Maintenance and repair spending realities: what can be done

Abstract

Treasury has laid down that municipalities shall budget for maintenance and repair an annual sum equivalent to 8% of the “carrying value” of “property, plants and equipment and investment property”. The guidance provided by this ruling is invaluable. However to what extent do municipalities pay much heed? This paper outlines and comments on the current guidelines, presents the spending realities and points to the consequences of these, and speculates on ways forward. Treasury has laid down that municipalities shall budget for maintenance and repair an annual sum equivalent to 8% of the “carrying value” of “property, plants and equipment and investment property”. The guidance provided by this ruling is invaluable. However to what extent do municipalities pay much heed? This paper outlines and comments on the current guidelines, presents the spending realities and points to the consequences of these, and speculates on ways forward.