council and mayor, which
are available to him and in which way affect the decisions or the actions of the
council or mayor. The accounting offices must seek to also prevent all or any
prejudice to the financial interests of the municipality.

Question 3

3.1

• Municipal financial management: It is essential for local government function


that municipalities finances are accurately and effectively managed.
• Non-racial democratic government: This principle was created so that all
people, no matter their race, have equal rights and opportunities and that they
have the right to vote for their political representative.
• Constitutional supremacy: Municipalities are closely linked to the people of
South Africa; they must thus ensure that effect is given to the values of the
Constitution.
• Municipal service deliver: striving for sustainability: Municipalities must strive
to deliver services in a sustainable manner, service delivery must be
affordable and accessible.

3.2

There are several external factors that have a negative impact on local government.
This includes financial constraints, administrative challenges and legislative
complications.

The number of people for which each municipal authority must provide has
increased significantly. This have not been counterbalanced by the increases in tax
revenue that would be necessary to enable local government to fulfil their new
accountabilities. This has caused multiple municipalities to face financial crisis. The
current decline in national economic growth, alongside residents’ expectations of
service deliver, places extreme pressure on the financial situation of local
government.
The incorporation of local government has resulted in substantial administrative
changes. Administrative difficulties persist despite the constitutional imperative.
Difficulties in municipalities include a lack of coordination between departments, staff
that has had no training or has no experience.

Many old-order laws remain in force and continue to operate alongside the newly
enacted local government laws. This has created uncertainty in for municipal
councils as these laws were often applied and interpreted differently depending on
the jurisdiction concerned and has resulted in different norms and standards being
applied throughout South Africa.

3.3

A municipal council may elect an executive committee, provided that the election
adheres to the relevant legislation this is in terms of section 160(1)(c) of the
Constitution. A municipality may establish an executive committee if the municipality
is of a certain type and if it has more than nine councillors according to Sections 33
(a) and (c) of the Structures Act. This means that municipalities with less than ten
councillors may not elect and executive committee.

Question 4

4.1

There are three different categories of municipalities. A category A municipality is


known as a Metropolitan Municipality or Council has exclusive municipal executive
and legislative authority in its area. It is the only municipal council in that area, thus
standing alone. An area will only be regarded as a category A municipality if it is an
area with high population density where there is an intense movement of people,
goods and services. Also, if it has extensive development and multiple industrial
areas or business districts.

A category B municipality is a municipality known as a Local Municipality or Council


that shares municipal executive and legislative authority in its area with a category C
municipality within whose area it falls.

And a category C municipality has municipal executive and legislative authority in an


area that includes more than one municipality – this is known as a District
Municipality or Council. Municipalities in category A and B are usually referred to as
primary local governments, whilst category C municipalities are referred to as a
secondary municipality.
4.2

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