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Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 8 : Municipal Services

Part 4 : Municipal service districts

89. Contents of agreements establishing multi-jurisdictional municipal service districts



1) An agreement establishing a multi-jurisdictional municipal service district must describe the rights, obligations and responsibilities of the participating municipalities and must-
a) determine the boundaries of the district;
b) identify the municipal service to be provided in terms of the agreement;
c) determine the mechanism that will provide the service in the district;
d) determine budgetary, funding and scheduling arrangements for implementation of the agreement;
e) provide for-
i) the establishment of a governing body for the multi-jurisdictional municipal service district;
ii) the appointment of representatives of the participating municipalities to the governing body, the filling of vacancies and the replacement and recall of representatives;
iii) the number of representatives appointed for each participating municipality, subject to subsection (2);
iv) the terms and conditions of appointment of those representatives;
v) the appointment of a chairperson;
vi) the operating procedures of the governing body;
vii) the delegation of powers and duties to the governing body consistent with section 92; and
viii) any other matter relating to the proper functioning of the governing body;
f) provide for-
i) the acquisition of infrastructure, goods. services, supplies or equipment by the governing body, or the transfer of infrastructure. goods, services, supplies or equipment to the governing body;
ii) the appointment of staff by the governing body, or the transfer or secondment of staff to the governing body in accordance with applicable labour legislation;
iii) the terms and conditions on which any acquisition. transfer. appointment or secondment is made; and
g) determine the conditions for, and consequences of, the withdrawal from the agreement of a participating municipality:
h) determine the conditions for, and consequences of, the termination of the agreement, including-
i) the method and schedule for winding-up the operations of the district;
ii) the distribution of the proceeds; and
iii) the allocation among the participating municipalities of any assets and liabilities.


2) A governing body must consist of between three and fifteen representatives.