When determining or re-determining municipal boundaries, the Municipal Demarcation Board takes into account factors related to the economic viability of the entities created and the responsibility of various spheres to carry out their mandates.
The Municipal Demarcation Board determines or re-determines municipal boundaries, taking into account the existing funding framework applicable to municipalities because no additional funding mechanisms are put in place solely to deal with demarcation issues. However, this is a matter of general application across all municipalities, regardless of whether they are affected by re-demarcation or not, as compared to other grades of municipalities. All grades, Grade 1 to Grade 3, local municipalities receive funding through the local government equitable share and other conditional grants such as the municipal infrastructure grant and municipal systems improvement grant.