Gauteng is planning to pool the financial resources of all its municipalities to aid the province's struggling entities. Speaking at the Africities summit in Johannesburg, the city's member of the mayoral committee for finance, Geoffrey Makhubo, said: "We are busy developing a study, looking at the pros and cons, and weaknesses and strengths, including whether municipalities can absorb this type of funding."We are expecting a draft report by March next year."Gauteng has three metropolitan municipalities - Ekurhuleni, Johannesburg and Tshwane - as well as two district municipalities, which are subdivided into seven local municipalities.The three metros have been able to raise funding for capital projects from the private sector, but the smaller municipalities are totally dependent on the Treasury for grants to address their infrastructure backlog.Makhubo said the city was also considering tapping into the pension funds of municipal employees to finance its programmes.Makhubo said: "At the moment we are putting together a document."There is a decision we have to put through the mayoral committee as to how do we use pension funds for public good. We are currently looking at the city's pension funds [and the SA Local Government Association] and from there we will go outside. In the next year, we should be finalising this move."Another option mooted was business tax. One of the proponents of this strategy at the summit was Matthew Glasser of Washington College of Law, who said: "With regard to business tax, a new legislation will have to be tabled. We have heard at this conference of a number of mayors from big cities [who are] interested in business tax. It is going to be up to them and their governments whether they do it or not. But [in South Africa] you will need legislative approval to get it done."Glasser advised cities to take advantage of pension funds, insurance and unit trusts.Merrick Cockell, the chairman of the UK Municipal Bonds Agency, proposed the system used in London - where a municipal bond agency issues bonds on behalf of all the municipalities.Municipalities also had the option of borrowing each others' money, Cockell said."You have to work together in order to get funding. That is how cities can source funding," he said...