Honourable Speaker, Members of Council, Officials, Community Members, and Stakeholders,
Today, I stand before you to present the draft budget for the 2025/26 financial yearโa budget that reflects both the immense challenges we face and the determination with which we are confronting them.
We do not shy away from the reality that this has been one of the most difficult budget preparation cycles in recent memory.
Our municipality has faced significant financial strain, but we are resolute in our commitment to turning this ship around.
We have embarked on a turnaround strategy that prioritises financial viability, good governance, institutional development, basic service delivery, and local economic developmentโall in line with our Integrated Development Plan (IDP).
The foundation of this budget is a return to getting the basics right so that we can once again deliver the quality services our residents expect and deserve.
๐ ๐๐๐ฅ๐๐ง๐๐ข๐ง๐ ๐๐๐ญ ๐ข๐ง ๐๐ข๐๐๐ข๐๐ฎ๐ฅ๐ญ ๐๐ข๐ฆ๐๐ฌ
The difficult financial position of the municipality required us to make tough but necessary decisions. To restore financial stability while continuing to provide essential services, the following tariff increases have been proposed for the 2025/26 financial year:
Assessment Rates: 7%
Water: 5%
Sanitation (Sewer): 5%
Solid Waste (Refuse): 5%
Electricity: 12.74% (subject to NERSAโs final approval)
While we do not control electricity tariffs, we are committing ourselves, to a single figure budget increase and an increase that stays as close as possible to the inflation rate. These increases are necessary to ensure the sustainability of municipal services.
However, we remain sensitive to the financial pressures of our residents, particularly our most vulnerable. Our indigent policy continues to provide relief to qualifying households, and we are actively assessing the financial impact of this policy to ensure it remains sustainable and effective.
๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐ง๐ ๐๐๐ซ๐ฏ๐ข๐๐ ๐๐๐ฅ๐ข๐ฏ๐๐ซ๐ฒ
Despite the financial constraints, this budget ensures that we continue to invest in infrastructure and service delivery. The capital expenditure budget for 2025/26 amounts to R87 millionโa decrease of 52% compared to the 2024/25 adjustment budget.
However, this figure will increase significantly to R152 million in both 2026/27 and 2027/28.
This demonstrates our commitment to long-term infrastructure investment and service delivery improvements.
Our priorities remain clear:
Improving water, sanitation, electricity, and refuse removal services to eradicate backlogs and enhance the quality of life for all residents.
Aligning our service delivery focus with National and Provincial Government priorities to ensure that every rand spent contributes to sustainable development. Fostering financial accountability and good governance to regain public trust.
๐๐๐ฏ๐๐ง๐ฎ๐ ๐๐ซ๐จ๐ฐ๐ญ๐ก ๐๐ง๐ ๐๐จ๐ง๐ -๐๐๐ซ๐ฆ ๐๐ญ๐๐๐ข๐ฅ๐ข๐ญ๐ฒ
Our total operating revenue for the 2025/26 financial year is projected at R888 million, growing to R996 million by 2027/28. Revenue generated from property rates alone will amount to R173 million in 2025/26 and increase to R185 million by 2027/28โthis represents 7% of our operating revenue and remains a crucial funding source.
However, revenue alone is not enough. We must ensure that every cent is managed responsibly, spent transparently, and delivers value to our communities.
Our financial turnaround is not just about balancing the booksโitโs about restoring credibility, stability, and trust in the municipality.
๐ ๐๐๐ฅ๐ฅ ๐๐จ๐ซ ๐๐จ๐ฅ๐ฅ๐๐๐จ๐ซ๐๐ญ๐ข๐จ๐ง ๐๐ง๐ ๐ฉ๐ฎ๐๐ฅ๐ข๐ ๐ฉ๐๐ซ๐ญ๐ข๐๐ข๐ฉ๐๐ญ๐ข๐จ๐ง
No turnaround strategy can succeed without the active involvement of our community. Public participation is not a formalityโit is a necessity.
I urge all residents, businesses, and stakeholders to engage in the upcoming public participation process on this draft budget. Your voices matter, and your input will help shape the final budget that is adopted.
Collaboration will be the key to success. As we work towards a municipality that is financially stable and service-driven, we must do so togetherโwith accountability from leadership, participation from residents, and a shared vision for a better future.
Over the past 20 years the golden triangle of population size, municipal capacities, and the economy became distorted. In the 2025/2026 as well as the outer years we will redefine the municipal role in economic growth as to broaden our income basis and to escalate obtaining funding for service delivery. My office and I will keep you informed of this as we progress with the 2025/2026 and two outer financial years. What I am saying is that we will develop Theewaterskloof as a place that is conducive for economic growth.
In closing, this draft budget is not just a financial planโit is a statement of intent. It is a reaffirmation of our commitment to restoring this municipality, ensuring stability, and building a future where all residents can thrive. We are on the path to recovery. The work ahead will not be easy, but together, we will succeed.
I thank you.
๐๐ป๐ฑ๐
