Masters Degrees (Geography and Environmental Studies)

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Browsing Masters Degrees (Geography and Environmental Studies) by Author "Balie, Quinton"

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    The impact of population growth on municipal revenue: implications for South African municipalities
    (Stellenbosch : Stellenbosch University, 2020-03) Balie, Quinton; Horn, Anele; Stellenbosch University. Faculty of Arts and Social Sciences. Dept. of Geography and Environmental Studies.
    ENGLISH ABSTRACT: This research examines the relationship between population growth and municipal revenue generation between 2001 and 2016. The impact of population growth in terms of natural increase and net migration over time on municipal revenue generation is not known. It is assumed that municipalities that experience rapid population growth does not necessarily receive a comparable change in revenue that would allow them to deliver basic services. This could be due to the majority of population growth attributed to an increase in indigent households. Indigent households are defined as poor/poorer households that receives free basic services such as water, electricity, sanitation and refuse removal (DPLG 2005:30). Municipal revenue in this research paper is categorised as ‘total municipal revenue’ and ‘own municipal revenue’. Total municipal revenue consists of revenue generated from property tax, user service charges and equitable share allocations & conditional grants paid from the national fiscus. Own municipal revenue is generated from property tax and user service charges. A compound annual growth rate index was developed to determine the relationship between municipal revenue and population growth nationally. The eight (8) metropolitan municipalities and two hundred and twenty-six (226) category B municipalities in South Africa were analysed. The findings indicate that total municipal revenue nationally increased at a positive and higher rate than population growth. A compound annual growth rate index was also developed to determine the relationship between ‘own’ municipal revenue and indigent households for the Western Cape province municipalities. The sample consisted of the City of Cape Town Metropolitan Municipality and five (5) category B municipalities, one (1) per district municipality which had the highest population growth percentage between 2001 and 2016 in the Western Cape province. Conclusions drawn suggest that indigent households had an impact on ‘own’ municipal revenue generated. Own municipal revenue grew at a slower and much lower rate. The lack of an adequate municipal property tax base in most municipalities contributes towards this phenomenon (Manyaka 2014:132).