1. Definitions

In this Act, unless inconsistent with the context-

"basic municipal services" means a municipal service that is necessary m ensure an acceptable and reasonable quality of life and, if not provided, would endanger public health or safety or the environment;

"by-law" means legislation passed by the council of a municipality binding in the municipality on the persons to whom it applies;

"category" in relation to municipalities, means a category A, B or C municipality envisaged in section 155(1) of the Constitution;

"citizen" means a citizen of the Republic as envisaged in section 3 of the Constitution;

"Code of Conduct" in relation to-

1. a councillor, means the Code of Conduct set out in Schedule 1; and
2. a staff member of a municipality, means the Code of Conduct set out in Schedule 2;

"councillor" means a member of a municipal council;

"delegating authority"-

1. in relation to a delegation of a power or duty by a municipal council, means the municipal council;or
2. in relation to a subdelegation of a power or duty by another political structure, or by a political office bearer, councillor or staff member of a municipality, means that political structure, political office bearer, councillor or staff member;

"delegation" n relation to a duty, includes an instruction to perform the duty and
"delegate" has a corresponding meaning;

"development" means sustainable development. and includes integrated social, economic, environmental, spatial, infrastructural, institutional, organisational and human resources upliftment of a community aimed at-

1. improving the quality of life of its members with specific reference to the poor and other disadvantaged sections of the community; and
2. ensuring that development serves present and future generations;

"district municipality" means a category C municipality envisaged in section 155(1)(c) of the Constitution;

"environmentally sustainable" in relation to the provision of a municipal service, means the provision of a municipal service in a manner aimed at ensuring that-

1. the risk of harm to the environment and to human health and safety is minimised to the extent reasonably possible under the circumstances;
2. the potential benefits to the environment and to human health and safety are maximised to the extent reasonably possible under the circumstances; and
3. legislation intended to protect the environment and human health and safety is complied with;

"executive authority" in relation to a municipality, means the municipality's executive authority envisaged in section 156 of the Constitution. read with section 11 of this Act;

"financially sustainable" in relation to the provision of a municipal service, means the provision of a municipal service in a manner aimed at ensuring that the financing of that service from internal and external sources, including budgeted income, grants and subsidies for the service, is sufficient [o cover the costs of-

1. the initial capital expenditure required for the service;
2. operating the service; and
3. maintaining, repairing and replacing the physical assets used in the provision of the service;

"integrated development plan" means a plan envisaged in section 25;

"labour legislation" includes collective agreements in terms of the Labour Relations Act. 1995 (Act No. 66 of 1995);

"local community" or "community" in relation to a municipality. means that body of persons comprising-

1. the residents of the municipality;
2. the ratepayers of the municipality;
3. any civic organisations and non-governmental, private sector or labour organisations or bodies which are involved in local affairs within the municipality; and
4. visitors and other people residing outside the municipality who, because of their presence in the municipality. make use of services or facilities provided by the municipality, and includes, more specifically, the poor and other disadvantaged sections of such body of persons;

"local municipality" means a category B municipality envisaged in section 155(1)(h) of the Constitution;

"MEC" means a member of a provincial Executive Council;

"MEC for local government" means the MEC responsible for local government in a province;

"Minister" means the national Minister responsible for local government;

"municipal council" or council" means a municipal council referred to in section 157(1) of the Constitution;

"municipal entity"

1. a company, co-operative trust, fund or any other corporate entity established in terms of any applicable national or provincial legislation and which operates under the ownership control of one or more municipalities, and includes, in the case of a company under such ownership control, any subsidiary of that company; or
2. a service utility

"municipality" when referred to as-

1. an entity, means a municipality as described in section 2; and
2. a geographic area. means a municipal area determined in terms of the Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998);

"municipal manager" means a person appointed in terms of section 82 of the Municipal Structures Act;

"Municipal Structures Act" means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);

"national organ of state" means an organ of state functioning within the national sphere of government;

"organised local government" means an organisation recognised in terms of section 2 (1) of the Organised Local Government Act, 1997 (Act No. 52 of 1997), to represent local government nationally or provincially;

"organ of state" means an organ of state as defined in section 239 of the Constitution;

"ownership control" in relation to a company. co-operative, trust, fund or any other corporate entity established in terms of any applicable national or provincial legislation, means the ability to exercise any of the following powers to govern the financial and operating policies of the entity in order to obtain benefits from its activities;

1. To appoint or remove at least the majority of the board of directors or equivalent governing body;
2. to appoint or remove that entity’s chief executive officer;
3. to cast at least the majority of the votes at meetings of the board of directors or equivalent governing body: or
4. to control at least the majority of the voting rights at a general meeting in the case of a company, co-operative or other body having members;

"political office bearer" means the speaker. executive mayor, mayor, deputy mayor or a member of the executive committee as referred to in the Municipal Structures Act;

"political structure" in relation to a municipality means the council of the municipality or any committee or other collective structure of a municipality elected, designated or appointed in terms of a specific provision of the Municipal Structures Act;

"prescribe" means prescribe by regulation or guidelines in terms of section 120, and "prescribed" has a corresponding meaning;

"Provincial Gazette" means the official gazette of the province concerned;

"provincial organ of state" means an organ of state functioning within the provincial sphere of government;

"ratepayer" in relation to a municipality. means a person who is liable to the municipality for the payment of-

1. rates on property in the municipality;
2. any other tax, duty or levy imposed by the municipality; or
3. fees for services provided either by the municipality or in terms of a service delivery agreement;

"resident" in relation to a municipality, means a person who is ordinarily resident in the municipality;

"service authority" means the power of a municipality to regulate the provision of a municipal service by a service provider;

"service delivery agreement" means an agreement between a municipality and an institution or person mentioned in section 76(b) in terms of which a municipal service is provided by that institution or person, either for its own account or on behalf of the municipality;

"service provider" means a person or institution or any combination of persons and institutions which provide a municipal service;

"service utility" means a municipal entity established in terms of section 82(1)(c);

"staff" in relation to a municipality, means the employees of the municipality, including the municipal manager;

"this Act" includes any regulations made in terms of section 120;

"type" in relation to municipalities, means a type of municipality envisaged in section 155(2) of the Constitution, and defined in Part 2 of Chapter 1 of the Municipal Structures Act.