1. A municipality must, within the framework of and in accordance with relevant provisions of the Municipal Structures Act, this Act and other applicable legislation, define the specific role and area of responsibility of each political structure and political office bearer of the municipality and of the municipal manager.
2. The respective roles and areas of responsibility of each political structure and political office bearer and of the municipal manager must-
   
   1. be defined in precise terms by way of separate terms of reference, in writing, for each political structure or political office bearer and the municipal manager; and
   2. be acknowledged and given effect to in the rules, procedures, instructions, policy statements and other written instruments of the municipality.
3. instruments defining, acknowledging or giving effect to the roles and areas of responsibility of these political structures and political office bearers and the municipal manager must be appropriate to the category and type in which the municipality falls.
4. Terms of reference mentioned in subsection (2)(a) may include the delegation of powers and duties to the relevant political structure or political office bearer or the municipal manager in terms of section 59.
5. When defining the respective roles and areas of responsibility of each political structure and political office bearer and of the municipal manager, the municipality must determine-
   
   1. the relationships among those political structures and political office bearers and the municipal manager, and the manner in which they must interact;
   2. appropriate lines of accountability and reporting for those political structures and political office bearers and the municipal manager;
   3. mechanisms, processes and procedures for minimising cross-referrals and unnecessary overlapping of responsibilities between those political structures and political office bearers and the municipal manager;
   4. mechanisms, processes and procedures for resolving disputes between those political structures and political office hewers and the municipal manager; and
   5. mechanisms, processes and procedures for interaction, between-
      
      1. those political structures and political office bearers and the municipal manager and other staff members of the municipality; and
      2. councillors and the municipal manager and other staff members of the municipality.
6. If a municipality has a decentralised regional administration in any part of its area, the municipality must determine mechanisms, processes and procedures for interaction between the regional management of the municipality and-
   
   1. the ward councillor or other councillor responsible for that part of the municipality's area;
   2. any subcouncil or ward committee, where applicable, in that part of the municipality's area; and
   3. the local community in that part of the municipality's area.

The Code of Conduct contained in Schedule 1 applies to every member of a municipal council.

1. As head of administration the municipal manager of a municipality is, subject to the policy directions of the municipal council, responsible and accountable for-
   
   1. the formation and development of an economical. effective, efficient and accountable administration-
      
      1. equipped to carry out the task of implementing the municipality's integrated development plan in accordance with Chapter 5;
      2. operating in accordance with the municipality's performance management system in accordance with Chapter 6; and
      3. responsive to the needs of the local community to participate in the affairs of the municipality;
   2. the management of the municipality's administration in accordance with this Act and other legislation applicable to the municipality;
   3. the implementation of the municipality's integrated development plan, and the monitoring of progress with implementation of the plan;
   4. the management of the provision of services to the local community in a sustainable and equitable manner;
   5. the appointment of staff other than those referred to in section 56(a), subject to the Employment Equity Act, 1998 (Act No. 55 of 1998);
   6. the management, effective utilisation and training of staff;
   7. the maintenance of discipline of staff;
   8. the promotion of sound labour relations and compliance by the municipality with applicable labour legislation;
   9. advising the political structures and political office bearers of the municipality;
   10. managing communications between the municipality's administration and its political structures and political office bearers;
   11. carrying out the decisions of the political structures and political office bearers of the municipality;
   12. the administration and implementation of the municipality's by-laws and other legislation;
   13. the exercise of any powers and the performance of any duties delegated by the municipal council, or sub-delegated by other delegating authorities of the municipality, to the municipal manager in terms of section 59;
   14. facilitating participation by the local community in the affairs of the municipality;
   15. developing and maintaining a system whereby community satisfaction with municipal services is assessed;
   16. the implementation of national and provincial legislation applicable to the municipality; and
   17. the performance of any other function that may be assigned by the municipal council.
2. As accounting officer of the municipality the municipal manager is responsible and accountable for-
   
   1. all income and expenditure of the municipality;
   2. all assets and the discharge of all liabilities of the municipality; and
   3. proper and diligent compliance with applicable municipal finance management legislation.

1. A municipal council, after consultation with the municipal manager, appoints a manager directly accountable to the municipal manager.
2. A person appointed as a manager in terms of paragraph (a), must have the relevant skills and expertise to perform the duties associated with the post in question, taking into account the protection or advancement of persons or categories of persons disadvantaged by unfair discrimination.

1. A person to be appointed as the municipal manager of a municipality, and a person to be appointed as a manager directly accountable to the municipal manager, may be appointed to that position only-
   
   1. in terms of a written employment contract with the municipality complying with the provisions of this section; and
   2. subject to a separate performance agreement concluded annually as provided for in subsection (2).
2. The performance agreement referred to in subsection (1) (b) must-
   
   1. be concluded within a reasonable time after a person has been appointed as the municipal manager or as a manager directly accountable to the municipal manager, and thereafter, within one month after the beginning of the financial year of the municipality;
   2. in the case of the municipal manager, be entered into with the municipality as represented by the mayor or executive mayor, as the case may be; and
   3. in the case of a manager directly accountable to the municipal manager, be entered into with the municipal manager.
3. The employment contract referred to in subsection (1)(a) must include, subject to applicable labour legislation, details of duties, remuneration, benefits and other terms and conditions of employment.
4. The performance agreement referred to in subsection (1)(b) must include-
   
   1. performance objectives and targets that must be met, and the time frames within which those performance objectives and targets must be met;
   2. standards and procedures for evaluating performance and intervals for evaluation; and
   3. the consequences of substandard performance.
5. The performance objectives and targets referred to in subsection (4)(a) must be practical, measurable and based on the key performance indicators set out from time to time in the municipality's integrated development plan.
6. The employment contract for a municipal manager must-
   
   1. be for a fixed term of employment not exceeding a period ending two years after the election of the next council of the municipality;
   2. include a provision for cancellation of the contract. in the case of non-compliance with the employment contract or, where applicable, the performance agreement;
   3. stipulate the terms of the renewal of the employment contract, but only by agreement between the parties; and
   4. reflect the values and principles referred to in section 50, the Code of Conduct set out in Schedule 2, and the management standards and practices contained in section 51.
7. A municipality may extend the application of subsection (6) to any manager directly accountable to the municipal manager.

A municipality must, on or before 31 October of each year, publish in the media the salary scales and benefits applicable to posts of the municipal manager and every manager that is directly accountable to the municipal manager.