7. Managing the money flow "Money flow" or "cash flow" is the movement of money into and out of the municipality's bank account, as money is received from ratepayers or paid out to staff and service pro When of more money flows in to the bank account be paid out, the municipality has a surplus money and can proceed with planned development been planned in the budget projects that have been planned in the budget.
When more money has to be paid out than the money that flows in, your municipal could be heading for big financial problems or go "bankrupt". The municipality can borrow money from the bank (overdraft), or from another sphere of government (a loan or grant), or increase the property rates and service charges (tariffs) which people must pay for local services to avoid the situation
None of these options is very good for your municipality's reputation. Even though ward committees and community organisations are not involved in the municipality's "cash flow managemen you need to know how important it is to avoid a "negative cash flow", or "deficit". This is when the municipality owes more money than it has in the bank, and has to stop projects that it cannot afford to pay for. "cash flow management" should be a regular item on the council meeting agendas and documents about this should be presented to council or ward committee meetings. Ask questions about how well the money flow is being planned, monitored and followed up, by the treasurer and executive committee or mayoral committee.
Ward Committee role
Your ward committee members all need to help achieve a "positive cash flow" for your municipality's development projects, by:
setting the example in paying your rates and service charges fully, and before the due date
encouraging everybody in your community to pay their rates and service charges, on time
challenging any waste of municipal money that you hear about, and asking for a proper explanation or investigation
holding your councillor accountable for fighting corruption or wastage of municipal cash or other assets.
Index
Municipal Service Delivery * Developmental Local Government *
Integrated Development Planning for Local Government * Understanding Local Government *
HIV and AIDS and Municipalities *
Local Government Finances and Budgets *
Accountability and Community Participation *
Local Government Elections
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