BUDGET SPEECH OF THE EXECUTIVE MAYOR FOR THE 2026-2027 FINANCIAL YEAR

Click here to view the Mayor's Budget Speech Video

Fellow Councillors, Residents of our Municipality & Stakeholders and Partners in Development.

Today, 31 March 2026, we table the Draft Budget for the 2026/2027 financial year. This budget reflects our continued commitment to responsible governance, sustainable service delivery, and meaningful relief to our most vulnerable residents, while ensuring the long-term financial health of the municipality.

Financial Overview
The Draft Budget for 2026/2027 is credible, funded, and aligned with national norms and standards.

• Total Operating Revenue (including capital grants): R1.397 billion
• Total Operating Expenditure: R1.369 billion

Major income sources include service charges of R902 million and property rates of R164 million.

Bulk electricity purchases remained the highest at R654 million, followed by employee-related costs of R360 million.

Budget Principles
This Draft Budget is funded from realistically anticipated revenue, prioritises the provision of basic services, is sustainable over the medium to long term, does not budget for a deficit, and fully complies with mSCOA version 7.1.

Tariffs and Charges

• Property rates, water and sanitation: 3.7%
• Refuse removal: 8%
• Electricity: 9.01%
• Salaries: 4.75%
• General expenses and repairs & maintenance: 3.0%

Property Rates Relief and Rebates
Council has strengthened the property rates rebate framework to protect pensioners and vulnerable households. 

Pensioner Property Rates Rebates

• Monthly household income R0 – R7 050: 60% rebate
• Monthly household income R7 051 – R8 500: 50% rebate
• Monthly household income R8 501 – R10 000: 40% rebate

The property value rebate threshold has been increased from R80 000 to R100 000.

The indigent household income threshold has been increased from R4 700 to R7 050 per household, extending relief to more vulnerable families.

Credit Control and Debt Relief
The Credit Control and Debt Collection Policy was updated to include a Debt Management Solution aimed at addressing historical debt while encouraging payment compliance and improving the municipality’s financial position.

Capital Budget
The Draft Capital Budget for 2026/2027 amounts to R108 million, funded through R60 million from own revenue and R48 million from grants.

Priority projects include water infrastructure upgrades, road improvements, community facilities, and waste management infrastructure.

This budget is about people. It provides real relief to the elderly and vulnerable households while maintaining the municipality’s financial sustainability. We invite residents and stakeholders to participate in the public consultation process as we work together to build a fair, inclusive, and sustainable municipality.

I thank you.

Alderman Schalk van Eeden
Executive Mayor of Langeberg Municipality